5 Key Steps to Your Businesses Financial Success!
Q: How can someone living in Melbourne fund a brick & mortar startup with very little capital of their own? A. Taylor Melbourne, Au.
It really doesn’t matter if you live in a large city, a small town, or even which hemisphere. The key to starting and growing any business is in your “business practices”. I am going to give you some very strait forward advice that has helped thousands of businesses become very successful and if you will follow it you should enjoy the same success.
Start small and grow your business in baby steps.
You may want to be the next Bill Gates, but it’s not going to happen overnight no matter how hard you work. Start small to test your business model. Then if is proves worthy, build from there. Remember, Bill and his friend Paul Allen started Microsoft in Bill’s parents garage. Don’t employ staff until it makes financial sense to do so.
In this economic cycle or any other, do not go into debt…..ever!
Personally, I am completely against any business borrowing money, but there are occasions when it is necessary. I don’t care if you’re borrowing from your old boss, your best friend, or your parents, you must get the terms of the loan in writing. I know it’s highly unlikely you’ll take advantage of one another. However, you will be able to refer to the contract to protect your relationship from those awkward conversations about whether or not you owed them a payment last month.
If you need more cash, create additional revenue streams.
It is critical for the continual growth of your business even in difficult times to have multiple streams of income both personally and professionally. If one stream is slow or struggling your others can help support your business while you make the necessary adjustments.
Never and I mean NEVER use personal assets, credit cards, or household cash to fund your business. Period.
To fund your start-up business I strongly recommend that you set up a savings account well in advance of starting your business and contribute to it as often as you can. It is very normal to work your regular job for awhile as you build your business into something that can financially sustain you and your family. Once your reach that point you can leave your old job and work your own business full time. This is an extremely common practice in many start-ups and a wise strategy.
Before you start make sure you have a high demand market for your product or service that is not adequately being met by others in your industry.
Identifying a potentially successful market niche begins with determining the emotional motivation of your customers or clients. Ask the following questions to clarify your niche market ideas and identify the ones that will be worth you time and effort to pursue and test. This simple test can save a tremendous amount of work, stress ,time, and money. Here is how to get started. Ask yourself the four questions below when considering a niche market. If you get four yes’s then you have a good niche marketing idea and you should test it. If you don’t get all four yes’s then you need to fine tune your idea until you do. Use this test each time you are considering launching a new product or service and you will dramatically increase your chances of success.
- Is my customer or client experiencing an urgent need, worry, pain, or strong desire?
- Is my customer or client current searching for solutions to their most urgent need or problem?
- Does my customer or client have few if any recognized options or solutions to their current problem or urgent need?
- Is there a large group of people (1 in 500) who are currently looking for a solution right now?
I hope this has given you a little guidance. If you need more in depth help please feel free to Contact US with any of your questions or comments. We love hearing from you! I would also suggest you read chapter 10 of Business Genesis. You will find a lot more detailed information than what I can provide to you here. Check back often for more business success tips, tools, and support or share this post with a friend that you think it will benefit! You can also join the fun on our Twitter Chat! @SpectrumBizllc
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If you scroll down just a bit further I also have a collection of more success tips. Just click on any of the links. If you have a question about your business please feel free to Contact Us and send a personal message. We love hearing from you and will respond just as quickly as we can.