Category: Starting Up

Taking the leap towards entrepreneurship can be rewarding and it brings a great sense of freedom. The idea of being your own boss is thrilling because there is joy in being in charge of your schedules and finances. However, you can’t just wake up one day and start a business if you intend to achieve lasting success.

The truth is that building a business takes a lot of time and patience since you have to come up with solid plans and strategies that will guide your business to success.

After you’ve laid all the necessary plans, it’s time for implementation and laying a strong foundation for the business. In this article, you’ll learn about the necessary steps you should take to build a successful business.

Identify a need in the market

When starting a business, you can draw upon your past experience or a solid research to identify a gap in the market. However, it’s important to go past superficial findings if you want to establish a profitable business. If you have a brilliant idea without an ideal market, it may take a lot of time before making profits from that business.

Before starting a business, try to see if there are businesses similar to your idea and then think about the target group that is likely to visit your business premises. The good thing is that there are several government sources that can offer useful information and statistics on trends and emerging markets.

Generally, it’s important to look at expanding markets and trends, but you should be careful when you are dealing with products and services that exhibit rapid changes. In addition, you should be careful when engaging in businesses that are likely to be over flooded within a short time.

As a rule of thumb, you should start a business in an area that you know well but if you don’t know, it’s in your best interest to do a pilot test and determine viability. An idea may seem to be very attractive to you but it has no real value in the market.

Instead of wasting several years trying to build a business that is destined for failure, it’s better to spend a few months testing the idea in the market. Once you’ve determined the viability, it’s upon you to ensure you become better than your competition.

Combine the right motivation with adequate funding

If you are going to achieve any meaningful success, you have to be working towards something that you are truly passionate about. If you are starting a business because you want to run away from your job or because you are jobless, things might be tricky for you. Statistics show that most people who start a business as an alternative plan are more likely to give up in the early stages.

Although some businesses are conceived as a result of acute financial desperation, it’s definitely not a good starting point. Generally, you shouldn’t jump into a business without thoughtful consideration of the effect it will have on your personal finances.

Before you start, figure out how much you can comfortably lose and how long your finances will take you if you don’t make any profits. Because startups are likely to be locked out by most traditional lenders, it’s important to consider your credit profile since you might need to take a loan for your business.

Although you can have a hard time getting funds from traditional lenders, it doesn’t mean you are doomed. Today, there are many non-conventional lenders that are friendly to startups and they understand the challenges of a new business. With them, you can get a just right loans product that is tailored to suit your financial situation. However, it’s common to come across many business owners taking a line of credit since it enables them to borrow at any time of need.

Plan for success

Take your time to create a comprehensive business plan and commit to reviewing it on a regular basis. Although not all parts of a business plan are comfortable to handle, you should do your best to come up with an actionable plan. In the process, you’ll learn invaluable lessons and discover some useful information about your business.

In the business planning process, make sure you’ve figured out all the financial facts and don’t base your conclusions on assumptions. You need to clearly come up with a realistic financial plan that encompasses projected income, costs, and growth. In addition, try to figure out how long it will take before you’ve made some profits so that you can plan adequately.

Conclusion

Starting a business comes with significant benefits and it is a dream for many people. Despite the fact that it may seem hard at first, you can conquer all hardships if you start on the right footing. Finances are the major cause of most business failures but you can easily access some funding from unconventional lenders. Most importantly, ensure that your business idea is viable and focused on the right market.

Article Contributed by Bella Williams

Launching a high-growth business can be a rollercoaster ride. CEOs experience tremendous pressure to put up a strong face when things are falling apart. Startups can fail because of different reasons but you have to learn how to overcome these to move on and get back on your feet. Some common triggers for a startup failure have been discussed below and you need to learn how to get past these.

10 situations that can destroy your startup dream:

