There are many factors you will need to carefully consider when choosing your ideal business location. For example, you should look into foot traffic in the area, crime rates, and the local demographic. You will also need to consider your budget. If you have enough capital up front, you might want to consider purchasing your own location. However, for many starting businesses, it is better to lease a location.
Office Supplies and Equipment
The type of business you are opening will dictate which supplies and equipment you will need. However, there are many common purchases that will be helpful for most businesses. For example, you might want to look into buying customer relationship management software, which can make it easier for you to keep track of customer data and interactions. This can help you to boost customer retention and acquisition rates in the long run. Additionally, you might want to purchase a wireless office headset, which will make it more convenient for you to take business and customer calls.
Promotional Materials
Promotional materials are another purchase you will likely need to budget for. For example, you may want to purchase signage for your workplace, flyers, and business cards. Each of these items will help you to get the word out about your business and can help you to attract new consumers.
Digital Marketing and Advertising
You may also want to invest some of your capital into digital marketing and advertising by setting up a website, social media profiles, and online ads. Often, using digital marketing to your advantage can help you to save a lot of money in the long run because traditional advertising platforms, such as television and print, are typically far more expensive.
Overall, while starting a business and budgeting for all of the supplies you will need to purchase may seem overwhelming, becoming an entrepreneur will be worth it in the end because you will have a level of autonomy and will be able to make decisions that will lead your company to success. The aforementioned tips make an excellent starting point.
However, depending on what type of business you are starting, you will likely need to make a vast array of purchases. It can be helpful to make a detailed budget beforehand. This will help you to stay on track and will give you a better idea of what type of capital you will need to save and whether or not you will need investors or a loan.
Having a go-to market strategy ensures the success of your product each time.
The way you connect with your customers and how you gain their trust and loyalty all depends on your marketing team and the marketing strategy they use.
Having a reliable and effective marketing style can give your business the boost it needs every time you launch a product or service. Additionally, having a go-to strategy ensures the success of your product each time. At times you need to take approvals from the local authority to carry on your work, you need specialists like Michael Grayum to present your company in that situation.
Although building a go to market strategy can come with a few pitfalls if you’re not careful enough, it’s still essential and beneficial for your business. The trick is to be cautious with how you develop it and ensure that it’s bulletproof.
So, why is having a go-to market strategy essential? To give you further information, here are the top benefits that come with having a GTM:
Reduces costs
In anything you do with regards to your business, reducing costs is always a top priority. With a go-to market strategy, you can reduce marketing costs associated with failed product launches, as you already have a bulletproof and effective plan.
A study from Harvard Business Review showed that the majority of product launches fail because its marketing techniques are not effective. Thus, companies waste thousands of money each year.
When you have your go-to strategy, you’re sure that your products are not only great but will also have success in the market because you advertised it well. And you did so without wasting any money.
Reduces time and resources allotted to marketing
Sure, building a go to market strategy takes a lot of time that can maybe last for months. But when you finally find your perfect formula, it is worth it.
Imagine all the time you take creating a marketing strategy each time you release a product? Each project could take weeks to months to complete.
But when you take your time building a go-to strategy, you can implement this technique in all of your product releases without having to waste time or resources on new approaches that might not work for you.
Better ability to adapt to change
If you have a go-to market strategy, and you have done it a couple of times on your products or services, you already know this strategy by heart and how to execute it flawlessly.
Primarily, your knowledge and expertise with your market strategy will ensure that you will have a productive and successful launch. But aside from this, a go-to strategy also gives you the ability to adapt to change quickly.
For example, if a sudden change in your target demographic comes, you will know what to tweak in your strategy for it to work for that demographic.
A strong go-to market strategy can quickly adapt to any market in any given circumstance and maintain its effectivity.
Ensures growth and success
When you have a go-to market strategy that you know is effective and will work every time, then you’re guaranteed that your company and product is on its path to growth and success.
There is no need for you to waste your time thinking about whether your strategy will work or not. You do not have to worry if it will cost you too much because you know that it works, and it always will as long as you tweak it to your target consumers’ needs.
The bottom line is that having a GTM is an essential part of any successful business. So ensure that you take your time creating a great go-to strategy, and you take experts’ advice.
Lack of money doesn’t mean you can’t advertise, you need to find some inexpensive ways to advertise.
If you’re just starting out in business, then you know how difficult it can be to build up your list of clients. Chances are you probably don’t have a very big advertising budget, either. However, a lack of money doesn’t mean you can’t advertise. Instead, you need to find some inexpensive ways to advertise. Here’s a look at four of them.
Social Media
Business owners who understand who their ideal customer is can use social media to interact with these potential customers in a natural way. One simple way to do this is to utilize Twitter chats. Also, you can take help from professionals like Sarah Mae Ives Social Media, Inc.
For example, say you own an online specialty food store. One way to find potential customers is to participate in a foodie chat on Twitter. The people who are on the chat would be potential customers for you because many of them are foodies who like to try new things. You can chat with them, encourage them to follow you on social media and eventually, you may even turn them into customers. You can find a list of chats related to your business on Tweet Reports.
Paint on Your Car
Car paints can do more for your business than just give your vehicle a nice, shiny new color. Your car can become a traveling billboard for your business, especially if your business is primarily local. If you must drive around town a lot, then make sure that you paint information about your business on the exterior of your car. This information should include your business name, the phone and location if it’s relevant.
Email Newsletters
Do you know that nearly 90% of all marketers believe that email marketing is their most effective way to advertise? If you have an established email list, then make good use of it by sending out regular newsletters to your subscribers. You can advertise upcoming sales, offer industry advice or highlight a particular customer of yours.
For many business owners, business-related conventions can be the lifeblood of their new business. If you’re looking for a way to find people who would be interested in what you offer, conventions are the place to go. By their nature, they appeal to people who are involved in specific industries or who have specific hobbies.
In other words, if you sell comic books (for example), then you should go to ComicCon. The people who attend a convention like this tend to love comics. While you may not be in the comics industry, it’s likely that there are appropriate conventions for your industry. Setting up a trade show booth at one of these events pretty much guarantees that you’ll have a steady stream of potential new customers.
Every business needs a steady supply of customers to remain afloat. However, if you are a new business owner, then a steady supply of customers is probably something you don’t yet have. You may also be short on money, but that doesn’t have to stop you from advertising.
Using any one of the advertising methods in this post, either by itself or in tandem with another one on the list, can help you grow your business, even if you don’t have much money.
What are the best startups in India to join currently, and why?
Ever since our Honourable Prime Minister, Narendra Modi, talked about Skill India, the echoes of startup became more vivid and far spread, but what is a startup and how will it affect an individual? Before getting straight into the theory of startup, let’s understand entrepreneurship.
Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs.
Entrepreneurs invent startups. Startups are high-risk businesses featuring a product or service that’s aimed at fulfilling a specific need in the marketplace. Most of them are technology-oriented and focused on growth potential. Some pretty recognizable businesses began as startups, including Uber, Airbnb, Spotify, and Snapchat.
Startups are highly important in an economy as it promotes employment and also uplifts the living standards of the people.
Logistics business (especially in tier 2 and tier 3 cities ) with the growth of smartphones and the internet, demand for e-commerce is growing faster and companies like Snapdeal and Flipkart, etc. are having a hard time in delivering in those areas. Many players are coming up like Roadrunnr, Ekart, but still not good in those cities.
2. Database Marketing
With companies struggling to convert bulk emails into customers, it is high time that they adopt a system where they are able to target and segment customers and then send a personalized email. For example, I have to sell insurance, I would ideally want to write a first mail different to a retired person and different to a young working man. This is only possible via database marketing. A lot of startups have flourished in this domain in the USA but not a lot in India.
3. Recycling
People make billions from recycling. I still fail to understand why our nation has not been able to do much. The waste is gold and we waste it. All metals, newspapers can be easily recycled. All biodegradable substances can be used to produce rich manure or even biogas. Someone needs to stand here. It would be a great profit-making social entrepreneurship.
4. Exercise Notebooks
Exercise books are widely known & vastly used as day-to-day products. Notebooks are available in the market in various sizes, shapes & pages and having various types of covers paperbound, board and Rexene bound, etc.
5. Blood Bags
The blood bag is a disposable bio-medical device used for collection, storage, transportation and transfusion of human blood and blood components. The system consists of a single or multiple bags connecting with tubing, needle, needle cover, clamp This idea can hit into hospitals and other health organizations.
6. Readymade Garments (T-Shirt)
Readymade garments are a part of our daily life. Clothes are an epitome of culture. People in different parts of the world have their own styles of dressing which symbolize their culture and status. The Readymade garments industry is increasing day by day due to changes in fashion in day to day life.
7. Integrated unit RMC with Stone Crusher
Concrete is the most vital material in modern construction. It has versatile properties like easy mouldability, high compressive strength, and long-lasting durability. These properties of concrete have made it the most popular construction material for all types of civil engineering works.
