Connect with us

Business Entrepreneur

8 tips that insure the success of any new business

(Entrepreneur News) When considering launching a new business, there are proven steps that must be taken to insure that the business succeeds and continues to thrive over the years.

Published

on

side hustle maybe worth something maybe?

cash-money

So you’re thinking of launching a new business?

You’re not alone – entrepreneurialism is the backbone of our nation, and while it is never easy, success is within reach for anyone with grit and integrity. No matter the industry or type of business, there are proven ways that the majority of current successes have reached their goals.

bar
Victoria Treyger, Chief Marketing Officer of Kabbage, Inc. offers the following eight steps to starting a business, in her own words below:

Step 1: Choose Your Product

What will you sell or offer? Is it a product or is it a service? How will you differentiate yourself and your business from your competitors? How is what you offer different or better than what’s already out there? What is your expertise? What is your passion? If you’re not sure, take a moment to think back to past performance reviews you’ve received in the corporate world. What characteristics and traits stand out as your strengths? Build on these and see how they can translate into starting your own business.

Step 2: Identify Your Perfect Customer

This is crucial for anyone starting your own business. Knowing who your target audience is and then catering your product to fulfill a need is the perfect formula for success. So how do you define your target market? Is it men, women, teens? Are they older? Married? Single? Veterans? Moms?

Know Your Target Market: Knowing your target market and what appeals most to them will help you refine your product offerings. It will also help you develop strategic marketing plans. A printed flyer mailed to young millennials will miss the mark, since these folks get the majority of their news and information online. And vice versa, a targeted banner ad campaign on specific websites may be lost on a demographic that does not spend a lot of time online.

Do Your Research: There are ways to do research – some is free and some comes with a price tag. You can start with your local Better Business Bureau, your local Chamber of Commerce, and your library for some demographic information. The local convention and visitor bureau also has residential demographic information that can be helpful when starting your own business. Also, go online and check out your city or town’s website as well as your county offices

Step 3: Know the Market.

Do you know what your competition is doing? How are they winning customers – and more important – how are they keeping customers loyal? What differentiates their product or services from those that your business offers? Businesses with similar products and services can co-exist in the same markets. But it’s up to you to know exactly how your product is different. Make yourself stand out.

Know what your market responds to by doing some simple focus group research. It can be as simple as having cookies and hot cocoa on a cold day and inviting people to chat with you about their needs. Or, a quick email survey through providers like SurveyMonkey can be a quick and easy (and free!) way to gather critical market research to grow your business.

Step 4: Know Your Worth

It’s important to not underestimate yourself or the price you charge for your products or services. Owning your own business does not mean you give away your services cheaply.

That said, when you’re first starting out as a business owner, you also do not want to overestimate your pricing structure. Do some research and see what your others in a similar business charge for their products or services. As a new business owner just starting your own business, you may want to consider starting out low with your pricing. This gives you a chance to build your reputation and credibility as a quality provider. Once your business is a bit more established and your income is more steady and regular, you can consider raising your prices. At that point, you’ve probably earned a loyal and steady customer base as well.

There are many resources online that can give you estimates of salaries for your industry. These may not always be possible when you start your own business. You will have other expenses as a startup that people working for corporations simply won’t have. Take these into consideration when planning your expenses in the short and long term.

Step 5: Get your finances together

Do you know what kind of startup capital you will need? Do you need to get a business loan? Will you borrow from friends or family or have investors or partners? Will you need to borrow against your home or your 401k? Use this time to gather your projected income as well – it often takes time for a new start up business to turn a profit.

Do you have additional sources of income to get you through the leaner times until you begin to make a steady income? You will need to make sure your credit is in good standing – excellent, in fact – if you plan to get a business loan. If your finances are not quite where they should be, consider going in with a business partner. Perhaps your expertise and their financial strength will help make starting your own business a less stressful venture.

