4 Tips for Renovating a Commercial Property: Are You Ready to Upscale Your Business?

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StrategyDriven Entrepreneurship Article |Renovating a commercial property|4 Tips for Renovating a Commercial Property: Are You Ready to Upscale Your Business?As a business owner, you know that attracting customers has almost as much to do with how your business looks as to how your business is run. Consumers are bombarded every day with ads from competitors trying to draw them into their store and sometimes, success comes down to something as simple as the way your business looks.

Renovating a commercial property can be a huge endeavour, but upscaling your business’ appearance can also be the thing that takes your company to the next level. Here are our best tips for renovating a commercial property:

1. Create a budget and a schedule

Like any renovation project, a budget and a firm schedule are key to success. There is an incredible array of changes you can make to a commercial storefront and it can be hard to reign it in, but proper planning and budgeting before the project starts are key. In general, you should add about 10% to your final budget as a contingency, since you never know what contractors might find when they start work.

Also, when it comes to scheduling your build, you want to make sure you can give your customers a date that you will be open and not leave them waiting. Customers’ attention spans are quite short these days, so if you run late on opening, they may forget about you!

2. Keep it clean

Even though your property is undergoing a renovation, it’s important to still keep it tidy and secure. Not only is it unsightly if there is lots of construction debris left lying around it can also be hazardous for the people working there. If you’re still open for business while renovations are ongoing, you could set yourself up for an accident if a customer got hurt. To prevent this, look into skip hire costs so that you have someplace to put your debris while the renovation is underway to keep your space safe and so that your storefront looks like its being worked on, and not like it’s been ransacked and abandoned.

3. Be prepared for change

While it would be great if our visions for renovation could go off without a hitch, that’s rarely – if ever – the case. Unless you’re building new, you can’t be certain what you might find behind the walls when the demo starts. Shoddy electrical work or outdated plumbing could quickly eat up your budget while taking away from your final product. While it might be hard to consider, being ready to have to change your final decor ideas to accommodate unexpected changes will be what helps your renovation succeed in the end.

4. Know your customers

Understanding who your business caters to is one of the most vital things to consider when you start a renovation. No matter what type of commercial property you’re renovating, take your employees’ and customers’ opinions into account. Make the design engaging and attractive, while still being a practical space for the work you’ll be doing in there. The way you renovate an office versus how you renovate a storefront will be vastly different. Don’t get lost in the design and stop considering how space will function.

Future-Proofing Your Business 2020

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StrategyDriven Entrepreneurship Article | Future-Proofing Your Business 2020Businesses are facing both scary and exciting times all over the world. There is a constant emergence of many tools to facilitate functions like accounting, branding, marketing, etc. The other side offers raging competition as the internet opens up the market to international players through innovation and technology that is hard to keep up with. Many traditional businesses are succumbing to entities dominating web presence by implementing the latest technology.

Most small business entities are struggling with current tech trends like data analytic, AI, and cloud computing; though it is impossible to know the challenges ahead, risk management cushions your business against any negative impact from the changes.

Keep Tabs on the Tech Trends

There is always something coming up in the technological world. Smart entrepreneurs keep tabs on the new technologies and adopt favorable ones to scale their businesses to the next level. Before other players realize, you will be ahead of the pack. Do not dismiss an innovation, thinking it is too early for its implementation. As long as you can afford and will add value to the business, take it up.

Others appreciate the use of AI and use products like chatbots to improve their customer service, marketing tools, and branding. Internet of Things introduces smart supply chains, holds massive potential for small businesses, and allows the collection of real-time data through responsive system building. Consult your tech-savvy team and brainstorm on how to synchronize these technologies into your existing processes for future-visioning.

Through Virtual reality (VR) and Augmented reality (AR), customer engagement is changing. You can implement AR technology and free customers to visualize products in real environments or train employees on difficult tasks through VR. Such an approach sets you steps ahead of your competitors when they become table stakes.

Educate yourself on developments around you, even if not related to your line of trade. Keep yourself informed. Kodak – filmmaker and camera was a million dollar company but failed to see the introduction of smartphones as a threat. The giant company that was in operation for 130 years came tumbling down in 2012. Other products like handy cams, PSP portable gaming consoles, GPs devices, and telephone directories died when users shifted to smartphones.