8. Production of liquid soaps and detergent
Laundry detergent, or washing powder, is a type of detergent (cleaning agent) that is added for cleaning laundry. In common usage, “detergent” refers to mixtures of chemical compounds including Alkylbenzene sulfonates, which are similar to soap but are less affected by hard water and we all know that every household needs it.
9. Romantic Places
With a huge number of young people, dating is widespread in metropolitan cities. Now have a look around, and tell me how many romantic places you have been to with your GF/spouse? Rarely would you come up with a good answer? I hardly see Candlelight Restaurants in cities, no romantics gateways. Not a lot is being done for the “couples” market. Men usually have a tendency to splurge in front of their dates. Play outsmart here.
10. Namkeen (Bhujia, Chana Chur, Khatta Meetha)
Dal Moth, Chanachur, Bhujia and Khattameetha are the important names signifying flavor and taste as processed foods. These are food products having no historical background but have established popularity in the market over many years.
11. Tuition Centre
This is possibly one of the most cost-effective businesses to launch, due to its near-zero starting cost requirement. Most tuition-teachers take classes in their own homes, thus eliminating any expenditure on rent and supplies. The only effort you need to put in as a tuition teacher is to take to advertise yourself on social media or go the old school way with flyers and ‘word-of-mouth’ recommendations.
12. Breakfast Joint
You must have noticed how those little breakfast and tea stores across your city are almost always filled with customers. This is because food as a commodity will always do well in a competitive market. To open up your own breakfast joint, you need to invest money in renting a space for it, after having received a permit for it from the respective authorities. If your rent is within Rs 5000 a month, you can dedicate the rest of your budget on buying groceries and other raw materials as well as second-hand tables and chairs.
13. Fruit Juice Kiosk
Who doesn’t appreciate fresh fruit-juice on a sweltering day? To tap into this lucrative business, you have to start by requesting a permit to open a kiosk in a chosen locality, preferably one that is hard to miss. Following this, you will need to pay rent for shop-space. Other than this, the only other investment you need to put your money up for is for the purchase of the raw materials, supplies like machines for making the juice, and the salaries of the employee(s) making the juice.
15. Garment Tailor
In cities like Kolkata, Mumbai, and Delhi, the demand for good tailors has increased tenfold due to the increasing popularity of self-made designs. Other than a small rented space, you only need to invest in powerful sewing and stitching machines, and of course electricity.
16. E-Waste Recycling Plant
E-waste is a popular, informal name for electronic products nearing the end of their useful life. Computers, televisions, VCRs, stereos, copiers, and fax machines are common electronic products. While there is no generally accepted definition of e-waste, in most cases, e-waste comprises of relatively expensive and essentially durable products used for data processing, telecommunications or entertainment in private households and businesses.
17. Kraft paper from waste cartons
Paper is a major product of the forestry industry and is used widely in our society. Paper products are used not only in their obvious applications in the publishing industry and for writing on, but also in a variety of specialty papers, cardboards, brown papers, etc.
18. Papad Plant (Automatic)
These days the demand for papad is growing immensely. At present papads are in short supply in the market. It is estimated that demand for papads will keep on multiplying. Exports of papads from India to various countries over the world have been quite substantial.
19. Mobile recharge shop
Even with online recharge, in India, most mobile-users prefer visiting a recharge shop to fill their balance. So those looking to practice this business can start by renting a space in a small local shop. This rent will be the primary (monthly) expenditure. You also need to form ties with the network providers of the area, such as Airtel, Vodafone, Idea, etc, and pen down their commission rates, where they will receive a cut of your profits from the sale of the commodities taken from them. Assuming that you aren’t looking to rent out a shop-space in any expensive real-estate property, your overall costs will definitely feature below the Rs. 10,000 scale.
20. Cafe business
This is no mystery that Indians love some newly blended espresso and this enthusiasm for espresso has lead to an expansion in the cafe business in India. There has been a consistent increment in the interest for refreshments and the café or bistro design is quick turning into a mainstream decision for opening an eatery business in India. As indicated by TechSci Research report, the Coffee Shop business is required to see development at a CAGR of over 11% by 2021. This makes opening a café business very gainful whenever done right!
So these are the basic but the most profitable business ideas which can push India to the greatest heights. So take a little risk for a hugely positive outcome!
Restaurant owners face a lot of competition and need to get expert advice before going into business.
Restaurant owners face a lot of competition and need to get expert advice before going into business. Find out what restaurants have been around for years. Afterwards, try and talk to the owners about the business techniques they use. Here are some ideas on how to get around the challenges ahead.
Find the Capital
A restauranteur should have enough capital to fund the business for a year. A restaurant owner needs the business to stay afloat long enough to gain a regular clientele. Capital is necessary to lease a building and hire staff. In addition, money is expended for advertising, equipment, furnishings, and stocking the kitchen.
Management
Hire a seasoned manager to help with a new restaurant. An experienced manager knows what areas need attention. For example, keeping track of how many people are being served is important. Menu trends need to be followed and less popular offerings should be replaced. Inventory is crucial so the facility does not run out of key food items. Be able to recognize whether the business is profitable or losing money.
Location is Everything
Ever wonder why hotel restaurants have longevity? They’ve got a great location which delivers automatic customers. Weary travelers check in to the hotel every day. They’re hungry and will go to the closest place to eat. That place is the hotel restaurant. Indeed, a restaurant owner should search for areas with restaurants and shops. Ideally, stay away from existing restaurants that serve the same type of food as your business.
Don’t Forget the Menu
The importance of the menu is often overlooked. One has to think about the correct number of menu choices. Further, menu prices need to be fixed. One expert suggests keeping the menu short. The idea is that longer menus mean the owner has to buy more food to prepare. It’s better to concentrate on a shorter menu with dishes that are well-prepared. The menu should be on the restaurant’s website if carry-out is an option.
Hiring the Best Staff
Get tips from other restaurants about hiring the best staff. You’ll need to have some experienced staff members. Inexperienced staff may be to blame for poor customer service. These days, unhappy customers voice their opinions on social media. Keep a knowledgeable accountant on retainer. The accountant will make sure all employment laws are followed.
Marketing
Every new business should have a marketing strategy. There are some inexpensive ways to market a business in the technology age. A website and social media presence are absolutely necessary. Use social media to market special promotions and reward customers with a loyalty program.
Legal Issues
Get advice from an attorney about your liquor license and insurance needs. Restaurants that serve alcohol need to stay on top of the rules and regulations. Make sure customers are the legal age to buy alcohol. Remember, to ask for their identification. In most states, businesses with three or more employees are required to have workers compensation insurance. The bottom line is to protect the business from liability at all costs.
Owning a restaurant can be difficult but the rewards are amazing. People don’t open businesses if they don’t like challenges. Take the challenge and make your restaurant “the place to be seen” for years to come.
Before you see the first patient, here are four ways you can protect the company from the start.
Becoming a physician is a career you commit yourself to at a young age. It takes years to reach your goal of opening a private practice. Before you see the first patient, here are four ways you can protect the company from the start.
Connect with other local practitioners
Having a network of coworkers to support you and answer questions is invaluable. Someone you can bounce ideas off of when a tough case causes you to pause helps. You may even find resources like cleaning services, after-hours answering companies, and more through this network.
Register your license with the city
Every city will require a copy of your license. They use the information to track who practices and offers services in the community. By proactively registering early, you can avoid any delays for approval. This also means that when patients look up your name in the system, they’ll be able to see that you are vetted to legally practice in your location.
Find a lawsuit lawyer
Business News Daily tells readers to assemble a team of mentors or service providers. These people are experts in their area like accounting and investing. Every practitioner should choose a lawyer and put them on retainer. Having a legal expert to file a loan settlement for your case should someone sue you is one of the best ways to stay ahead of legal trouble.
Get financial aid for opening day expenses
There are tax incentives for doctors and medical professionals. Some states and cities offer tax breaks for doctors setting up shop in the community. If you can find an area where your expertise can fill a void, then there is an excellent chance there will be extra rewards for opening your practice.
Groups like the American Heart Association and other medical non-profits may offer advice or financial help. Doctors who are leaving a practice and medical supply companies with overstock may share or donate equipment. To start out on a budget, using free online software for billing, inventory, and ordering supplies will help you stick to your goals. To go for bold, opt for serving as a cash-only doctor at first.
Getting your practice off to the right start is going to take a lot of time, money, and patience. You can keep costs low and hire the right team of specialists to help you along the way for the best results. Always keep a lawyer close to ask legal questions since there are so many fine lines in the medical field. It is better to spend too much time preparing than to find yourself in alien waters.
Here are a few pieces of advice to provide your business with the necessary kickstart into the world of e-commerce.
It takes a lot of courage to follow your dreams, leave your full-time job, and start something on your own. It would be wonderful to believe that everything will be a smooth sail from that point on but as many new entrepreneurs know, this is rarely the case. However, this isn’t a call for you to get demoralized but to take control of your e-commerce business even before the launch to ensure the best possible start.
