Regardless of the economic situation, entrepreneurs’ greatest challenge is arranging finances. Which becomes tougher when the economy is under stress, like the present situation arising from the Covid19 pandemic. Now that the credit markets are very tight, it is challenging for entrepreneurs to arrange funds. Necessary at various business stages, including startups. An effective business plan is based on good arithmetic. Which helps to make more realistic cash projections and envisages a positive bottom line, which can convince lenders. To put in their money for the project, explains Vic Di Criscio. The projection of funds must include all kinds of requirements like the aspects of money needed to take the business off the ground. Maintaining the business operations, and the projected profits.
Here are the steps you must take to see your dreams of starting a business come true.
Vic Di Criscio advises looking for a lender
The thumb rule for starting any business is to arrange for finance. By borrowing, for which you can approach any traditional lenders like banks, credit unions, and other financial institutions. Since your business plan is the prime document that the lenders evaluate to ascertain your loan eligibility, it is better to take help from some experienced and reliable entrepreneur. They can help vet your business plan so that it finds easy acceptance. Besides determining the finances required, create a backup plan. For your business and personal finances if there is any shortfall in meeting the revenue projections. To avoid default in critical loan payments, ensure that you have a personal cash reserve for at least a year.
Plan for smart marketing
Prepare a blueprint for marketing by mentioning the products to sell, group of targeted customers, product price, and business promotion plan. To start with, focus on strategic marketing endeavors based on a smaller and niche customer segment. Consider the audience demographics and then drill down the parameters according to age, gender, group, career, geographical location, etc. Alternatively, widen the appeal of your products and services that enable you to reach out to an extended customer base. Think about a customized offering that conveys more value to customers, which can enhance the products’ attraction.
Follow your competitors closely to understand what they are doing right and the marketing techniques that worked for them. Learn from them and adapt according to your needs.
Take small steps first and then grow
Starting on a low key is a prudent way to advance your business. As it helps to keep the expenses low till the time you get some toe hold that gives. A firm footing and then gradually move towards new territories to expand your business. Plan a modest start by either setting up a physical office or creating an online entity with a unique website. Use minimal resources of space to make your business take off the ground with the least manpower. To keep costs low, think about hiring part-time employees over full-time ones.
Leverage the power of technology to lower costs by streamlining operations with limited resources for better results.