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10 Top Tips for Entrepreneurs

March 28, 2018 by Guest Post Leave a Comment

Everybody has to start somewhere when it comes to new ideas and ventures. Initially, in our first stages we’re never experts until we research and gain further knowledge of a topic. Starting your own business is just another one of them ideas that requires such practice. As a young apprentice, we’ll look up to mentors who have become established in their trade. If you’ve not quite found that person you can gain valuable advice from, we’ve put together 10 top tips that can help any budding business owner to become successful.

Keep focused on what you know

Allowing yourself to focus on one particular business keeps it easier to manage, and it provides you with the environment to show your expertise and teach others. Plus, if it’s something that you’re passionate about you’re likely to stay motivated in your day to day work.

Be open to what you don’t know

Although you’re the boss, no one’s completely perfect at what they do. Surround yourself with good, knowledgeable people who you can still learn from. Everybody has gained different experiences in their trade and working as a collective can benefit the business. Find good people who have the same interests and goals, and success will follow.

Be sensible with your money

The aim of a business is to raise capital, not run it down to the ground. During your early days as a business owner, you need to make sure you’re investing wisely. Document what your money is being spent on and understand whether the investment you’re making is worthwhile.

Look after number 1

Being a business owner is a hectic lifestyle and not an overnight success. It will be a stressful time so be sure that you’re also looking after yourself too. Eat well and remain active to make sure you don’t burn yourself out.

Be assertive through your actions

The only way you can prove your worth is if you have something to show for it. It’s fair enough to sell your business enthusiastically, but people will be jumping on board because of the idea you’ve sold. Now it’s making sure the idea comes to light.

Learn from the mistakes you make

Mistakes aren’t always a bad thing, it can happen to basically everyone. Just be sure that you learn from the mistakes you make and reflect on how you could have done better. The best entrepreneurs see mistakes as an opportunity to better themself, not knock them back.

Take appropriate risks

No one can predict the future. Unless something is done, we will never know the outcome. Although it’s good to remain cautious, the window of opportunity doesn’t come around often, and if there’s a genuine belief that something good could come from it take the chance.

Appreciate your target market

As a business you should always be looking to improve and become better at what you do. The only way you’ll know whether you’re on the right path is if you communicate with the right people. Listen to customers to know what you’re good at and what you’re not, this way you can continuously progress your work.

Find the right team for the job

It’s hard to make success on your own, and you need to make sure that you build a team capable for the work ahead. A good entrepreneur understands the staff they require and provides the correct opportunity for the right people. In some cases, overseas staff may be an option due to skill shortage. It may require sorting legal issues like a UK Visa, but a boss always knows the right people for the job.

Always have a back up plan

You’re never going to know how the business is going turn out. Always plan ahead for potential disasters and what if’s. If it was to fail, make sure you have something to fall back on

Being successful as an entrepreneur will take time and a lot of effort. Following these simple steps should help to make it a smoother journey and keep you in shape for the excitement ahead.

About the Author

My name is Jennifer Ranking and I’m currently a student and freelance writer. I’m looking to build up my writing portfolio with various topics of interest include Business, Fashion and Women’s Sport. If I’m not writing, you’ll most likely find me reading or in a school as a part-time teaching assistant.

Raising Funds for Your Business – How Can I Do It?

February 23, 2018 by Edward Wade 1 Comment

Creating a successful business is an exciting venture, but requires an enormous amount of hard work. Starting off is never easy and it doesn’t matter how good your idea is, without the funds to get things going the business won’t take off. Cash is king and making sure you have enough to set up and see you through the first few months of trading with a healthy cash flow, is vitally important. If you don’t plan and spend your cash effectively, you could end with an asset-heavy business, but without enough cash flowing through the business.

So, what are some of the best methods of raising cash to get your business started?

Do it yourself

Self-funding is one of the most common means of raising cash to start a business. New owners regularly take the risk, re-mortgage, sell assets or dip into long term savings to make enough money to get their business rolling. Naturally there will be a risk involved, as with anything in business, however, if you plan effectively and strongly believe in your model, the business can be a successful, self-funded start up.

An alternate would be to borrow cash from either friends or family. This can work out great in some cases, as you are borrowing money from a trustworthy reliable source, who you have a naturally positive relationship with. This can help you negotiate suitable repayment terms which suit both parties. If things don’t work out the loss of capital can be devastating to those close to you, who are sometimes relying on you for the results. Naturally sometimes this happens in business, the most important thing is to make friends or family aware of the possible risks and losses.