Having a solid foundation will help you build and adapt your business along the way instead of having to make major changes quickly which could leave serious consequences on your financial state. So, here are a few pieces of advice to provide your business with the necessary kickstart into the world of e-commerce.
Look into the competition
This piece of advice doesn’t have copying as an aim but instead, learning about your competition can show you useful pieces of information about bad practices and not just good. You also need to know what you are up against so as to focus your resources and capacities on the right cause. If a particular market is oversaturated and analyses show that it will remain so in the foreseeable future, perhaps you can opt for a niche product whose market offers more convenient conditions.
You can learn about their marketing strategies and use that knowledge to invest in paid ads or work on organic marketing more. By researching their website, you will be able to see about their return policies, shipping fees, and the level of transparency which are all vital data in terms of creating a competitive advantage for your small e-commerce business from the start.
Research the customers
Your prospective customers will be the consumers and judges of your products and services so you need to make sure their interests are satisfied. Even the most specialized niche products, such as a slick drill collar can find their customers online because instead of purchasing at their local poorly supplied dealerships at high prices, they will find exactly what they need in your online store and have it delivered safely to their business address.
To understand what moves your customers, you need to look into the age, gender, occupation, educational level, location and make assessments when it comes to creating the most efficient marketing strategy that will target just the right audience. With this way of thinking, you will minimize the bounce rate because people will not wander into your website but visit it purposefully. ’The bigger, the better’ is not always the best policy and in your case, it can even be discouraging to see a high bounce rate, so targeting the right audience is your best bet.
Tend to your website
The website and the e-commerce platform is where the magic happens. It is where those leads convert into sales and to make that happen, you need to ensure that many of the website aspects are up to par. For instance, if the website isn’t loading fast enough, you will have people leaving by the bunch without even taking a look at your offer. Also, if you are slow to answer their inquiries, you will see many abandoned carts.
The purchase page design has to be pristine because any glitch with the currency, price or irregular display of certain data can lead to customers becoming suspicious and leaving your website to find another offer that is more transparent. Even after you kickstart your e-commerce business, you need to always be on the lookout for the things that could be improved or replaced because don’t forget that success in the e-commerce business is not a spring but a marathon.
Leverage on social media
If you decided that your website will be the only place of purchase for your products, that doesn’t mean that it needs to be your brand’s only form or online presence. Social media platforms have a major influence on businesses nowadays because they allow for more direct collaboration with your customers and real-time contact, should you choose so. Different social media platforms host different audiences and offer different benefits so you need to research which would suit your customers and products best.
What’s important is that your customers can maneuver with ease to your website so it is necessary for the posts to have a link to your website. Also, it is useful to have the links to your social media profiles on your website because somebody who came straight to your online store might want to praise your product and services across different media and even become your brand ambassador. All in all, knowing what a powerful media social networks are, it would be a waste not to harness that power for your brand’s benefit.
Wrapping up
If you have an idea, some capital, and lots of enthusiasm, it is vital you prepare well before going into the world of e-commerce because no matter how specific your products might be, chances are that there is already someone with similar products on the market. Looking into your competition and your customers will teach you how to best market your products. Social media are another useful tool in this regard and they can be skillfully intertwined with your website to achieve maximum results.
If you are a business owner just starting to build your company, it is vital for you to work with your available resources in order to build as positive of a reputation as possible.
If you are a business owner just starting to build your company, it is vital for you to work with your available resources in order to build as positive of a reputation as possible. If you are not sure how to get started, consider some of these practices that can allow you to make a difference in your professional future.
Always Be Consistent
Keeping consistent with your approach and message can be invaluable in the long-term, especially if you are just beginning to develop your branding and service listings. Always keep your positive qualities at the forefront of your branding, and make sure that you are consistent in the level of quality that you provide. You want to establish a personality and reputation that your clients can begin to know and love, especially early on in your business.
Plan with Integrity
In addition to consistent, it is a good idea to have your finger on the pulse of your community. You want to show your clients that you are driven by a set of values and that you are not willing to compromise them. In such a way, sticking to your values can allow you to benefit from risky decisions, especially if you know that it is what your customers will want. Focus on your image in regards to their expectations and do your best to stand by that image.
Engage the Community
Never underestimate how important it is to start engaging your community as soon as possible. Whether you are working with a business SMS service provider or establishing your presence online through social media, it pays to keep up with your user base. Keep in touch through promotions as well, and try to get as much data information as you can to figure out what is working best with your approach.
Quote Other Experts
In addition to keeping up with your customer base, it is just as important for you to make meaningful relationships with other professionals in your industry. Not only does this set your brand up in the industry, it also allows you to look forward to collaborations and potential projects in the future regarding your products and services in the industry.
Any number of these considerations can be invaluable in your approach, but always try to work with your industry’s specifics in mind. It can be easy to customize your positive reputation when you start slow and have the products and services to back up your presence.
If you’re asking this, you probably run a sole proprietorship. Here’s how to compensate yourself.
Answering the question, how do small business owners pay themselves is vital if you have any designs on starting and running a profitable business. The temptation is to put all your money back into the business so it will become self-sustaining. But in the meantime, you have to eat!
In the following article, we’ll show you how to go about keeping your business operational while also giving yourself the needed capital to live on. Let’s begin!
How Do Small Business Owners Pay Themselves? They Start with Business Classification
There are different ways to classify your business. Three, in particular:
• Sole proprietorship: Where the business and the owner are one and the same, and income is reported as such.
• Partnership: Two or more individual business owners or entities join forces to move toward a common goal but maintain autonomy in their overall business. Sole proprietors can form partnerships but they would continue to pay themselves as sole proprietors.
• Corporation: corporations are a group of business entities that function as a single entity by law.
Payment-wise, the corporation makes payment to the individuals through salary and benefits.
Because more than 70 percent of all small businesses are sole proprietorships, the remainder of this article will focus on how to pay yourself as a sole proprietor. Let’s continue!
1. Calculate All Forms of Revenue
When calculating your sole proprietorship payroll, you need to bring together all forms of revenue, from products sold to services rendered. (Don’t worry. Not all of this information will be taxable.)
2. Add Up Your Expenses
You won’t know your true sole proprietor salary until you’ve taken the time to calculate expenses. In the beginning, list out every expense from what it takes to run your business to how much you pay for groceries each month. (Don’t get excited; groceries aren’t usually deductible.)
3. Separate Personal from Business
You’re closer to learning your full sole proprietorship income, but you still have one very important step to take. That’s separating the personal expenses from the business expenses.
You may wish to secure the help of an accountant for this part. They can help you decipher the clear business expenses from the personal, and they can figure out the options you have for any gray areas.
Sample gray area: you need the Internet for work but also use it for recreation. How you handle that will ultimately affect your taxable income.
4. Make the Payment
A self-employed salary consists of your revenues minus your business expenses. From there, you can determine the amount of taxes that you pay which will depend on your overall income bracket.
As a sole proprietor, the profits of your business are income. That’s what you’ll list as your salary. And that’s what local, state, and federal entities will acknowledge when calculating what you owe.
Logistically, you’ll pay yourself from whichever account the money goes to. Remember: you and the company is one and the same.
5. Find a Way to Track It
Paystubs are among the best tools for tracking what you’ve made, how much you’ve paid in taxes, and what your benefits are costing you. Finding a way to simplify this process is vital.
It helps you know where you are at all times financially and this leads to avoiding large tax bills each April 15. Click here for more information on how to simplify the administrative process.
And That Is How You Do It
So if the question of how do small business owners pay themselves has kept you from starting a business, you now know the answers. Don’t let it intimidate you.
This is something you can do. And while you’re here, check out more of our entrepreneurial tips and advice to help you along. Best of luck on your journey!
If this saying reminded you of your company’s accounts first, then you might be looking at the picture from a wrong angle. Stick with us till the end of the article to find out why.
Often, the financial woes of the business are intricately linked to the personal monetary problems of the entrepreneur himself. For an entrepreneur, managing his personal monies well is half the battle won when it comes to managing his venture’s finances.
As someone whose expertise lies in personal finances and runs her own startup, here is my experience and learning condensed into 5 points to keep your money situation afloat if you’re starting a business.
Should we bootstrap the company or seek funding?
This is a crucial decision as it decides your company’s future cash flows. Those who bootstrap their companies witness all or most of their savings getting invested in the company. Entrepreneurs who get funded generally are able to draw out some salary from the company. But that does not necessarily make one preferred over another. While the decision to bootstrap vs funding depends on a lot of strategic factors, discussing the eventualities with the right financial planners may help you manage your personal finances better and mitigate risk over at this website.
Track your money!
You need to stay on top of your cash flow. Keep a tab on each Rupee, from where it is coming to where it is going. Once you kick start your business, you will tend to get too occupied with what the business demands. This leads to putting your own finances on the back bench. Monitoring your personal finances regularly will help you to analyze and discover ways in which you can strike a balance between your personal finances and your company finances.
