Posts

4 Methods to Finance Your New Business Venture

/in /by

StrategyDriven Starting Your Business Article |New Business Venture|4 Effective Ways to Finance Your Startup BusinessEveryone has entertained the notion of becoming their own boss at some point. However, some people have the drive and initiative to start their own business. According to experts, over 600,000 new businesses open their doors in the United States every single year. Some open up subsidiaries of businesses like a Starbucks or a Waffle House franchise. Majority of these new enterprises will be small businesses run by people just like you.

However, starting a new business doesn’t just require determination, it will also need plenty of capital.
Without hefty initial funding, your dreams of opening a new business will be over before they even begin. However, there are a few tried and tested methods you can use that will guarantee you have the money needed.

Below are four effective ways to get the financing you need to become a business owner.

1. Take Out Personal Loans

One of the riskiest but perhaps one of the most surefire way to get a lot of money in a short amount of time is by taking out personal loans. Unlike a business loan, which can be denied based on the potential profitability of the business and the preferences of the bank you’re asking, these loans depend solely on your financial capabilities. If you are in a great place regarding you finances, you could be in the position to ask for large loans or even negotiate with a mortgage lending company for the money you need. However, this carries a lot of risk for you. If your business can’t recoup the money in time, you may be deep in the red personally. Gage the risk and rewards of this method before committing to it so you don’t lose all your finances.

2. Apply for Business Grants

If you don’t want to take out a loan, you can instead petition to a financial organization or similar enterprise for financial aid. There are many organizations whose sole purpose is to give out financial assistance to business owners. Each organization will have different criteria. Some cater to different types of aspiring business owners, such as women or color.

Some only give financial assistance to specific business categories such as eco-friendly businesses. The trick is to find the right organization to submit your petition to. Thoroughly research the organization you’re trying to get a grant from so you can present the best case possible.

3. Find an Angel Investor

Getting accepted for a business grant can be difficult, especially since there could be hundreds or even thousands of proposals that these organizations have to process. If you’d rather make your case to someone more personally, you can try to appeal to an angel investor.

Unlike venture capitalists, who are more concerned in getting in the ground floor of a possibly massively successful business, angel investors provide money based on other reasons. They can be moved because of your struggles, delighted by the idea of your business, or any other reason under the sun. Angel investors also typically don’t expect their money back quickly and are content to be silent partners. Of course, not every angle investor is the same and you may have a different arrangement with each one you meet.

Make sure you have clear boundaries with an angel investor and go over every inch of paperwork with a fine-toothed comb. This will protect you and your investor from any possible confusion after you’ve secured the finances you need.

4. Crowdsource

The internet can be a great source of revenue, especially if you can gather enough people to do so. Crowdsourcing sites like Kickstarter, Go Fund Me and the like allow you to present your case to millions of users around the world. They can then pitch together to meet your financial goals. Of course, the patrons and people who donate to your crowdsourcing efforts will require something in exchange. This sites usually include goals and milestones.

Should people donate a certain amount, they can expect a gift or product in return for their patronage. This can be a little costly and should definitely be accounted for when you calculate the amount of money you’re going to ask. Crowdsourcing can also be very subjective, and you will have to make your business proposal more attractive than countless other enterprises on these platforms.

Your small business can be the first and biggest step to securing your financial future. However, making sure your fledgling enterprise gets funded can be a massively difficult undertaking. These tips can help you amass the money you need and put you on the path to becoming a boss on your own right.

Web Development: 3 Fast Ways For Business Of Any Size

/in /by

StrategyDriven Online Marketing and Website Development Article |Web development|Web Development: 3 Fast Ways For Business Of Any SizeCan a business exist without a website? It all depends on the industry and services provided or products sold. Nevertheless, the website for the vast majority of companies is a showcase of what they offer, and the quality of its performance and content affects whether the user will make a contact or purchase attempt. Your brand needs to be seen for your business to gain interest, build trust and generate profit. Website development is the key to making these things happen.

Moreover, as of 2021, there are around 5.2 billion global internet users. It means that 65.6% of the population around the world is using the internet for a vast variety of reasons. If you want to capture people from different sources including social media, paid ads, and search engines you need to lead them to the website of your company.

The question is what is the best way to develop a website if there is nobody in your company who is capable of building it? By reading this article you will find out about 3 fast and effective solutions.

Web development: what does it include?

