New Business Entrepreneurs – If You’re Looking For an Investor Without a Track Record, Scale Down

If you are looking to go into business for yourself and are hunting for an investor, but don’t have a proven track record in business, or in the field that you have chosen, you may have a very difficult time raising funds. Why do I say this–because I have been there and experienced the doubt and uncertainty that people have when you come to them with an idea for a business venture without having anything that will give an indication for future success. This doesn’t mean that they necessarily doubt you or your character, they just don’t see any previous accomplishments to give them enough confidence to invest in you.

It also doesn’t mean that you may not be successful in raising capital without a track record. You may have connections that will overlook your inexperience and give you the money you need. The odds, are, however, very low. When forming a business plan for a start up enterprise, it is much better to begin your venture as a scaled down, streamlined version of your larger vision. There are several advantages to doing this, regardless if you have funding or not. Here are some tips on how to proceed.

Focus on one product or service that you can market, promote and distribute with the least amount of expense. Choose one area, in other words, that you can master. Also, form a team of like-minded small businessmen and women who have the same overall goals that you have and brainstorm together. Bring in experts in their own fields like online marketing specialists and web site developers, as well as those who have businesses in related fields. When you network together with other entrepreneurs each will find in the other new sources of information and social business connections. For those of you who want to start a business but don’t have the money or the experience, there are several excellent companies, often called hybrid marketing companies, that you can find on the web that look for budding entrepreneurs. They offer free training and support and you won’t need the experience to get going. Whatever your circumstances, the only limitations that any of us have are the ones that we place on ourselves. Remove them and start your business life anew today.

Why Small Business Entrepreneurs Need a Mentor

A mentor is a must for the success of your small business. Do you have one as yet? A mentor is a person who has more entrepreneurial business experience that you and he or she is someone you learn to trust over a period of time.

However, you might be wondering why a small business mentor is important for the development of your business. After all, you have friends and family you trust and whose opinions you respect. The reason is that a mentor can guide and nudge you towards the right business direction.

If you are an entrepreneur and dream of running a highly successful business, you should go out and find a mentor immediately. It is definitely not easy to find a good mentor but they are out there waiting for a mentee who is willing to work hard to build a successful business. When I found my mentor (Charlie Schaivo), it made a world of difference to the way I approach my dental practice.

It made a huge difference to my success. He instilled confidence in me and taught me without even me knowing about it. So, when you find your mentor, you too will start having the successes that you have always wanted for your business.

When you want a small business mentor, you should look for a few characteristics in him or her. It is important that you and your mentor share the same values; you should have a good rapport with your mentor; you should be always willing to listen to him or her even it is something you do not want to hear; your mentor should have goals lined up for you; and he or she should be willing to use their time and energy, assuming that you do not waste their time and yours.

The advantages of having a small business mentor is that he or she has already achieved what you want to; your mentor provides you this experience for free; and he or she expands your network by putting you in touch with other experienced people. All these advantages result in you having a highly successful business. There is absolutely no doubt that a mentor is essential for all small business entrepreneurs.

Information on Becoming an Internet Business Entrepreneur

This shifts control of all resources needed to run the business to self and there is a big chance of messing up for lack of discipline. Early in the path of becoming a thriving Internet business entrepreneur, one must embrace the art of being inquisitive and develop passion to be an apprentice who can grasp anything fast. Dealing with websites is not easy if a person lacks the basic knowledge of using a computer or Internet for research and other things and as time progresses a need arises to take up the work of a web designer to reduce the costs.

That is translates to added efforts to learn basic HTML language, creating graphics, uploading files, tracking accounts and keeping records using software products and so on. Of course this knowledge should be gained secretly and diligently while consulting the employed expert and as soon as it happens one can then take on management of the business fully. When it is just beginning, overspending is inevitable yet it is a threat when the Internet business cannot breakeven or leave some surplus profits to pay salaries and expansion. In short, becoming a real Internet entrepreneur is taking a risk to appear like just a fool, failure or anything in order to gain knowledge and tricks needed to run the kind of online business niche. 

Although an entrepreneur is supposed to be a risk taker and an aggressive opportunist, it is prudent to realize that it is easier done offline, as people talk orally as opposed to online. Take caution on the kind of business deals or contracts to sign since this is one area where numerous offers that turn out to be scams exist. High risks deals may at times result to very high profits but should not be picked randomly yet at all times it is imperative to value personal dedication and sacrifice while avoiding such time wasting and costly shortcuts.