Build an emergency fund
If you’re starting a business, starting without a personal emergency fund is a bad idea.
Aptly, an emergency fund should cover about 3 to 6 months of emergency expenses. You can create this fund using your current savings. This should never be invested in your business. During lean periods in your business, your friends and family may or may not be around but you can at least turn to this fund. (Unless you exhausted it which brings me to my next point).
Ensure this fund is replenished at regular intervals. Running out of it might not be such a safe idea as the unlikeliest things hit you at the unlikeliest times in a business.
Maintain financial stability
Draw a line in the sand so that you do not mix your personal finances with your business finances. Keep your personal and corporate accounts separate. This will not only allow you to save up for the future but shield you from corporate liabilities and debts.
Define a clear-cut role that you would play in the life of your business and pay yourself accordingly. Create a good financial plan for yourself. Doing this may be very tricky but you can always consult a financial planner or advisor. Many entrepreneurs are ignorant of their personal finances in this context and this usually ends up to be the ultimate reason why they go broke unexpectedly. Maintaining financial stability will protect you from liability and severe tax burden, as well as generate lucrative business leads.
Write down your financial and personal goals
Irrespective of whether your business does well or takes a longer time to get established, your life goals do not change their goal-post. If you are married with a child, you still need to plan for your child’s education. And have liquidity for those sudden medical expenses. It is therefore important that your personal goals have a Plan B in case things do not work out in your venture.
There you have it- 5 golden tips from the experts. With your personal finances organized and under control, your chances of business success will be even higher.
A successful business is all about striking a balance with your finances. Be smart, be frugal, and put your money into avenues which will lead you to the pastures green with success.
About the author:
Shruti Agrawal is passionate about helping individuals take better financial decisions and determined about embarking women on the journey towards financial independence. She pursued her bachelor’s degree from ST. Xavier’s, Kolkata in 2009 and went on to pursue an MBA in finance from the MDI, Gurgaon. She completed her CFA from the CFA Institute, USA alongside her MBA. With over 7 years of corporate experience across Strategy and Finance, Shruti found her calling in helping people get their heads around the right use for their money. At CAGRfunds, she is the brain behind the online platform and client relationship.
If you are going to start a new business, then there are lots of things that you should always keep in mind.
If you are going to start a new business, then there are lots of things that you should always keep in mind. Starting a new business is not a piece of cake, so it is important to pay equal attention to several factors. You should decide your business goals, and then you can achieve them with the help of making a good plan. You should take every step very carefully before going to establish a new business. It is really important to manage finance and many other aspects related to business.
With the help of paying proper attention to your plans, you can get success in establishing a business. Starting a new business is all about the right planning because many uneducated people are also running their businesses smoothly. First of all, you should decide whether you want to establish a small or large scale business. After this, you can take your next steps accordingly and get the desired success. Many people are still confused about how to start a new business. If you are also one of them, then you should follow some important tips that have been shared by experts.
To start a new business, you need to manage a lot of tasks at the same time. You need to make a good plan, and it is also important to follow it properly. There are many other things that you should do like evaluating the business idea, choosing the name of the company, etc. most of the people want to build an online presence of their brands and businesses. In this situation, it is also essential to design a quality website that will guide the customers for 24×7 and help them to know more about your business.
Prepare yourself
To make your business dreams a reality, you should make a lot of efforts. Well, it is not as simple as you think so you should pay proper attention to it. First of all, all you need to do is to complete the basic work and try to prepare yourself to move forward. While preparing yourself to start a business, you should analyze your business idea, and you can also consider the business idea of your competitors to get an idea. You should also check the type of products and services that are more in demand these days. After doing this, you can take your next steps with ease for your startup.
Try to understand your customers
Before going to start a new business, you should know about your customers. With the help of considering the needs and requirements of your customers, you can provide them better services. It will also make a good impact on sales as well as the profitability of your business. All you need to do is to build stronger relationships with your customers. By doing this, you can attract them to come back. When it comes to an understanding of your customers, you should analyze their needs and do the market research properly.
Make a business plan
With the help of knowing the needs of customers and getting some more information, the next thing you should do is to create a business plan. Many people are taking it lightly, which is not good. Everyone should pay proper attention while building a business plan. They should make the right use of time and other resources to create the best business plan. With the help of an effective plan, you can make complete the other steps with ease. With the help of a good plan, you can easily get success in achieving your objectives.
Business structure
After making a business plan, you should follow it and take the other steps very carefully. Before starting a business, it is essential to choose the right business structure. Well, there are mainly four business structures present to choose from, such as sole trader, partnership, trust, and a company. You should understand the various types of business structures, and then you can choose the right one for your business; you should make your choices wisely after doing the proper research about these various options.
Register the business name
The name of the business always plays an important role, so you should always choose it wisely to run your business smoothly. With the help of choosing the best name for your business, you can easily introduce it in front of your customers and the people from all around the world. After the selection of the right business name, the next step you should take it is to register it. If you are a sole trader or have a partnership firm, then it is up to you that you want to register your company name or not.
Registration and license
With the help of getting certificates and license regarding your business, you can achieve your goals much faster. Most of the people prefer to hire licensed and registered companies to avail quality services. There are various types of permits as well as certificates that you should get according to the type of business that you want to operate. With the help of getting registered or licensed, you can improve your chances of getting success in the future.
Business finance
After completing all the steps before starting your new business, one more thing you should do is to manage the finance. You should check out the various finance options available for you, and then you can pick the best one to get started. Most of the people always face various finance issues while starting a new business. To get rid of all these finance issues, you should visit libertylending.com or other similar websites. With the help of managing your business finance, you can operate your business smoothly.
Wrap it up
It is not easy to run a business in the competitive market, but you can make it possible with the help of right planning and other efforts. You should always follow the important tips carefully to achieve your business goals.
There are many successful entrepreneurs, with ages ranging from 30s to 60s, shows that the success of a business is not directly related to the age of its founder.
It seems that it is often young entrepreneurs who make the headlines and receive most of the recognition for their accomplishments. Think of Mark Zuckerberg (Facebook), Matt Mullenweg (WordPress) and Pete Cashmore (Mashable) — all in their early 20s, and high up on the list of successful entrepreneurs. But the age of the founder is not the primary factor that determines whether a business will be successful or not.
There are many successful entrepreneurs, with ages ranging from 30s to 60s, shows that the success of a business is not directly related to the age of its founder.
In fact, there is an argument that those who start businesses later in life have a better chance of reaching success. Studies have shown that if you’re over 55 years old, you are twice as likely as your counterparts who are under 30 to launch a high-growth start-up. Not convinced? Here are 10 reasons you would make a better entrepreneur now than you would have when you were younger.
1. You have life experience
The most obvious and undeniable benefit of starting a business later in life is the fact that you now have years of life experience to pull from in your new venture. You are seasoned in the ways of the world, and you have a level of business acumen that you didn’t have in your 20s. You are more patient and willing to take each step in the business start-up process one-by-one in order to give your business the best chance it has at success.
While you may not have hands-on experience in every segment of the start-up process, it is very likely that you understand the importance of things like having a business plan, creating a solid financial plan and conducting thorough market research. And you know who you need to help you with the pieces you can’t do yourself.
2. You know more people (and they know people who know people)
At this stage of your life, you have likely built a large and diverse network of peers and colleagues. And because a new business often requires a village to thrive, your connections will be invaluable as you get started. Think about all the experts you have met in your life that could share their advice or provide services to help you in your new venture — attorneys, accountants, marketers, venture capitalists, financial planners, real estate agents, contractors, designers, and writers. This depth of a thriving network often takes years to build, so age is certainly an asset in this situation.
Having experience in the business world, you also understand the importance of networking and can ask for introductions when needed to move projects forward. This can often expand your network by double or even triple, giving you all the resources you need to get started.
3. You know how to set and achieve goals
Goal setting is an integral part of starting and running a business, and is necessary on a consistent basis during the life of the business. In our younger years, we don’t always understand the power of smart goal-setting for getting from one place in life to another.
As a seasoned goal-setter, the process of outlining a desired outcome, as well as the actions you will take to make that outcome a reality, will come as second nature. Your life experience will also help you remain objective as you consider different paths you can take to reach your goals so you can move forward in a more efficient, cost-effective and productive way.
4. You may have an advantage with investors
While young entrepreneurs are often favoured by investors because it can be easier for them to get a bigger ownership stake and have more control in the business, it can be argued that older entrepreneurs offer better chances of success because of what they bring to the table.
Many venture capitalists are looking for older, seasoned and experienced entrepreneurs who have “been there, done that.” The best investors are opportunistic, and by backing older and wiser entrepreneurs who have already made mistakes, they are able to make smarter investments.