You will also need a Tax ID number. But first you must decide what kind of business you will have. In general, you most businesses are one of the following: a sole proprietorship, a partnership, a corporation, or a limited liability corporation. Do your research and find out which one makes the most sense for you. Then, make sure you are following all tax guidelines for the type of business you’ve selected. Again, there are many resources online – one of the best is the sba.gov, which is the Small Business Administration website.

Step 6: Get a nest egg

Many experts recommend having about six months of savings in the bank. This isn’t just for emergency use; this will be your go-to money while you build and grow your business to turn a regular profit. Put some money aside while you continue to work at your corporate job. This way, when you do leave your steady job and are ready to start your own business, you’ll have a bit of a nest egg to lean on while you get up and running.

Tip: If you are married or have a partner with whom you share living expenses, make sure they can carry a bit of the financial burden while your new business gets off the ground. Emotional as well as financial support is key for an entrepreneur when you start your own business.

Step 7: Write a business plan

There are many resources online to teach you how to write a business plan. Basically, a business plan is a detailed roadmap of where you expect to take your business. It is a clear picture of who you are, what your business is, how you will reach your target customers, and your plan for revenue and profits. Your business plan is a critical factor when applying for business loans. In fact, it is the very first thing – in addition to your credit reports – that a bank loan officer or other nontraditional lender, such as Kabbage, will look at. Lenders review your business plan to make sure you are a good risk. Don’t be fooled into thinking that your business plan needs to be long and lengthy.

Step 8: Seek out free counseling and assistance

The Small Business Administration has local offices in every state. They offer free counseling and training for small business owners. Their services are invaluable to any start up. They can help you develop a business plan, a marketing plan, as well as help you navigate what you need to know about filing and paying taxes as a small business owner. Many of their services and training programs can be found online. Others require that you attend training classes or one on one meetings with small business advisors. These resources are there for your benefit – take full advantage of all they have to offer. And attend as many of their networking events as possible – it’s a great way to meet other small business owners and promote your products and services.

Starting your own business is an exciting adventure! It is possible to take your passion and drive and turn it into a profit-making business where you are your own boss. Follow these steps and do your research and you’ll be well on your way to becoming a successful business owner.

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.

Business Entrepreneur

Why many entrepreneurs facing mental health issues don’t get help [part two]

(BUSINESS NEWS) It isn’t a financial issue or a refusal to admit a problem – here’s why many entrepreneurs struggle with mental health challenges and never seek help.

Published

on

sadness depression mental health

Nearly 44 million adults experience an episode of mental illness in any given year according to the National Alliance on Mental Illness (NAMI). Of these, the experience of 10 million adults in the United States with mental illness was so serious that it substantially interfered with a major life activity.

A significantly higher percentage of entrepreneurs studied showed signs of mental illness than did the general population according to research conducted at the University of California in 2015.

Only 41 percent of adults who needed them received mental health services in the past year. What prevents us from getting the assistance that we so desperately need?

>>Click here to catch Part One of this series<<

Although a common problem among us, mental illness in America, in all its forms, is still marked by stigma and shame. This spurious perception of a shameless disorder has been partly responsible for individuals not getting the help they need.

“It’s much more difficult to think about an anxiety disorder or obsessive compulsive disorder helping a person excel in business,” said Claudia Kalb, author of Andy Warhol was a Hoarder: Inside the Minds of History’s Great Personalities, speaking to the Harvard Business Journal.

“Stigma stems from not understanding what mental health conditions are all about, and not realizing that we all have at least some of these characteristics, “ said Kalb. “Part of the reason to learn more about these conditions is not to label people, but to better understand where people are coming from — and how, in a business setting, some of these attributes can be positive.”

While it’s very tempting to stay afraid of the stigma of a diagnosis, understand that you’re not alone, and that we all share similar problems from time to time.