Loans

A traditional bank loan is perhaps the most well-known form of funding for businesses. Banks are willing to lend money, as long as they can see a future for the business. The bank will assess the potential risks and pitfalls of the business before making a decision on if they will lend. If the business has been trading for a few years but is going through a short-term cash flow trouble, as long as the business plan can work, banks may consider lending.

Applying for a bank loan can be a long stressful procedure, particularly if it is a complex business and requires a lot of work and planning. For new start-ups which are unable to supply previous company accounts, banks will normally require security against your assets, as new start-ups are generally seen as riskier.

Commercial Finance Broker

If you’re not totally sure about the best way to raise cash for the business, a commercial finance broker can help you make the most appropriate decision, when it comes to moving forward. Raising money for a new business can be a very difficult task and sometimes different lenders have different types or repayment terms. A broker could advise you on the best deal and ‘shop around’ for you.

In a similar fashion, if you don’t think borrowing money is the right move forward a broker may be able to help you find a suitable investor or even a partner to raise up capital for the business.

Angel Investors

Getting capital through angel investors is typically quite difficult. Most need a lot of persuading, while one of the hardest parts is just getting sat down in front of them. Angel investors are normally business entrepreneurs who are willing to take risks and put money into new start-ups that they believe in. Sometimes angels form groups or syndicates so that it’s easier to spread the risks of their investment.

Angel investment represents a brilliant opportunity to raise money for the business, however, it can add extra pressure. Angel investors will always be looking to see where they can recoup their investment from if things go wrong. It would also mean that as an owner you might have to give up a certain percentage of the business.

Crowdfunding

If the business is struggling to get any funding externally crowdfunding can be a brilliant way to raise capital for the business. Crowdfunding works on a collective contribution basis where business owners put their ideas on an online platform and invite large numbers of individuals and institutions to invest in the business. Crowdfunding is not an easy option, people have to really believe in the idea and most people like to see that the business already has some money behind it.

There are a few different types of crowdfunding available. Some people invest simply because they believe in the cause, but this is normally in the case of charities or community projects. Small donations are made to some types of businesses, but these are normally met with a small reward from the business. For example, if it was a restaurant they may offer a free meal for two in exchange for a £50 donation.

To more efficiently raise money via crowdfunding requires either debt or equity crowdfunding. The first which is also known as peer-to-peer lending, is where individuals lend money to the business in exchange for financial reward such as interest on the amount borrowed. This can work great for new businesses who may be struggling to get a bank loan

Equity crowdfunding gives investors the opportunity to put money into the business in an exchange for shares. This is a fantastic means of raising money for the business as it can generate a lot of funds from people who believe in your idea. The negative is that you end up giving away shares in the business, but owners can control how much of a stake they give away.

If you have a great product or idea which appeals to a large audience, then you have a great chance of raising money more easily this way. Publicising the idea gives you a great chance of seeing just how popular your business could be. The draw back on the other hand is that without intellectual property protection anyone could copy your idea.

Partnerships

A partnership can offer a great source of funding amongst a range of other benefits. As well as a way to raise funds, a partner can help you with all the day-to-day running of the business. However, naturally owners are likely to clash at some point and for the original business owner it can be difficult to relinquish control. Some owners like to maintain full control and don’t like the idea of having to change their business idea.

For some business owners, relinquishing control is simply not an option. In this scenario trying to find a sleeping partner might be the best option. These tend to be individuals whose involvement with the business is simply providing capital, they don’t take an active role in the management of the business.

Strategic partners aid your business in a different way. If they are in the same sector and run a mutually beneficial business, you can pass on work to one another and make recommendations, effectively giving each other business.

About the Author

Edward Wade: I am a freelance journalist, who studied Business at Sheffield University. Now based in London I produce content online across a variety of different topics.

4 Things To Know About Start-Up Funding Stages

February 19, 2018 by InnovateUK Leave a Comment

Are you trying to collect together the cash you need for your start-up? It can seem like an almost unmanageable task when tackled incorrectly, regardless of your current position within the funding cycle.

Investment is vital to the longevity of any business and is a fundamental part of both expansion and development. Attracting investors and claiming that all-important funding should always be at the forefront of your efforts.

