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Setting Up Your Business for Long-Term Success

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Robert Cordray

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Setting Up Your Business for Long-Term Success

Start-up business owners learn two things very quickly. First, the idea that launches an entrepreneurship is invaluable. The seed of a business, or the initial idea, provides a source of motivation and initial direction.

However, the second notion often comes as an unpleasant discovery. The grand idea by itself is not enough to sustain long-term growth and success. No matter how great the business idea is, many other factors influence success and determine whether a business will flourish or fail.

The key to being successful in business is learning to make good business decisions. While success cannot be guaranteed, you can start your business with attention to a few important areas and increase your chances of achieving your goals.

Avoid the most common missteps entrepreneurs tend to make by following these suggestions:

Have a Business Plan

A business plan is an opportunity for business owners to understand their market, as it relates to their product or service, and map out their capabilities. Compiling a thorough business plan requires a bit of effort, but as it will serve as a guideline for your financial expectations and keep you on track, it is an essential part of any new business.

The business plan will also help you in the key area of setting realistic goals for when you will achieve profitability. Know how much time, effort and capital it will reasonably take to reach your goal of being profitable. Conservatively scaling your expectations to match reality will keep you on track and save you from disappointment if your hopes of becoming an overnight success are not realized.

Balance Your Capital

Having enough capital to launch your business is crucial, but you will want to avoid the mistake of taking on sizable loans at the outset. Use your business plan to ensure you have enough resources to see you through until you achieve profitability.

Understand Your Market

As a new business owner, you need to understand who your customers are. How large is your market? Who are your competitors? You will need to know what alternatives to your business are already available to consumers or if you are creating a new market. This will help you in your decisions on strategy.

Choose a Go-to Market Strategy

Having a focus on one strategy for your business will enable you to market your business effectively. Without a focus, you are likely to flounder, but attempting to pursue multiple strategies at once will also doom you to failure. Understand your business and choose one as your goal.

In general, there are three go-to market strategies that businesses use. The first is a focus on operational excellence. These businesses emphasize efficiency in their processes to lower their costs and provide consistency to a wide range of customers.

Another strategy is to develop customer intimacy by establishing strong relationships and fostering repeat business through customer care.

Third, businesses can seek an advantage through product innovation. This aspect depends upon the creation of a new and desirable product or service and founding a business where there are little to no existing competitors. This may be the most difficult of the three for a new entrepreneur to achieve.

Build an Effective Team

The path to becoming a successful entrepreneur should not be a lonely journey. Many businesses fail because the owner tried to manage too many decisions and responsibilities that could have been delegated to others. Find good support for your business such as those you can trust with general tasks while you focus on your role as an executive.

Seeking advice will be necessary, and finding a reliable source for information and direction may seem intimidating. However, there are several people who specialize in guidance and helping entrepreneurs maintain their focus. Through their services, you can rest assured that your business will profit from your well-directed efforts.

Author’s Bio:

Robert Cordray writes about business, entrepreneurship, and living better at noomii.com. He has acquired over 20 years of entrepreneurship and business consulting. You can find him on Twitter @RobertCordray

Should I Follow My Dreams and Open a Small Business?

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The dream never dies for many individuals who envision the thought of starting up their own business and realizing part of the American dream.

With the present state of the economy, however, there are many who fear that the timing for opening a business is not good presently and may not be good for some time to come.

The present timing, however, may actually be good for starting up a business, especially given the fact that the job market continues to remain sluggish at best.

If you’re contemplating thinking about opening a business, here are some things to consider:

  • Compile a professional business plan – Never go into battle without a solid plan, especially when opening your own business. The most important aspect of the plan should be the financial angle, detailing how you will see a return on investment (ROI) sooner rather than later. Unfortunately, too many individuals fail to put together a winning plan or even a plan in general, leaving them ripe for failure;
  • Employees or all on my own? – One of the big questions for individuals is deciding if they will go it alone or have staff on board to help them with their business. On the plus side of going it alone, you are saving on salaries and possible health benefits, along with not having to look after others, whose decision making can impact your business at times in a negative manner. On the down side of going it alone, you are tasked with much more work and effort, leaving you little time for anything else;
  • Don’t be afraid to seek advice – For too many people starting out on their first small business venture, they’re afraid to get advice from other like professionals, including possible competitors. While you don’t have to ask 100 questions, do not be afraid to have some discussions with others who have successfully turned their dreams of owning a small business into a reality. Owning a small business is a continuous learning process, so be prepared to learn seven days a week;
  • Have a Plan ‘B’ in place – While you have to have a clear and positive attitude when opening up your new small business, don’t forget to have other options should things not work out. How will you cope financially if the business does not take off or even has to close? Do you have enough financial resources in place to support you and/or your family if things fail? What timetable do you have in place if things are not working out to pull the plug on it? These are just some of the things you need to be able to answer sooner rather than later;
  • Stay positive – This is likely the most important but less thought of matter. It is very easy to turn negative when the bills start piling up, you hit a lull in customer sales, and the outlook is bleak. Throwing in the towel on your lifelong dream should only happen when you have exhausted every alternative and then some.

