Here is our top 10 list of mistakes people make when starting a business:
1. Not enough money: The most common reason why new businesses shut down is that the owner runs out of money. Cash flow is critical to a startup business. You could be profitable and still have to close your doors because your customers are taking too long to pay you. Cash is king in a startup venture and you need to prepare for it.
2. Not thinking survival: Starting a business is all about survival. How do you stay around one more day so that you can learn more about your market and close new customers?
3. Losing momentum: Many new entrepreneurs have ambitions to start a business so they create a website, try to make a few sales, go all out for a few months and then stop completely. Building a business is all about momentum. If you had 24 hours to spend on a business they would be put to far better use by spending one hour a day than for 24 hours straight.
4. Doing it all alone: Nobody is perfect or has the skills to do everything themselves. You need to understand what it is that you bring to the table and what you need to surround yourself with. If, for example, you are very strong at inventing but don’t want to sell then you need to find a salesperson to help you.
5. Not hiring right away: You should begin looking at who can be brought on board to help you from the first day of starting your company. There will be tasks in any business that you, as the owner, should not be focusing on if you hope to build any sort of sizable organization. Why are you doing admin work when you should be out closing customers, talking to the media, and landing new partnerships?
6. Doing it just for the money: If you don’t truly love your business then you won’t be successful. If you read the stories of famous entrepreneurs and how they built their organizations you will find that it all comes down to the root of loving what you are doing.
7. Getting to year 1, past year 2: Many entrepreneurs have a hard time getting to the end of year one. Typically it’s because they started the business on a whim and got excited about an opportunity but didn’t do the proper research. These entrepreneurs usually run out of money and close down after a few months.
8. Don’t build around a customer: The best way to make a lot of money quickly is to find a customer who has a problem and is willing to pay you to solve it – and then you go out and build the solution. Most entrepreneurs take the opposite mentality of “if I build it, then will come” only to realize that they’ve built it and nobody is coming. Instead of talking to customers as to why they’re not coming they decided to continue building and building. Soon they find out that they’ve invested years of work and nobody is interested in buying from them.
9. Don’t seek mentors: A great way to get a business going is to find out what other people have done to achieve success and implement those strategies into your own company. Find mentors who have knowledge of your industry and will give you time out of their day to help you.
10. Don’t get involved in the community: Tied in with not seeking mentors is not getting involved in the small business community. Countless opportunities are generated by connecting with other young entrepreneurs and finding out what they are up to and how you can help. You will get new business opportunities, partners, investment, media attention, ideas for productive tools to use, advice for your company, and many other resources that otherwise would take you years of trial and error to figure out (if you ever do at all).
Showing posts with label Starting A Business. Show all posts
Showing posts with label Starting A Business. Show all posts
Thursday, July 12, 2012
Monday, July 9, 2012
Practical Advice For A Small Business Startup
Many new small business owners start on a vision which is great; however that vision truly does not have a plan. A business plan is important to offer a solid foundation for your business model and forethought of expense, income, marketing, etc.
I work with many small business owners and truly not all 'ideas' or 'dreams' are the right fit for that person. One major downfall with many business owners is that they act on impulse and not logistics.
Example... 'Bob' has a relative who is diabetic – he decides to open a store front bakery in a strip center and only utilizes family and friends to help create, build, market and originate ‘goods’. No one is on a payroll – everyone is a volunteer which of course equates to no accountability. The store receives some media attention due to the ‘specialization’ of the store. People come in from the media attention – store becomes busy – no true employees since employees are volunteers / family and Bob is now having a hard time keeping up on orders because he does not have the funds to purchase bakery supplies. Bob is selling as much as he can but he is truly upside down on funds since he has utilized all of his personal funds to get the bakery up and running. Bob realizes that he needs to sell over 5,000 cupcakes to make his rent, insurance payments, vendor payments, etc. Unfortunately, 7 months later, the bakery closes.
This is a true example of not having a solid business plan with a realized budget. Good people with good thoughts however did not have the guidance from a SCORE or SBA counselor to assist them with their business model.
Make sure that you take the time to meet with your proposed landlord to learn about the fine print, make sure you meet with the local village or city to learn more about the demographics of the area, make sure you have disposable income since you will not be ‘making money’ right away, make sure that you have a clear sense of what you wish to have your business look like – stick to your plans – do not let anyone up sell you on your plans.
