Adam K Veron arranging finances is perhaps the greatest challenge for entrepreneurs who want to start a business during tough economic times. At such times the credit markets are very tight that makes it very difficult for entrepreneurs to arrange funds required or the business to take off from the ground. Careful arithmetic contributes to an effective business plan that makes more realistic cash projections and works out the bottom line to the penny that helps to convince lenders to put in their money in safe hands. You must be very clear about how much money you need to get the business going, the amount you need to maintain the operating cost, and what you will need to make a profit.
Here is how you can get going in starting the business venture.
Find a lender
Adam K Veron borrowing money is the most common method of arranging business finance. Before you approach a bank or any other lender for a loan, get your business plan vetted by some experienced entrepreneur who maybe your friend or someone you can confide in. You can also ask any professional accountant or the loan officer in your bank to do it for you. Besides working out the figure for financing, you must also have a backup plan for both your personal and business finances in case there is any shortfall in meeting the revenue projections. Having a personal cash reserve for about a year will ensure that you do not default on the most critical payments.
Focus on smart marketing
Create a blueprint of marketing by specifying your targeted customers, the products to sell, the price of the products or services, and how you want to promote the business and brand. Begin by focusing on a smaller customer segment in your niche that enables more strategic marketing. Consider the overall demographic of the audience and then cut a slice out from it to narrow down the focus on a specific gender, age group, geographical location, career, etc. Another way is to alter your products or services to widen its appeal and reach out to an expanded customer base. Think about offering more value to customers through customized offerings that enhance the attraction of the product.
Keep an eye on the competition and know what your competitors are doing right and what marketing techniques they have used successfully. Do not imitate but adapt according to the ground realities to become a smart marketer.
Start small and then grow
Taking small steps is a wise thing to do when starting a business by keeping the expenses as low as possible until you get a firm footing and then look around to increase your footprint in uncharted areas. Base your plan on making a modest start by choosing between setting up a physical office or maintaining an online presence only. Choose the minimal space that is essential to set the ball rolling with bare minimum staffing. Think about hiring part-time instead of full-time employees to keep costs low.
Use technology to your advantage because it offers numerous ways of saving money and lowering costs by streamlining operations and using the limited workforce to deliver better results.