Cloud Technology

Both small and large business enterprises have, for example, adopted cloud solutions for downscaling or upscaling, allowing a seamless collaboration. Employees can work remotely, thanks to this technology, as they can access and use files from their location, anytime. Organizations provide more secure access and reduce cybersecurity threats and virus outbreaks. A security breach is a serious threat to most businesses as it can cripple a company. A robust system is one way of future-proofing a business.

Some businesses are reluctant to adopt cloud migration as they have invested in customized software and infrastructure or do not like cost models like “pay what you use.” Hybrid clouds will allow you to use your system while you move some data to the cloud. Hardware, licensing costs, and public servers can be costly. Hybrid offers a cost-effective storage solution for start-ups and small businesses at any stage.

Hybrid also provides scalability and flexibility that allows rollback and roll out services for your customers and team. Since you only pay for dedicated servers when there is demand, you will reduce overhead IT costs. Ample data storage and the ability to support the latest tech will not only give you an edge over your competitors but also impress your customers.

Always Play by the Book

Change in the game presents different rules. Jurisdictions are exploring, and grappling with smart cities concept have birthed the need for local and regional data regulations. Invest in reliable cybersecurity to always remain on the right side of the law even when regulations shift. Some companies providing secure access, offer API management tools that allow you to integrate third-party apps with no compromise on your security.

Playing fair and keeping on the right side of the law will shield you from lawsuits and penalties that can quickly bring your business down.

Pay Attention to Customers

Rife competition in business can keep you engaged in product development and pushing sales that you forget about the most crucial player – the customer. Paying closer attention to your clients and studying their behavior is one way proofing your business.

People shifted to online shopping for convenience, wide product range, discounts, among other benefits a few years ago. Entrepreneurs who anticipated the change acted fast and set up eCommerce stores alongside their physical ones. Their counterparts caught off guard stuck in traditional outlets closed down.

Set up systems to track your customer behavior, listen to their needs, and consider industry developments. Always try to predict changes in the buying pattern and consider accommodating the clients to stay ahead of the game.

Track Happenings in Developed Countries

One of the most straightforward strategies of staying ahead and future-proofing your business is to follow trends in the developed countries in your industry. Creating a Google Alert on your interested topics is an excellent place to start. India cab hiring businesses should have learned a few things from Uber’s entry in the US.

Create a Conducive Environment for Innovation

While following the leaders is good, but becoming one is better. Innovation is not for the faint-hearted, as you may fail many times. Keep trying, though. An invention will set you far apart from your competitors and keep you ahead for a while. Innovation needs a favorable environment. You will, therefore, need to trust your team more. Give your employees the freedom to explore and reward their efforts. Invest in them by sending them to tech conferences and events in your industry. Working as a team makes your employees loyal to your brand and embrace your vision. Once they own the concept, they are more likely to make it better as they offer different views.

No business can survive the fierce competition and dynamic technologies with inadequate preparation for the future. Entrepreneurs who employ the future-proofing strategies above will withstand the unpredictable tides in the business world.

5 Characteristics of an Entrepreneur Bound for Success

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StrategyDriven Entrepreneurship Article | Success Factors | 5 Characteristics of an Entrepreneur Bound for SuccessThere is a famous quote that says “ Success is when your photos are uploaded on Google instead of Facebook.”

In just a short span of time, to be precise just 4 years, we were able to rank on the first page on Google. When we started Hostingpill there were already players in the market but that never de-motivated us from marching ahead.

As an aspiring entrepreneur, you must have seen many ups and downs in this journey and of course, you must have read the biographies of leading entrepreneurs, but today we wish to share with you our personal views which we think are very much necessary for any entrepreneur to be successful.

1. Humility and teamwork.

Humility is a quality of ‘Quality leaders.’ It does not come to all easily. As a leader, we should learn to be humble from the ‘water’. It does not have pride, stays grounded and whenever it is faces a hurdle, rather than going against it flows in harmony with it.

So also, it is necessary to attribute the success of an organization to the team collectively. This helps in strengthening the bonds and also motivates the employees to do better. It inculcates the sense of ‘we-ness’ in the minds of the employees which contributes to productivity.

2. Learning from experiments

In the words of Thomas Edison, “ I haven’t failed. I have found 10000 ways that don’t work.” Young entrepreneurs need to keep on experimenting with new techniques to ascertain which works and which does not. They never fear failures or setbacks.

Although experiments are vital they are not applied in toto. They are applied in a phased manner to study the effects.

It is only after a detailed study, that the desired changes are implemented.

3. Risk managers

Yet another characteristic of successful entrepreneurs is that they are risk managers.

