5 Upfront Resources You Need To Start A Business
There is a lot that goes into starting a business.
Having a great idea, naming the business, developing a sound business plan, and being fully committed are obvious.
There are also 5 basic but often overlooked resources every new entrepreneur needs to have.
In this blog, we cover the necessary resources you need upfront to start a powerful business.
1. Financial resource: money
Securing adequate financing is one of the most important steps in launching a business.
Before starting a business, you need to know how are you going to finance it.
There are 7 ways to finance a business:
1. Bootstrapping: fund your start-up yourself
2. Get support from friends and family
3. Join an accelerator or an incubator program (popular in tech businesses)
4. Venture capital funds (for high-growth startups mainly)
5. Reach out to the Angels Investors
6. Try crowdfunding
7. Request a small business grant from a government or a loan from a bank
Once you decide on your financing, you need to create a financial model. A financial model is an integrated forecast of all 3 financial statements (profit & loss, balance sheet, and cash flow) that numerically articulates the business’ strategy and growth plans.
Such models can be calculated by using financial modelling software intended to be used as decision-making tools. Company executives might use them to estimate the costs and project the profits of a proposed new project.
Research every option thoroughly to find the best fit for your business’s needs. SCSp experts can help you manage your wealth and finances most efficiently.
2. Human resource: staff and partnerships
Talented employees is key to a successful business.
So take hiring and onboarding seriously from the beginning.
The type of people you hire and how you train a team leader will form your company culture.
Culture gives us an understanding of what is normal, appropriate, and expected, but also what is inappropriate and unaccepted.
Company culture helps to strengthen the team dynamic and improve productivity.
Apart from the staff, you could also form strategic partnerships with other companies and organizations that could help to advance your business.
One of the cleverest ways to grow a business is to team up with another company.
Partnering up offers a multitude of benefits, from access to other skill sets as well as more customers.
But for a partnership to succeed, it requires alignment between the two parties and stable management.
When looking for partners, make sure you are doing research on their credibility and track record.
Additionally, establish clear goals and expectations from the beginning.
Finally, make sure to create a written contract so that all parties are legally protected.
3. Knowledge resource: marketing & promotion
Marketing is key to growth. It’s how your potential customers find out about you.
The right marketing strategy helps you to reach a wide audience and build your brand cost effectively.
Depending on the size of your budget, you may want to consider different types of online advertising or even hire a specialist millennial marketing agency.
Word-of-mouth promotion should not be forgotten either. This includes encouraging customers to leave positive reviews and incentivising existing customers to promote your product to their friends.
Furthermore, you may want to look into other promotional strategies such as giveaways, contests, and influencer collaborations.
Whatever your medium, you can elevate your branding with holographic stickers.
4. Physical resource: office space and equipment
Depending on what type of business you are running, you may need to look for office space, retail location, warehouse or studio.
Along with the physical space, you will also need to provide the necessary equipment like CNC router and furniture in order to have a productive work environment.
This includes things like computers, printers, desks, chairs, and any other type of equipment that is specific to your business.
You will also need to make sure you have a good internet connection and a reliable power supply.
5. Educational resource: training and support
Great employees are not just subject matter experts, they also possess above-average psychological skills, like awareness, focus, connection, and the right mindset.
As a business owner, you know that staff training is important for the professional development of your employees, and as such – the progress of your business.
Companies can offer many kinds of training and development opportunities for employees. From in-house, third-party training, or off-site training. Some examples of employee training include:
* Management training (think agile problem-solving courses like online Lean Sigma Six yellow belt course)
* Sales training
* New employee training
* Mentoring programs
* Apprenticeships
* Vocational Education and Training (VET)
Provide employees with the knowledge they need to succeed in their roles. By investing in employee training, you can improve performance while also reducing costs for your business.
Training is not limited to employees. As a business owner, you need to keep yourself up to date with the latest trends and advancements in the industry so you can stay competitive.
6. Technological resource: software
How can you use tech to its full potential?
Software can help you to manage different processes in your business, including operations, customer service, and marketing.
Time is money and, the less time that you have to dedicate to administrative work, the better.
Use software designed for your specific business needs, such as a Travel CRM to help your travel company with its customers.
Finally,
Many people open successful businesses every day.
A careful understanding of business and adequate preparation can improve your chances of succeeding enormously.
Properly researching, financing, staffing, and executing your plan is key to making sure you reach your business goals.
We covered some of the basic upfront resources you need to start a new business. These include: money, staff & partnerships, space and equipment, training and marketing.
