How To Start And Run Your Own Business

All over the world, there is a big problem of unemployment. It’s happening everywhere, from one country to another. Companies are retrenching and laying off people, so the unemployment rate is increasing by the day. This is why it is important for you to create your own business, so that you can employ yourself and others. The business can be big or small, it doesn’t really matter.

Here are some basic tips that you must consider before starting any business

1. Think of solving problems:

You must think of setting up a business that renders useful services to the people in return for their money. If you look around you, especially in your local environment, you will discover that there are problems that people go through, even on daily basis. These problems are indirectly giving you an idea of the type of business you will start in that area. For example, if you are located in an area where people find it difficult to get cars to go to far distances, you can start a car hiring business and you will make real money. If you can’t start a car hiring business, you can start any other business whether big or small. The important thing is that it is ready to solve the problem of the people and you will have a lot of customers.

2. Find a suitable location:

This is one of the most important things in business. Your business will do better in a suitable environment. Make sure you start your business in a place where people can easily locate it and patronize you. Don’t make the mistake of putting your business in a boring or miserable environment even if the rent is cheap. Location in business matters; it gives you an edge over your competitors.

3. Register the business for licensing:

Your business might not achieve its maximum standard if not registered. This is what many people, especially those running small businesses fail to understand. If your business is not registered or licensed, most reputable companies and organizations will not do business with you. You need to register your business, get a license number and add it to your banners, flyers, business cards and letters. This will make people understand that you are running a standard organization.

4. Advertise the business:

Even if your business renders the best services ever, you might not have much patronage if people don’t know about it. It is very important to advertise the business so people will know about it. If you can’t pay for TV adverts, you can print flyers, banners and business cards. Also make sure they are attractive enough to capture the attention of people. This will definitely announce your business and bring customers

5. Write business proposals to companies, organizations and schools:

Apart from capturing the attention of individuals, you can also write to various companies, organizations and schools. If your business is the type that solves their problems, they will patronage you, even at a higher rate. For example, you can make lunch for the staff in an organization and get paid. If you are good enough, you will add more companies and employ workers too.

6. Render quality services:

If you don’t satisfy your customers, you will not have more of them. You owe your customers an obligation to render the best services ever. Make them see the value for their money. Whenever a customer complains, don’t ignore it; make sure you correct the error before it’s too late. This will open the door for more customers and your patronage will constantly increase.

7. Be consistent and dedicated:

Don’t play funny with business. Remember it’s your source of income and livelihood. Don’t let customers come waiting for you in the morning. Open early, say the morning prayers, clean the place and be ready for business. Let your customers know that you are a serious worker and they will be ready to patronize you. If you are not consistent, you are opening the doors for your competitors to take over.

Angel Investments Helping Young Entrepreneurs

An angel investment is a type of investment in which a business angel, angel investor, or an informal investor who provides the capital for the start up of a business in the exchange of owner equity or convertible debt. In this form of investment, the investors organize them into angel networks for sharing their research and also pool the investment capital. In the angel investment investors, unlike venture capitalists, invest their funds while managing pooled money that other people in a managed and professional form of fund. These types of investment bear high risks and are also subjected to the dilution from future rounds of investment. The investors need a high return on their investment. The early stage companies usually fail because of the lost of large percentage of this angel investment. There are angel investors that are professional and they seek the investment having potential to return almost 10 times or even more than its original investment and in the 5 years.

The term ‘angel’ that is used in the angel investment is typically originated from the Broadway where this term was used for describing the wealthy individuals who are known for providing the money for the theatrical productions. The investors that invest funds in this form of investment are usually retired executives or entrepreneurs, who have many interests in investing the money for a number of reasons. The main reason include that they want to make use of their networks and experience on full time basis and they also want to monitor the new generation of entrepreneurs. Angel investors not only provide the funds but they are also involved in providing the important contacts along with valuable advice about management. There are several ways of meeting to the angel investors that usually includes the symposia and conferences held by the investors.

E-Commerce – Top Three Financing Options To Startup Or Grow An Online Business

E-commerce businesses don’t need much capital to get started. But they do need additional funds to fuel growth and extend operations. Banks charge online businesses very high rates for loans. The approval provisos are usually so stringent that online businesses are often unable to qualify at all. Collaterals are a must; and with the high interest rate the loan becomes very risky for the owner.

Fortunately, small e-commerce businesses can look at alternate avenues to seed their business growth. Let’s discuss some of them.

Get funds from friends and family

If your funding needs are not too high (around $10,000-$50,000), consider acquiring seed capital by soliciting a loan from friends and family. Have a proper business plan at hand, so you can demonstrate how the money will be used and the expected returns during the next one to five year period. This will make the investors more enthusiastic and you more comfortable asking for the loan. Do this even if you are very close to the prospective loaner.

Consider taking a loan in phases. Make sure you give an account of how each loan installment has helped sustain the business before the next installment arrives.

Contact angel investors

Consider contacting angel investors if you need $100,000 or more as funds. Angels invest in startup businesses to support their growth and expansion. They look for businesses that have been in existence for 1-2 years or at least have solid workable ideas and a strong business plan. You’ll find many websites that help entrepreneurs network with business angels and vice versa. Ask questions to get an idea of the kind of arrangement the business angel wants. Find out which businesses they have invested in previously, the terms and type of agreement that will be used, repayment schedule or how much share they would want you to divest, etc., before accepting the loan.

Incorporate the business to offer private placements

Small businesses incorporate to get tax benefits, protection from personal liabilities, and to acquire funds for expansion. Businesses offer private placements, also called non-public offer, so they have control on who they bring on board and on the expectations of shareholders. With private placements, small businesses can raise a large amount of money in a short time. They also bring down the risks associated with a single investor contributing all the money and as a result putting her in a powerful position over the business.

Apply for a merchant cash advance

Another funding option open to small businesses is business or merchant cash advance (MCA). MCA providers buy a percentage of your future credit card receipts at about 15%-50% discount for a lump sum that is paid as an advance. The amount of advance is based on the monthly volume of your credit card sales, and time in business. It requires no collateral and minimal paperwork. The approval rates are high and the processing time is as short as 3-7 days. MCA works for businesses looking for immediate funds that can be paid back within a year.

Take advantage of the fact that you have more than the bank to go to if you want to expand your business. Whatever funding option you choose, ensure that you understand every aspect of the transaction. Don’t sign any agreements or accept loans without being very clear on the terms of repayment.