They know the potential risks associated with business and always take calculated risks.

They believe in only one thing that ‘ Fear is temporary, Regret is forever.’

4. Knowing ‘why’ behind every task.

Dr. Stephen Covey in his book ‘ 7 habits of a highly effective people’ states that one of the habits of successful people is that they always begin with an end in mind.

Just as an athlete knows where he has to reach to finish the race, similarly a successful entrepreneur knows where he wants to heed and what are his ultimate goals.

All his plans are centered around these goals and being aware of his goals beforehand prevents him from drifting apart from his set standards.

By knowing the ‘why’s’ in advance he is in the position to make the most judicious use of the resources.

By knowing the goals in advance he is in a better position to guide his employees.

The employees too can have a clear cut idea of what is expected from them. This reduces the friction between the entrepreneur and the employees.

5. Open to changes.

Successful entrepreneurs are always open to changes. They practice the principle ‘Nothing is permanent, but change’.

They stay abreast of the latest technological changes and keep on changing themselves to stay updated.

To stay updated they constantly need to keep watch on new happenings and also learn new things.

There is a possibility that you may miss a big chance if you are not ready to change and adapt yourself.

Conclusion

Having own business is rewarding and exciting. But business certainly requires more dedication and effort rather than a job.

In a job, you are working for someone else and getting the salary whereas in business you need to motivate yourself to work.

You are the boss. So unless you are a self-disciplined person, it is hard to stay ahead.

With a proper mindset and ability to adapt to the changes, you can strive ahead to become a successful entrepreneur.

About the Author

StrategyDriven Expert Contributor | Chris WagnerI’m Chris Wagner, Head of Content @ HostingPill. I regularly write about Hosting, Web servers and WordPress. I have more than 9 years of Industry experience.

Business Management Tips to Help You Boost Profits in 2020

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StrategyDriven Entrepreneurship Article |Business Management Tips|Business Management Tips to Help You Boost Profits in 2020Company profits are derived partly on hard work, and partly by the decisions made about the direction and focus of that hard work. This article focuses on the latter, inspecting how you, as a manager of a business, can make better decisions, and manage your resources more wisely, in order to improve growth, boost profits, and please shareholders. In the modern age of business, you need to be sharp to manage your business towards having a competitive edge.

Read on to learn how to sharpen the tools in your management kit in 2020 and beyond.

Think Staff

With so much chatter across the business world about digital technology and automation, it can be difficult to refocus back on staff – the people who get the job done for you and your company. All the most successful companies, you’ll have seen, are those that instill a smart, professional and motivated workplace culture – a code of ethics and responsibilities by which everyone abides.

As a manager, it’s your responsibility to see these values upheld, in order for productivity to be boosted, and workers maintaining loyalty to your project and your goals.

Software Steals

Nonetheless, there cannot be a business article in 2020 that does not mention the oncoming tide of technology that’ll make your business double-digit percentages more efficient in the 2020s. You only have to look to the technology news that’s published across the internet to read a host of fascinating stories about software and their use within companies large and small. Your responsibility as a manager is to make sure your business is the first to enjoy these benefits – using software and automated tools to boost your productivity this decade.

Financial Management

This tip is especially important for small businesses, which are perhaps more liable to falling profits, debt, and liquidation than their larger and more permanent cousins. If you’re managing a smaller company that’s on a growth strategy, you need to ensure that you’re working with the right tools to help you manage and understand your finances. With quickbooks authorize net integration, you can combine your accounting software into one streamlined system that provides instant and data-assessed access to your company financials, helping you make the snap decisions – about business deals and investments – that might prove profitable for your business in the future.

Think in the Long Term

Much of the news cycle is concerned with the here and now – and that atmosphere, of instant gratification and on-the-button updates can make business strategies myopically short-term. It’s the responsibility of a good manager to also direct workers’ perspectives to the longer term.

You can do this by setting goals, but you’ll also do this with a little blue-sky thinking about the future needs of your consumers, and the future pressures on businesses in your industry. By using this perspective, you can buy yourself breathing space and flexibility in the future, by making changes today that’ll boost your long-term competitiveness into the 2020s.

These business management tips will help all ambitious and thoughtful managers plot out a route to success in this new digital decade of enterprise and trade.

What is the importance of pre-money valuation For Your Business?

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StrategyDriven Entrepreneurship Article | What is the importance of pre-money valuation For Your Business?Pre-money valuation is a company’s liquidity before it earns the cash from an investment round. With the contribution of cash to the balance sheet of a business through the shareholder value, the post-money value becomes stronger due to the additional cash earned.

