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7 Great Tips on How To Fund Your Business

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StrategyDriven Managing Your Finances Article |Fund your business|7 Great Tips on How To Fund Your BusinessThe first thing that comes to one’s mind when deciding to start a business is, of course, the funding. Whether it’s capital to start the business or funds to run the business operations- you need M.O.N.EY!

The cost of doing business can get steep quickly, so the smart thing to do is start with as much money in your bank account as possible. But even if you don’t have much money in the bank, there are still tons of places to source from.

What Types of Funding Are Available?

Once you’ve decided what type of funding is right for you, the next step is deciding where you’ll get the funds. Again, it’s good to have several funding options so that you can compare the terms and conditions of each.
If you are short of cash for the business, then you’ll need to borrow it. Or maybe source money from friends and family or even apply for a grant. The type of funding for you depends on what you need, where it will come from, and how fast you need it.

Personal Savings

One popular way to fund your business is through your savings. Before you venture into a business, you can start by saving towards it. You can tap into your savings account if you’re starting a new small business or use the money to invest in an existing enterprise.

A Business Loan

A business loan is a good option if you’re looking for startup capital or paying off other debt that you owe. If you decide to pursue this path, you might wonder, How do business loans work? The money comes from a bank or alternative lender in cash, equipment, or different types of collateral. Some lenders will even give you a loan to help you become more profitable or buy inventory.

Most business loans come with some interest. The interest will vary depending on the lender. The trick with these business loans is to clear the loan as fast as possible to avoid high-interest rates.

Business Line of Credit

A business line of credit is a revolving credit card that you repeatedly use as long as you have the money in your account to pay back each time. It’s perfect for ongoing expenses, such as utility bills and insurance, that you have to pay even when cash is tight.

Asset-Based Loans

You might also apply for an asset-based loan, which puts equity from your business up as collateral for the loan. For example, if your company owns a car, equipment, or property that secures the debt, it could be better than a traditional loan because you won’t have to pay as much in interest, and it could even help you avoid bankruptcy.

Talk to Friends and Family

If the money you need is relatively small, perhaps $5,000 or less, a friend or family member might be willing to give you a loan with no interest or repayment schedule. This type of funding is a gift because there’s no expectation that you’ll pay it back. It’s an excellent option for cash emergencies when you don’t have the time or resources to find other funding sources, but make sure you’re not taking advantage of someone who can’t afford to give you a loan.

Crowdfunding

One more form of funding that’s becoming popular is crowdfunding—individuals can now fund projects through money-raising websites and apps. You’re not getting a loan with crowdfunding. Instead, you’re raising funds to launch your business or fund a specific project, such as manufacturing and selling your product.

Apply for Grants

If your business is in a field related to caring for the environment, improving technology, or providing social benefits, you may be eligible for funding from government sources. There are grants available on federal and state levels that can help small businesses get started or grow.

To Sum It All Up

There is no need to stress about business funding. There are tons of options to pursue when exploring financing for your business.

Is Your Business Struggling To Grow?

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StrategyDriven Entrepreneurship Article |Business Struggling to Grow|Is Your Business Struggling To Grow?Life as an entrepreneur is tough, and when your business is struggling, it can make life very difficult for you. You don’t want your business to be pulling funds for your personal bank account for too long, and you should be looking for solutions to help your business pick up the pace again. There are often many solutions when it comes to fixing the problems that your business is having, and it may just need a little push in the right direction to get things as they should be. Whether it’s finding new customers, changing up your marketing strategy, or rethinking the direction that you actually want to go in.

Improve on your financial decisions

Taking the time to look into your financial decisions and really analyze where you might be going wrong can change everything. If you’re properly managing your cash flow, then it will allow you to see where you might need to make changes and cuts here and there. It’s important that you do these things so you know how much money you’ll have available and where. Not only that, but you can use the data that you get from your last month of sales to help you reconsider where you should be putting your money. You might need to allocate more money to marketing rather than overstocking your products.

Hire an advisor

Sometimes you just don’t have the answer yourself, and it can be hard to handle the decisions on your own. Hiring a financial advisor, for example, can help you to figure out what the best investment for you is at this moment, and what you should do later on. You shouldn’t expect to be able to do everything on your own, and an advisor can make life much easier for you. Maybe you need help with marketing, maybe you need someone to help you get off match list. Even the most experienced entrepreneurs will struggle with the right answer from time to time.

Invest into your reputation

An effective marketing campaign can significantly improve the cash flow within your business, and you’ll find that you’ll be back on track in no time when you’ve learned how to properly appeal to your audience. Finding the right way to reach out to that demographic, while also not having to break the bank over it can be a promising investment, and will be paying for itself in no time at all.

Putting out new marketing ideas isn’t the only way you can improve your reputation as a business. Sure, you need to make your presence known, but advertisements aren’t always the best way to do it. People don’t want to have a constant stream of marketing displayed to them, and it can help to break the mold here and there. For example, running a social media page that isn’t all business and promotions can be a great way for you to build a better relationship with your audience. It doesn’t have to be all business all of the time, and sometimes no marketing is good marketing.

