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3 Startup Essentials That Cannot Be Overlooked

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StrategyDriven Starting Your Business Article |Startup Essentials|3 Startup Essentials That Cannot Be OverlookedIf you’re just starting your business journey and you have a company about to be launched, you might be wondering whether or not you’ve got everything in place. After all, you only have one chance to make a good first impression (or a bad one, come to that), and it can feel rather overwhelming when you consider how much you want your business to succeed and how much work you need to put into it.

For many who have never run a business before, it might seem as though there are dozens of different elements that need to come together to make it a success, but in reality, when you’re a startup, there are only three that you really need to be thinking about. Ensure these three startup essentials are in place, and you’ll be heading in the right direction.

Funding

A startup without the right funding is doomed to failure. Even if you start to make money, without having some form of capital behind you, the income will be too slow to make an impact, and before you can really make anything of your business, it will be too late – you will have run out of money. This is why it’s important to have funding in place before you launch. You can then focus on building the business rather than having to worry about keeping it afloat.

When you think of getting money for your business you will probably consider a bank loan first of all. It might even be the only thing you consider. However, there are a large number of different funding methods to think about including finding an angel investor, using your savings, borrowing from friends and family, or even using the money you’ve made through your algorithmic trading. Whatever you choose, as long as you have a plan to pay it back, you can get started even if the bank turns you down.

Customer Service

Most entrepreneurs are looking inwards when they launch their business. They’re interested in their suppliers, their employees, how productive they can be, and, of course, how much money they are making. Although this is important, you must remember that you’ll need to look outwards too; you’ll need to think about your customers.

Customer service is one of the most important elements to get right in any business, and when you’re launching a startup good customer service is vital. It’s what is going to set you apart from the rest, and it’s what will get you noticed. Customers expect a high level of good service, and if you can provide it they will be happy to return again and again. Get it wrong, and you’ll find that your unhappy customer has told everyone they know, and probably used social media to do it. That spells disaster for a young business. Reputation is everything.

Social Media

Speaking of social media, that is another important element of business that a startup is going to need to have in place before they launch. In fact, your social media channels could even help your launch by previewing what you’re going to be selling and making potential customers interested before you even get started.

However, just having an account on Facebook, Instagram, or Twitter, for example, isn’t going to be enough. Posting once in a while and writing ads when you do isn’t going to be enough. You need to focus on the content and ensure that whatever you are posting is useful information and engaging too. In this way, it is more likely to be liked and shared, and that’s crucial for a business on social media.

What makes a good investor pitch?

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StrategyDriven Managing Your Finances Article |Investor Pitch|What makes a good investor pitch?Pitching your startup to investors is a nerve-wracking experience for everyone. Even the great business leaders of today like Elon Musk and Bill Gates have had to stand in front of a group of investors, and ask them for money.

You only have a brief window of opportunity to make that first impression and hook in your audience.

Knowing what makes a good investor pitch is a large part of the battle, so what does make a compelling investor pitch?

Research your investors

You don’t want to take a cookie-cutter approach to your pitches if you are making more than one. Do your homework on each potential set of investors. What is their investment profile like? What successes and failures have they had in the past. You want to try and remind them of the former rather than the latter.

Investors will be able to spot a generic pitch a mile away, especially if it misses the mark with its target audience.

Confidence is key

You might be a nervous wreck but confidence is a must. Not only confidence in yourself, but in your business and your ideas. Why would someone give a lot of money to someone who isn’t confident in their own ideas?

There’s a fine line between confidence and arrogance, so don’t overdo it. Invest in having your pitch deck drafted by a professional Business Plan Writer, they can help to guide you through best practices in this area. Work on your presentation skills.

Business V emotion

A successful pitch needs both style and substance. You want to excite your audience by the prospect of investing in you and back it up with the cold hard facts.

Keep it short

It’s difficult to keep the magic happening for very long. Capture their attention, build up momentum and then get out and leave them wanting more.

Take them on a journey

Craft a compelling story for potential investors. It is great for nailing down the sequence of your pitch deck and takes your investors along with you on the story of your great idea.

