A recent report reveals that the biggest reason entrepreneurs fail to start new businesses is available capital. All the great ideas in the world won't pay for them so the real work begins actually before the real work begins.
As many know, The Corporations Bureau does not support entrepreneurs preparing business plans, in the formal sense, prior to doing business. Business plans, in our corporate culture indeed have their place in the planning process however, business plans were initially intended for obtaining financial backing and resource loans for start ups.
These days however, due to the current economic climate, banks won't even finance an automobile, don't mention a "wonderful business idea". So the onus is on you as the impending small business owner to come up with your resources.
Nationally, new businesses require an estimated $15,000 to get off the ground. What's equally important to note is that those same entrepreneurs are only able to come up with nearly $6,000 which leaves a gaping hole in the start up expectations. Don't let this keep you from starting your business. Take a look at your offerings, your intended clientele and the goals you have set. Then, look at alternative ways to accomplish these goals with a reduced budget.
Easier said than done? well this is when that business plan kicks in to gear. Not a plan for the bank or loan officer, but yet, a plan that will stream-line your business and ideas into a coherent vision of efficiency. Lets not lose sight of the goal we all have when we open our doors; to please our customer and meet their expectations.
They have these expectations in part because we as owners, have set them. How do you do that? Thought you would never ask:
- Invest your time into the social networks,i.e. facebook, twitter, myspace, etc.
- Invest in building relationships that help with word of mouth. This will reduce your dependancy on marketing dollars.
- Go as long as you can without a website (unless your business is web based).
- Maximize your time with ONLY those things that yield results IMMEDIATELY. You will need the instant rush of cash to keep from going into your personal finances so often.
- A firm handshake beats a glossy business card anyday. Although Vista business cards for $5 are also a bargain.
- Don't invest in Letterhead so soon. Emails and direct phone calls improve your chances of success by 200% at no additional cost.
- Develop ways to bring business to you. This will keep you from spending 3days worth of gas to track down one potential customer who asks you all the questions, but ultimately gives their business to the family friend.
Your plan of attack is vital! Know your customer and how you intend to meet their needs before you even introduce yourself. Your finances will grow with you so stop thinking you need to have ALL of it before you can conduct your first day of business. Don't let that keep you from starting your business.
The Corporations Bureau wants to help you get your ideas off the ground without all the excuses. Lets go!
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