Planning a New Business? Avoid These 5 Devastating Legal Mistakes Startups Make

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StrategyDriven Starting Your Business Article |Startup Legal Mistakes|Planning a New Business? Avoid These 5 Devastating Legal Mistakes Startups MakeMost people dream of starting a business and ponder over countless entrepreneurial ideas. However, only a few act upon this desire with some becoming successful entrepreneurs. If you have overcome the common fears and you’re ready to start, you need to learn as much as you can about your industry. More importantly, you have to research the threats to your new venture. Many startups fail and you don’t want to become part of these statistics.

This post explores common legal mistakes many new businesses make to help you steer your venture.

Failure To Consult a Legal Professional

After harboring your investment idea for months or years, you’re raring to go. Most first time investors exhibit unbridled enthusiasm and don’t take time to consult. If you don’t consult an experienced attorney such as Jacob A. Kupp, there’s a big risk your business will face headways within no time.

These legal experts guide you through the business set up, organization structure, shareholding, company registration, licensing, and so much more. A business is a legal entity and if you have no background in law, there’s a big risk of making the wrong decisions.

Failure to Create an Ownership Structure

Many new businesses are partnerships with different investors bringing in expertise and resources. These might be your friends or even family. At the beginning, everything might work smoothly even with no ownership structure. However, you’ll experience challenges the moment the business records losses or profits. A lawyer plays a critical role in setting up a strong structure with defined roles and responsibilities.

Failure to Incorporate Your Business

As you set up the business, it might look like the simplest structure is the best. After all, you might not envisage rapid growth in months. As you settle down, you might realize the need to bring in more investors and expand other aspects of the business.

A business lawyer would advise you to incorporate your company right from the beginning. This makes your business a separate entity and protects you from your company’s liabilities. An incorporated business can also access credit easily and also has a professional image. Your lawyer presents the options available for incorporation and guides you through the process.

Failure to Understand Legal Requirements

The government has a big say in how any business runs and it’s always important to learn more about the rules and regulations before you invest. Whether you want to set up a dental practice, or a recycling plant in your city, there are strict laws that guide businesses in every industry. Failure to comply with such laws can lead to hefty fines, jail term, and loss of reputation.

Overlooking Data/Privacy Laws

Data is the most invaluable asset for any business today. You need to manage any data in your possession in line with the latest data regulations. Loss of data through breaches or any other cause can lead to financial losses, hefty fines, lawsuits, and other debilitating consequences.

Planning to set up a new business? Don’t overlook the importance of legal advisory. This might make a huge difference and protect your investment from collapse or other legal problems.

Krishen Iyer’s Outline for Middle-Managers Navigating Return-to-Work Anxiety

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StrategyDriven Managing Your People Article |Middle Manager|Krishen Iyer's Outline for Middle-Managers Navigating Return-to-Work AnxietyAfter over one year of navigating an unthinkable public health crisis, the world is beginning to look more normal. As a result, executives and managers alike have started to brainstorm strategies for returning to the office. For some, returning to the office represents a long-awaited victory over COVID-19. However, others do not share that same optimism. While professional leaders cannot control their employees’ attitudes towards the pandemic, they can control their rhetoric towards return-to-work anxiety.

Return-to-work anxiety is valid. Some employees may have health issues that make them more vulnerable to contracting COVID-19 or more likely to have severe complications from the coronavirus. Simultaneously, plenty of professionals have caretaking responsibilities that could be impacted by working predominantly outside the home.

Regardless of the circumstances, it should be the top priority of professional leadership to empathize with their reluctant employees who are hesitant to scale back remote work. More specifically, it may be difficult for middle-managers to balance their team’s concerns with the organization’s intentions. If you are feeling stuck, here is a step-by-step outline for middle-managers navigating return-to-work anxiety.

Step #1: Assess your team’s attitudes towards returning to the office.

The study of public policy teaches us that no policy can be effectively implemented unless the public consents. For this reason, it is critical to do your best as a middle manager to meet your employees where they are at with regards to returning to the office. The nuance with assessing your team’s attitudes lies in that you cannot simply assume where your team stands on returning to the office unless you ask.

Even when prompted to speak their truth, your team might not necessarily be telling you the whole story. Take Linda Hill’s perception, for example. A professor at Harvard Business School and author of Being the Boss, Hill finds that “people are fearful of looking weak or not living up to expectations.” Keeping this in mind, I agree with Hill’s suggestion to use anonymous attitudes to assess what your team thinks about returning to the office. Anonymous survey data can empower you to narrow in on your employees’ concerns, while employees can rest assured that their opinions are heard and addressed.

Step #2: Determine how compromise can factor into your office’s reopening.

If you can give your team options on returning to the office, that should be your first point of action following an anonymous survey. Options should give your team the liberty to choose how often they come to the office, as well as on which days. You can also go the extra mile to meet your team where they are by making adjustments to their office space. For example, if your workplace is in an open-faced cubicle format, feel free to encourage your team to reach out to you privately about finding a more semi-private space to work in the office.