Focus on investor benefits

As with all successful sales campaigns, focus on the benefits, rather than the features. You need to focus on what benefits and value you’ll be bringing to them, not the costs or features.

Know your business model inside and out

You’re going to get a lot of questions thrown at you. You can’t hide behind your pitch deck, no matter how great it is.

Your business model is the center of your pitch, you need to make it sparkle. Lose the investors here and it will be very hard to get them back.

Use visual aids in your pitch deck and presentation. Use examples of where a similar model is already being used successfully.

Be clear about what you want from them

What are you looking for from your investors? Partnership? Equity share? Remind people at the outset so that no one goes through the rest of the pitch for your startup under any kind of misapprehension.

6 Smart Investment Decisions To Make As An Entrepreneur

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StrategyDriven Managing Your Finances Article |Investment Decisions|6 Smart Investment Decisions To Make As An EntrepreneurSmart entrepreneurs invest business profits wisely to minimize loss. This ensures that even though the money is being spent, it is spent in ways that enable business growth, which, therefore, allows the value of the business to appreciate. Minimizing losses increases profit-making potential as scarce resources are being put to good use. A vast majority of entrepreneurs, 80% to be precise, fund their enterprises out of pocket, and managing cash flow is a major challenge as most have no prior business cash flow education. But you don’t have to be a part of this statistic. After you make your first turnover, making these smart financial decisions will help you make the most of your hard-earned money.

1.Investing in fixed assets

Investopedia defines an asset as an economically valuable resource owned, controlled, or acquired with the expectation that it will appreciate later. A fixed asset is an asset acquired to liquidate at a later period. It is expected to appreciate so that you can cash in on the benefits. A simpler explanation will be to save up money but not in cash, which can be affected by inflation. Important fixed assets an entrepreneur should invest in as a business, include furniture, and land. These assets appreciate over time, and when managed properly, can make you some great benefits. It will be much more beneficial to your business to own property that would be making you money in the long run and aiding business operations simultaneously.

Fixed assets require efficient maintenance to ensure that your investment is protected. In the case of concrete structures, you could have a periodic assessment done on your building by experts like K&E Flatwork so that any damage beyond normal wear and tear is remedied as soon as possible to prevent asset value from depreciating. Keep your sidewalks and parking lot in mint condition as well. A well-maintained building and environment is easier on the eyes and markets your business better to a potential customer.

2. Buying the right insurance

Insurance on your property, car, and health is an added layer of protection to your assets. Many state laws require all property owners to take out adequate insurance in the event of an unfortunate occurrence. Fire, earthquakes, or even accidents could cost property owners a lot of money in uninsured. Your business could take a hit as a result, and this would be a waste of money as well as an unnecessary business opportunity cost. Take time to research property insurance to understand how taking out one could work to protect property owners.

StrategyDriven Managing Your Finances Article |Investment Decisions|6 Smart Investment Decisions To Make As An Entrepreneur3. Investing in yourself

The importance of growing in your craft and building value through education cannot be over-emphasized because you are only as good as what you know. The entrepreneur, as the human resource, is the most valuable component in the profit-making process. So invest the money and time in bettering yourself so you can improve at building your business. You can take some courses in business analytics, economics, business communication, or even get an MBA. You can also acquire some marketing skills with a CIM so you can take advantage of the available marketplaces. Also, make it a point to frequently upgrade your qualifications when you get them. This is because there are always new ways of doing things. You’ll be able to keep up with the times, advance yourself and your business as well.

4. Investing in marketing

The notion that a good product by itself will drive traffic no longer holds. Many businesses struggle to retain their customers because they fail to invest in proper marketing structures early enough when they had the momentum. Strategically including ad expenditure on your budget saves you from being blindsided when you do need it. Diversify your marketing options by spreading your options so you can target different customer bases. Younger people are more likely to resonate better with social media, and older people are better reached with in-person marketing. Engage some extra help with in-person marketing campaigns so they can be even more productive. The business rewards will be worth the sacrifice.