With the passage of the Affordable Care Act, Americans hoped access to personal healthcare insurance would be both easier to obtain and less costly. The U.S. Small Business Administration reported in 2014 that over 75 percent of businesses are known as “non-employer” firms. These firms create a single job — typically the business owner — and have no one else on the payroll.

Because of the changes in insurance laws, many of these individuals were faced with having to leave health care options that they many have had under prior insurers and face higher rates on the new healthcare exchanges for insurance plans that were less comprehensive.

Premiums for some insured have risen nearly 10 percent in the past two years, and depending upon the state in which they live and income targets, many individuals are bracing for steep increases in insurance prices this year, with estimates ranging from 16 percent to 65 percent increases.

As the publisher of the Washington Post, Newsweek, and owner of multiple television and radio stations, Phil Graham was a man with money and power. Yet, despite his wealth and privilege, he was not immune to mental illness. His journey with severe mental illness began in 1957 and continued for years thereafter.

Katherine Graham never forgot her husband’s tears, even decades later. “He was in real tears and desperation,” she told The Baltimore Sun, “he was…powerless, immobilized.”

In an era in which the stigma was profound and the treatment options severely limited, there was little help that could be found, and Phil’s rapid descent into illness included hospitalization and invasive electroshock therapy, all to no avail. Throughout it all, Katherine carried out the doctor’s orders, trying to talk Phil out of manic depressive episodes, speaking for hours on end to try to bolster his spirits.

We know that we ask our loved ones to carry large burdens for us an entrepreneurs, and try to ease their load. Yet, by not looking for help in an attempt to not be a bother to them, we don’t help them.

A study by Rogers, Stafford, and Garland at Baylor University found that for family members of those with mental illness, there were high levels of both subjective and objective burdens reported, with many family members struggling to process through their own feelings about the mental illness and their loved one.

We do not ease the path for our loved ones by refusing to seek and get the help we need, but instead damn them with a heavier burden, despite our well-meaning intentions.

In her powerful work, The Dangers of Willful Blindness, Margaret Heffernan, discusses the all-too-familiar concept of people not wanting to allow themselves to think about things that end in conflict or that rock the boat, personally or professionally.

“We can’t notice and know everything: the cognitive limits of our brain simply won’t let us. That means we have to filter or edit what we take in. So what we choose to let through and to leave out is crucial,” writes Heffernan. “We mostly admit the information that makes us feel great about ourselves, while conveniently filtering whatever unsettles our fragile egos and most vital beliefs.”

For many of us, it’s not that we don’t want to admit that we need help, but rather that we simply cannot allow ourselves to see it — even in the best of times! If you’re struggling to see life clearly through the lens of a mental illness, it is even more difficult.

Being open with one’s self about things that are real and things that are not, and acknowledging that things might not be okay, is the first step to finding assistance.

You don’t have to find help all alone. Reaching out to someone for help can often be uncomfortable, especially about a topic that is as personal as your own health, but doing so is the critical step towards recovery. Find a trustworthy partner for your recovery who you trust to help you find someone who can provide the level of assistance you need.

While your healthcare provider is the best first stop to discuss things that are going on with you physically or emotionally, it’s important to have a support network who can be there for you in between doctor visits.

There are other, more immediate resources for those who need them:

The National Suicide Prevention Lifeline is available 24/7 either by calling 1-800-273-8255 or by going to their website and engaging in an online chat.

For those who prefer texting options with qualified crisis counselors, the Crisis Text Line is available 24/7 by texting “Go” to 741741. Both options are confidential and are immediate supports for you and your family.

Once you’ve begun treatment or counseling, stay educated and informed about the challenges that you face. You share control of your pathway to recovery with your doctor or counselor; find out all that you can from reputable sources about the specific challenge you face, and stay involved in making informed treatment decisions about your care.

You’re the most important thing in the world to your family, not your business, not your perceived notions of success — you. If you take away nothing else from this article, know that. You are not alone, and professional help is available.