5. You know what you’re passionate about
Many young entrepreneurs know they want to start a business of some kind, but they may not know exactly how they want to do it. This is because they haven’t had enough time to develop an idea of what they are truly passionate about. Richard Branson says that “Passion is one of the most effective motivators when it comes to launching a business — and often one of the strongest predictors of whether an idea will lead to success.” Without passion for your work, it’s very likely your business idea will fizzle out at some point. Older entrepreneurs know what they enjoy doing — and what they don’t — and can tailor a new business to fit that.
6. You have knowledge that is valued in today’s economy
7. You are financially secure
Starting a business when you’re young means you will probably be juggling the cost of business ownership along with the rest of life’s major investments many of us face: mortgage payments, children’s expenses (childcare, education, sports, vacations), healthcare, insurance, automobile payments, student loan repayment and retirement savings. While the expenses never really go away, the older you get, the more likely you are to have paid off a significant percentage of the big stuff. This frees up cash to invest in your business. Plus, having less financial responsibilities makes the idea of starting a business less risky since theoretically you will have a lot less to lose if things don’t work out.
8. You have a lot of start-up options
When you’re young, you have limited experience, a limited network and limited capital, so your start-up options are often limited as well — usually a bootstrapped start-up is the only way to go unless you can secure the ever-elusive financial backer. As a financially secure, seasoned professional, you have more options when it comes to your path to entrepreneurship. Sure, you can start a new business from the ground, but that is not the only option on the table. You can buy into a franchise, leveraging the power of an already successful brand and making it your own legacy. You can also form a partnership with a fellow entrepreneur and split the costs, workload and profits. Or, you can become an investor yourself, moving to the other side of the table by providing capital for someone else’s business idea. In return you get a percentage of the business, leaving the “in the trenches” work for them to handle.
9. You’ve failed before
Failure is a part of life, and the older we get the more failures we have on our tally. Whether you have two big failures on your list or 22, they are a huge benefit for two main reasons. First, the most valuable part of each failure is the lessons you learned in the process. Each failure taught you the importance of being prepared, hard work and why you need a contingency plan. Second, your fear of failure is probably a lot less significant now than it was in your youth. Since being afraid to fail can result in an inability to make a decision, lack of confidence and inaction, having less to fear can be a powerful reason why older entrepreneurs have an easier start.
10. You are self-confident
You know all of these failures we just talked about? In addition to valuable lessons learned, these failures also create one more big benefit as soon as you are able to rebound — they boost your self-confidence and motivate you to do better. Many young entrepreneurs have high self-esteem and a certain level of confidence naturally, but much of that comes from pure optimism that their business idea will turn into a hit. Optimism is definitely needed when starting a business, but when you take that optimism and add in confidence that comes with a track record of proven success, it’s unbeatable. As a seasoned professional, you have already experienced both wins and defeats, and have emerged with a powerful confidence that will allow you to take the challenges of business ownership in stride and come out ahead.
So if you are getting older and feel like your chance at entrepreneurship is fading away a little bit every year, think again. Now just may be the perfect time to take the plunge and start a small business.
Regardless of how well you run a startup, businesses that provide a product or service that nobody wishes to purchase will be unsuccessful.
The business world is booming, and an increasing number of people are going into business for themselves. While we often hear about startups that become massive successes seemingly overnight, the average startup business remains owned and operated by very few people. Beginning a startup is incredibly difficult but can be a rewarding experience over time. The ultimate success of a startup business almost always relies on the product or service being sold, and the business model behind it. Regardless of how well you run a startup, businesses that provide a product or service that nobody wishes to purchase will be unsuccessful. So, what are the top ten business startup ideas for 2019?
Dog Walking
More people than ever are working either long hours or multiple jobs which means their pets are often home alone for long stretches of time. To make sure their pets get the proper exercise throughout the day, pet owners are seeking the services of a professional dog walking business. These businesses are in charge of taking the animals out on a walk, cleaning up after them and feeding them if necessary. Dog walking businesses often grow through word of mouth between fellow pet owners so if you get the opportunity to walk someone’s pets, ensure that you do everything in your power to do a great job with the hopes of this client spreading the word.
An energy efficiency auditor is someone who will come into someone’s home and make suggestions about potential upgrades that could be done to improve the energy efficiency of the home in order to save a client money. The auditor will sometimes also quote the homeowner on the cost to have all of these upgrades completed if the homeowner does not feel they can undertake these upgrades themselves. With a growing interest in sustainability, this type of startup is currently flourishing.
Web Designer
Brick and mortar businesses are increasingly moving a portion of their business online. Consumers have a growing demand to order something from an online business and have it delivered to their doorstep just a few short days later. In order to attract consumers to online businesses, web design must be at the forefront of every online storefront. Web designers seek to make these websites as appealing as possible and business owners will pay a premium for their services. Web designers can include things like animations from animatedvideo.com which will add a unique animation to make the website truly stand out from the competition.
Search engine optimization (SEO) is the process of organically driving more internet traffic to a particular website by properly including more frequently searched terms in the content. This is a very time-consuming process that requires the constant care of a full-time employee or service. This is large because the algorithms that search engines use to rank web pages are constantly changing. This means that although your page may be one of the top ranked websites today, it may not be a top-ranked website tomorrow. These web page rankings can largely influence the amount of traffic to a website which in turn can support sales growth. There are thousands of online businesses who could stand to benefit from an SEO specialist making it the perfect online startup company.
Landscaping Services
Many homeowners dread the idea of using some of their free time in the evenings or on weekends to do yard work. This has led these same homeowners to hire small landscaping companies to cover the upkeep of their yards. Landscaping may require an initial investment in acquiring all of the necessary equipment like a lawn mower or electric garden blower, but as long as you take the time to maintain the equipment, they can continue to be useful tools for years to come.
Online Tutor
In the age of the internet and high-speed connections that support the use of webcams, online tutoring has become one of the most popular startup business models. Thousands of people all over the world will pay to receive English lessons online. This could turn into a full-time startup business if enough regular tutoring clients are brought on board. A demand could be out there for tutoring in a variety of subjects, someone just needs to find them.
The idea of a monthly subscription service is very interesting for potential startups. This is because monthly subscription services can include a variety of products. The key to this type of startup is to find something that a large audience will enjoy, and then make sure there are enough variations of that product to send out a new one every month. This can include things like coffee, fashion accessories or shoes. This way, your clients can excitedly await their new package every single month.
Cleaning Services
An improving trend with today’s workforce is valuing time over possessions. This means that consumers are more willing to spend their money on services that save them time which can better be spent with friends and families. Cleaning services are a great way to save time and ensure that your home is always in tip top shape. Beginning a cleaning service involves developing a client base of customers who wish to pay for this service. When a startup cleaning business does an incredible job on a home, the client is more likely to both hire the service again as well as tell their friends and family to hire the startup company as well.
The fitness industry is growing each and every year. To ensure that gym-goers are performing the proper exercises to meet their fitness goals and doing them safely, the services of personal trainers are in high demand. Personal trainers can even start their own business that includes everything from workout plans to diet plans to improve the health of clients.
Food Prep Services
Continuing with the theme of valuing time over money, more and more consumers are willing to hire a food preparation service. This opens the door for a perfect startup opportunity. New businesses are popping up left and right to provide food preparation services. Food preparation involves things like acquiring ingredients, chopping vegetables, and assembling casseroles which will save clients hours of time throughout the week in the kitchen. A startup like this is best served by someone with experience in the culinary field.
No matter what startup business you decide to begin in 2019, it should be noted that there is tons of hard work ahead of you. No startup, regardless of how great an idea or business model may be, will be successful without hard work and determination.
We asked 14 young entrepreneurs what the one thing no one told them.
We all have ideas about how starting a company will be. You’ve heard about the hardships, are aware of the perks, and are ready to tackle the challenges.
Like anything, though, there’s always going to be things you won’t know until you get your feet wet.
But what if we could get an inside glimpse? To learn the less-common things to be prepared for, we asked 14 young entrepreneurs what the one thing no one told them – the thing they wished they’d known – was when they started. Here’s what they had to say.]