5. Paying your debts

This may not seem so important on this list, but having debts is counter-productive to success. You cannot truly count your money as profit if you haven’t paid off your debtors. Owing people is also not a good identity to have. It could make it difficult for you to attract value investors as your credibility, which would be needed to build confidence in your enterprise, will be in question. So, come up with a debt repayment plan and pay off your debts at a convenient pace that would not leave you starving or homeless. Most entrepreneurs start up with loans from family and friends. Because of the personal relationship at stake, it is even more beneficial to you to pay your debts, so relations do not get strained. Some relations might even be willing to reduce your interest rate if you express interest in paying off your loan faster. This will imply increased business profits.

6. Getting the right help

Get help with administrative duties and any other roles that are not your strong suit because productivity will suffer in the end if you attempt to do it all. Do not also go overboard with hiring too many people. This will cost you needless expenditure as you’ll be overspending where you could be saving. First, hire an administrator or secretary to help you stay on top of paperwork so you can focus on making business decisions. Also, invest in a trustworthy accountant. An accountant role goes far beyond the boring task of securing the money. They’ll ensure that your taxes are paid on time, so your business is in the clear with the government. They’ll also keep track of cash inflows and outflows so that you know exactly how much profits you are making.

Additionally, outsource work that you do not need to hire full-time staff to do. A typical example is janitorial and maintenance work. Cleaning and maintenance work are duties that can easily be outsourced to an agency if it does not need to get done every day. Observe your workspace and plan on days the cleaning can get done. If it is something you can get done easily without your plate getting too full, then, in this case, it would be better to do it yourself. The result, either way, will be efficient financial management and increased productivity.

As an entrepreneur, you always need to have a plan and a back-up ready to run despite having limited funds at your disposal. Spending your money in ways that benefit your business will help you make the most out of your venture.

Key Financial Tips For Entrepreneurs

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StrategyDriven Managing Your Finances Article |Finances|Key Financial Tips For EntrepreneursStarting a new business venture can be an incredibly exciting time, but you must also be careful and well-organized during this period, especially when it comes to your finances. Money will be incredibly precious when first starting out so you must have a clear budget in place and know where every single cent is being used. This can be tricky with so many areas that need attention and particularly if this is your first business venture. With this in mind, here are a few financial tips for entrepreneurs which should help you to manage money effectively from the start.

Secure Enough Funding

Possibly the biggest mistake that entrepreneurs will make is not getting enough funding to get the business up and running to a high standard. It can be hard to change how your brand is perceived, which means that you need to get off to a good start. Work out exactly how much money you need factoring in every expense and then use a variety of funding sources to reach this amount. This might include:

  • Personal savings
  • Loans from friends/family
  • Angel investors
  • Venture capitalists
  • Bank loans
  • Crowdfunding

Keep Costs Low

Every cent counts when first starting out, so you need to find ways to keep costs as low as possible without it impacting the quality of the product/service. There are a few different ways to do this, including:

  • Outsourcing instead of hiring staff
  • Working remotely
  • Going paperless
  • Using alternative energy
  • Negotiating with suppliers

Car Finance

Most modern-day businesses will require at least one vehicle if not a fleet as part of the operation. This can be a huge cost, which is why car finance deals are a smart option. There are poor credit car finance deals from specialists like CVS, which can make it possible to lease a car even if you have poor or no credit at all.

Invest In Insurance

It’s always better to have a safety net when it comes to insurance, and this is true in the business world too. The types of insurance that you use will depend on your industry but make sure that you have adequate coverage before getting started. You can usually make savings on insurance by shopping around and consolidating insurance policies.

Reinvest Into The Business

Once the business starts to find success, it can be tempting to splash the cash and increase the amount that you pay yourself, but this is a classic mistake. Instead, this money should be reinvested back into the company to drive further success. Putting more money in marketing is always a great idea as increasing brand awareness, and reputation is vital for growth and competing against the bigger brands in your industry.

Every entrepreneur will have concerns over finances when launching a new business, and this is for good reason. The above are a few key tips to keep in mind which should help you to use your money smartly to help get the business up and running to a high standard. You should then continue to be stringent with every cent as the business starts to grow.