Get organized so as to value scheduling of every task for a particular day, check customer comments, enquires or anything and file them for reference and so on. Wasting time is not part of being a successful Internet business entrepreneur and this is highly likely to happen without screaming bosses around therefore one must note this. Avoid techniques that are sometimes thought to attract traffic such as loads of unsolicited email messages because this amount to Spam in most cases instead of website visitors.

Learn From My Experience – First Year Tips For Small Business Entrepreneurs

The Number One first year tip – it’s ALL about finding customers and keeping them happy

Whether you are at the feasibility, seed, or launch stage, you need customers!

If someone is showing interest but is not asking about prices, then you may have a new hobby, which is nice, but not a business.

Why? Ideas and plans are a dime a dozen. Cashflow is King. A potential customer is proof positive you may have found a genuine demand or gap in the market – but only when they start talking price.

A vision means squat without a plan for customers.

“A customer base equals capital”

Attracting investors will be much easier if they can see you are already generating a cashflow.

Also customers will attract people interested in working with you – and eventually you will need a team to go anywhere significant.

A customer means you are not dreaming!

Don’t wait for qualifications

You could be forgiven for thinking that in the 2010’s you need a string of qualifications and / or an MBA before making a move. It’s not the case. Examples abound and if necessary you can hire to cover the gaps. Rather, try to emphasise product, ideas and team.

Which book learning are we skipping over here? What are some of the nice to have’s you might defer?

In the initial stages of a business there are marketing skills – be content with seeing the original gap and creating a product to fit. Then finance skills – skip high finance and stick to the basic organisation of personal and business finance to cover risks, and finally time management skills where the essentials can be mastered quickly.

Later in the development phase we have operations – leadership, management, IT, property, culture/psychology, teamwork, loyalty, communications and regulations – the list goes on.

While it may seem heresy to some, the fact is there are many successes in business who started young with no management training.

Beware Franchising

Starting out under the protection of a franchise is a seductive option. Beware! While it may be a way to start-up with less risk, pay particular attention to:

· The franchise sale

Franchise operators are very good marketers – of their franchises. Be wary that you are not sucked in too much by the promises and pictures. Seriously, it’s their job to sell you, just make sure they have a viable plan and you can sell their product.

· Your independence

The bottom line is that you have decided to become an entrepreneur, for reasons which quite likely include working for yourself, and by signing up with a franchise you have immediately given that independence away.

Will you be happy working for a head office? How much input to the business do you really have? Have you just bought yourself a job?

Take a real close look at your marketing plan

How are you going to find and reach customers? Your first job is to run like mad just to find them:

First, are you in an active sector and do you have a ready path to market? Where are you sourcing your leads – today?

Watch out for your own psychology. When starting out you may want to just go with the first half decent opportunity you come across. Relax; try to look at things objectively.

Beware of the “1% of the market is huge” syndrome. Yours may be a billion dollar market, but how do you get any of it? What do you think the competition is doing right now?

Any idea of the cost of acquisition of a new customer? Will your model develop repeat customers? If not you will be forever selling, and this is not a good place to be.

Most forms of marketing except word of mouth are very expensive. When starting out there is no doubt the best marketing model is word of mouth.

Branding. Despite the hype it’s nothing new. Don’t even think about mega-brand style exposure. A start-up is about a reputation, person to person sales and keeping a handful of customers happy.

What is the shelf life of your idea? How are you going to protect it in the internet age?

How smart is the business model?

A business model is the way we do things – how we find and reach customers, differentiate the business from the pack, price, sell and deliver our product.

But there is more. Other desirables include a residual structure, one that compounds growth, and which is leveraged either in time (employees) or money (loans).

Is it going to be a dynamic business or a job?

Realistically – are your finances strong enough for the first year or two?

Being an entrepreneur is a gamble and you must be prepared for the worst if it happens. How do you view losing money? Perhaps try investing on small bets in the stock market and see how it feels before investing in your own ideas.

Don’t get into debt you cannot handle. We should be bold but not take risks. Avoid betting your lifestyle, limit the investment to what you can “afford to lose”, then do everything to make sure that does not happen.

Entrepreneurs should always have backup plans. Not everything will work by any stretch of imagination.

How many hours are you working?

Have you really planned your diary? How will you fit everything in? Not all of us can survive on 4 hours sleep per night.

Remember the working rule – hard and smart.

And if you do work all hours, what is your effective hourly rate? Planning any time off?

Do you have a good business partner?

If you aspire to anything other than a micro business, you will have to think “team”. The synergy gained outweighs potential downsides. While a committee of one gets things done, eventually you need others in your corner.

Are you ahead of trends?

No business can ignore trends. Try to have an eye on the picture three to five years ahead.