Reputation And Entrepreneurship- What Startups Can Do To Enhance It

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StrategyDriven Starting Your Busines Article |Enhance Reputation |Reputation And Entrepreneurship- What Startups Can Do To Enhance ItStarting up a new business is never easy but this wouldn’t dissuade someone born with an entrepreneurial streak. When you establish your dream venture, there’s always a lot to handle. Apart from the financial challenges and hard work to be invested, you need to be very careful about managing your reputation at all times. One slip at this stage can throw your reputation off track and your company may never be able to take off.

On the other hand, a solid reputation right from the start can build the trust, credibility, and loyalty of your customers. Also, it can present you as a reliable prospect for suppliers and partners. Together, these factors can give you the growth push that your startup needs. It makes sense to put all the effort you can in building your reputation. Here are some measures that can help you enhance the reputation of your entrepreneurial venture.

Invest in consistent branding

Branding serves as the bridge between a business and its customers. It is all the more important at the startup stage when you want the potential audience to know, recognize, and recall your business. Investing in a consistent branding initiative makes it possible to build a reputation for your product and brand. Start by creating a compelling narrative that highlights your value proposition. Encourage the first customers to stay with your brand and propagate it with word-of-mouth recommendations. Incentivize them for spreading the word around because people tend to trust other people rather than brands. Ensure that the tone of voice and messaging is consistent across all the branding channels.

Have the right people on board

While a great branding plan gets you a head start with your reputation, you cannot sideline the value that people can add to your brand’s presence. This is one more reason why entrepreneurs should prioritize having the best people in their team. Hard skills do matter but you should onboard people who are great with interpersonal skills as well. Customer-facing roles, in particular, require extra care and attention. After all, these are the people who will interact with your customers. Moreover, those dealing with suppliers, vendors, and partners should also be capable of keeping up your reputation with positive and friendly interactions.

Steer clear of legal issues

Legal hassles are one of the most common reasons why any business may face reputational damage. Startups are at a higher risk because they aren’t aware of the issues they may come across, from intellectual property breaches to founder disputes, workplace discrimination and more. The legal risk can be unexpected, like personal injury cases from customers and third parties. The injured victim will probably get a law firm offering top-notch legal solutions to represent them for a compensation claim. While lawsuits have financial implications, the loss of reputation can be a bigger issue. So you must do everything you can to steer clear of them in the first place.

Get the basics right

Besides avoiding specific legal issues, getting your basics right is equally important to protect your reputation as a startup. This is something that a majority of founders overlook and end up paying a heavy price. Double-check your calculations while doing sales figures, financials, and taxes. Go the extra mile with product design safety and testing and avoid service errors that may bring bad reviews. Do everything possible to keep customers happy because a single bad review can send your reputation plummeting. Even if you do get a negative review, address it immediately and try winning the customer’s favor.

Grow at an optimal pace

It may be great to experience booming growth and have a huge customer base quickly. But an unrealistic speed of growth can actually lead to unrealistic expectations that you may not be able to handle in the long run. Your efforts should be to move ahead at a consistent yet optimal pace, focusing on long-term relationships rather than only immediate revenues and profits. Keep a close eye on your growth graph and ensure that you are always on the right track. The processes you have in place should be scalable and reproducible with other people, rather than being dependent on only a few people.

Your reputation depends on your business and it works the other way around as well. So it becomes important to follow the best practices and be committed to giving the best to your customers. Avoid every small slip and admit your mistake even if you make them. A proactive approach towards resolving issues goes a long way in giving you a healthier reputation.

5 Key Considerations When Buying A Business

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StrategyDriven Starting Your Business Article | 5 Key Considerations When Buying A Business

Building a business from scratch is a challenging and lengthy process. Many professionals prefer to achieve their entrepreneurial dreams by purchasing an existing business. Perhaps you’ve been considering this venture and are wondering how to take the first steps? To help you get started on your journey, take a look at these five key considerations when buying a business.

1. Determine your needs

Before you start looking for businesses to purchase, it’s important to determine your needs. Your criteria will likely include several different factors:

  • Size: Are you looking to purchase a small, large, or mid-sized business? Large businesses may appear more attractive (profit wise). Small businesses are usually easier to manage.
  • Location: Which location are you looking to buy in? Remember that the location will have a direct impact on the company finances.
  • Industry: Which industry are you looking to purchase in? It’s wise to work with professionals who deal with buying and selling within your chosen industry specifically. For example, BSF specializes in the purchase and sale of funeral home businesses.

2. Prepaid expenses

Usually, prepaid expenses will not be included as part of the purchase price. You’ll need to separately determine what these expenses are. Failing to gain the correct info about prepaid expenses could severely affect your budget. You’ll want your budget to be air-tight from the get-go, so it’s essential to factor in all costs.