1. There Are Incredible Highs And Lows
Running a startup is truly like riding a roller coaster that doesn’t stop. I’ve had some of the highest highs and the happiest moments I could remember while running my business. But it also comes with some of the lowest lows, and I’ve endured many sleepless nights. Rarely are there any feelings in between, but I think it’s important to celebrate even the smallest of victories.-Ross Cohen, BeenVerified
2. Networks Are Critical
I started off as a solopreneur with a small freelancing gig. For the first six months, things were very slow. However, when I joined my first official mastermind networking group, the business took off immediately. Surrounding yourself with the right people from the start (ideal clients, business mentors) will help you tremendously both when you’re starting up and down the road. -Patrick Conley, Automation Heroes
I wish someone had told me to be prepared for the feeling of isolation at times as an entrepreneur. On a daily basis as an entrepreneur I am faced with new challenges, many of which I must tackle alone. I have since brought in others to assist in building the business. Knowing that you are going down the path together definitely brings a feeling of camaraderie to the company. -David Schwartz, EMMDeavor (DBA Qruber) and Wireless Watchdogs
4. Mentors Are Necessary
Having someone who has walked the path as an entrepreneur is vital. You can gain wisdom from your mentor’s experience and discover insights that you would never have had before. I’ve missed out on so many opportunities to build my ideas because I didn’t have someone to shine a light in the right direction. Having a mentor is imperative. -Rob Fulton, Matikis
You have a big dream and you know exactly how you are going to get there—until it all changes. It’s great to have a business plan and a strategy, but I wish I had known that it is totally OK if you have to change directions. In fact, that’s good business!-Vanessa Van Edwards, Science of People
6. There’s No 4-Hour Work Week
Don’t get me wrong – I love that book. But no one ever told me that I would be trading my 50-hour work week for a 100+ hour work week when I first started my company. The one piece of advice I would give new entrepreneurs is to plan on investing all of your time and then some if you plan on being successful. It’s worth it in the long run! —Roger Bryan, Enfusen Digital Marketing
No one told me just how opinionated others would be about my business. People will come out of the woodwork with what they believe to be sage advice, when they’ve never even been in my shoes. People who have had corporate jobs all their lives will tell you exactly what you should be doing to run your business. Just nod and smile. -Maren Hogan, Red Branch Media
8. Early Success Is Temporary Luck
When you start a new business and achieve some early success, you need to be disciplined to always keep your ego in check and keep your starting vision in mind. I learned this lesson the hard way when I divided my team’s focus early on in favour of building an unproven product. Avoid the same mistake by staying focused. The best entrepreneurs are paranoid and never believe their own press.-Matthew Ackerson, Petovera
When starting up, I bootstrapped in every sense of the word. While this enabled me to propel my company forward, it was the hours of consulting and advising from industry experts that truly helped me make positive, long-lasting business decisions that continue to have a strong impact on my company and its success today. -Zach Cutler, Cutler Group
10. Starting Up Is Unpredictable
Oftentimes people compare their expected entrepreneurial journey to what they hear or read about from others who’ve succeeded, and assume their experience will be similar. Or, they write a business plan and anticipate it will go according to that plan. Rarely do people let you in on the secret that your plan will not be the way it looks—it will be a meandering path, not a straight one.-Darrah Brustein, Network Under 40 / Finance Whiz Kids
Partnerships can be challenging, but they can also be rewarding. If you are really going after a game-changing concept or something big, odds are a partner is a good thing. They can help carry the workload and keep the vision or dream going when things get tough.-Matt Ames, MN Pro Paintball
12. Learning From Other Entrepreneurs Is Invaluable
One of the most impactful ways that I was able to grow and succeed as an entrepreneur was by connecting to and learning from other entrepreneurs. Nobody ever told me this or mentioned this to me. Immediately connecting to other people who have been there is crucial for your success. Learning from others’ successes and failures will accelerate your growth process.-Matt Shoup, MattShoup.com
I have seen many early entrepreneurs get excited when they think they have a billion-dollar idea. We feel that just because we thought of it, we own it. Here is the bad news: Chances are that multiple people have tried most of these ideas in some shape or form. In most cases, it’s your team and your execution that will differentiate you rather than the idea itself.-Karan Chaudhry, DropThought
14. Family Comes First
Family should always come first. You’re going to take big risks and risk almost everything, but I recommend that you never risk losing your family for your entrepreneurial adventure. It’s really not worth losing what’s most important in your life.-John Rampton, Adogy
The world is full of two types of people; doers and talkers. Doers do. Talkers make excuses. If you have thought seriously about starting your own business but keep putting it off, this article will help you stop “talking” and get “doing”.
Below are five common reasons why people put off starting a business — and the information you need so you can move past these excuses and get on with achieving your dream and starting your own business.
Excuse 1: I’m Stumped For An Idea
I used to find this excuse for not starting your own business jaw-dropping when I heard it because business ideas are all around you and it’s not that hard to recognize business opportunities with a little practice.
And there are now reams of business idea lists available. Browse through the possibilities and you’re sure to find ideas that interest you.
But I’ve discovered that when people say this, what they actually mean is that they don’t know how to pick out a good business idea and they’re worried about pouring their time and money into a bad one. If this is your true excuse for not starting your own business, I have two words for you: business plan.
Many people assume that the main reason for writing a business plan is to try to get funding, whether applying for a small business loan or trying to persuade investors to invest.
But it’s not. The main reason for writing a business plan is to test the feasibility of your business idea.
“the business plan is your safety net; writing a business plan can save you a great deal of time and money if working through the business plan reveals that your business idea is untenable. Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage, freeing you to move on to a new (and better) idea.”
So stop fretting about whether or not a business idea is a good one. Pick one that appeals to you and use the business plan to find out whether or not it’s a good business idea.
Excuse 2: I Can’t Decide Whether To Buy An Existing Business Or Starting My Own Business
Cut the Gordian knot of this dilemma by doing a little self-examination — and examining the competition.
First, about you. Running a small business is a lifestyle as well as a way of making money. So you have to spend some time thinking about what kind of person you are and what you’re prepared to do and won’t do.
For instance, think you’d like to start a bakery? Are you willing to get up every morning at 3 a.m. and get baking? Because if you’re not, this is not the small business for you.
Think you’d like to start your own business by buying a franchise? Franchises can be lucrative but franchisees typically get to make almost no decisions about the operation of the business and have to follow a lot of rules — which might defeat the whole purpose of starting your own business.
Second, about the competition. One of the biggest mistakes people who start businesses make is just doing what they want to do. In other words, just starting a business of some kind “because they’ve always wanted to do it” without bothering to do even the most basic market research.
Starting a doughnut shop next to a Tim Horton’s, for instance. Or opening a computer sales and services store when there’s already four of them in an area with 50,000 people.
Unfortunately, I could go on and on. But those small businesses don’t. So whatever your idea for starting your own business, start with a competitive analysis to find out what your real choices are. Then, if you really really want to start a computer business or a doughnut shop and you don’t want to move and the market is saturated, your only reasonable choice is to buy an existing business or not do it.
Excuse 3: I Need To Do Some (More) Research
Research is good. In fact, a large part of writing a business plan is doing research.
And doing market research and keeping up with what the competition is doing are activities you’ll keep doing throughout the life of your business.
But when it comes to starting your own business, there comes a point when the research you’re doing isn’t advancing your knowledge; it’s just comforting you, providing you with the illusion that you’re working towards the goal of starting your own business when really all you’re doing is putting it off.
Repeat after me; “I can’t know everything.” No matter how much research you do, you will never be able to examine every variable and eliminate all the risk of starting your own business. At some point, having done your due diligence, you will have to step off the edge in the dark and discover for yourself whether it’s a cliff or just a little curb.
Excuse 4: I Don’t Have the Money
Okay. But that doesn’t mean you can’t get the money to start a business from someone else. While it’s true that the main source of money for starting a business is owners’ own money, there are a great many sources of fundraising and Small Business Loans available in this country.
Excuse 5: I Just Keep Putting It Off
The thing about procrastination is that it’s often a symptom of some underlying problem.
One of the main reasons people procrastinate is feeling overwhelmed, a perfectly logical feeling when it comes to starting your own business. Starting a business is a big thing and no matter what kind of business you start, there are all kinds of details that need to be thought about and attended to.
The trick to stopping feeling overwhelmed by a big task is to make it manageable by breaking it into smaller tasks. So think of starting your own business as a series of steps, not as one huge thing that you have to do.
Another common reason that people procrastinate is fear. I think this paralyzing, I-just-can’t-force-myself-to-do-it fear is especially common with life-changing events such as starting a business. And unfortunately, it doesn’t matter that you really, really want to do it; you’re still fearful.
Browse, read, and then, as the Nike slogan has it, ‘Just Do It’. Starting your own business can be one of the most rewarding things you ever do, and if you want to do it, now’s the time.
Author: Susan Ward Susan Ward is a business writer and experienced business person; she and her partner run Cypress Technologies, an IT consulting business, providing services such as software and database development.
She has also run her own business as a computer/software instructor.
Susan has been in business and writing about business since the late 1990’s. Her work has been published on a variety of websites, in magazines, and used as teaching guides by various school districts. A trained workshop and course presenter, Susan has designed and presented courses ranging from software training through website promotion.
Susan has won a Small Business Influencer Award in 2011, 2012, 2013 and 2014.
Susan holds a B.Ed. (Secondary) and a M.Ed. from the University of British Columbia and taught Business Education and English for years. She is a member of various business-related organizations.
To give the best chance of surviving the incubation period we have compiled 10 things to research before you start your own startup.
The fact is that many startup die in the first three years and some of them die by the wayside in the first six months. It is not because their idea was not good enough but there were things that were not considered beforehand. To give the best chance of surviving the incubation period we have compiled 10 things to research before you start your own startup.