As a middle manager, empathy matters, especially when retaining talent. A FlexJobs survey found that 58% of professionals would “absolutely look for a new job if they weren’t allowed to continue working remotely in their current position.” The survey, which compiled data from over 2,000 respondents, also found that 65% of participants sought to work remotely full-time post-pandemic, whereas 33% of the study preferred a hybrid work arrangement. When considering the workforce’s acclimation to remote work, we see all the more reasons for managers to compromise with their employees about their office schedule.

Step #3: People-pleasing does not work.

Compromise is essential, but so is honesty. Make sure that you do not make any promises that you must later retract. Hill reminds us that no one can say with absolute certainty that returning to the office has “zero risks” from a public health insight. Offering your full transparency and honesty with your team can be a moment of growth for you as a manager. It may be a difficult conversation to let your employees know that some degree of compromise might not be possible, but the best decisions are rarely the easiest.

Although compromise might be tricky to balance with other internal stakeholders, you should, of course, try to make every employee as satisfied as possible. If someone on your team makes a novel request that you are unsure about, do not confirm that the accommodations can be made until you speak with senior leadership or your human resources department. That might be difficult to remember, given your innate desire to retain your team, but full transparency and honesty will make the decision-making process easy for everyone involved in the long run.

About the Author

Krishen Iyer is the founder of MAIS Consulting Services, a Southern California-based firm with a vertical focus on health and dental insurance distribution centers. MAIS Consulting provides innovative contracting and marketing solutions to their clients, a mission that draws on Iyer’s nearly two-decades-long career in digital marketing on behalf of insurance distribution centers.

Why You Should Revisit Your Hiring Requirements and Consider Hiring a 2021 College Graduate

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StrategyDriven Talent Management Article |2021 College Graduate|Why You Should Revisit Your Hiring Requirements and Consider Hiring a 2021 College GraduateThe market for talented employees is the tightest it has been in a long time, and as a consequence, many businesses have revisited their hiring requirements and been pleasantly surprised by the results. One specific hiring requirement that is often unnecessary is the classic “3-5 years of experience.” The truth is that there are many benefits to hiring a new 2021 college graduate, and the labor shortage has simply made this fact more apparent. Here we will go over a few of the reasons that hiring a 2021 college graduate should be on the top of your list of things to consider.

The first advantage: A strong willingness to work

If we are honest with ourselves, most of us will admit that when we begin a job our willingness to work is greater than it is after we have been working somewhere for several years. And this makes sense: a new hire is full of excitement and is anxious to impress. This effect is augmented exponentially in the case of a new college graduate. They are not only beginning a new job – they are beginning an entirely new stage of their life! This willingness can translate to better results not just from your new employee, but from other employees who want to step up their own game to avoid looking bad in comparison.

The second advantage: Digital and technological expertise

In today’s world, it does not matter if you run a communications company or a landscaping company, you need to use technology. The advantages of having a new graduate to serve as your ambassador to the digital world tend to fall into two categories: an ability to fix broken technology and an ability to leverage unused technology. We are all familiar with the headache that comes with computers, phones, printers, or any other gizmo or gadget you might need, so the benefits of having someone around who can solve them all is self-evident. The advantages that can come from leveraging currently unused technology are less apparent. One example of this is the woefully inadequate digital presence that so many businesses still have today. Especially if you are a customer-facing business, if you do not have an active and well-curated digital presence on websites and social media, you are likely missing out on a huge pool of customers.

The third advantage: They have no bad work habits to undo

While hiring someone with 3-5 years of experience has its advantages, it also raises some problems that a new college graduate would not. One of the issues that most commonly arises is that an experienced employee comes equipped with both the knowledge and the bad habits they picked up on their last job. And while the knowledge can be helpful, it can easily be offset by how difficult it is to instill new habits and values in an employee who is used to doing things a completely different way. In addition to the benefits mentioned above, a new college graduate will show up as a blank slate. You can teach them the correct way to do things and they will learn things right the first time. One related disadvantage of the limited experience that new hires have is that they do not have a work record. This is not as big of a deal as most people think, however, because much can be learned from a look at a candidate’s transcripts and a job background check.

The fourth advantage: They are primed to learn

Anyone who has left school and then returned again knows how hard it can be to put your mind back into gear so that it can learn as well as it used to. The brain works much like a muscle insofar as those parts of it that do not get used regularly tend to atrophy. Recent college graduates have had to learn massive amounts of new materials for as far back as they can remember. These candidates are capable of devouring new information and mastering new skills in half the time that you might expect.

Hiring is a challenge in the best of times, and in today’s market, the difficulties can seem insurmountable. While this situation is certainly frustrating, it can also represent an opportunity to revisit your hiring requirements so that you include new college graduates. They are willing to work, they are digital experts, they have no bad habits to undo, and they learn extraordinarily quickly.