3. Assess growth potential

When you are considering buying a business, you will need to assess its potential for growth. You can do this by completing market research and by closely studying the future profit projections. When you’re liasing with the sellers, it’s important to establish the reason for the sale. Determine any problems which you may encounter when attempting to grow this business in the current market.

4. Due diligence

Due diligence is one of the most important aspects of any business sale. The process involves a full investigation of the legal and financial aspects of the company. Typical areas of investigation include real estate, employees, contracts, and finances. You should not enter into a contract until a trained lawyer has completed your due diligence process. The business in question will likely use a data room so that both parties can access the documents that they need. At this stage, you can draft a letter of intent; this letter should state the potential agreement. The letter of intent is not a contract, and the contract should not be signed until the due diligence process is complete.

5. Hire a business broker

Perhaps you’re having trouble finding a business that meets your needs? In this case, it can be useful to use a business broker. A broker will help you to pre-screen businesses, and negotiate deals. You’ll need to exchange plenty of data throughout the process, and it can be useful to have professional support.

Buying a business is a huge decision, and so no aspect of the procedure should be rushed. With the right team of professionals behind you, the decision-making process is far easier.

Facts About LLCs All Business Owners Should Know

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A Limited Liability Company or an LLC is a company structure that borrows some features from Corporations and others from Partnerships.

Similar to Corporations, LLCs provide you with a huge advantage in the form of limited liability protection. On the other hand, LLCs have a flow-through taxation structure, just like it is in Partnerships.

In a nutshell, LLCs can be considered hybrids.

If you are someone who is looking to form their own LLC, take a step back. First, consider the pros and cons of LLCs carefully.
What Are the Advantages of LLCs?

Let’s first check out the advantages of forming LLCs:

  • Forming LLCs is easy and also relatively inexpensive.
  • Because of the limited liability feature of LLCs, none of the members is liable to pay the debts of the LLC personally.
  • The members of the LLC can decide how they want the profits to be distributed.
  • You don’t need to maintain formal records of resolutions or meetings for LLCs.
  • LLCs do not have a double taxation system.

What Are the Disadvantages of LLCs?

While LLCs do offer a lot of advantages for small business owners, they do also have their own drawbacks.

Here are some of the disadvantages of LLCs:

  • Federal, as well as state-level filings, are required for all LLCs.
  • You need to pay state filing fees for the year when you form the company, and every year consequently.
  • An LLC isn’t the best structure for companies with investors who want to make their companies public.

Now that you have a balanced perspective on LLCs, you can make an informed decision. If you are still interested in forming your own LLC, here is what you need to do.

Steps to Form Your Own LLC

The first step to form your LLC is to apply for your LLC EIN (Employer Identification Number). Once you get it, you need to file Articles of Organization with the Secretary of State.

That’s not all.

In addition to this, you are also required to make an operating agreement for your LLC. This agreement should outline the financial as well as functional frameworks for your LLC.

It should also clearly define responsibilities and profit distribution between members. Although creating an operating agreement isn’t a requirement in all states, it is recommended that you make one.

Want to know more about forming LLCs? Check out the infographic below by GovDocFiling.

The Essentials Facts of LLCs You Need to Know as a Small Business Owner

Image Courtesy: GovDocFiling

About the Author

StrategyDriven Expert Contributor | Brett ShapiroBrett Shapiro is a co-owner of GovDocFiling. He had an entrepreneurial spirit since he was young. He started GovDocFiling, a simple resource center that takes care of the mundane, yet critical, formation documentation for any new business entity.

Are You Ready to Start a Home-based Business?

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StrategyDriven Starting Your Business Article |Home-based Business|Are You Ready to Start a Home-based Business?Many people think about starting a business from home when they are passionate about something and/or have a talent. Working from home and being your own boss is an attractive prospect, but for most, it is certainly not an easy or quick way to make a living.

When deciding whether to start a home-based business, there are two key questions to ask yourself: are you ready to start a business, and are you in a position to run a business from home? The answer is not necessarily a simple yes or no, as there is a lot to consider. This article outlines the key points to examine before you make the decision.

Your personality and talents

We are all born with a predisposition for certain talents and traits, i.e. we are naturally better at some things than others. That is not to say that we cannot learn, diversify, and develop with experience, but often we have the greatest success in what comes naturally and what we enjoy.

Take some time to consider your talents and personality traits which could be assets when running a business, e.g. creativity, self-motivation, communication, resilience, discipline. You may decide that you are not well-suited to running a business and would be better suited to being employed but with more flexible hours/remote working options.

Your skills

While we are born with personality traits and talents, our skills are developed as we go along through experience and training. You might have design skills, organizational skills, writing skills, accounting skills, or people management skills, for example. You can gain and develop new skills as you run your business, but it is best to begin a business which complements what you already have.

Your talents, skills, experience, and interests should all come together to influence your choice of business. Starting a business in an industry in which you have no experience or knowledge is setting yourself up for an uphill battle, so capitalize on your assets. You should begin with a long list of possible ideas before whittling them down to just a handful of options which pique your interest.

