As a business owner I am frequently asked how someone can turn their acorn of an idea into a great success. Usually insinuations such as these I will refer them to my friend Chase Rubin, a far more successful businessman than I am and someone who loves nothing more than a challenge. On the few occasions that I do sit down with someone, I am always surprised to hear that shortly afterwards, they have decided that the world of business is not for them, and they have let their idea go. This must happen each and every day and it makes me sad to think that so many great ideas end up in the graveyard. If you ever stumble upon an idea which you think could become a success then here is what you need to do.
When you first have the idea you will sense excitement, shortly afterwards you will hear a number of voices in your heading telling you why it will be impossible for you to turn your idea into a business. This is not your own voices but the voices of those around you who you think will meet you with negativity. In order to turn that idea into a business, you should list the reasons which your head has told you as to why you cannot make this business work. Once you have this list, it is time to start finding the answers as to why they are wrong.
Once you have the answers to the doubts which you had, it is time to start formulating a business plan. This model should involve how you will make your product, how you will market it, who you will sell it to and how much money each unit will cost and make by way of profit. The ideas don’t have to be perfect and there is a lot of business help out there for you.
Every business needs the sufficient funding to get it off the ground and once you have an idea for how you you will operate the business, it is time to go and look for some funding. The first place to start is the bank, they regularly offer business loans to start ups and they will not only help you financially but they will give you a business specialist who can walk you through your early stages in business.
Go Ahead And Do It
You could spend weeks, months, even years trying to work hard on preventing any problems which may occur in your business but this will only be time lost. The best approach once you have a business model and funding in place is to just go ahead and do it. Much of business is learned on the job and once you have put yourself out there in the market, you will find that you learn pretty quickly, lose the fear and go in with both feet!
Did you know that 56% of new businesses will collapse within their first three years? And, that of the 44% which remain, over half of these will fail within the following 2 years? These are worrying statistics for anyone who is looking to commence their own start-up and as such it is vital that the reasons behind the failures of others are looked at carefully, and more importantly, avoided.
The majority of businesses which fail, do so because of either financial mismanagement or a lack of funding to keep the business going or seek growth when the time is right. In order to avoid these problems it is vital that you have sufficient funding in place for your new business, and here is where to get it.
Banks have been loaning money to new businesses for a very long time and they are still one of the most tried and trusted methods of funding a new enterprise. Bank loans will have very reasonable terms regarding repayment structure and they will also assist you in your business in any way that they can. It is worth remembering that a bank wants your business to succeed, not only will it mean that they get their money back, but also that you are more likely to keep your business with them in the future.
Ever since the booming successes of start-ups such as Uber and Facebook, there are more and more investors looking to plough their money into exciting start-ups. These people are referred to as angel investors and you can use their money to propel yourself to success. Often you will need to pitch your idea to them and negotiate the terms of their investment, this could mean giving a small share of your business away for a helpful cash injection.
Governments love a successful start-up as they can have a positive effect on the economy as a whole, creating new jobs and adding to created revenue. For this reason there are a lot of grants which you could tap into that have been set up by government agencies to support you and your start up. The figures which you can get your hands on are not enough to complete your funding goals but they will boost your financial strength and give you a higher chance of success.
There is nothing wrong with investing your own cash when it comes to setting up a business although if you do, you will need to consider your personal and business finances as two separate entities. The reason for this is because it can become highly confusing and could land you in hot water. If the business does run into difficulty, you should not have to pay for this out of your own pocket.
So there you have it, four great ways which mean that you can go and get the funding which you need, for that million dollar idea of yours.