What does web development include? It can range from developing a simple single page of plain text to complex web applications, e-commerce sites, portals, and social network services. No matter its type website development includes:

  • web design – the process of designing graphics, user interfaces, and writing web markup (instructions to the software used for viewing a webpage on how the page should look and work);
  • web engineering – writing code for servers and applications using programming languages as well as building page integrations with content management system (CMS) and customer relationship management (CRM) platform.

Web development: what skills do you need?

First of all, you need to be aware that there is a difference between web and software development – different programs/programming languages are used and the final outcome of the developer’s work differs as well.

  • Web developers are mainly responsible for building web applications and websites that run on internet browsers.
  • Software developers, on the other hand, focus on computer programs for desktop and mobile devices.

Both specializations require a strong attention to detail, a knack for problem-solving and programming experience, however, they have different maintenance requirements, workflows, and levels of complexity.

Web development consists of two areas of work: front-end (the user-facing side) development and back-end (the server-side) development, so in most cases, you need at least two developers to build your website.

  • Front-end web developers take care of how a website looks and functions from the users’ perspective, make it easy to access and browse, and ensure the website is compatible with operating systems and devices that display content.
  • Back-end web developers are responsible for the technical aspects. They work on administrative components such as the server, the database, the operating system, and the software and make sure these components run smoothly together.

An alternative is to hire a full-stack developer who possesses knowledge in both front-end and back-end development. It requires years in the field to build the necessary experience and become such an expert but they can create a website from start to finish. The full-stack developer knows how to design a website, user experience and is able to use the necessary programming languages and technology stack.

Keep in mind that if you plan to build a great website you first and foremost need talented and effective developers who also understand the business perspective and represent a proactive approach.

What are the best options if you need to build a website?

Before you decide which of the available options are best for you, consider the needs of your project and company. If you need a web developer permanently to take care of your site and implement changes often or if you have more than one project in mind, you might be better off hiring full-time web developers.

In most cases, it might be a good idea for companies that have complex online stores, SaaS companies, or news sites. Otherwise, you risk investing a lot of money in the recruitment process, and later in the permanent salary of a specialist that you will not need.

What can you do instead? Below we mention 3 fast ways to web development:

Cooperate with Freelance Web Developers

Nowadays, there are many online job platforms, such as Upwork, Fiverr, YouTeam, Gigster, and others where you can find all types of developers with whom you can cooperate on a one-time project basis.

Pros: you can find freelancers from all over the world; developers are ready to work for a reasonable price; usually a short project implementation period; you can review the profiles of candidates and see examples of work; you don’t waste time on the recruitment process.

Cons: you are not guaranteed high-quality work – there are often no vetting processes; lower cost might mean that the project will be made in the simplest possible way, both technically and visually; you cannot count on the developer to advise you on the best solution; the chosen developer doesn’t need to be fully dedicated to your project; you risk losing money to build a website that will not meet your expectations.

Use a Dedicated Team service

When your project is complex you can quickly find a dedicated development team through an IT staffing company. You cooperate with a dedicated team that is not just a group of developers working on their tasks, but they act as a part of your company and support you.

Pros: such a team is fully allocated to you and dedicated to your project; you take an active part in a decision-making process; delivering results and high quality is ensured; the capacity of the team is set on the workload needed to finish the project until and must be delivered until the agreed time period; the fee is charged monthly and you only pay for worked-hours; you get access to work-proven and skilled developers.

Cons: not the right solution if you need to build a simple business website; even if you don’t need to manage tasks of the team, it requires some engagement from your side; cost might be higher compared to hiring freelancer due to high-quality and experience of developers.

Outsource the entire Web Development

Outsourcing has become a very popular process. Outsourcing web development means that
your project will be developed by a third-party company that acts as a contracted partner to perform and manage website development work.

Pros: you free up your time so you can focus on your business instead; the maintenance commitment of the website is usually a part of an outsourcing contract and lies on the side of the provider; software houses face higher liability than in cases of other services, which makes it less of a risk for your business.

Cons: besides contracted cost, the extra ones may occur so there is a risk of going over budget; developers who work for software houses usually have several projects to handle which may impact the quality; due to lack of proper communication you may receive a website that doesn’t fit your expectations; you don’t have an influence on your website development.
Summing up

Currently, thanks to the popularization of remote work, your business has the opportunity to use a much wider range of solutions. However, remember to analyze the needs of the project before deciding to cooperate with a freelancer, IT staffing company, or software house. Consider which of the solutions will bring you the most benefits and guarantee that your website will not only look good but also be technically adapted to your company’s needs.