1. Solo Founder: The very fact that there is only one person at the helm of affairs suggests that he was unable to convince others to get on board with him. This indirectly implies that even his friends were not convinced about this decision. It may however be true that founding the company was a great decision in hindsight and his friends may have been wrong in thinking otherwise. Even if that were the case, the CEO is at a disadvantage because handling a startup independently is a huge task. To overcome this, you need to reach out to people you can brainstorm ideas with. You need cofounders to share your views and concerns and for encouraging you when things go wrong.
2. Copying Ideas: Most startups are founded on the basis of ideas which may have worked for some other startups. The successful ones have always been founded to find solutions to unresolved problems identified by the entrepreneurs. The best way to ensure success for your startup is to look for a solution to a problem which affects you on a personal level. For instance, Google came about since Sergey and Larry could not locate things online. So, instead of blindly copying another business and introducing minor modifications to it, you should look in other directions.
3. Faulty Location: Another reason why startups are found to fail is because they have been set up in places where business prospects are poor. You will find startups succeeding in some regions more than in others. There may be many factors for this. It could be that the region produces more experience and technically-sound people or that people are more open to supporting new ventures. The staff that you are looking to hire is easily available there and you get supports from other ancillary industries.
4. Limited Reach: A common reason why a startup may not be able to take off is because you are only targeting a limited audience for the fear of competition. When you decide to go for marginal projects you are taking the safer route to avoid competition. If you produce something that is really good, you are bound to have competition, and that is healthy. The tendency to move away from bigger problems is inherent; your subconscious stops you from visualizing bigger ideas. The best way to overcome this problem is to start thinking of projects without involving oneself.
5. Stubbornness: At times, obstinacy may come in the way of a startup success. In some industries, the only way you can be successful is to stay determined and focused, notwithstanding the many challenges that come your way. This grit is fine when you are seeking solutions to a problem which is already defined. But a startup is a different ball game and you are expected to follow the trail regardless of the direction it is headed for. This means that it is naïve to stick to the original plan; the plan may be flawed and you may have to improvise as you go.
6. Incompetent Staff: At times the programmers may be the reason for failure and your decision to quit. Many of the earlier ecommerce companies for instance had been founded by businessmen who believed startups would work by hiring programmers. However, identifying a good programmer is something that you cannot learn as an entrepreneur. This choice remains a grey area even today and you just have to rely on your gut instinct. Watch https://www.youtube.com/watch?v=KuNQgln6TL0
7. Incorrect Platform: Selecting the wrong platform can get your business in trouble. Platform can refer to the operating system or programming languages or the framework based upon a language. In the 90s, Windows sounded the death knell for many startups with introduction of Java applets. To get the right platform, you need to consult quality programmers.
8. Slow Launch: Startups often fail because their launch is unreasonably delayed. At times, the software is almost complete but the launch does not happen. It is important to push for this because the truth is, nothing finishes till the time is gets released. Unless you bounce the idea off customers, you cannot completely understand it. When you delay this, you fail to gauge the problems; you are afraid of user reactions. In an attempt to become perfect, you end up working on multiple things and delaying them all.
9. Fewer Funds: Startups will not work if there is too less money for takeoff. Almost all startups are not profitable right from the start but they should have some money left to sustain them before they actually shut down. You must take enough funds from your investors to be able to proceed to the next step. On the other hand, when you use up too much money, your fund channels will soon dry up.
10. Sacrificing User Needs: Very few startups can actually offer something that the user needs. It is easier to focus on making more profits. So, you should ideally keep the business models for later. You need to put user needs first and then think about how to generate revenue from it.

Author Bio:

As an academic researcher & private tutor, Bella Williams guides the new age professionals and students with their career. A graduate from Monash University, Bella organizes free coaching workshops and promotes free sharing of knowledge. She is also on LinkedIn.

You have worked hard at forming a new small company, and it is time to get it off the ground. You are proud of the final outcome and can’t wait to show off your efforts to the world. Before opening it for business, be sure you have integrated the following into your plans to ensure a bright and successful future for your new enterprise:

Budget for Advertising

You want everyone to know about your new venture, so it is very important to set aside funds for advertising. The type of advertising utilized will depend on the general makeup of your business. It could be print, radio, television, or billboard advertising or a combination of any of these. Realize that advertising is not cheap, but it is vital to the overall volume and ultimate success of your product or service. Hire a company that has a solid reputation and produces a quality product for the optimum in advertising your business’s positive attributes.

Hold a Grand Opening

One of the most enjoyable aspects of starting a new business is the grand opening day festivities. Plan and advertise this event in advance so you are well-prepared for the onslaught of potential customers. Do not procrastinate and then realize that you will not be ready on the projected date. This will make your company look unreliable and disorganized. Provide food, beverages, and entertainment for your prospective clients. To be successful, it is important to look successful before you even begin making a profit.

Check Your Insurance Coverage

Never open a business without effective insurance coverage. A fire, an accident, or natural disaster could close your doors before they are even fully open. Seek out a reputable agent who is familiar with the needs of small businesses and ask for advice on effective coverage for your place of business. If your company is very unique, you may wish to use a company that provides specialty insurance that covers the unique assets of your particular venue. If you run a spa for example, then you might want to consider getting a specialized medispa insurance policy. There is insurance for pretty much every type of business out there. All you have to do is look for it.

Continue Marketing Your Business

Ongoing marketing is essential for your ultimate business success. You must do everything in your power to ensure that your business will withstand the tests of competition, current trends, and the ebbs and flows of customer demand. Maintain a website with high SEO content, so prospective customers can find your site quickly and easily.

Planning for the ultimate success of your new business from day one is vital. Presenting a well-prepared, quality image and beginning with a solid and reliable reputation is of utmost importance to the ongoing flow of clients and customers.

Article Contributed by Sia Hasan

Starting any business may be challenging. Just as the construction of a physical structure requires a firm foundation, so does any company you wish to build. You want to set your business up for success. For example, if your business is going to rely heavily on technology, then it may be worthwhile to consider contacting an IT staffing agency. Tons of information saturates the web about how to start a business. Below are some essential tips that seem to be universal and may help you have a prosperous venture.

Let Your Business Be the Answer to a Real Problem

You want to address a consumer’s need. The ability of your company to do so will give it industry relevancy. Ask yourself if the problem your business can solve is an issue for anyone other than yourself. If so, then do a little research and see if another business is operative that is meeting the consumer need. If so, can you do a better job of solving this problem or addressing the commercial demand than potential competitors?

