Category: Entrepreneurship

Whether an entrepreneur is grappling with the inception of an idea or its execution, the significance of having a mentor for sound advice and proper guidance cannot be denied. A good mentor helps an entrepreneur think through the business idea, suggests various ways to generate capital for the business, offers the benefit of his experience, and makes up for the know-how that the entrepreneur may lack in the field.

A helpful mentor will be sincerely invested in your entrepreneurial success. Having a mentor who believes in your business idea is a great confidence booster. Finding a mentor who genuinely cares for your success is rare, and there’s nothing quite like actually having one by your side.

Here are five great ways in which mentors invaluably help inexperienced entrepreneurs.

1. They Impart Practical Knowledge Not Found in Books

There’s no doubt that motivational books help momentously in boosting the confidence of young entrepreneurs. Various autobiographies of business stalwarts also offer great insights into their experiences of running a successful business. But it is an unstated truth that most authors are not comfortable with revealing everything in their books. A mentor, on the other hand, is your guaranteed help in dealing with challenges during your entrepreneurial journey. He/she has practically dealt with the obstacles of running a business and fought through them, which is why he/she can offer you hands-on advice when you face dire situations.

The combination of motivational books and the comradeship of a mentor can prove to be great for your fascinating entrepreneurial journey and keep your entrepreneurial spirit high.

2. They Help Develop Connections within Industry

Starting from the bottom of the line and finally breaking into an important industry circle can be intimidating, especially if you do not have prior contacts. A successful mentor comes with an unlimited network of connections that can help a newbie enter the industry circle. Since a mentor already believes in your idea and is working with you for the success of your venture, he will introduce you to his connections in the industry and also recommend you.

It is also a well-known fact that investors trust a start-up that is recommended by a successful connection or friend. So, having a mentor helps both ways – building network connections and establishing credibility in the industry circle.

3. They Assist in Better Financial Management

One of the hardest parts of maintaining the start-up course is to monitor its cash flow and stick to the business plan. More often than not, business execution does not go exactly as planned on paper. Numerous practical situations are responsible for the drift from the initial plans for your business. Only a mentor who has faced such situations and dealt with them can help a budding entrepreneur with the practical know-how of dealing with complex financial and maintaining a sustained cash flow.

From hiring employees to investing in business development, a mentor helps in better utilization of financial resources and provides a good understanding of business management.

4. They Can Develop Better EQ and Reassurance

Implementing decisions with an emotional mind-set can prove fatal for a business. There’s no doubt that emotional maturity is crucial for the success of a business, but passion for your dream can often bring emotions into the picture. Having a mentor will help you keep emotions aside and think practically when taking critical decisions.

During the initial stages of the business, inexperienced entrepreneurs may need mental reassurance that their chosen path will lead them to success. A mentor helps the entrepreneur in dealing with inhibitions, worries, uncertainties, and promotes self-confidence that reassures a bright future.

5. They Aid Longer Business Sustenance

As per statistics, more than 30% of new ventures do not survive for more than twenty four months, and 50% don’t make it past five years. An entrepreneur with a mentor should consider himself lucky. It is a proven fact that more than 70% of businesses guided by a knowledgeable mentor survive for more than five years. One of the biggest reasons for this success is that a mentor is invested in your business right from the start. He helps you design a good business model, and improves your skills through constructive criticism and positive mentor-ship.

With the help of a mentor, entrepreneurs can build businesses that are more organized, and grow their professional and personal skills through the mentor’s experience.

As a young entrepreneur, there may be several occasions when doubts about achieving success come to your mind. Having a mentor gives the encouragement to run the business with refined intellect. Mentors are essential to the success of a business and if you don’t have one yet, it’s time to be proactive and find a mentor who believes in you and your dream.

About the Author

Article Contributed by Dan Razak

While some new business owners are more modest when it comes to their expectations than others, the end goal that they all share is the success of their young company. Some aspire to make their brand as popular as much as Coca-Cola or McDonald’s, and that way, create a legacy that will stand a test of time, while others are merely content with the idea of being their own boss. However, in order to get there, one must first reach some minor milestones along the way. With this in mind, here are five easily reachable goals that every new business owner should set their mind to.