6 Tips For Improving Workplace Safety

/in /by

StrategyDriven Human Performance Management Article |Workplace Safety|6 Tips For Improving Workplace SafetyYour employees help you reach your goals and grow your business. Without them, you may struggle to get ahead and deliver on your promise to your customers.

One of your jobs and responsibilities as a business owner is to keep your employees and the environment safe for working in. Your employees will be happier, healthier, and there will be fewer incidents and accidents to deal with when you make an effort in this area. Learn what you can do to improve workplace safety and create a better and more rewarding environment to be.

1. Install Cameras

Improve workplace safety by installing cameras throughout your building both inside and out. Constant Video Surveillance will help you monitor who’s coming in and going out of your office space around the clock. You’ll not only be keeping your belongings and equipment safe but also the people who work for you. If there is ever an incident or a crime committed then you’ll have the footage to see the details and evidence you need to prove who did it or was involved. It can save you a lot of headaches and even money down the road so it’s a wise step in the right direction.

2. Have Policies & Protocols

Improve workplace safety by creating a culture that focuses on it. Have policies and procedures in place to reduce confusion and ensure everyone knows how important it is to your company. Having protocols in place will make sure everyone’s on the same page and understands the workplace and environment expectations. Your employees can review the material and ask you any questions to clear up possible misunderstandings right from the start. It’s wise to make sure your employees know about these from the first day they start working at your business.

3. Train Your Employees

One way to prevent accidents and mishaps is to train your employees. Improve workplace safety by making sure everyone knows how to perform their job duties and use any necessary equipment. Train your staff and also have manuals they can use to review steps and what to do in the case of an emergency. You want them to feel confident and comfortable working their jobs and that they know their way around the building and equipment. The better trained your employees are, the greater the chance that you’ll be able to maintain a safe and healthy workplace.

4. Keep it Clean & Clutter-Free

It’s also about keeping your workplace clean and removing any clutter. You can avoid slips and falls this way and create more room for maneuvering and getting around. It may help to hire a cleaning crew so that you are consistent and keep it tidy throughout the year. You’ll be removing germs this way and ensuring all your belongings are put away and stored in a proper place. It’s wise to conduct regular inspections of the workplace so you can check for any potential hazards or dangers that need to be addressed. The less clutter and mess the better not only for improving safety but also for reducing stress.

5. Encourage Breaks

You want to avoid your employees being tired and worn out in the workplace. There’s more likely a chance they may make mistakes or have accidents if they’re overworked and exhausted. Therefore, it’s in your best interest to encourage your employees to take breaks frequently and throughout the day. You may even want to set up a break room and game room where they can go to relax and decompress from work. Removing themselves from their desks and computers for some time will not only keep them safer but more productive too. They’ll be safer and healthier and in a better position to perform their duties when they’re energized and at ease.

6. Communicate about the Topic Regularly

Another tip for improving workplace safety is to keep an open dialogue with your workers. Communicate about the topic regularly by asking questions and for feedback. Have regular meetings on workplace safety and use it as a time to respond to inquiries and make sure everyone knows your expectations and how to stay safe. It’s an excellent way to keep safety top of mind and let your staff know what you’re doing to ensure a positive experience at your workplace. Make it easy and painless for employees to come to you with workplace safety and health concerns or ideas for improvement. It may help to appoint someone as head of the workplace safety committee so there’s a leader and point person if there are issues or questions.

Improve Your Customer Experience With These Stellar Tactics

/in /by

StrategyDriven Customer Relationship Management Article |Customer Experience|Improve Your Customer Experience With These Stellar TacticsThere is no doubt about it the most important people to your business are the ones that put their hands in their pockets to pay for your product. That means above anything else you will need to make sure your customers love your business. Luckily, this isn’t as hard as it may sound. Indeed, there are plenty of things you can do to make your business more customer-friendly. Keep reading to find out what they are.

Be contactable

Your customers will want to contact you, whether it’s to ask a question, make a suggestion or get a problem resolved. However, their experience can be severely impacted if they struggle to get in touch with a real person. Yes, I know that everyone seems to love chatbots and FAQ pages online, as they are cost-effective, but the truth of the matter is that what your customers want is a real person they can talk to.