Enumerating all the mistakes may be productive to a point, but discussing the means to avoid them as a whole is more constructive.
A sound business plan is the best tool for the new enterprise. It is just as much for the business planner as for the investor. Completing the process will convince the most important individual that a viable business vision exists for the enterprise. That individual is you.
When you have completed your business plan, you will be able to pitch it with confidence to people who can help you. It will be your road map to your future that you can slide across the table to a banker, partner or investor. You can address it with verve because you own it by having done it.
The free links below provide free tools and examples on business planning.
How To Write A Business Plan
Sample Business Plans
MicroMentor
I work with many small business owners and truly not all 'ideas' or 'dreams' are the right fit for that person. One major downfall with many business owners is that they act on impulse and not logistics.
Example... 'Bob' has a relative who is diabetic – he decides to open a store front bakery in a strip center and only utilizes family and friends to help create, build, market and originate ‘goods’. No one is on a payroll – everyone is a volunteer which of course equates to no accountability. The store receives some media attention due to the ‘specialization’ of the store. People come in from the media attention – store becomes busy – no true employees since employees are volunteers / family and Bob is now having a hard time keeping up on orders because he does not have the funds to purchase bakery supplies. Bob is selling as much as he can but he is truly upside down on funds since he has utilized all of his personal funds to get the bakery up and running. Bob realizes that he needs to sell over 5,000 cupcakes to make his rent, insurance payments, vendor payments, etc. Unfortunately, 7 months later, the bakery closes.
This is a true example of not having a solid business plan with a realized budget. Good people with good thoughts however did not have the guidance from a SCORE or SBA counselor to assist them with their business model.
Make sure that you take the time to meet with your proposed landlord to learn about the fine print, make sure you meet with the local village or city to learn more about the demographics of the area, make sure you have disposable income since you will not be ‘making money’ right away, make sure that you have a clear sense of what you wish to have your business look like – stick to your plans – do not let anyone up sell you on your plans.
Enumerating all the mistakes may be productive to a point, but discussing the means to avoid them as a whole is more constructive.
A sound business plan is the best tool for the new enterprise. It is just as much for the business planner as for the investor. Completing the process will convince the most important individual that a viable business vision exists for the enterprise. That individual is you.
When you have completed your business plan, you will be able to pitch it with confidence to people who can help you. It will be your road map to your future that you can slide across the table to a banker, partner or investor. You can address it with verve because you own it by having done it.
The free links below provide free tools and examples on business planning.
How To Write A Business Plan
Sample Business Plans
MicroMentor
Thursday, August 5, 2010
The 3 Top Steps to Starting a Truly Successful Business
You want your new business to be successful? Of course ..... so here's 3 tips to set you on the right course.
1 - Plan Out Your Goals ..... If you are still in the initial stages of determining what things you should know about starting a business, then you will need to be sure to write out your financial and business goals. Make a timeline as well for when you hope to achieve them. Why do you want to start a business and what do you hope to accomplish? Do you want something hands-on that will require your presence in order to run smoothly? Or are you hoping for something more automated to allow a more flexible schedule for travelling and family time?
2 - Choose Amazing Mentors ..... The second most important thing you should know about starting a business is to secure a mentor who can help coach and guide you towards success in your chosen field. The most successful people in business have all made it a point to surround themselves with many people .... and at least one close mentor who can be a positive influence and show them the ropes. You can learn from their failures and triumphs and have a huge advantage in your own personal journey towards business ownership!
3 - Study Online Marketing ..... Possibly the most important of the things you should know about starting a business, is that in this day in age, almost everything is done online. Most of the world tends to shop, socialize, communicate and do business online. So whether you intend on owning a bricks and mortar business or something using the power of the internet, you will need to understand how to market your business online.
Unfortunately some people think that having a website will be enough when it comes to building an online presence. But when you consider the sheer enormity of the world wide web, you need to understand that just having a website without putting any real time into properly marketing and advertising your business online to drive people to your websites, you'll likely just float around the internet and never be found. So it is crucial that you enroll in an online marketing and mentoring school with the ability to train you in the important skills of online branding and internet marketing.
1 - Plan Out Your Goals ..... If you are still in the initial stages of determining what things you should know about starting a business, then you will need to be sure to write out your financial and business goals. Make a timeline as well for when you hope to achieve them. Why do you want to start a business and what do you hope to accomplish? Do you want something hands-on that will require your presence in order to run smoothly? Or are you hoping for something more automated to allow a more flexible schedule for travelling and family time?