5 Characteristics That Great Entrepreneurs Possess

Patient – With the tumultuous ways things can happen when starting a business, it is almost mandatory for the maintaining of your sanity to have patience. You may have many deadlines you need to meet. These may get extended or shortened. You may have to rely on people that are unpredictable, and it might not help things to get done properly or promptly if you are not able to wait at times or deal with frequent changes.

Passionate – Having passion is the fuel which can drive you as you run your business. If you lack passion, the chances you have at succeeding will be slim. Having a passionate connection to your startup is more than excitement; it drives determination.

Personable – By possessing excellent communication skills and a charming personality, you may probably attract more people who will want to work for you and those who are willing to do business with you continually.

Goal-oriented – Being goal-oriented signifies that you have a grasp on what it means to set up goals and follow through on them. You can set up long-term and short-term goals with discipline.

Tenacious – There is sure to be obstacles and inevitable setbacks threatening the successfulness of your business during its infancy stage and throughout its growth and development. Having tenacity means approaching each problem as they come with the mindset that it is not going to break you. It may be overwhelming at times, but you must rise above challenges.

Take Advantage of All Resources

Being a resourceful business owner means finding a way to make things happen when options are limited. Sometimes this may involve money, and there will be times when resourcefulness has no monetary benefit. In instances where something needs to get done with limited or no funds, you may have to be creative. If you can find a way to produce the intended outcome with access to little capital, then you have made a convincing demonstration of your ingenuity which could serve as strengthening for your foundation.

Choose the People You Let in Your Inner Circle Wisely

Chances are you will not know the answers to everything, what decisions to make all the time or sometimes if you need to ask for help. That is why it important to surround yourself with not just positive people but wise individuals who are business-savvy from whom you can learn. It is nice to have mentors whom you consider to be leaders in the industry. Also, you want to have a network of people working alongside you who have goals aligned with your own. The goals may not be identical but having similar ambitions might be able to keep everyone focused on the bigger picture.

When starting a business, many variables are unpredictable. Unfortunately, no crystal ball can tell you if your business will be successful or not. However, building your company with the right mentality, relevancy to a consumer need, network, and creativity could be just the building blocks you need to have a stable and firm support for your startup’s future success.

The startup work culture thrives on chaos and agility. Unlike large enterprises that have bureaucracy and processes at every step along the way, startups often have a flat hierarchy and this helps with quicker decision making. But such a work culture has its negatives as well. Startup employees often have too many things on their plate and this brings down productivity and efficiency. This is in addition to the burnout that startup employees routinely suffer from.

Unlike common perception, startups do not have to necessarily lose their agility by adopting best practices. It is possible to enjoy the benefits of being a startup while building a process-driven organization. Here are a few such best practices that can drive productivity and efficiency up in startups without compromising on the core startup values.

Follow a process calendar

While it is okay to experience chaos in the workplace, that should not be the hallmark of your startup. Doing multiple things at once only means that, as an employee, you are not contributing one hundred percent to any one activity. Startups can only become successful when they become more organized and sure-footed of their strategies. Preparing a process calendar that outlines all the various tasks to complete in a day is vital for two reasons. Firstly, this brings more sanity to the workplace and ensures that employees can focus on one task at a time. Additionally, creating a process calendar forces startups to plan their activities better. This builds greater persistence which is a very critical component for startup success.

Collaborate & Consolidate

The division of labor often gets blurred in startups and all employees do a little bit of everything. Not only is this inefficient, but this routinely leads to situations where more than one person ends up working on the same task. In a workplace that is already scarce on resources, such mistakes can only make the situation worse. With a process calendar in place, the next step is to collaborate with fellow workers to assign the roles and responsibilities of each of your workers on the various pending projects.

But collaboration can only work when all your employees are equally invested in the collaboration tools. Success with collaboration is only possible with the help of better consolidation. Without consolidation, work done by one of your employees may be inaccessible or not be in the format that another employee can work on. This creates an additional layer of friction in the process.

Instead, startups must invest in consolidation tools that can ensure that there is only one version of the product that everybody is working towards. For instance, migrate from hosted solutions like MS Office to cloud based alternatives like Office 365. Similarly, use a data organization service like Templafy to bring together all projects your team has been working on in one place.

Weekly status meetings

If you have a remote working team, then it may seem logical to execute all your communication virtually over project management tools. At the outset, this also makes sense since this strategy also documents all communications between team members, making communication more effective. While this is true, it is also important to hold weekly status meetings. One reason why status meetings are so important is because text-based communication may not always capture the entire essence of a conversation. A weekly face-to-face status meeting (at least over a virtual medium like Skype) brings team members together in one place. This way, participants are more likely to bring up any concerns and issues they have about the project and it helps teams avoid last minute firefighting.

Best practices are here for a reason – they make the job more streamlined and eliminate any possible inefficiency in the system. Adopting these practices in a startup workplace makes the business more efficient and effective, which only improves the agility of your organization.