1.      Keep your employees

What makes people fall in love with their workplace? Well, there are several factors. Some are driven by ambition and chances of vertical mobility. Others are motivated by greed. Then, there is a number of people who feel some sort of loyalty towards your brand or their boss. This final part is particularly important since there is a study that shows that people are more likely to quit because of the manager rather than the company. Be that as it may, as your employees start gaining more knowledge and start delivering promising results, your competitors might decide to try and poach them.

2.      Develop a sense of community

An ideal team model in the 21^st century puts a heavy emphasis on diversity. Even though this may bring better results, this also means that you are supposed to put people coming from different backgrounds side by side and expect them to just get along. Well, this is actually not impossible, as long as you are there to give them a little push. Try to turn your teams into homogenous communities by exercising teambuilding activities and making interactive meetings where they will be able to share their ideas with each other.

3.      Develop a better tax strategy

In order to keep your business profitable, you need to pay attention to both your income and your expenses. One of the ways you can become more efficient in the latter is by developing a better tax strategy. However, this would require you to have a better understanding of tax structures, which would in turn give you a much more reliable succession planning. The best way to get a grasp of this would be to find a reputable tax accountant in Sydney area and consult them about this issue.

4.      Learn how to say no

One of the biggest mistakes new owners make is believing that saying no to a business offer is a bad practice. While there is some sense to this claim, it is even worse to agree to a project you know you can’t finish in time. This way, you will get a bad reputation and probably be forced to pay some penal fees for failing to follow up on your promise. Sure, it may be difficult, but for the sake of your business you must learn how to say no to your clients. Still, you’ll need to be quite delicate about it. Luckily, there are more than a few good ways to say no to a customer or a business partner.

5.      Diversify

Finally, keep in mind that putting all your hopes in a single product or service seems more like gambling than running a business. This is why, in 2017, you need to try and diversify a bit. Try to make another source of income for your business, even if it means advertising or retailing products made by other companies. Once you manage to secure at least a few streams of revenue, your business will become more independent and you will get into a position from which you can make some riskier moves.

Conclusion

While on their own, each one of these goals may not make that much of a difference, together they can completely revolutionize your business model. Apart from improving your income and making your company’s future more predictable, they are also making your business more flexible. This means that no matter what happens in the future, your business will adapt much easier.

About the Author

Dan Radak is a marketing professional with eleven years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.

The decision to leave behind a permanent and familiar job in favour of self-employment is not one that you’ll take lightly. Yes, it will take a lot of hard work and determination, but ultimately there are many advantages to making the leap. Here’s a look at some of the benefits you can enjoy when you’re self-employed.

Increased potential earnings

One of the main advantages of self-employment is that your earning potential will be much higher and on average, you can earn 45% more than if you are traditionally employed, giving you the opportunity to invest your profits. You’ll be able to directly reap the benefits of your hard work, which is a more rewarding lifestyle than if you work within a company.

Look into the financial benefits and incentives available to you, as you may be entitled to tax deductions and the opportunity to claim expenses if you use your phone, internet and travel for business. Don’t be afraid to ask for advice when it comes to your finances. Many banks and building societies offer specialised services for those who are self-employed.

Flexibility and reduced costs

Another major pro is the flexibility that you will enjoy if you are self-employed. Gone are the days of paying expensive childcare fees and for school breakfast clubs; working from home means that you can skip the stress of the daily commute and set you own schedule, whilst also saving money on your petrol or train fare.

Plus, you will have more freedom when it comes to taking holidays rather than having to consult the office calendar and waiting for your manager’s approval. This means that you can plan a break during a time that’s most suitable for you and your company, and also find better deals.

Increased control

When you’re self-employed, the only people you have to answer to is yourself and your clients. You can avoid the office politics and receive the credit for your efforts personally. Feeling like a valued individual is a very rewarding benefit that you may not experience in traditional employment.

You can also pick your own customers, which means that your work is more likely to be varied, enjoyable and matched to your skills and interests. No two days will be the same and it will lead to a more creative and diverse lifestyle.