As you can see, opening your own small business, especially in today’s up-and-down economy, is challenging at best.

Then again, don’t you like challenges?

Photo credit: yourpassionatebusiness.com

Dave Thomas writes extensively for B2b lead generation online resource Resource Nation that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs. He is an expert writer on items like factoring services and is based in San Diego, California.

How to Share the Vision and the Plan with a Business-Building Community

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Goals, Dreams, Visions, and Plans

Raising a barn is a spectacular goal. Getting a community to help makes it easier and harder. It’s important not to confuse goals with dreams.

A goal without a plan is just a wish.
Antoine de Saint-Exupery,
author of The Little Prince, said that.

Char Polanosky explains what that means.

To raise a barn or build a business with a community is a social collaboration. It competes with all of the other wonderful and pressing things in their lives. To capture their time and attention, we have to offer something that is smart, compelling, and easily fit into their lives — irresistible.

Share the Vision and the Plan

When the time comes to build, we’re not going to find a community who magically knows what to build and where to put their skills to work. A critical stage in social leadership is being ready for the community when they’re ready to help.

We have to be able to explain — what we’re building and what roles they might play.

Share the Vision

We gotta know the vision before we can share it. The vision has to be clear from the minute they arrive. We need to be able to articulate

  • what we’re building — what the parts are
    and how the parts fit together to make a whole.
  • how that whole will be useful and who will use it.
  • how that whole with make that real people’s lives
    better, faster, and more meaningful.
  • how you’ll reach the people who will use it.
  • how you know they will.

Seeing the vision gives a community a reason to do the work.

Share the Plan

We gotta have a plan before the work can start. The value of the work also needs to be shiningly apparent. We need to be able to communicate without hesitation a clear business plan that offers:

  • easily understood standards of quality
  • simple budget rules or a stated source of materials
  • a realistic schedule with an end date for their commitment
  • a clear description of job roles for volunteers

Knowing the plan offers security that the work will be time well spent.

The vision and the plan let the community see what we will be creating. The vision and the plan give us the confidence on which a community can plant their trust, energy, thought, and emotion. On the vision and the plan, we align our ideas and ideals — we agree on the work to be done.

Antoine de Saint-Exupery also said,
Your task is not to foresee the future, but to enable it.

Have you ever helped someone build a dream? What did you need before you invested?

–ME “Liz” Strauss
Want to build barn? Work with Liz!!
Image: NASA Image Exchange

Are You a Freelancer or a Solo Entrepreneur? Use Guy Kawasaki’s Mantra as He Meant

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Guy Didn’t Mean Don’t Have a Vision or a Plan

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With the start of the Perfect Virtual Manager, I’ve been talking a lot to bloggers. Even more interesting is that I’ve been not talking to a lot of them. I’ve noticed something about people who work outside of a traditional setting. We fall into two categories: freelancers and entrepreneurs. Some think they are one, and they’re really the other. Which one are you? Do you know that for sure?

Guy Kawasaki wrote a wonderful post in January called, Mantras Versus Missions. Thank you, Roger von Oech, for reminding me of it. You see, I think some folks do as Guy suggests — make a mantra — and unfortunately, they stop there. That’s not what Guy said to do. He was talking about replacing a mission statement with something more focused. His mantra was meant as a guiding force, not as a replacement for a business plan.

A person with fabulous skills and only a mantra is a freelancer not a solo entrepreneur.

The two think and work differently.

Do you know how to tell a freelancer from a solo entrepreneur?

Turn the page and I’ll show how.
[Read more…]