With that in mind, make it easy for your customers and prospects to be able to speak to a real person by advertising your business number on every page of your website, as well as each social media account you run. Indeed, having someone available to talk to customers on each channel and platform you have can work wonders in terms of providing them with a positive experience.

Lastly, don’t forget to offer an email option for customer contact as well. For this channel, in particular, be sure to manage customer expectations by giving an estimate of how long they can expect to wait for a reply. Also, ensure that you operative do all they can to resolve the customer’s issue or query in as few communication as possible, as this will show your customer that you value them and their time as is much more customer-friendly than dragging things out and making an issue of it.

StrategyDriven Customer Relationship Management Article |Customer Experience|Improve Your Customer Experience With These Stellar TacticsMake returns a breeze

In this age of internet shopping, you can expect customers to order items online, and once they have seen them in real life decide to send them back. Indeed, the option for customers to be able to do this is a very important aspect of landing a sale in the first place and must not be underestimated.

Of course, few people enjoy spending their free time getting tangled up in sticky tape and printing out return labels. Eleven less enjoy the idea of having to pay for the cost of returning a product. Indeed, such things can sour the experience for the customer and leave a taste in their mouth so bad that they will think twice before shopping with you again.

To that end, you need to do everything in your power to make customer returns a breeze. Fortunately, there are several strategies you can use here. The first is to make sure that your reverse logistics systems are robust and effective. With reverse logistics being the customer return system and opposed to the customer delivery system you use.

After all, if your returns take too long or items get lost on the way it will reflect badly on your business and begin to erode the relationship you have with your customer. Also, from the customer’s point of view, knowing that they can send back items that don’t meet expectations works in a similar way to a guarantee and helps them feel much more comfortable trying new things, and making that all-important purchase.

Additionally, there are a few other tactics you can use to improve the customer experience when it comes to returns. One of these to make sure you offer free returns as no one likes to have to pay out to get a refund. Additionally, offering a range of options for carriers and pick up can make the return process so much easier for the customer, especially when you include the choice to have the item picked up directly from their home. Finally, wherever possible, don’t make customers print out their own returns labels, this just adds another annoying task to their plates, lengthening the process, and causes lots of issues for people that don’t have printers ( or ink) at home. Instead include a pre-printed pre-paid refund label and your customers will thank and love you for it.

Provide special offers and discounts

Most people love the thrill of saving money and getting a good deal, and this is most definitely something you can offer your customers to improve their experience. Indeed, there are a whole range of special offers and discounts, and the real trick is matching the right ones to the point your customer is in the process of buying.

For example, for first-time customers, a percentage discount may provide them with the added confidence they need to take the plunge and try a new product. However, for customers that have already shopped with you, offering them 2 for 1s or multi-buy discounts can help them feel appreciated and encourage them to shop with you again,

Additionally for customers that have already had a successful experience with you, offering a cash bonus that can be put towards your products to refer to their friends and family can be very successful. It can also help to make them feel appreciated and valued as well, which will help your business maintain that long-term positive customer relationship.

Encourage customer feedback

Customer feedback can seem like a scary thing from the perspective of a business. However, if you rant inviting ratings and reviews you are missing out on a really important way of communicating and responding to your customer base.

Negative feedback, in particular, is hugely important, the reasons being that it will inform your business precisely where they are going wrong, and allows you to change this not just for that one individual customer, but improve the experience and make it as possessive as possible for every customer! To that end, if you want to make your customer experience as perfect as possible, you must make leaving feedback as easy as you can.

How to Build Your First Balance Sheet as a Startup?

/in /by

StrategyDriven Managing Your Finances Article |Balance Sheet|How to Build Your First Balance Sheet as a Startup?If there is one area of your startup that requires maximum attention to detail, it is the financial aspect. No successful business attained the height it has reached by neglecting the details of its financial activity.

Having a detailed financial system in place helps to increase transparency and accountability within the business environment. It also helps to know whether there is a loss or profit and the reasons for such. Most importantly, a detailed report of your startup’s financial activity over a definite period will come in handy when reaching out to investors.

One of three documents that your startup has to draw up every year is its balance sheet. Here, we shall be examining a balance sheet, what it includes, and how to build your first as a startup. Let’s start with what a balance sheet is and what it should include.

A balance sheet is an accounting document where both the credit and debit sides are balanced.