To assist you in finding start-up funding, we’ve brought together a list of tips to guide you and help make the most of your resources.

If you’re looking for ways to target potential investors, or are just curious as to what’s best for your business, be sure to read on and familiar yourself with the four things you should know about start-up funding.

You’ll Need to Know Your Funding Stage

Where your business sits within the funding cycle is crucial to obtaining investment. It’s something you’ll need to know!

Ask yourself some key questions as to the progress of your start-up thus far. How far along development is your product currently? Are you earning tangible profit from your services? You’ll need to be wary of your position as this will help point you towards the types of funding you should be aiming for.

Demonstrating self-awareness toward your funding stage is essential. Potential backers will be eager to see that you understand and acknowledge the boundaries of your business realistically.

Establish Why You’re Seeking Funding

Each funding stage will have different requirements, needs and ideals, and you’ll need to be familiar with these before you pitch to backers. The level of funding you’ll be asking for will have to be realistic, within your future targets and appropriate.

Demonstrate clear, solid reasons for your requests. Establish where and how the money you receive will benefit your start-up and create a strong pitch that shows off the very best of your company.

Personality and confidence are key!

Researching Target Investors is always a Good Idea

It’s always worth looking into those you’ll be pitching your start-up to.

Make sure you know the general behaviours and risk appetites of investors. They’ll differ at each stage so be sure to familiar yourself with the types of things they’ll be looking for. Being in the loop is important.

The more you know about those you’ll be asking of, the better your approach will be. You can adapt yourself to optimise the chances of success.

Types of investors will also be based upon your business milestones, financial needs and current progress reports, so be certain you’re up to date on all three. Be conscious of the types you’ll be appealing to and that you’re asking for appropriate amounts.

Getting this wrong could seriously affect your outcome.

Timing is Absolutely Essential

Observe and evaluate your company to determine which areas you’re looking to expand and focus on in the future.

Knowing where your efforts need to go, as well as what you need to engage with in order to progress to the next funding stage, will make clear the best time for you to make your pitch to potential backers.

Timing is a significant factor in determining how successful your efforts will be. If you get it right, you’ll avoid coming up short at a later stage when new investors are interested, and you’ll have a sustainable momentum of growth.

In need of some more guidance when it comes to business ventures and all things start-up? Be sure to follow Innovate UK on Twitter and subscribe to our YouTube channel for the latest news, tips and advice.

5 Unique Business Cost Saving Ideas You Should Apply In Your Business

February 15, 2018 by Guest Post 1 Comment

In this highly competitive world, you should always look to lessen your expenses to have better revenue margins. Therefore, every manager is always on a fact-finding mission, to find out ways in which to minimize the operating costs of running a business. Here are five ways to try:

Change The Way You Do Your Marketing

There is no need to advertise on prime time television where you will not get feedback and will pay an astounding amount of money when you advertise online where customers will find a channel to give you a feedback about your products. Start by creating a website supported by a blog or several blogs where you can tell people about your products and services. You will be surprised at the amount of money that you can save. So, rethink your advertising strategies and reduce advertising costs if possible.

Use The Already Existing Employees Before Hiring New Ones

When you need a certain skill, you should first look for the skills with the employees of your business instead of hiring new ones. You may easily find an existing employee with just about the same skill that you are looking for. Now, if you go ahead and hire an extra employee, you will need more space, more money and other resources to bring them aboard.

Save Energy In The Office

Do you know how much money you lose by virtue of lost energy? It is a lot of money every month. Many employees do not worry about switching off the appliances that they are not using and they leave them plugged in most of the time. This means lost energy. It also means that you pay more for your energy bills than you should. For corner offices, use as much of natural lighting as possible. For every device or appliance that is not being used, it should be switched off. There is no need to leave the printer on when you are not printing. Install windows with reversible insulation – one to keep in the heat during winter and the other to keep out the heat during summer.

Use All The Space Available

If you de-clutter the offices, you will find that there is so much space lying idle that could be used to fit in another workstation. You could also create extra space for that printer or other office appliance that you want to buy. Should you manage to get a full office that is not being used, you can even hire it out to another company and make money.