Registering your company
The way you register your startup is very important as it will define the legal and financial status of your startup. In India there are 5 types of company that could be registered.
Sole Partnership
Partnership Company
One Person Company
Limited liability Partnership
Private Limited Company
There are both pros and cons to in the registration of the company. Go what will suit your business in the long run.
Research the competition well in the market, study your competitors, how they are doing their business. The product you are planning to launch might already be in the market but you could always sell your product with a difference. Even a small change in the packaging could attract buyers. If your startup is service oriented then how your service is going to make a difference in the life of others. Entrepreneurship is not about winning but rather it’s about making a difference. Even though there will be big giants in your competition, however there will be people who are left out the service and that is your chance.
If you know your customers then you know what to do. Appealing to everyone appeals to no one. When you funnel your target audience then you can design and style everything around it, from the packaging of your product to marketing campaigns, it will be easy to design everything. Connect with your audience, involve them in the business, send questionnaires, and reach out through social media. Involving clients will breed loyalty. There words for you to others will bring in more clients.
How will you survive during the incubation of your startup? This question has to be answered. You might have best intentions of putting profits straight back into the business, but the fact is, you have to going to eat, drink and put a roof over your head. Plan ahead to how much you are going to pay yourself, cut back on luxuries till there the business rises to certain level.
Brainstorm on your business name, the brand identity that you are going to develop, should also have an available web domain name. It is the first thing that your customers will see will know you by the name. Consider things like what your name need to say about your business.
Every successful business is based upon marketing planning. You are just starting off so no need to plan a big marketing campaign. Start with increasing a small network with social media like Facebook and Twitter. Start a blog, host guest meetings, and reach out to suppliers, fellow retailers, and local business organizations. Be as creative as possible but don’t be a loud mouth. Sometimes exaggerating about product could hamper its image.
Look for funding
In an ideal situation you would have enough money to self fund your startup, but for the majority of us that would not an option. First try and ask from family and friends before applying for bank loans. Bank loans charge hefty interests, so keep it as your last option. Another way to is to start with a small amount, grow your business into something and get back to others, showing them that your business works.
Build upon the USP (Unique selling preposition) of your product and service. This could decide your fate as an entrepreneur. Without a USP you will not survive the market. Why people will come to you as they have other options available. Unless and until you are offering something others are not providing. Again remember how your service or product will make a difference in others life. The best USP takes a unique quality and explain how that quality will benefit your customer.
There are host of legal obligations you need to consider and its best to get at least one session of legal advice. Pre check with local authorities if there is a need to procure a special license before you head with your venture. If your service requires a legal agreement with you and your client then prepare a document that protects the rights for both parties. Dealing with it later may end your business in a graveyard.
Timing is everything, don’t rush into things and quit your day job. You could use that salary in the short term. Start piecing your business together after office hours and only make that leap when your business could sustain you and cooked enough that you could give it full-time attention.
An entrepreneur needs to be a great leader to motivate his team and make them work as a single entity towards a common goal
In the past we’ve come across some great leader all budding entrepreneurs could learn valuable lessons from. Leaders like Mahatma Gandhi were able to mobilise the population of a whole country and made them unite against a common enemy, the British. The movement penetrated down to the peasants who revolted against the British malpractices and in the end, India gained independence.
In the entrepreneurial world, we’ve seen various great leaders such as Bill Gates, Mark Zuckerberg, Binny and Sachin Bansal etc. An entrepreneur needs to be a great leader to motivate his team and make them work as a single entity towards a common goal.
However, not all entrepreneurs are born leaders so here are lessons which will help them emerge as great leaders:
1. Almost all leaders are self taught
There is so course or college which teaches leadership skills. Management teaches the major aspects of leadership but cannot make a leader out of you. Moreover, everyone’s style of leadership is different which is why it’s best if you teach yourself and find your way.
Some leaders are empathetic, while most are a combination of sternness and empathy. You need to find how you want to be perceived and try and learn from leaders who inspire you.
2. Delegation is an art
It delegation might seem like the easiest thing to do but it actually is an art. Delegation doesn’t simply mean handing over tasks to people who are accomplished in their fields. You actually need to find people who you believe are appropriate for the company and hire them. It is a huge responsibility because you trust them with the company’s vision. For instance, if you want an advertiser to make an ad for a product, you are handing him the responsibility of how your product will be perceived by customers.
Thus, it is a huge task and needs to be done well.
As a leader, it is also essential to be able to accept criticism and learn constantly because it might be your first time as well. A leader needs to be a good listener because only then can he work out strategies and make his employees feel more empowered and involved in the whole process. An employee in your company might be more experienced and have a brilliant idea and if an entrepreneur lets ego come in his way, he will be losing out on an opportunity of making his company succeed. Hence, it is important to be open to suggestions and be objective about them.
You’re just starting out so you’re bound to make mistakes. Don’t be afraid to make them because mistakes are our best teachers. We learn valuable and important lessons from them. Also, don’t be afraid to let your team members take risks in terms of the venture because that will help them learn and excel in their respective fields as well.
5. Try servant leadership
While servant leadership is a timeless concept, the phrase “servant leadership” was coined by Robert K. Greenleaf in The Servant as Leader, an essay that he first published in 1970. In that essay, Greenleaf said:
“The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions…The leader-first and the servant-first are two extreme types. Between them there are shadings and blends that are part of the infinite variety of human nature.
A servant leader focuses more on the growth aspect of the company and even though he’s more powerful than others, he puts his employees’ well-being above all else.
Here are few things entrepreneurs need to take care of before setting up their startup.
Start-ups can be tricky and caught in a haze of competition after the initiation if proper precautions aren’t taken. However, like other businesses, even a start-up requires different things at different points and it is the entrepreneur’s duty to make sure that all the requisites are met. However, it might be the first time for an entrepreneur as well and s/he might need guidance as well.
Never ignore things that you think can mess with the image of your company. If something is absolutely necessary, the entrepreneur should make sure that the start-up has it.
Here are 5 things entrepreneurs need to take care of:
1. Analyse the risks
It is crucial for an entrepreneur to analyse the risks before venturing into any market and actually setting up a start-up. The industry one is venturing in might be targeting only a niche audience which means lesser demand and this could lead to the company fizzling out due to less orders. One needs to take calculated risks and create back-up options for better functioning of a start-up.
2. Do your market research well
Always do your research extensively about the market you’re going to venture into, the competitors and customers’ responses through surveys. This will help in gaining better business insights and also come handy while expanding the business. Without proper research in place, you can end up making incorrect assumptions and hasty decisions which can be harmful for your venture.
A business plan is important for any business as it contains information about the company, the team, industry, risks, the marketing plan and the financial plan. Internally, it’ll help the start-up in being more organised and an entrepreneur can keep a track of goals that are accomplished. Externally, it’s easier to get loans from banks, show to VCs and build strategic alliances if you have a proper business plan.
You might think that a business plan is enough to establish a company but there are certain rules and regulations one needs to keep in mind and follow. There are many Government regulated bodies and statutory bodies looking after stuff like patents, copyrights, taxes etc. To be aware of the rules existing in your sector, it is important to hire a lawyer and have his expert advice before starting-up.
5. Set aside a budget for marketing
Marketing and advertising is very important in today’s day and time and the way you market your venture can make or break it. It is absolutely crucial to have a marketing plan which helps you reach out to your target audience better. And, for these plans to work, one needs to set aside a certain budget. An entrepreneur also needs to decide what tactics and channels of marketing he’ll be using- social media, websites, ads on Facebook/Google, billboard advertising etc.
Even though it’s trendy in startups to say that ideas mean nothing and execution means everything, the reality is much less binary and much more nuanced.
Even though it’s trendy in startups to say that ideas mean nothing and execution means everything, the reality is much less binary and much more nuanced. For example, even the world’s best entrepreneur with incredible execution will fail if their idea is fundamentally flawed, or if their market is too small.
What we have found is that if an early-stage founder can check off the ten items below, they have a solid foundation by which to start a company. You are absolutely not assured success if you can check off these items (nor are you assured failure if you can’t), but your chances of success are much, much higher if you can.
See the infographic below, and scroll down further for a full explanation:
Money is no substitute for passion, so every entrepreneurial journey should start with a passion. In fact, every aspiring founder who comes into the Founder Institute with a goal to “flip” their company is advised to drop out during the first week for a full refund.
There are two reasons for this;
In order to power through the hard times of being an entrepreneur, founders need to be working on ideas that they can see themselves still working on in 5, 10, or even 20 years. As Elon Musk famously said, “Being an entrepreneur is like eating glass and staring into the abyss of death.” If you don’t have the requisite passion, your chances of seeing a project through are minimal.
Other people will easily be able to see through your lack of passion, like customers, investors, and press. For example, investors are typically concerned more about the “why you”, then they are about the “why” of your idea.
