Tag Archives: business owner

How to Build a Business Without Going into Debt

One of the greatest hurdles in building a business is capital, or lack thereof. A lack of capital and financial resources subsequently prompts aspiring entrepreneurs to believe that borrowing money is their only option. Of course, this belief is inaccurate. The pitfalls of going into debt are well-documented, but thankfully other alternatives do exist.

Build Gradually

Many ambitious and aspiring entrepreneurs aim to open their businesses as soon as possible. There is a certain excitement which often comes along with building a brand and starting a company. However, gradually building a business is one of the best ways to avoid going into debt. In many cases, this may require not giving up one’s day job until the business venture yields profit.

The process of building a business while still maintaining a day job may be initially frustrating and time-consuming. However, with patience, dedication, and consistency, the business will eventually become profitable. Following the generation of profit, the entrepreneur can then quit his or her day job. Gradually building a business is vastly more effective and beneficial than taking out loans and attempting to do everything at one time. Rome was not built in a day.

Know the Ins and Outs

Believe it or not, there are many aspiring entrepreneurs who want to go into business for themselves, yet lack critical knowledge. There are so many factors involved in starting a business; a business plan, budget, legal paperwork, website, proper management of funds, and sales tests are only the tip of the iceberg. Knowing the ins and outs means having a solid plan and being fully informed. So many people who want to go into business for themselves believe that simply borrowing money and spending during times of apparent necessity will help them. This is a common error which often engenders the downfall of businesses.

Hopeful entrepreneurs need to have their budgets in place and know exactly how much financial capital is needed to start their business.

Fund Your Own Business

At the end of the day, those who wish to go into business for themselves without also going into debt will have to fund their own enterprises. Thankfully, there are a variety of ways in which aspiring entrepreneurs can go about self-funding. Simply saving money is an option, although it can be time-consuming depending on the individual’s income and the costs of starting their business. In some cases, funding an enterprise purely through one’s own funds can take months, if not years, although it can still be done. Each hopeful business owner will have to decide whether or not this particular avenue is right for them.

However, saving money to fund one’s business is not the only option. Hopeful entrepreneurs can also consider pitching to an angel investor. Angel investors can be incredible assets for aspiring business owners, however, there are certain stipulations. True passion for the business, a solid execution plan, and awareness of the market are things which angels will look for before investing their money into a business.

A Final Word

Starting a successful enterprise is a tough venture. Starting a successful enterprise without going into any debt is even more challenging. However, with the proper preparation, knowledge, and expertise, it can be done.

 

Authored by Gabrielle Renee Seunagal

How to Purchase Rental Property Insurance

Renting out rooms and properties is an increasingly common method of adding an extra stream of revenue. However, with this method comes the need for rental property insurance, also known as landlords insurance. In a perfect world, tenants would always pay rent on time, take good care of the property they’re renting, and conduct themselves accordingly.

Sadly, the world is far from perfect, which makes the obtainment of rental property insurance absolutely critical. In some cases, homeowners policies automatically provide this type of insurance, but sometimes they don’t. In the event of the latter, the individual who is renting property is tasked with the responsibility of securing landlords insurance.

Determine Which Type of Landlords Insurance is Needed

As affirmed by The Huffington Post, there are a variety of rental property insurance policies. Making the right investment is very critical. In many cases, sitting down with a financial advisor is a good idea prior to purchasing rental property insurance. Getting a professional opinion allows landlords to make the most informed decisions and get additional insight before making payments. Different policies cover different events; complete awareness of which landlords insurance is best for you is always preferable to purchasing the wrong insurance and having to do damage control at a later date and time.

Have Some Money Stashed Aside

Although costs of rental property insurance vary, there are some determining factors, explains Trusted Choice. Physical and geographical location, area quality, tenants, physical conditional, etc will each play a role in how much renters have to pay for insurance.

For this reason, having a certain amount of funds put aside (preferably a few thousand dollars, at the very least) can prove to be helpful. Moreover, landlords insurance can be quite pricey; therefore, renters should make sure that they are in a financial position to comfortably make this purchase.

