How to Overcome Any Challenge Your Business Faces

StrategyDriven Managing Your Business Article |Business Challenges|How to Overcome Any Challenge Your Business FacesEvery business ever created has or will almost die. A mistake is too costly to make, and as a result, your entire future is put into question. It is not a matter of if in these situations, but when. A new competitor with a disruptive business model might come your way, or a more significant competitor might take what you’re doing and simply do it better.

There is an infinite number of problems you will face as a business owner. From customer complaints to new policies. From budgeting to sourcing. You cannot prepare for all of them because there are simply too many to predict.

What you can do is prepare your business and yourself so that you are ready to face any potential problem. To start? Follow this guide:

1. Hire a Consultant Before Times Get Tough

If you want to help prepare your business, then the best time to start is right now. Don’t put out fires one by one, set up a sprinkler system to tackle all your issues from the get-go. When you start a new business, you are going to feel out of your depth, which is why hiring a consultant can help you minimize risks and grow your business.

Just remember to choose the right consultant. General business consultants can be useful, but nothing will beat a consultant that knows your industry inside and out. If you are in the life sciences industry, for example, then you are going to want to hire life sciences global consulting and solutions. It’s as simple as that.

2. Build Up Your Business Credit ASAP

Small loans that can easily be paid off will work towards building your business credit. You want to improve it and its history fast. It is the best way to make sure that you can get the funding you need in the future.

3. Have an Emergency Fund

Emergency funds aren’t just for personal matters. You should put money away either in a savings account or an investment account so that you can cover any down deposits or other costs in the future. The key is that the account this money gets put into should give you interest. If you just have the cash lying around, you cannot capitalize on it over time.

4. Have All Your Records in Order

You will need to have all your records in brilliant order because one day, there is going to be an issue where you need to prove one far off payment for some reason. Invest in quality software and cloud computing so that you can not only keep track of all your data, expense, payments, and other information but that you can do it safely and securely.

5. Always Keep Learning

If you want your business to succeed, then you can never stop learning. You need to be on top of trends, policies, technology, and so much more so that you can steer your company in the right direction and keep it relevant for years to come.

Common Financial Problems Start-Ups Face And How to Solve Them

StrategyDriven Managing Your Finances Article | Entrepreneurship | Business Financial Problems | Common Financial Problems Start-Ups Face And How to Solve ThemAs an entrepreneur managing a start-up business, there are many common financial issues which businesses have to face. From start-up capital to a lack of investment, there are many potential aspects which can become mismanaged. However, although it may not be possible to avoid these issues, there are ways that you can solve them to maintain your financial security for the future and ensure that your business is least affected as possible.

1. Bad Credit Scores

One of the greatest stumbling blocks for entrepreneurs looking to start up a business is their credit score. A bad credit score can make it increasingly difficult to get loans to increase the funding for your business, among other important aspects. However, a bad credit score is not permanent, and there are procedures that you can follow to increase your credit score, such as bad credit loans. Taking out small personal installment loans for your personal finances and paying it back on time will mean you can increase your credit score and show potential investors that you can manage repayments on a routine basis. Therefore, when you look for funding your business using a loan, you will have an easier time to get one.

2. Lack of Funding

A lack of funding can also be a big hindrance to potential start-ups. Many entrepreneurs look to their own savings accounts to fund their businesses, and you can build up your funds in terms of this by saving a little every month and by choosing a savings account with a good interest rate. If this fails, you should consider getting a personal loan off a friend or family member, as this will be easier to repay and will not affect your credit score. However, if this is not possible, there are many schemes and funds which can help you to increase your fundings, such as government small business funding as well as grants and awards run by investors from large businesses.

3. Invoicing Issues

Another common problem for start-ups is the problem of invoicing. Writing and organizing invoices can become a large issue if your clients are not paying on time or if you have not organized your invoices efficiently to ensure that you know when you are being paid. To solve this problem, you should agree with your clients when you will be paid and create a clause on your invoice, which states this. Not only this, but you should not be afraid to contact your clients via email to follow up on these payments and ensure that you are paid by the expected time.

4. Disorganized Accounting

Many businesses also suffer from disorganized accounting systems, which make it difficult to budget and file your tax return efficiently. To ensure that your accounting is succinct, clear, and updated, you should employ a professional accountant who can help you to clear your accounts and prepare for the end of the tax year. In these cases, you should also consider downloading a business finance app which can help you to track your expenditure, keep copies of receipts and help you to forecast your cash flow and budget in the future.

Starting Business in Canada? Basic Tips to Follow

StrategyDriven Entrepreneurship ArticleWhether you are a Canadian or a new immigrant you might want to start your own company and be your own boss.

Statistics Canada showed in 2010 that 5.3% of immigrants started a business after living in Canada for a few years. At the same time, only 4.8% of Canadian citizens owned a private company in 2010. So, everything is in your own hands and all you have to do is to keep in mind the following information.

There are a lot of important things to consider about how to start a business in Canada. In this article, you will find the basic tips from financing and marketing to business planning in Canada.

Build Your Credit Score

If you are new to Canada, you may not have a credit history that banks can rely on to lend you the money for your startup.

There are several fast ways to build up your credit score. One of them is to build up your borrowing potential by signing up for a credit card. Make sure you use it with responsibility and in six months your credit score will slowly start to develop. Later on, you will be able to use it in order to finance your startup.

Pay attention to your credit score even after you’ve been approved for a loan as this is when problems may happen if you fail to repay the loan on time and in full.

Some lenders may approve your application for Canada loans for bad credit customers but it is not guaranteed that you will get the required amount and terms. Such loans are typically issued as personal cash advances rather than business financing options. Although, it may be enough to cover some small current business expenses.

Understand Canadian Culture

If you want your business to be successful in any country, you have to embrace its culture and understand local customers, what they like to purchase and how.

The best way to get immersed in a new culture is to join volunteer organizations and get involved in business associations or any other place where you can easily mix with people who know this country better and have lived here for a longer time.

After you’ve successfully built your local network, you may develop your business and make connections elsewhere.

Make Your Personal and Business Banking Accounts Separate

This piece of advice may seem obvious, yet so many business owners make the same mistake and start their own company not just out of a basement or an old garage, but also out of their personal bank account. Set up a separate business bank account that won’t mix with your personal one.

Also, make sure you have enough money to cover your personal expenses for at least six months while your company is getting started.

It always takes some time before the business becomes profitable so it’s always beneficial to have a good baseline. Even if you don’t have that money at the moment, you can start saving or find a job.

The website of the Government of Canada performs a useful page called Preparing to Work, which provides with additional information on how to land a job in Canada, tips on how to improve your English/French or get your credentials assessed. More than that, familiarize yourself with laws you will be required to follow as an entrepreneur, maybe even consult a business attorney if necessary.

Give your startup a fighting chance by creating a solid foundation with these basic for starting a business in Canada.