Do you like the sound of making the transition into self-employment? Make sure you seek further advice on how to get your business set up correctly, going through the government’s SME checklist research everything you need to know in the journey to becoming your own boss.

Starting a business can be a long and stressful road to take, it can also be incredibly lonely. That is why so many people opt to go into business with their best buddies. On paper, it’s a great idea, but we have all heard the horror stories, so what is the best option?

Below, you will see four pros and four cons on starting a business with your BFF. By the time you reach the end of this article you will know if it’s right for you.

 

Pros 

Instant trust

In business trusting anyone that you work with is essential, yet that trust often takes some time to build. This can be very uncomfortable for you due to the fact that regularly (especially at the beginning) your livelihood is stake and you are gambling on a stranger to safeguard your dream. With a friend, on the other hand, there is already a strong bond. Having someone on your side that you trust is a very valuable asset.

Brainstorming becomes a lot easier

Brainstorming is key to developing new ideas and moving a business forward. As you will know being in a space with a stranger and truly letting your creative juices flow can be difficult. You will be more than comfortable with your best friend and be able to think freely without any fear opening avenues of creativity that were once intangible.

Friends understand and accept strengths and weaknesses

Your friend will be able to understand what aspects of the business that you excel at and the areas in which you need help. Having someone by your side that knows you on that level from the start means that you will be able to navigate the company in the right direction.

Having a friend to bare the burden of business

Starting a business is not easy, the money you could lose alone is enough to make it a task that you wouldn’t want to do alone. Starting a business with your best friend gives you someone that can share the burden and the hardships with you in a special and unique way.

 

Cons

Who’s the boss again?

When starting a business with your best friend you run the risk of entering a power struggle. I know you are probably thinking that you and your BFF are far too close to let that happen, but the fact that you are that close is WHY it could happen. If you end up on different pages and start giving opposite directions to your staff it can lead to trouble.

Taking advantage due to friendship

There are certain things that your best friend can do and say to you that no one on earth can do right? That is proof of a bond that is strong in life but one that can affect your business. You are more likely as a friend to go a little too easy on each other at crucial times. You both know this and can take advantage of that fact without even knowing it.

A failed business can lead to a failed friendship

Possibly the worst con on this list is the fact that if you fail on this journey together, you could also lose your best friend at the same time. As I mentioned above starting a business is stressful and difficult. The process of it not working out can affect your friendship in a way unlike anything else. At times of loss you need a friend so losing a friend and a business at the same time is a tough blow to recover from.

It’s personal, not business

In business you need to draw lines of professionalism; your colleagues are your colleagues at work and your friends are your friends outside of work. If you start a business with your best friend you run the risk of blurring those lines and it can affect your decision making and ultimately the future of your company.

At the end of the day, you have to make a decision that is right for you as well as your best friend. You know yourself and your best friend better than anyone else and based on this article you should be able to decipher whether or not it’s a good idea to go into business together.

Kate Thora is a Senior Content Specialist for Uphours, an online resource with information about businesses worldwide. Her artistic soul manifests itself also I her love for singing and dancing, especially to traditional Indian music.

Article Contributed by Jeff E. Brown

What makes a successful entrepreneur? This is a common question, one that most business professionals would like answered. The only problem is there is no straight forward or perfect response. All successful entrepreneurs around the globe have different tales of how they managed to start a business and succeed.

Nevertheless, there is one specific element they share; they built their businesses from the ground up. There is no absolute method, but if you take these ten steps before you actually start your own business, you’ll be on the right track.

1. Have a Viable Business Idea
An idea is the first step to starting any business venture. You must be absolutely confident that you have an exceptional business idea that is viable to you and society. Now, you don’t want to publicly present all of your business ideas in full, because you can’t risk those ideas getting stolen. But, it is expected of you to do your due diligence to ascertain if your business idea is practical, feasible and profitable.

You have to ensure that individuals will buy your pitch and that the ROI (Return on Investment) is guaranteed. Evaluation of business concepts and their implementation must not take up years, as someone might just overtake you and reap the spoils; meaning, you need to think and act fast while doing a rigorous evaluation of your startup.