2 - Choose Amazing Mentors ..... The second most important thing you should know about starting a business is to secure a mentor who can help coach and guide you towards success in your chosen field. The most successful people in business have all made it a point to surround themselves with many people .... and at least one close mentor who can be a positive influence and show them the ropes. You can learn from their failures and triumphs and have a huge advantage in your own personal journey towards business ownership!
3 - Study Online Marketing ..... Possibly the most important of the things you should know about starting a business, is that in this day in age, almost everything is done online. Most of the world tends to shop, socialize, communicate and do business online. So whether you intend on owning a bricks and mortar business or something using the power of the internet, you will need to understand how to market your business online.
Unfortunately some people think that having a website will be enough when it comes to building an online presence. But when you consider the sheer enormity of the world wide web, you need to understand that just having a website without putting any real time into properly marketing and advertising your business online to drive people to your websites, you'll likely just float around the internet and never be found. So it is crucial that you enroll in an online marketing and mentoring school with the ability to train you in the important skills of online branding and internet marketing.
Tuesday, January 19, 2010
Advice For The Start-Up Entrepreneur
This advice isn’t meant to be all inclusive …. but should give you a good foundation to jump off from. Hopefully it’ll help you avoid some of the problems or issues you face when you begin.
For starters (pun intended) …. Read "Art of the Start" by Guy Kawasaki to give you the right foundation.
My number one piece of advice would be to do your research BEFORE you start. Talk to potential customers, suppliers, and industry associations. Find out for sure if your business model is in demand - especially in this economy.
Is there too much competition? Are profit margins adequate? What are the key skills needed to suceed and do you have those?
In short - find out about the business before you start.
Some very general but practical tips are …..
1. Whatever it is you are trying to build, build it fast (even a prototype) and hit the market right away. You will almost never get it right the first time. But if you are lucky you will get a lot of feedback from the customers about your product.
2. Best thing that can happen to a start up is getting an industry leader as your beta customer. If you can find one, you have got a game to play.
3. If you are product company, invest in your first few accounts. Don't start being transactional and look for profit from day one. (if you can afford to do this). Products only make money when there is scale. Remember, all you are looking for from your first customers is "yee ha! this product rocks." comment. Ensure you get it.
4. When the going gets tough (and invariably it will), have the patience and the determination to stick through.
Another piece of wisdom that deserves stand alone mention for anyone starting a business is ….. "Find out what the customer wants and give it to them'. Which means listening to prospective customers and making changes to your product and service - fast.
The faster you do this the faster you will grow.
The problem is most people start a company for their own reasons and are slow to accept 'change'.
Some final insights to keep in mind are ……
1. Find something that you enjoy doing, that you are really good at and tweak it to provide a product or service of real value to people that people really need.
2. People who are looking for solutions to their problems can often be your best customers if you can squarely meet their need and add value.
3. The cost of your product or service should be a small fraction of the value they receive and you need to think of scale to drive more revenue in most cases.
4. In a competitive market find what the others are not doing well or find a segment that they are not serving and focus on that niche.
5. In real estate it is all about location, location, location. In entrepreneurship and small business it is all about specialization and niche marketing. You cannot do everything equally well.
6. Starting a company is not just knowng all about the product or service. It is also accounting, finance, strategy, cash flows, banking, taxation, contracts, legal issues, intellectual property, human resources and a lot of other things. You need the right resources.
7. Many people feel threatened by people who are smarter than them but if you need to be succesful you need to surround yourself with real smart people and you need to manage and reward them well.
8. Be generous and big hearted else the high achievers may not stay with you for long but will look for other prospects.
9. Understand your customer's needs and position your product well in the market to meet your segment's needs.
10. Be aware of barriers to entry to your market for others and think about how you can build sustainable long term competitive advantage.
Commit to your idea 100%. Dabbling in it, worrying about your day job, telling yourself you just can't afford to work at it full time because it doesn't pay yet - that will kill your business.
If you tell yourself you just can't afford to go all in, all at once, then it's just a hobby. You only get out of it what you put in.
Watch and track cash like a hawk...especially as growth increases (that is when you are most likely to run out of cash).
Be marketing and selling continuously.
Under-promise and over-deliver.
Clearly communicate why you're different than your competitors - and why they should choose you over your competitors or just doing nothing (or staying with their current provider).