Importance of Pre Money Valuation

A pre-money valuation calculator by calculators.tech helps finance professionals to precisely measure the profit that they will earn after specific investment. Although pre-money evaluation is essential, it is not the most important consideration when taking money, especially when taking it from venture capital. Most of the time, the deals offered by companies are pre-money valuation.

The value-added that an investor will bring to the table is especially important for venture companies for the first time. Startups should take the lower pre-money bid if this business has the potential for a much larger value-added than another, offering better pre-money funding, but the added value opportunity is not the same. The long-term effects of the added value are more than compensatory to the lower pre-money.

Example of Pre Money Valuation

The following is an example of a business undertaking a finance process and its pre-money valuation.

Let’s suppose there is a company with a pre-money valuation of $100 million. There are a total four million shares in the company. The price of a single share will $25. Now the company wants to increase $40 million to the existing equity. So, the company has to release 1.2 million extra shares. Company will add $40 million in its pre-money valuation of $100 million, the post-money valuation will become $140 million. Now, the company has 5.6 million shares, but the price of shares is the same, $25.

Share Price and Equity Value

The pre-money valuation is calculated for the equity of entire business. It does not apply to the share price of the company. Although the capital stock is influenced by the acquisition of extra cash, the share price is not affected.

Equity Value and Enterprise Value

The enterprise value of a company is the market value of a business. It does not include the capital structure. It should be noted that a round of financing does not influence an enterprise’s value. As the equity value of a business rises in the capital, the enterprise value tends to remain the same.

Effect on shareholders

It is important to emphasize that before the transaction, the current shareholders will be reduced in ownership percentage by issuing new shares. The founders had 1 million shares, or 25% of the total shares, before increasing the equity value in the above case. After the increase in equity, founders will have the same 1 million shares but 17.85% of total shares (5.6 million). On the other hand, value of the shares of the founders will remain same.

Valuation of Equity Shares

There are three methods for the valuation of equity shares based on the balance sheet.

Book Value

Book value is the total value of a company split into several remaining shares. You can calculate the net worth by adding equity and reserves of the company minus expenses.

Liquidation Value

Liquidation value is calculated differently from the above-stated book value. It uses the valuation of the liquidation funds, which are often less than the books and market. For the calculation of the liquidation value of the company, liabilities are excluded from the liquidation value of the assets.

Replacement Cost

Replacement costs offer another method to evaluate the valuation of a business. The substitution or current cost of an asset is the amount of money to substitute the asset by purchasing a similar asset with the same future capabilities. Assets and liabilities in replacement costs are measured at their replacement value.

Venture Capital Pre-money Valuation

The valuation of the cash obtained from a funding round significantly affect the equity value of the new companies. That is why the statement is used so often because a business could see a dramatic change in its valuation.

Methods of Valuation

If a company undergoes a funding process, it will have to address the value of the company with investors. Investors can make strong arguments if they don’t find the value of company according to their expectations.

There are several methods for the valuation of a business or a company.

  • Precedent Transactions
  • Comparable Companies
  • Discounted Cash Flow

Formulas for Pre and Post Money Valuation

There is no standard method for estimating pre-money valuations of a company because they completely depend on the worth of the business.

Post Money Valuation

Post Money Value = Pre Money Value + Value of Cash Added

Pre Money Share Price

Pre Money Share Price = Post Money Value / (Previous Shares + New Shares)

Filling Gaps of Valuation

Since a company’s worth can be debated extensively, and investors usually expect a highly optimistic market, Venture Capital companies typically utilize preferred shares to address the valuation discrepancies.

There are a lot of advantages for venture capital companies to receive preferred shares.

  • Participation rights can be further enhanced
  • Anti-dilution privileges may secure the share from further dilution
  • Preference for liquidity is the first paying out when the company is sold
  • Preferred returns have a preferred investment return rate

Since all of the characteristics above have an added value, the preferred shares of the venture capital business are worth more than the rest. This ensures that they are willing only to buy preferred shares that are more expensive at a less desirable common share level, rendering their return on investment more appealing.

Wrapping-up

Financial planning doesn’t leave an investor comfortable until his/her business performs as per expectations. It is something that follows and sticks with you throughout your career, even if you are planning for a startup or a company with thousands of employees. You should probably hand it over at one stage to a professional who doesn’t just learn but love to do that. You must get to know the mechanism until then.