Want To Start A New Business? Here Are Basic Problems and Questions That Must Come To Your Mind

                           

 #Business

Starting a business is not an easy task. The path to entrepreneurship is rarely smooth – in fact, you can expect many ways when your company will more closely resemble a minefield than a business.

On the blog, I am going to examine the teething problems that an entrepreneur might face in the business and many others issues that are related to starting up a new business. At the same time, this post will proffer solutions and answers many questions that may be racing in the mind of business owner. 

Therefore, this article will help in building confident and prepares the mind of entrepreneur for success in chosen field of business. Let’s get started!

 MONEY MATTERS 

“I need start up cash”

     Wish you had personal assets you could liquidate? You probably have more than you realize. Take a look around your home. Any sporting and recreational equipment you are not using? What about antiques, art or collections that could be sold or used as collateral for loan? Can you borrow against your life insurance or your retirement?

     If you already own assets you plan to use in the business, utilize them as collateral for traditional financing.

   Tap your friends and family for loans or investment money. But do it carefully. Cautions David Jilk, president of Jilk System Inc. a business consulting Firm in Savannah, Georgia, USA.

Don’t let them loan or invest any money they can’t afford to lose. Put your entire agreement in writing and have a lawyer check your contract to make sure it’s binding and mutual (especially if they are buying stocks that are subjected to securities regulations).

 If you are uncomfortable asking for money, use this approach; Tell them you have drawn up a business plan and you would like their own opinion on it before you how it to prospective investors.

If they want to invest they will say something at that point; if they don’t you shall still get some valuable input for your plan.

      Find an angle investor. “Typically, angels are individuals looking to invest in companies that will make money, “He explains. “There’s no general rule as to what they are looking for. Angles are all unique.”

How do you find angle investors? Most angle it may surprise you are even within your own prescient, your street, office, compound, and locality or even state. You can get them through your colleagues, lawyers, business consultant etc. The local chamber of commerce and any small business development agency can also be useful. Finally, the internet is another very useful place, but one needs to be careful.

“I need to conserve what little cash I have”

       Considering bartering. You might find people who need your product or service and, in turn, have a product or service you need. But, Jilk cautions, “Don’t let the process of bartering distract you from your core business.”

    Check with your local University or college for low-cost or free services. Many schools require students to do “real world” project before they graduate; by enlisting these students, you can get valuable assistance with such tasks as your business plan, marketing, financing strategies, legal issues and more.

       Purchase used instead of new. Especially when it comes to durable equipment, buying used can save a tremendous amount of cash. Buy quality items from known manufacturers to assure the availability of parts and service. 

    Lease instead of buying. Lease (or long-term financing) conserves cash while getting you the equipment you need now. Jilk says “leasing is particularly common when it comes to high-end office equipment, computers and other technology based assets”. 

    Negotiate liberal payment terms with suppliers. According to Jilk, “Simply push out your average payables by five or ten days – except when it costs you money to do so – can make a significant difference in your cash balance.”

RUNNING THE SHOW

“I can’t afford full-time employee for every task that needs to be done.”

      Outsourcing is the solution for tasks that are beyond your core business but require a degree of expertise and efficiency. You will get a greater level of skill and more flexibility than if you try to employ them.

Typical duties to outsource include accounting and book-keeping functions, payroll, marketing and other administrative and professional service.

“I am not sure I am meeting all government requirements.”

      Dealing with various government entities can be one of the biggest headaches you’ll have as a business owner. Avoid serious problems by finding out what’s requirement before you actually start operating.

Check with appropriate local, state and federal agencies for their guidelines – most are set up to provide new business with all the necessary information.

“I am concerned about getting paid if I extend credit to customer”

         Unless you’re in a retail business, it’s tough to operate without extending credit these days. Insist that each customer complete a credit application and verify the information he or she provides before you make a credit sale.

THE PEOPLE SIDE

 “I’ve never hired employees before, and I want to do it right the first time”

          Figure out what you want before you begin the hiring process, then write complete job descriptions for every position. “Hiring mistakes often occur when you make the decision based on what you’re trying to get rid of – like doing the books –instead of what you need,” says Randy G, Pennington, president of Pennington Performance Group, a consulting firm in Dallas, USA.

“A job description that covers tasks the person must perform, the result you expect and the skills required to do the jobs allows you to conduct a more effective interview, balance your current needs with growth potential and increase the likelihood of new hire’s success.”

“You might be small now, but you shouldn’t think of your company that way if you want to grow.”

        Set policies before you need them. Don’t think that just because you’re small start-up you can do without personnel policies. “Start –up companies can be very flexible, and it can be very inviting to make up the rules as you go along,” notes Pennington.

“But failure to establish clear policies and practices before you hire can lead to misunderstanding, lost productivity, higher turnover of employees and even possible legal exposure.”

You don’t need a 500-pages policy manual, but you need to write down your expectations regarding performance, attendance, reporting procedures and any other critical component of your business.

“Isn’t it hard to find good people these days?”

       Be creative in your search for employees. “‘Help wanted’ advert are great if you want quantity,” says Pennington. “If it’s quality, you need consider other places. Ask your good employee and applicants for the names of friends they would want to work with. Every day, good people usually hand around with good people. Community, colleges, Universities, and technical programmes are good places to look.”

Just because someone has a job, don’t assume they wouldn’t consider a change. If you know some people who are excellent worker and have the skill you need, ask them if they are interested in discussing the opportunities you have to offer.

“I can’t afford to offer the benefits packages big corporations offer.”

     Few companies can, and the solution is low-cost perks. Pennington says “if you think the only rewards that motivate you employees or staffs are money and expensive benefits, you are wrong. Look at creative perks that won’t cost you much, such as flexible hours to find out what appeals to your staff.”

He suggests asking them what would make them willing to do their jobs for 1 percent less than what they are being paid. “Their answers will tell you the things that really motivate them,” he says, “but don’t reduce their pay!”

SALES AND MARKETING

“I want to do the work that’s my core business, not spend my time marketing.”

       As a business owner, there’s no way for you to completely avoid marketing. If you don’t really enjoy the process, hire or contract with someone who does. But even you are going to delegate the marketing and sales functions, you must participate in the planning and pay attention to how things are going.

“I don’t know how to write a business plan”

   Your marketing plan doesn’t have to be great literature; It just have to be a comprehensive programme to help you meet your goals. It’s good idea to read some books on creating a marketing plan. You also study what techniques did and didn’t work for others in competing and complementary businesses.

Cherie Kerr, an author of communication skills, book and public relation consultant in Santa Ana, California, says marketing includes three basic function; advertisement, public relations, and promotion. Each should be integrated into your marketing plan.

    Map out and commit to your strategy for at least the first full year of your operations; then track your results as you go. Be flexible- if something isn’t working and you’ve given it a reasonable chance, adjust your plan.

    “I don’t have much money to spend to marketing.”

    Kerr says when it comes to marketing, public relation usually provides the biggest bang of money. Put together a solid press kit and send out news release about your company. If you don’t know to do it, get a professional help- if you can’t afford it, get a communication or marketing student in the local university, who will help you out. 

     Networking! It cost practically nothing and pay off big says kerr so give your business card to everyone you meet. She suggests this technique for building a database of prospective customers. List everyone you know ( your Christmas card list is good place to start), then send a note or make a call to five of those people every day, telling them about anyone they know who might be a potential customer.

If you accumulate just five lead per day, you’ll have a database of more than 1,200 names in six months.

Lastly, knowing a solution before the problem occur can mean the difference between a smooth start –up and a rocky ride. Your best bet for a long –running business is to anticipate what you’ll have to deal with, and have plans in place before you need them.