>>Click here to catch Part One of this series<<

Continue Reading

Business Entrepreneur

Entrepreneurs face higher rates of mental illness [part one]

(ENTREPRENEUR NEWS) For many entrepreneurs, carrying out the work that they feel that they were meant to do comes with the cost of psychological turmoil, a cost often left unchecked.

Published

on

depression anxiety mental illness

From the outside looking in, the entrepreneur’s calling is charming and magical. Being one’s own boss, making the decisions, and doing what one loves makes many people who work for someone other than themselves a tad jealous. For all your neighbor’s reveries about how the entrepreneurial life is a series of unbridled successes, you well know the price you pay, including those that no one else ever sees or hears about.

For many entrepreneurs, carrying out the work that they feel that they were meant to do comes with the cost of psychological turmoil, a cost often left unchecked.

As an entrepreneur, you balance the responsibility for the health and welfare of your company with the need to preserve your own health. There are pressures to maintain a public façade for the perceived benefit of your brand that may well be at odds with what’s going on in the inside.

Being artificially strong and denying yourself the help that you need isn’t only harmful physically, but fiscally as well. Businesses in America lose $193.2 billion in lost earnings annually due to the effects of serious mental illness on employee production and associated costs.

A significantly higher percentage of entrepreneurs studied showed signs of mental illness than the general population, according to research conducted at the University of California in 2015. The authors contended that there may be a link between mental illness and creativity.

The expanded creativity of many entrepreneurs is a fantastic attribute, but also one of a host of characteristics that affect their mental well-being. One of the authors of the study, Michael A. Freeman, identified the link and called for further research. “People who are on the energetic, motivated, and creative side are both more likely to be entrepreneurial and more likely to have strong emotional states,” stated Freeman, speaking to Google.

Amy Morin, psychotherapist and author of 13 Things Mentally Strong People Don’t Do, identified four common mental health issues that many entrepreneurs face based on the nature of their work: depression, anxiety, self-worth issues, and addiction.

Working long hours, alone for many of them, can drive entrepreneurs to be less mindful of their health. That isolation can lead some towards increased risks for depression, as well as the mindset that “time is money.”

We’re written before about the dangers of such a mindset, and maintaining it costs the entrepreneur much needed leisure and decompression time.

The pressure you feel can be healthy, a motivator to continue your efforts and network with others who can help you succeed. However, it can also be linked to extreme anxiety, which can manifest itself in multiple ways, including being so afraid to make a business decision that it leads to mental paralysis.

This incapacitating anxiousness can also lead to burnout. “It’s much more difficult to think about an anxiety disorder or obsessive compulsive disorder helping a person excel in business,” said Claudia Kalb, author of Andy Warhol was a Hoarder: Inside the Minds of History’s Great Personalities, speaking to the Harvard Business Journal.

She notes, “Howard Hughes… was a successful entrepreneur, but in the latter part of his life, as his OCD characteristics became worse, he became totally isolated. He couldn’t interact with people in business or in society.”

Anxiety’s effects can be compounded by how you judge your own self-worth.

For many, your job is your identity, and your bank account a quick barometer of your importance.

In an era in which it’s no longer uncommon to have startups fail to launch or succeed for awhile before not pivoting in a market shift, failure to make your business thrive shouldn’t have the stigma that it once did.

Some of us are feedback junkies, seeking engagement with and feedback from our internal and external customers. For others, it’s the excitement of the design and launch that gets us motivated. Whatever your particular cue might be, for the serial entrepreneur, the rush that you get is palpable and you wouldn’t trade it for anything. Maybe you should, though.

There’s a fine line between persistence and obsession, and a finer line still between obsession and addiction. Morin cites a 2014 study, published in The Journal of Business Venturing, that found that the actions of serial entrepreneurs shared similar characteristics with behavioral addictions.