2. Plan Ahead
After identifying a viable business idea, your next step is to plan ahead. You need to have an emergency plan in case an obstacle or problem occurs. Thinking ahead and preparing for any eventuality will insulate your business from internal and external variables. This aspect is imperative when setting up a new business, or startup, to be more specific.

3. Lay Out Your Budget
A serious,prospective business professional would map out a sensible estimate of capital requirements. The problem comes when you are unable to figure out the source of the capital.

Line of Credit (LOCs) is always the best option. Against traditional loans that are usually given out by banking institutions, a line of credit requires less paperwork, and you don’t need to sit back and watch for the business idea to get ratified.

A line of credit can be collateral or non-collateral. A collateral line of credit requires some form of security like property or business while non-collateral means you don’t have to provide any guarantees in the form of property or business.

Ensure you are getting the best rates on your line of credit. The best rates will depend on your character, capacity and credit score so ensure that they are always up to the mark. However, if your credit score isn’t on par, there are institutions like BR Finance Solutions that can help correct the deviation so you can access the capital for your startup.

4. Define Your Target Market
Evaluating your target marketplace requires meticulous and thorough research. The most important elements you need to research on include identifying who exactly your target audience is, their interest, age group and buying power.

An internet research won’t give you all the answers you need. You have to define the available and addressable markets. The available market is defined by the share of the addressable market for which you can practically compete.

On the other hand, the addressable market is defined by the sum revenue opportunity for your product or service. The available and addressable markets are based on factors like resources, capacity, and geography. You’ll then need to compute the return on investment and finally the location your idea would be best suited, for example, you cannot choose a location where your product or service is outlawed.

5. Evaluate Competition
Analyze your surroundings. For your business to thrive and become a champion in its niche, ensure there is no stiff competition or if there is, have what it takes to get the best of them. By evaluating your main competitors and defining their clients, you can easily find out how you can compete in terms of service, cost, and technology.

6. Set Up Your Office Space
Just like any business, you need to set up a base of operations. You may already have your workspace; that’s an advantage. You can decide to rent if you don’t have one. Better yet, you can work from the comfort of your home to save yourself the hassle.

The bottom-line, however, is that your workspace is determined by the line of business. A classic office normally does the magic, but you can create a classic office at home by redesigning it. Keep in mind, you also need to maintain your home office, just as the rest of the house, and make sure it also has all the features of a regular, corporate office.

Your home office should not be necessarily off-limits to your team. Also, members of your team can work from their own home offices, and you can stay in check online.

7. Establish Online Presence
In today’s fast and cutthroat marketplace, you must take advantage of technology to stay afloat. You definitely need an official website. Buying domains, themes, and templates is less of a hassle these days.

You also need marketing tools to expand your customer base, for instance, a Facebook Business Page, a Twitter account, Instagram and other social media platforms. To generate and entice customers to buy your products, you have to engage and promote your products and services.

8. Develop a Maintenance Blueprint
When the wheels of your business are finally in motion, you must ensure that you follow up daily tasks that keep the enterprise going, for instance, keeping track of inventory, organizing the payroll, regular blogging, updating your website and utilizing social media.

Draw up an ambitious digital timetable of the tasks and set reminders so that you don’t miss a single activity.

9. Set Your Future Goals
Whether your enterprise is just starting out or older than a year, you need to continually set goals to propel the business to the next level. Follow what your competition and peers are doing. Listen to your investors and customers. If you are working with a team, regularly get feedback from them.

Based on that info, make a list of what needs to be done and achieved to continue doing business successfully, and map out your future goals.

10. Allow Yourself to Grow
This is an aspect you’ll implement once your business takes off. Continuous growth must be part and parcel of your short and long term strategy. Check out other business models. Have a moment to think about where the business will be in 2 years. In the course of operation, you’ll need to modify some aspects to fine tune them. Simply learn and improve each step of the way.

The steps mentioned above will surely guide you towards creating a successful and
sustainable business model. You should not side step the rules because that might come along with consequences. Keep in mind that great startups start from the bottom, but if the right foundation is laid, the business is destined to stand tall for years.

About the author:

Jeff E. Brown is a freelance writer and a self-taught handy man with a knack for lifehacking