Find Out if You Qualify for Any Discounts

Despite the fees associated with landlords insurance, certain companies and policies do offer various discounts under the right circumstances. Liberty Mutual is one insurance agency which provides discounts, provided that renters meet certain criteria. Early shopping, new property, and mutual policy purchases can make one eligible for certain discounts. This is certainly a matter which landlords should ask insurance companies about. Making the most of an opportunity to save money almost always wields benefits.

A Final Word

The process of purchasing renters property insurance should not serve as a deterrent from landlords who are considering renting to tenants. Not only is renting out rooms and property an excellent revenue stream, but it’s also a great business opportunity.

As a matter of fact, renting out property has become a prevalent part of the gig economy; many individuals rent out rooms or even entire homes and apartments on Airbnb.

 

Authored by Gabrielle Renee Seunagal

How to Purchase an Existing Business

As entrepreneurship and self-employment continue to rise, more and more people are looking for ways to go into business for themselves. Sometimes this is done via freelancing, entering the gig economy, starting a business, or even purchasing a business. With the proper execution, buying an already existing enterprise can be beneficial; however, without the required steps and precautions, such a purchase can be financially devastating.

Thankfully, the following steps will prove to be incredibly helpful and advantageous for anyone who is considering the prospect of purchasing an already existing business.

Sit Down with a Professional Business Broker

Even the most lucrative business people should consult the top professionals whenever they’re considering purchasing an enterprise, explains Legal Zoom. There are several benefits to consulting a business broker, which include overall advice and critical information about the enterprise. However, business brokers don’t provide services for free; making sure that the chosen broker is legitimate and knowledgeable of what they’re talking about is extremely important for the sake of your time and money.

Thoroughly Investigate the Existing Business

Even with the best advice from the most seasoned business broker, investigating and looking into the existing business is incredibly important before any money is spent. Now, it’s important to understand that doing your due diligence prior to purchasing an enterprise can take weeks, if not months. That’s OK; a thorough understanding of the soon-to-be-purchased enterprise is critical before deciding to make any payments.

Other important ways of investigating the existing enterprise include looking into their credit history, comparing the enterprise to other competitors, and finally, getting feedback from the current owner, employees, and customers. Garnering perspectives and intel from the aforementioned sources can also provide really unique viewpoints which cannot be found on the internet or from people who lack close ties to the enterprise.

Be Sure the Business is the Right Fit for You

Consulting a business broker and investigating the ins and outs of an enterprise are definitely the right steps for any person who is serious about making a purchase. However, of equal importance is complete certainty that owning this particular business is the right call.

A solid business plan to keep the enterprise running, management skills, and knowledge to assume complete responsibility for the enterprise after the purchase are so critical. Therefore, Wealth Pilgrim suggests that anyone who is considering purchasing a new business should sit down with people who are close to them and get honest, constructive feedback.

A Final Word

Like all professional decisions, purchasing an already existing business is a pretty big deal. This is why each individual should be sure that they’re completely ready on all fronts before buying an enterprise; once this decision is made, it cannot be reversed or otherwise undone. Proceed with awareness, vigilance, and don’t hesitate to take as much time as you need before closing the deal.

 

Authored by Gabrielle Seunagal

How to Hire the Right Employees

Hiring the right employees is one of the most important factors for any entrepreneur or business owner. Many individuals who are responsible for running an enterprise often find themselves wondering about the best ways to hire the most qualified candidates. Granted, there are some age-old tips: perform background checks on potential prospects, require references, and determine whether or not the candidate will add value to the company.

Still, merely following the aforementioned, basic tips is not enough. Employees do greatly contribute to the success or failure of a business. Therefore, business owners who make the right hires will ultimately be enriching themselves in the long run.

The following steps will prove to be extremely helpful to entrepreneurs as they strive to hire the best and brightest employees.

