Things to Take Care of During a Business Startup

Before staring up a business you have to make a business startup check list. Startup check list is important for the future of the company. It should be made clear that this article is not for a person who is setting up 2 billion dollar company. This startup checklist is not for them. Target of this article is the people who have to setup new business from scratch, with low budget startups.

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First and the foremost thing that is to be taken care off is that whatever you start you must have interest in that field and you must have good hand in that field. Second thing you have to do is to gain knowledge related to that field. Gaining knowledge implies, your product, your competitor, their marketing strategies, how big they are, how much market share they hold. You must also know how their supply chain works. Who all are their suppliers and how much they bear from them. Business startup checklist’s next check will be to research that how you can manage to out smart them and bear the cost of product at lower price keeping future aspects in mind.

If your research turns up positive, you move to next step in Business startup check list. Next thing in our startup checklist is sorting all the legal aspects that relate to your business. For new startup you have to register your company first. One thing I will mention here from startup checklist is that make sure what you are selling is legal and all routes you take are also legal. You must look unto these things to work out.

Now when we come down to next item in business startup checklist it is setting up business plan. This is pivotal in your startup checklist. This will decide your path to the future of business. This has to be followed by marketing plan. New business startup with out this is like moving in an unknown place without direction or a map. For new business startup there are two very important things. When all this is done your business needs to have an ordered structure. Ordered structure means you inventory management, supply management, material management.

Business startups are very critical for your business future. If you compromise on any aspect in the starting it will linger on and will result in some big goof up later on. So your business startup has to be very organized. Manpower is also a big issue. You have to manage you manpower and make sure that they do not screw up the things. Business also needs insurance legalities to be sorted. Security of you manpower is very important so you have to meet the security levels for you man power. Business startup sounds easy but needs lot of hard work and legal tangles. I hope his article will have given a head start to your business setup plans.

Checklist

How to Raise Capital For Your Small Business Startup

One of the primary duties of an entrepreneur is to continuously raise capital for his or her business. But what happens when that business is still in its startup stage? How will an entrepreneur raise capital for a new small business startup? I intend to use this article to reveal the fundamentals of raising capital for your business.

“Thought, not money is the real business capital” – Harvey Firestone.

If you are a first time entrepreneur seeking to raise capital for your small business startup, then read on as i share with you 12 avenues you can ply to raise capital for your small business startup. If one fails to yield result, you can try another. Before proceeding to raise capital for your business, I want to clearly state that there are certain necessities you need to have at hand and one of such necessities is a business plan.

12 Ways to Raise Capital for Your Small Business Startup:

1. Family Members

One of the first places entrepreneurs go when trying to raise capital for their small business startup is their family members. Family members will give you money blindly simply because of the love and bond you share with them. Though capital from family members may not be enough to see your business stand firmly, it’s going to give you a push and boost your morale to forge ahead.

2. Friends

The next avenue you can ply to raise capital for your small business startup is to approach your friends. One thing with seeking capital from friends is that they (your friends) might want to come on board as partners. One more thing, your credibility will be a determining factor to your success with raising capital from friends.

3. Angels

Angels are rich individuals that have resolved to use a portion of their wealth to support young entrepreneurs and small business startups. All you have to do is fit into the criterion set by the angel investor and you will see your startup funded, provided you have a bankable business idea backed by a strong plan.

4. Entrepreneurship Supporting Banks and Institutions

Your business startup can also be provided with capital by entrepreneurship supporting banks or institution. Some banks and institutions usually set apart funds to support entrepreneurship. Their terms are usually flexible; these institutions or banks usually request a stake in the new venture and whereby a stake is not requested, they may grant the small business startup a longer repay period.

5. Private Investors

The next avenue you can ply to raise capital for your small business startup is to approach private investors. These private investors are individuals that invest in business ventures with the hope of receiving a massive return on investment. They are usually rich and experienced individuals when it comes to business and investing.

Before approaching private investors; you must make sure your business idea is bankable and backed by a strong business plan. You must also make sure you are capable of defending the proposed budgets stated in your business plan before these investors.