These characteristics included having obsessive thoughts, negative emotional outcomes, and withdrawal-engagement cycles, in which the entrepreneur withdraws and yet feels pressured by the need to reengage with his business or partners, which he does, only leading to increased frustration and resentment. The inability for the entrepreneur to understand when their behavior was potentially damaging to themselves was also noted, with a “pursue at all costs” mentality being common, despite the harm done.

The need for mental health supports knows no class boundaries, no race or gender, or age limitations. Nor does it differentiate between those with the entrepreneurial spirit and those without.

Having an issue with your mental health or maintaining your emotional equilibrium doesn’t make you weak. The work that you’ve chosen sometimes comes with hidden pitfalls that can cause a human cost; as your most important asset, be proactive in maintaining it.

You’re the most important thing in the world to your family – not your business, not your perceived notions of success — you.

If this is a fight that you currently face, or fight on the behalf of someone close to you who suffers from a mental illness, know that you are not alone.

If you take away nothing else from this article, know that. You are not alone, and professional help is available.

You don’t have to find help all alone. Reaching out to someone for help can often be uncomfortable, especially about a topic that is as personal as your own health, but doing so is the critical step towards recovery. Find a trustworthy partner for your recovery who you trust to help you find someone who can provide the level of assistance you need.

While your healthcare provider is the best first stop to discuss things that are going on with you physically or emotionally, it’s important to have a support network who can be there for you in between doctor visits.

There are other, more immediate resources for those who need them:

The National Suicide Prevention Lifeline is available 24/7 either by calling 1-800-273-8255 or by going to their website at http://suicidepreventionlifeline.org/ and engaging in an online chat.

For those who prefer texting options with qualified crisis counselors, the Crisis Text Line is available 24/7 by texting “Go” to 741741.

Both options are confidential and are immediate supports for you and your family.

Once you’ve begun treatment or counseling, stay educated and informed about the challenges that you face. You share control of your pathway to recovery with your doctor or counselor; find out all that you can from reputable sources about the specific challenge you face, and stay involved in making informed treatment decisions about your care.

You’re the most important thing in the world to your family, not your business, not your perceived notions of success — you. If you take away nothing else from this article, know that. You are not alone, and professional help is available.

>>Keep reading as Part 2 digs in even deeper…<<

Continue Reading

Business Entrepreneur

Startups love pondering inclusion, yet half have no women in leadership

(STARTUPS) Tech startups are a huge part of discussing diversity and inclusion, but something as simple as hiring women in management somehow remains elusive.

Published

on

women in leadership

According to the Silicon Valley Bank’s annual report, over half of startups have no women on their leadership team. None.

As hard as this fact is to believe, it is also hardly breaking news. Organizations who have surveyed startups and technology companies for the past several years have seen that long-standing trends that disadvantage women and other genders in the tech space are still at play.

Like many other gendered debates about the treatment of women and other minority workers, this problem is seemingly a Catch 22 or a chicken and egg situation. Critics will continue to argue that the reason ladies aren’t in leadership roles is because they don’t have innate leadership qualities or that once their non-male employees have proven themselves, then they will start getting the resources and promotions that they say that they desire.

Like many other myths about women in the workforce, these beliefs only serve to reinforce the status quo by transferring the responsibility for these frustrating conditions onto the marginalized party.

These beliefs are busted not only because they’re tired gender clichés, but because we have hard data that proves the financial and cultural benefit in long-term effects of women leadership in tech.

However, for all the discussion of diversity initiatives, the likelihood of traditional funding going to women-led startups is still small.

For now, startups with women in leadership roles were more likely to get their funding from investing teams that were also led by females. Wouldn’t it be great if other investors began to not only understand that in 2019 it’s imperative that a company’s leadership reflect the diversity of the employees that comprise it? That workers will be more motivated, feel more understood, and have greater buy-in when they identify with their management?

Empowering women is how more get involved in tech. Diversity of leadership helps organizations thrive. And if something as simple as binary gender diversity is such a tremendous challenge, all other diversity issues are still (unfortunately) a large mountain to climb.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!