What Should Be On A Startup Balance Sheet

A balance sheet is a comprehensive financial document that examines all the assets, liabilities, and shareholder’s equity that belongs to a startup and how they were used within a financial period.

It provides an analysis of credits and debits and what every penny was used to achieve. If carefully drafted, it is expected that both ends of the balance sheet, which are the debit and credit sides, should be balanced after every calculation has been made.

From the above, you can see that there are three main components of a startup’s balance sheet, and they include:

Assets

Assets here can be current or non-current assets, and they include everything that the startup owns within a given period. Assets can be tangible, which refers to those assets that can be seen and touched like properties.

A startup can also have intangible assets that you cannot feel or touch, like goodwill. Every business should identify its assets and why these assets were obtained.

Liabilities

While assets are those things a company owns, liabilities are those things a company owes. Liabilities can also be current or non-current liabilities. Startups need to know what they have as assets and what their liabilities include.

Shareholder’s equity

Shareholder’s equity refers to what is left when a company has paid off its liabilities. It is the remainder of assets after liabilities have been settled.

A well-drafted balance sheet should have these three concepts captured accurately in it.

When A Balance Sheet Is Not Balanced

The whole essence of a balance sheet is that the debit and credit sides should be balanced at the end of every calculation. However, there are instances where after all the entries, the balance sheet won’t be balanced.

You may notice an imbalance after every entry has been inputted, and you are wondering what is the cause.

Some of the factors that can be responsible for a balance sheet not being balanced include:

  • Incorrect or incomplete data
  • Wrongly entered details
  • Mistakes in exchange rates
  • Mistakes in inventory
  • Wrong calculations

After imputing the details, review the sheet again.

Building Your First Balance Sheet as a Startup

As a business owner, you don’t have to wait until you own a big business before building your balance sheet. Immediately after your startup launches, you should start putting steps in place to draw up a balance sheet.

Your first balance sheet may not be as perfect as subsequent ones. It is possible that, in the end, the balance sheet may not be balanced. Instead of getting worried, you can review it to check if any of the factors listed above are responsible for why it isn’t balanced.

To build a perfect first balance sheet as a startup, here are some vital steps to follow:

Set a report date and range

A balance sheet is not an indefinite document. Like every other accounting document, it is expected to cover a specific range. So, your first step to building a balance sheet for your startup is to set a report date and range.

Conventionally, a balance sheet is to be drawn up every year. However, some businesses have chosen to make theirs after every quarter or the first half of the year. Regardless of which of these options you are going for, setting a report date and range is necessary.

A good example of this is to have a balance sheet from 1st January 2021 to 30th June 2021.

Identify your assets and liabilities

After you have set a report date and range, the next step is to identify your assets and liabilities. It is impossible to build a balance sheet when you don’t have a comprehensive idea of what you own and owe.

Determine your shareholder’s equity

As earlier pointed out, your shareholder’s equity is what is left after you just have subtracted what you owe from what you own. If you can successfully identify your assets and liabilities, determining your shareholder’s equity will become easy.
Worthy of note is assets and liabilities identified, and shareholder’s equity determined must be within the range fixed when starting this process.

Carefully enter the details

All the steps that have been discussed above are geared towards ensuring you have the correct statistics. With all these statistics at your disposal, the next step is to enter the details into the sheet. In doing this, you have to ensure they are correctly entered.

Pay attention to all the data to be sure they are complete and reflect the current state of the startup. Avoid mistakes in exchange rates and inventories.

Conclusion

The process of building your first balance sheet as a startup is not as complicated as you might have thought it to be. Provided you understand a balance sheet, the purpose it serves and can follow through on the steps provided above, you can create one in no time.

However, where it appears that after several trials, you’re not getting the right results, you can seek the guidance of a financial expert to guide you through the process. You can also surf the internet for more information from professionals on building a balance sheet.

References
CFI: What is a Financial System?
HBS: HOW TO PREPARE A BALANCE SHEET: 5 STEPS FOR BEGINNERS
Wallstreet Mojo: Difference Between Current and Non-Current Assets
Dummies: Current and Noncurrent Liabilities on the Balance Sheet
Chron: How to Review an Unbalanced Balance Sheet

AbstractOps
If you’re an early stage CEO, we handle and automate your HR, finance, and legal ops — so that you don’t have to. We help you Be Scrappy, Not Sloppy.

We understand that ops can be painful. If you have any questions or need assistance with your ops, drop us a note at [email protected]. We’ll do our best to help.