Category: Starting Up

That wonderful product concept was your brilliant idea. It was so amazing and awesome; you decided to go for it and become an entrepreneur and launch a start-up. But it not going as you expected. It’s much harder than you anticipated, everything seems to be progressing more slowly, and maybe it seems as though it’s not moving forward at all. Now, you are starting to second guess your decisions, wondering whether your next attempt at making the product a success will yield the results you so desire.

So where did you go wrong? You know your dream is achievable. There are plenty of proof points of success business everywhere you look. But how? You are not alone. Every entrepreneur feels this way at some point. It’s a test of your convictions.

Often the reason most entrepreneurs don’t survive is a mindset and perspective issue. Let’s go back and look at how most entrepreneurs get started, and then I’ll show you how those that succeed do it.

Conventional wisdom tells the entrepreneur to start with a business plan and then execute it. This is the beginning of their downfall because it cements in the entrepreneur’s mind the notion that they’ve done the research and the result is they’ve determined the recipe, a definitive path to success. However, most business plans are filled with guesses, unfounded estimates, and wishful thinking. In fact, there is so little fact and information based upon direct experience with the market and customers that most business plans are nothing more than fairy tales. They should start with “Once upon a time”. And like any fairy tale, the entrepreneur expects the end to be “And they lived happily ever after”.

Statistics on business failures show that this isn’t what happens.

In the U.S., more than 600,000 new businesses start each year and more than half will close within 5 years. This is true of businesses in other countries as well. The venture capitalists are admired by many throughout the world. They have brought us Amazon, eBay, Google, and Facebook. Their goal for start-ups is to ‘go big’ by going IPO. Yet, in the past 10 years, 30,000 start-ups were funded and only 2% of their companies have reached that goal, most failed. Collectively, the venture capitalists have conducted an industry wide business experiment. Most of these new businesses had business plans, most failed. So why do entrepreneurs continue to follow the same process to the same end? This extremely high failure rate is the result of a system that isn’t working.

The entrepreneur has missed a step. It’s the experimental start-up phase. This is where the entrepreneur designs and conducts a series of business experiments in order to discover the right product and business model. It’s when the product or service concept meets its business. How does the entrepreneur do this? They start with a concept plan that outlines what they intend to do and why, and they include all the assumptions and unknowns about the business. Unlike the traditional business plan, here the entrepreneur acknowledges the holes, assumptions, and issues. Next, the entrepreneur couples the concept plan with a strategy for conducting business experiments. This orchestrated and systematic process allows the entrepreneur to develop proof of concept of the business. Only then is the entrepreneur in a position to write a solid business plan, one based upon experience and facts.

Why is thinking of your start-up as experimental so effective? It sets the mindset that what the entrepreneur is doing right now may fail – and most likely will. It’s okay for this experiment to fail because there will be another and maybe even more. Eventually enough knowledge and information is gathered to create the experiment that will succeed.

Contrast this to the approach of starting with a business plan; entrepreneurs feel the start-up has to work as outlined in the plan. Entrepreneurs hire employees and get them to execute the plan – after all, an employee want a sense of security and admitting you don’t know what you are doing, doesn’t instill confidence. The entrepreneur may have found outside funding, in which case, the investors don’t want to hear that they are experimenting with their money, that the entrepreneur doesn’t have it right yet. So the entrepreneur seals their fate and the business plan is executed to failure.

About the Author

Cynthia Kocialski is the founder of three start-ups and helps entrepreneurs transform their ideas into new businesses. Cynthia is the author of Startup from the Ground Up and Out of the Classroom Lessons in Success. Cynthia writes regularly at Start-up Entrepreneurs’ Blog. and provides in her video series information on how to create a Concept Plan.

Article Contributed by Alexis Thompson

Most business startups usually fail because of a lot of reasons not shared to the world. In this article, we will tackle five reasons or mistakes that a startup entrepreneur should not commit to be successful.

1. No commitment to do the “dirty work”

Starting a business as an owner is not just about performing the planning, controlling and marketing but it must also include operating on the actual tasks at hand. You need to be doing the everyday general tasks yourself that need to get done. Hiring people to do them for you or leveraging on others’ skills is not highly recommended because in that way, you won’t get much exposure and grasp of how to be at the forefront of your business.