Your home

Now that you have some ideas for a business, it is time to consider whether they are likely to function as a home-based business. There are several factors to consider including the location of your home, any local laws or licensing issues, how much space you will need, equipment, utilities, and living arrangements.

If you have a garage or spare room, you may be able to run a business, but if you are restricted on space or need a professional office where you can meet with clients, it may not be suited to a home business. However, if your business can be run from home with the exception of the occasional meeting or day in a professional office, you can make use of serviced offices Belfast as and when you need to.

Your income

Of course, the big question for anyone looking to start a new business is profitability. You may be exceptionally talented and/or skilled, but if people are not going to pay enough for the service or product, it is not a viable business. Can you make and sell enough units of the product to cover your running costs? You need to be sure that there is a market for your business and that you are offering something which other companies are not. Only businesses which can generate profit are worth investing your time and energy into.

How Can I Start My Own Business?

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StrategyDriven Starting Your Business Article |Start my own business|How Can I Start My Own Business?While many ideas for businesses never fully come to fruition, some entrepreneurs dream big enough to actually put pencil to paper. Though starting a business amidst the current pandemic might feel impossible, over 69% of American entrepreneurs begin their businesses right from the comfort of their own homes. If you’re wondering how to go about making your own entrepreneurial dreams a reality, consider the steps below on how you can start your own business even during these uncertain times.

Have a Concrete Idea

It’s no secret that many business ideas seem good in theory but become much more complex in practice. Whether your idea for your small business is one you have fleshed out on your own, or one you’ve developed with the help of family and friends, make sure it’s a solid one. A good rule of thumb is to start simple. For example, should your dream be to develop an entire clothing line, it’s probably in your best interest to begin with one category of garment at a time, such as blouses and shirts. Focussing your creative energy on one portion of your idea will likely save you money at the beginning of your business venture, and it will also keep you from feeling overwhelmed as you work to get your business off the ground.

Conduct the Proper Research

The nature of the business world is a competitive one and thus requires the right amount of research if you plan on entering it. Conducting market research along with taking the time to do a full competitive analysis as it pertains to your business is vital to the success of your company. As you do your research, use the questions below as your guide:

  • Is there a demand for the product or service your company offers?
  • Who is your target consumer?
  • What is the population size of the consumers you plan to market to?
  • Does your target audience live in your area or are they elsewhere?
  • What do you plan on charging for your product or service?
  • Who else already offers your product/service and what can you do to set yourself apart?

Though your research isn’t required to be limited to the questions above, answering them will give you a starting point for where you stand amongst your competitors and what you’ll have to do to stand out as a business. For more information on market research and competitive analysis, utilize this guide from the SBA.

Develop a Clear Business Plan

It’s important to note that having a business idea is vastly different from having a business plan. There are numerous online resources available that outline the proper steps for developing such a plan. Block out some time in the coming weeks to sit down and write. A simple Google search on how to write a business plan should suffice for the information you’ll need to get things started. If you plan on presenting your finished plan to investors, be sure to keep it concise and to know your audience. However, if you’re composing your plan simply to keep yourself on track, make sure you’re using the future as your guide. Have an emergency fund should things go south, and look for ways your business can adapt should the pandemic continue for longer than expected. Business plans are essential to the overall success of your company and are a perfect guide for you to stay on track and organized.

Know Your Funding Options

Once you have a plan in place for your company and you’ve done the proper research, the final piece to the puzzle is locking down your funding. While there are plenty of options to choose from, make sure you consider non-traditional funding methods such as:

Crowdfunding: As the name suggests, this funding alternative is all about who you know. If you’re a big networker, this may be a great option for you aside from a regular business loan. Take to your social media outlets or even create a GoFundMe page and get the word out. Though those who fund your business are not guaranteed a return, you can always offer them perks when you do get your business off the ground.

Home Equity Loans: While most individuals use home equity loans for affording a college education or for funding a home renovation, they can also be used to cover business expenses. The appeal of a home equity loan comes from it’s low interest rates, making them a stable option long term. If you are unfamiliar with how these loans work, use this home equity loan resource as your guide should you be interested in using one to fund your business.

Microfinancing: This option of funding was developed specifically for entrepreneurs who may not even have the option to go traditional with their funding. Microfinance organizations provide small loans in order to help entrepreneurs get their business off the ground in the beginning. Microfinancing is an option for those who want to achieve their dreams but have no collateral to do so. For more information on microfinancing, consider this article on: what is microfinance?

While traditional business loans are still an option, the unique choices listed above may be more viable funding alternatives during these uncertain times.

As you put the steps above into action, remember to stay focussed on your goals. Starting a business can be overwhelming and discouraging at times, so be sure to maintain a strict budget and use your business plan as your guide when you feel lost. With the right research, a clear plan, and the proper funding, any business dream can be made possible.