Listen to the Prospective Employee

Although listening to prospective employees seems like an almost absurdly obvious hiring tip, it is missed more often than some people would like to think. As explained by Entrepreneur, hearing out the candidate, taking note of how they speak, whether or not they’re articulate, and the other ways in which they carry themselves can be very telling. Moreover, listening to the prospective employee also allows the business owner to get a sense of how well the candidate would fit in with other workers who are employed by the company and whether or not they would bring value.

On another note, asking open-ended questions which require more than a simple “yes” or “no” answer is also a conducive strategy for gaining insight about a prospective employee.

Have the Prospective Employee Complete a “Job Audition”

As explained by Recruiter Box, a job audition is simply a task which mirrors the work duties which a candidate would assume responsibility for, should he or she pass the application process. Not only do job auditions test the prospective employee’s professed skills, but this type of audition furthermore allows the business owner to observe the quality of work and how well this individual would do with their potential forthcoming job responsibilities.

Having the candidate deliver an impromptu sales pitch, create the content for a landing page, etc are just a few examples of small, yet meaningful job auditions. Obviously, the assigned audition should pertain to the work for which the prospective employee would be responsible for, should they get the job.

Maintain a Strong Business Brand

There’s an old saying which essentially states that people attract what they are; in other words, like attracts like. In business, this principle is especially applicable. It’s also why maintaining a strong, high-quality brand in business is so paramount. By maintaining such a great brand, entrepreneurs will find that they are attracting some of the best prospective employees and candidates, confirms Business News Daily.

A Final Word

When it’s all said and done, the right employees and workers can be great and incredibly valuable contributions to any enterprise or business. Listening to the candidate, assigning responsible job auditions, and maintaining an ongoingly strong business brand will reap both short-term and long-term benefits for entrepreneurs.

 

Authored by Gabrielle Seunagal

How to Financially Plan for a Startup Business

As the world of work changes, more and more people are taking steps to go into business for themselves. Sometimes this is done via freelancing, the gig economy, or simply by launching a startup company. However, making the right moves when launching a startup business is absolutely imperative and can be the determining factor in success or failure. One of the biggest and most common mistakes made by aspiring entrepreneurs is the failure to engage in full financial preparation. Thankfully, there are a series of steps that each person can take as they work to create or get their startup business off the ground.

Write an Excellent Business Plan

According to reports from Inc, having an understanding of the financial section of a business plan is paramount for any startup. This includes taking note of matters such as accounting, cash flows, profits/losses, etc. Essentially, the purpose of a business plan is to serve as a guide for how the entrepreneur will run his or her own business. Without a business plan, it is impossible to assess the structure of the startup and determine what is needed in order to turn it into a success.

Unfortunately, many entrepreneurs who are new to the world of business and startups remain unaware of how to write business plans. In these particular cases or situations, hiring a professional or accountant to help one come up with a business plan can be wise. Even though the added fee of doing so may seem initially scary, it is a worthy investment. The fact of the matter is that anyone who is serious about success and launching their startup needs to have a clearcut business plan. It is the only way. Going forth without one is a virtual guarantee for disaster.

Determine How to Manage the Day-to-Day Operations

Financial planning for any startup business is all well and good; however, management of the day-to-day operations is equally as critical. As noted by Startup Grind, the ins and outs of accounting play a very big role in whether or not one succeeds or fails in business. Thankfully, there are a variety of apps which can help with day-to-day tasks such as creating invoices and estimates, tracking transactions, generating receipts, managing payroll, pitching to investors, and more. The list, quite literally, goes on and on.

Some of the available apps to manage the aforementioned tasks (and others) include PlanGuru, Wave, FileThis, and CalcXML.

A Final Word

The intricate and required financial planning that comes with building a startup business should never serve as a deterrent or a cause of discouragement. While getting starting as an entrepreneur can be difficult in the beginning, the merits and rewards which come later are indescribable and immense. As automation and artificial intelligence begin to emerge into society, business ownership and self-employment will be some of the most lucrative ways to build a life and ensure financial and job security.

Putting in the work now ensures that entrepreneurs are able to reap the benefits later.

Authored by Gabrielle Seunagal