When you’re planning for the concept of the business, you must also note and be prepared to set business appointments with clients and vendors, order supplies, manage bookkeeping, file and sort out legal documents, answer phone calls, check and reply to e-mails, and other procedures. If you can’t handle these day-to-day business activities, you might not be able to handle the whole business confidently and well.

2. No fighting spirit

One week you’re excited and the next week you’re not. Sounds familiar? If you let the ship sink, it would definitely be at the most bottom of the ocean. Remember, there are many other competitors in the market and if you’re one who’s quick to succumb to failure, you won’t realize and meet success. In the business world, you should be fast to adapt to changes and fight barriers that might cause your startup to fail. Likewise, if there are negative comments about your offerings and services, don’t take them for naught and be down; rather, keep a positive spirit, learn from the past venture and continuously improve for things to get smoother.

3. No defined product or service line

The trouble with most startup entrepreneurs is that they are too excited to offer so much products or service that will cater and satisfy a whole range of different markets. By doing so, they do not really have a target consumer that they should focus on. Too much diversification and offering too many varieties will only make the market confused and unsure of the business’ competitive advantage.

Startup entrepreneurs should decide to meet the needs of their primary target market first and just bring seasonal products or add more to the line when they get success in their initial launch of business.

4. No consideration of consumer choice

Startup entrepreneurs nowadays are sticking to the philosophy of following their passion in building a business. Yes, the saying that goes “Do what you love and love what you do” may be correct and fine but should not be taken lightly. Also, joining the hype or whatever is currently trending is not the good way to go. As your business is going to be your source of income, you should also think of the consumer and not only yourself. Completing the steps to build a business might be easy but analyzing how consumers are reacting or responding to it is a lot harder.

As a startup business owner, you should be more sensitive to the market conditions, customer choices with regard to demographics, location, economics, etc. The key is to understand your customers and not just do “what you love to do.” No, it doesn’t work that way all the time. This is the real business world and not your playground, Kiddo.

5. No budget plan

When you don’t have a budget plan for your startup, the tendency is to spend more. If you have a startup business and more so if it’s your first, you might put a lot on the line—your money, your parents’ money, loan from the bank, raid from your friends and other sources—thinking that the more investment or capital you place, the more income you’ll get in return. This should not be the case; rather, you should provide just enough capital to run the business, keep your overhead costs low and then provide some more only if needed. You should be able to circulate the initial amount of money and spend it wisely.

Starting a business is something serious and probably is one of the hardest things you can ever do because of unknown risks and uncertainties. The bottom line with a business startup is to put everything in black and white, plan first before implementing and stay motivated. A business majestically planned, managed and nurtured is a business that is on its way to success. And nothing is more gratifying than feeling a sense of winning from a battle in a challenging war.

About the Author

Alexis Thompson is an alumna from Martin College Australia, a former Mountain Backpacker and a 26 year old mother of 2 daughters, Sophie and Rhian. She is into almost all types of Music especially The Fray and Hillsong. She also has a passion in Singing and Scrap Booking. Follow her escapades on her Twitter.

Many people dream of setting up their own company but are unsure where to start. Many people are put off by the amount of work involved in setting up a new company but there are many ways to make the process hassle free. Here are a few tips on starting your own business in 2012.

If you want to get up and running in the business world, the first step is to go online to do some research. The internet has a plethora of information that can help you set up your own business at speed. If you are setting up a company for the first time, you don’t have to do it alone. There are companies that specialise in company formations and if you want to take the stress out of setting up your own company, you should seek help from the professionals. Many allow you to set up your company on the same day for a small fee. Simply go online, find a company that offers these services, and choose a company with services to complement your budget.

Not all lead generation specialists are equal. While all of them may be able to assist in registering your company, their services will differ in price and some may take longer than others to complete your registration. Once you have chosen a company formations specialist, it is time to choose a formation package that suits your specific needs. The best thing about using a company such as this is that they do all of the work for you. If you are registering a company for the first time, you can rest assured that your registration will have been checked by a professional. They will even fill out the necessary forms and submit the form for you so you never have to lift a finger.