6. NGOs and Not For Profit Organizations

NGOs and Not for Profit Organizations that support entrepreneurship may not directly provide capital for your small business startup but they can help link you up with private investors and institutions. Some of these NGOs have strong working relationships with the elites of the society and big institutions. You can leverage on this relation to raise the capital you require.

7. Venture Capitalists

Approaching a Venture Capitalist is one option you might not want to consider because VCs are tough and strict on their funding terms. Only few businesses ever pass the test of VCs because of their tight rules.

If you pass their requirements, VCs will provide the capital you need in return for equity in the startup. They will also bring their experience on board to make sure your business survives and grow; so they can get back their investment.

8. Banks

You can obtain loans from commercial banks to kick start your business but you must deposit tangible collateral of value. Obtaining loans from banks is one of the less applied tactics to raising capital employed by entrepreneurs because of the requirements and high interest rates.

9. Entrepreneurial Networks and Associations

Just like NGOs, entrepreneurial networks and associations don’t provide direct capital but may link you up with investors and entrepreneurs that might provide capital and bring their expertise on board. Examples of such network and association are VentureHacks.com and SBA.

10. Customers

You can raise capital from customers by showing them a prototype of the product and collecting payment upfront before supplying. This tactics may not see your business explode but it might help it get off the ground. Steve Jobs of Apple Computers kick started his business this way by securing a large order from a customer with payment upfront.

Startup-Business-Model11. Suppliers

Just as the case of raising capital from customers, you can also apply the same tactics on suppliers by seeking supply in advance.

12. Investment Bankers

When all avenues have been exhausted, you can approach investment bankers to provide you with the capital you need. If you need help check with Your Business Coaching Club. They have the capacity to raise capital for you from the general public. But for this approach to be successful, you must be willing to give up ownership and sell some stakes to the public through an IPO.

Techniques

Tips For a Successful Business Startup

asfsafasfA business startup (otherwise known as a startup company or just simply, startup) is a company at its first stages of developing the product or service which their business founders believe will be in demand. These companies are usually financed by its founders but since this kind of funding will not be sustainable in the long-run, it will require additional financing from investors and venture capitalists. Your business growth is determined in this article.

Although this type of companies exists in all types of business around the world, the term is mostly associated with the information technology and the rise of many so-called Internet startups during the dot-com bubble in the1990s. Many of these Internet startups eventually failed mainly due to the lack of sustainable revenue or major flaws in their underlying business plans. Some of these Internet startups, however, did survive even after dot-com bubble burst, like the online bookseller Amazon.com and Internet auction place eBay. Most of this startup activity was from an area in California called Silicon Valley, which is still known for having a lot of startup company activity.

A company ceases to be a startup if it has undergone various developments, such as being publicly traded, or being merged or acquired by a larger corporation and ceasing to be an independent entity. Or in an unfortunate turn of events, startups may fail and stops operating altogether

Want your business startup to succeed? Here are some tips from Yourbusinesscoachingclub.com.

1. Enter a business area that you deeply enjoy, since you are going to spend a lot of time and effort to start it and make it succeed.

2. Ask yourself if you have the necessary skills, initiative, determination as well as the mental and physical energy needed to start a business.

3. Start a business with a family member or a friend who can act as a sounding board for ideas and can lend a sympathetic ear and shoulder. People starting a business need a support system especially when a crisis occurs. Some entrepreneurs choose for the experienced guidance of a mentor, or enroll in a support program for startup companies.

4. Evaluate the existing demand for the potential business venture. Research the market you will enter and find out everything (including the size of the market, possible demand for the products/services, likely competitors) before committing yourself to implementing your business idea.

5. Make a business plan to at least to know if the startup will succeed or not. It does not have to be a full-scale business plan for you to know this.

6. Since a new business venture is likely to take a long time to actually make profit, you should think about starting a business while still employed. This will make sure that means there is still money available even while you are going through the startup process.

7. Line up clients or customers even before the startup’s official start. Try networking or make the contacts by selling or giving away your products or services.

8. Try to understand all the legal intricacies involved of starting and operating a business, such as the legal requirements for your type of business, and laws on health and safety

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