When you hire, hire good people who are willing to chip in to do whatever is required - you won't be at the point for hiring specialists until you get much larger.
Enjoy the excitement and fun of a startup enterprise. As you build your business you'll think back to this time with fond memories (and forget some of the painful ones and long days).
For starters (pun intended) …. Read "Art of the Start" by Guy Kawasaki to give you the right foundation.
My number one piece of advice would be to do your research BEFORE you start. Talk to potential customers, suppliers, and industry associations. Find out for sure if your business model is in demand - especially in this economy.
Is there too much competition? Are profit margins adequate? What are the key skills needed to suceed and do you have those?
In short - find out about the business before you start.
Some very general but practical tips are …..
1. Whatever it is you are trying to build, build it fast (even a prototype) and hit the market right away. You will almost never get it right the first time. But if you are lucky you will get a lot of feedback from the customers about your product.
2. Best thing that can happen to a start up is getting an industry leader as your beta customer. If you can find one, you have got a game to play.
3. If you are product company, invest in your first few accounts. Don't start being transactional and look for profit from day one. (if you can afford to do this). Products only make money when there is scale. Remember, all you are looking for from your first customers is "yee ha! this product rocks." comment. Ensure you get it.
4. When the going gets tough (and invariably it will), have the patience and the determination to stick through.
Another piece of wisdom that deserves stand alone mention for anyone starting a business is ….. "Find out what the customer wants and give it to them'. Which means listening to prospective customers and making changes to your product and service - fast.
The faster you do this the faster you will grow.
The problem is most people start a company for their own reasons and are slow to accept 'change'.
Some final insights to keep in mind are ……
1. Find something that you enjoy doing, that you are really good at and tweak it to provide a product or service of real value to people that people really need.
2. People who are looking for solutions to their problems can often be your best customers if you can squarely meet their need and add value.
3. The cost of your product or service should be a small fraction of the value they receive and you need to think of scale to drive more revenue in most cases.
4. In a competitive market find what the others are not doing well or find a segment that they are not serving and focus on that niche.
5. In real estate it is all about location, location, location. In entrepreneurship and small business it is all about specialization and niche marketing. You cannot do everything equally well.
6. Starting a company is not just knowng all about the product or service. It is also accounting, finance, strategy, cash flows, banking, taxation, contracts, legal issues, intellectual property, human resources and a lot of other things. You need the right resources.
7. Many people feel threatened by people who are smarter than them but if you need to be succesful you need to surround yourself with real smart people and you need to manage and reward them well.
8. Be generous and big hearted else the high achievers may not stay with you for long but will look for other prospects.
9. Understand your customer's needs and position your product well in the market to meet your segment's needs.
10. Be aware of barriers to entry to your market for others and think about how you can build sustainable long term competitive advantage.
Commit to your idea 100%. Dabbling in it, worrying about your day job, telling yourself you just can't afford to work at it full time because it doesn't pay yet - that will kill your business.
If you tell yourself you just can't afford to go all in, all at once, then it's just a hobby. You only get out of it what you put in.
Watch and track cash like a hawk...especially as growth increases (that is when you are most likely to run out of cash).
Be marketing and selling continuously.
Under-promise and over-deliver.
Clearly communicate why you're different than your competitors - and why they should choose you over your competitors or just doing nothing (or staying with their current provider).
When you hire, hire good people who are willing to chip in to do whatever is required - you won't be at the point for hiring specialists until you get much larger.
Enjoy the excitement and fun of a startup enterprise. As you build your business you'll think back to this time with fond memories (and forget some of the painful ones and long days).
Wednesday, September 16, 2009
Bootstrapping For Small Business Entrepreneurs
There's an ebook on the topic of Bootstrapping that literally walks readers through steps they can take immediately. It's called "13 Bootstrap Strategies to Build your Business on a Shoestring Budget".
You'll find it here:
Bootstrap Strategies
As you may know, over 99% of all business owners begin through bootstrapping! But many new entrepreneurs feel they are held back because they have no money. So not true! Author Marjorie Geiser has grown a successful business, as have many of her clients, through the efforts of successful bootstrapping.
You'll find it here:
Bootstrap Strategies
As you may know, over 99% of all business owners begin through bootstrapping! But many new entrepreneurs feel they are held back because they have no money. So not true! Author Marjorie Geiser has grown a successful business, as have many of her clients, through the efforts of successful bootstrapping.
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