Employ Technology For As Many Tasks As Possible

Automate as many services as you can and invest in management tools like CRM. You will be surprised just how fast work will flow and how much money you will save in the long run. With so many vendors online, you should be able to find an appropriate solution for your business. Say for example, going online can save you cost of printing. Online advertisements will not require you to print handouts, leaflets and similar marketing materials. Still if you need a small portion of materials printed, you can hire a professional printing service provider. For businesses in Austin, there are some affordable yet highly professional printing service providers. You can look for similar services around you.

How to Reduce Costs in Your Business

January 25, 2018 by Guest Post Leave a Comment

Saving money for your company does not necessarily require large scale overhauls of your current business model. In most cases, being smarter with fund decisions simply takes a little bit of critical thinking, and a little wit can go a long way.

Here is a look at some surefire ways to improve cost efficiency regardless of your business:

Consider Dropping The Landline

Phone lines are on their way out, and it’s easy to see why. They are often expensive and unnecessary given the alternatives now available. Increasingly more small business owners are opting for cell phones or virtual phone lines to cut down on unnecessary costs.

Check For Paperless Options

The cost of paper, ink, postage, and other associated expenses adds up in the long run. Cutting down on printing unless absolutely necessary, and implementing something like a project management software can help you stay organized while also cutting down on costs.

Improve Your Online Presence

If your business is not online, you are missing out on a host of benefits. Social media can be extraordinarily effective at promoting your brand when properly utilized, and many times it can be done for free or at very little cost.

Businesses that don’t craft an online presence quickly fall out of favor to companies that have done their due diligence and made an appealing internet brand. It’s always a good idea to have all your bases covered and have a well-maintained profile on every social media platform.

Another added benefit is the ability to get feedback from customers. This gives you a great opportunity to fix any problems you may have overlooked and allows you to provide superior customer service.

Use Technology To Your Advantage

With certain simple adjustments, your company can save a tremendous amount of unnecessary work and hassle. For example, automating your accounts payable department, or using inventory software not only allows employees to spend more time on more meaningful work, but also cuts down on the likelihood of expensive mistakes from human error. Companies that are quick to implement technology like this are quickly finding themselves ahead of the curve as opposed to rivals that refuse to adapt.

Take Care of Credit Card Debt

Over time, how you handle credit card debt becomes a factor that can make or break your business. Interest rates and fees can creep up on you, and that’s exactly what the credit card company hopes for. Don’t fall victim to the interest rate trap and keep a keen eye on your credit card debt. Filing for business bankruptcy could land you in court and impact your personal credit score.

Look Into Alternative Workplaces

Ensuring a traditional location for your business can amount to huge costs, sometimes unavoidably. However, if you keep an open mind and know exactly what you need and what you don’t, you can occasionally benefit from dramatic cost reductions.

Coworking spaces can be a great change of atmosphere for your business. For one thing, they are generally quite cost effective. They also offer an interesting and vibrant atmosphere due to the other inhabitants of the space, which include different companies and offer a glimpse into a world other than your own.

For certain business models, a home-based business is also a viable option today. This way employees can simply telecommute, which is hard to beat as far as employee satisfaction.

Think About Opting For Refurbished Equipment

Brand new equipment isn’t always the best route to take. Usually refurbished equipment will be enough to do the job just as well at a fraction of the cost. Considering the astronomical costs of something like a new copy machine, getting a second-hand one makes all the sense in the world.

For a company to sell equipment as refurbished it usually has to pass certain qualifications. If you’re buying from a reputable company, you don’t need to worry about getting faulty products.

Bartering

Money isn’t the only way by which goods and services can be exchanged. Bartering allows a deal to be made between two parties without any money involved whatsoever. Even the best businesses go through times of low-profit, and this is an example of when bartering is exceptionally useful.

If you have something of value that isn’t money, that too can be auctioned off for goods or services you require. If you do a good job, the deed will generally be spread by word of mouth. The entire concept of bartering may seem antiquated or otherwise viable but it’s still very much a world worth exploring.

Mind Your Budget

It’s one thing to create a budget for your business, but the tricky part is often sticking to it. Unnecessary expenses can add up without you even realizing it if you don’t go over things carefully and regularly.

Pay close attention to what expenses are absolutely essential and which you can forgo. Something that your business used to require is not always something it will need in the future. Cutting costs in your business isn’t always easy.

Pay close attention to what you’re spending money on, and see what you can do to cut back. Follow these tips for the most common and simplest ways to cut costs in your company.

Article by Susan Ranford