When looking for a company formations specialist, look for one that is willing to go the extra mile and not only offers you the opportunity to register a company but one that provides a high level of support throughout. Experience is also another factor to consider when choosing a site on which to register your company online. Browse the company’s website and this will not only give you information on the services they offer but also how long they have been providing these services for.

 

 

 

Important aspects of having a business

Deciding to start-up a company and run your own business can be one of the most liberating experiences that you’ll ever have. The opportunity to grow a company from its first few steps into a firm that pays you a salary can be hugely rewarding. It can also give you a much better work-life balance and, with all of the responsibility for its success ultimately in your hands, offer great motivation to get out there and achieve your goals. If you’re keen to start a business or perhaps have recently started one, there are some important aspects to consider.

Develop a vision and stick to it

One of the most compelling reasons for having a business is that it provides you with the chance to run something in the way that you’ve always wanted. That being the case, a clear vision that helps crystallise what kind of clients you want, what you want your company to be recognized for in the marketplace; and what kind of services you want to provide is absolutely imperative. Having a clear vision from the outset and always keeping it in mind can help you set your objectives.

Discover your market

Business guru Peter Drucker once posed the question “what business are you in?” and for the business to succeed, it’s crucial for you to address this by knowing your market. Most businesses simply cannot cater products and services towards everyone and, especially when you’re starting out, you need to know who to sell to. The better that you can define your market, the more precise you can be when targeting possible consumers.

Ensure consistency

One leading area in business is to ensure that you are consistent in all operational aspects. Business growth comes over time and cannot be expected overnight, so you need to be prepared to put in the hours and consistently work towards your goals. In addition, being consistent in your products and services ensures that repeat customers will get the same service, as a minimum expectation, each and every time they return.

Protect your business

From the very beginning, even when your idea is no more than an idea on a napkin, it is important that you look to protect your business. It’s vital to take out insurance to cover such things as business liability, key man protection, repayment of inventory, and protection against third-party damage, whilst over 50’s life insurance can financially protect your assets for dependants and business partners should you become critically ill or die.

There are many aspects of having a business that you’ll need to consider whether you’re just starting out or are looking to grow your current enterprise. Having a vision, marketing to the right people, and staying consistent in your own motivation and the services you provide is vital for success; and, by utilizing products such as buildings, premises and life insurance, you can ensure that you’re fully protected in the event of major losses.

For many self-employed professionals and owners of small businesses, there is a natural impulse to view the competition as the enemy. After all, you’re competing for the same pool of clients, and their success could translate into your hardship. That’s why many businesses see the competition the way warring countries see each other—with suspicion, a little fear, and even some scorn. But in today’s hypersocial business climate, it’s time to move on from these old approaches and start seeing opportunity in competition.

Your competitors probably aren’t going away any time soon, so try to make the best of things. Here are a few tips for turning competition into a good thing.

1. Always be positive: Privately, you may have negative things to say about your competition, and some of these things may be more or less true. But there’s no sense in airing these things publicly. Doing so can actually make you look bad. Always take the high road, and your clients and prospective clients will respect you for it. When asked for your opinion about a competitor or their services, always say something nice (or at least not negative).
2. Be inspired: Competition breeds innovation. When you see a competitor doing something well, it should make you want to find ways to do it even better. Stay up to date on what your competitors are up to. For example, if you are in retail, you might visit your competitors’ stores regularly. If they have a strong online presence, check their websites often and follow their Facebook or Twitter feeds. And when you see something you like, don’t just copy what they’re doing. Use it as inspiration to provide a similar service that’s even better.
3. Recognize competitors’ strengths: There may be a few areas where you just have to concede victory to the competition. On these points, don’t be afraid to recommend your competitors’ services when it would benefit your clients. Your clients will appreciate the help, which makes it more likely they will continue to work with you on other things. And if the competition hears you’re recommending them for some things, they may return the favor.
4. Collaborate, when possible: There may not be many opportunities for you to reach out and work with your competition directly, but when the opportunities do arise, take advantage of them. For example, if both you and a competitor use blogs to create a buzz and bring in clients, consider exchanging blog posts that each link back to the author’s website. And if you’re on social networking, engage your competition in conversation when you have industry-relevant points of discussion that would interest your followers.