2. It’s Simple
“Think big” is a common mantra for entrepreneurs. And it is true – every entrepreneur should think big, because in most cases, starting a company with small ambitions can be just as much work as one with big ambitions. However, most people confuse the “think big” mentality into meaning they have to try and “boil the ocean” from the outset.
Big ideas are raised, not born, and they are most often raised by simple pain points. For example, Mark Zuckerberg didn’t wake up one morning and say, “I’m am going to create the social graph.” Instead, he set out to build a simple utility for Harvard students to see who was in their classes.
All the great businesses of our time have started with an incredibly simple idea, and then expanded upon that. If you can start by solving one problem, with one product, for one customer, you will be sufficiently focused and can have a great foundation for success.
3. One Revenue Stream
For some reason, the majority of early-stage entrepreneurs think that the more revenue streams their idea can support, the better. In the early stage, you need to be laser-focused on one revenue stream, and your idea needs to have a clear, singular revenue stream that can conceivably be large enough to support the entire business. If not, then its time to go back to the drawing board.
Also Read: Geometry of startup ecosystem
Also, it’s a common misconception that companies who focused on early user growth (ex. Google) didn’t have a revenue model in mind when they started. In reality, these businesses saw incredible early traction, and then the founders made a tactical decision to shift their focus to growth.
Can someone build a great company with a zero revenue mentality from the outset? Sure. But building a business with no revenue stream in the hopes of becoming the next Instagram is like buying a lottery ticket – except that lottery ticket costs a lot more time and effort than $3.
The more steps there are to revenue, the more complex an idea is to build out and execute.
This is a very important step during the ideation process: what are the things that need to happen before you make a dollar? If you have to provide a service in order to collect data that will then be sold to advertisers, for example, you have a very complex business. That would be 5+ steps to revenue. Try to limit the number of steps to revenue to around three from the beginning.
5. You Know the Customer
You need to understand very clearly who you are helping, what exactly they need, why they need it, how they would be willing to solve their problem, what they spend their money on, what goals they have in life… in other words, you need to have a very specific archetype.
A common mistake we encounter is that people don’t go nearly deep enough in their customer definition, or customer development. For example, many people will stop at “I am helping large companies hire.” In reality, they need to be able to say something like; “I am helping senior hiring managers at enterprise software companies in the United States with 400-800 employees. They are typically female, age 29-34, making an average of $58,000 per year. They report to the company HR lead, and their KPIs are X, Y, and Z, measured quarterly. They spend the majority of their day doing A, B, and C, and the biggest impediments to them hitting their KPIs include X, Y, and Z. Currently they are using products from companies A, B, and C, but those products don’t allow them to do these three critical things…”
Also, there’s nobody you know more intimately than yourself. That is why so many great businesses have been formed from personal need.
6. You know the market
In almost all cases, there are several people already devoting their lives to your idea. In order to win, you need to engulf yourself into your market in order to have the requisite insight and vision needed to win. Chris Dixon (Andreessen Horowitz) has said that you need to devote at least 10,000 hours on your market to get this insight – whether by working in the market, living the problem (ex. being a social media addict who then starts a social media company), and/or devoting that time towards research.
If you are not an expert on your market, then it’s time to get to work. There are no shortcuts here.
Large and fast growing markets have the power to pull mediocre companies into greatness, and conversely, dying markets can pull otherwise solid companies into the ground. If you are going to devote your life to an idea, the market where you operate better be big enough (or growing at such a fast rate) to support a meaningful and enduring company.
Any market with less than 10 million people or multiple billions in annual revenue that is not growing at a very fast rate will be very hard to address, and is probably not worth your time. For example, even if you were lucky enough to be moderately successful in a $500 million market, you would likely still only have around a $50 million business.
You will die winning a small market, so be smart and don’t start your company in a graveyard.
8. Original secret sauce
Every great business has a secret sauce. Given, not every company starts out with that secret sauce, but building a company without a plan for how you will differentiate and win from the outset is simply foolish.
Also, your secret sauce needs to be original. If it’s obvious, that is almost always a bad sign. The best ideas have a secret sauce that is transformational, not incremental.
What secret do you know that will help you win? For example, Tony Hsieh started Zappos with a very distinct insight and secret sauce – customer service. His transformational insight was that buying shoes online was really a customer service problem, and not a retail problem.
It is very easy to fall in love with your idea – after all, it’s your baby, and almost nobody will tell you your baby is ugly. Positive reinforcements are very easy to find.
Your job in the idea stage is to find the things that make your idea bad. Try to kill your idea, and then, one-by-one, iterate and eliminate the negative aspects of the idea. The result will be a much more defensible foundation by which to start.
10. You are sharing your idea!
Nobody is going to steal your idea. Think about it – do you really think your idea is so great, so original, that somebody who hears it is going to go home, quit their job, and devote their entire lives to it? And be successful? The chances are near zero.
You need to be pitching your idea all day long to anybody who will listen, and incorporating all the feedback you receive into improving the idea. Feedback is an entrepreneur’s best friend, and Silicon Valley entrepreneurs understand this better than anybody else. For example, on any given night, you can find 20 different events in Silicon Valley where people are openly sharing their ideas, and it is this collaborative, teamwork-oriented culture that leads to innovation.
If you’re in your 20s or 30s, and thought of entrepreneurship has entered your mind, don’t write it off as a pipe dream. Dig into some research, explore your ideas and make the most of your youth by pouring your energy into a business.
Almost all of us think about starting a business at some point. The thought enters our minds when we come up with an ingenious way to stop an ice cream cone from dripping. Or we get a job and realize we want more control over our work. Or we hear about the multi-billionaires of the world and start fantasizing about making our own riches.
Whatever your own motivation, if you’re going to start a business, there’s an ideal time to do it — while you’re still in your 20s and 30s. Why is that?
1. Long-term potential returns
Imagine for a moment that you’ve built a successful business. It’s profitable and stable and generates a nice six-figure salary for you. Assume that this setup can continue indefinitely and that you enjoy the work. Wouldn’t you want to reap the accompanying rewards for as long as possible?
If so, start your business as early as possible. Yes, it’s an optimistic scenario, but an achievable one, even if it takes you two or three tries to build a successful enterprise. The bottom line is, the more time you can spend as an entrepreneur, the better long-term returns you’re going to see.
2. Risk tolerance
Let’s face it: Not all startups are going to make it. You need to be realistic, regardless of your age. Starting a business demands a lot of up-front investment, in both time and money, and you’ll bear significant risk, in both your finances and your current or “backup” career.
Just as happens in the financial markets, the younger you are, the better you’re going to be able to tolerate that risk. You’ll have fewer responsibilities, fewer commitments and much more time to make up any losses you incur. Therefore, starting a business as early as possible mitigates your potential losses.
3. Energy and motivation
It takes a lot of work to run a startup, too. Don’t forget that. Though not written in stone, the general rule is that younger professionals have more energy, motivation and enthusiasm than their elders.
Maybe you’ll be a youthful spirit for the next several decades, but the thing is, you can’t know for sure. What seems like a solid “maybe” idea now may become a “no way” idea in 10 years; and the work you throw yourself into now may be work you’ll avoid at all costs next decade. Every year, your energy and motivation will decline. Take advantage of these personal assets while you have them.
4. Adaptability
Younger people tend to be more adaptable. Part of the reason is that they’ve had a shorter amount of time to be exposed to the norms and rules of the professional world, and are less committed to those entrenched ideals.
An even larger part of the reason is our unique technological age; we face major technological disruptions on a regular basis, and the only way for companies to survive is to adapt and integrate these new technologies.
In your 20s and 30s, you’ll stand a better chance of recognizing and incorporating these new technologies quickly; and as you get older, the rate of development for these technologies will grow even faster. So, start a business while you’re more nimble, and you’ll be able to brave ever-more volatile waters.
5. Serial entrepreneurship
Most entrepreneurs who truly love entrepreneurship end up starting multiple businesses, becoming serial entrepreneurs in their own right. It’s as if they were born to be entrepreneurs. And, for the most part, every new business these young people start is better than the last, thanks to their founders’ previous experience, growing list of contacts and broader perspective.
Starting your first business when you’re in your 20s or 30s sets you up for a longer period of time to start even more businesses; essentially, you’re maximizing the potential experience you can gain, and greatly increasing the number of businesses you can start. Don’t throw away that potential by waiting around. If you need help getting started, grab this eBook.
None of these reasons is meant to imply that you can start a business only when you’re in your 20s and 30s, or that if you’re in your 40s or over, you’ve missed the boat. On the contrary, older entrepreneurs often carry more experience and decision-making abilities and are extremely capable of building effective businesses.
However, the unique blend of advantages that younger adults have makes this phase of life a highly strategic time to start up a business.
If you’re in your 20s or 30s, and the thought of entrepreneurship has entered your mind more than once, don’t write it off as a pipe dream. Dig into some research, explore your ideas and make the most of your youth by pouring your energy into a business. No matter how things turn out, you’ll be glad you did.
