How a smart entrepreneur achieves economic success in the first year

 If you are considering starting a new business before the big ball drops on the year 2012, you aren’t alone. New businesses are popping up all over the US as the entrepreneurial spirit spreads like wildfire. To give your idea the best possible chance of becoming a real money making, full time endeavor, you’ll need to have your finances in order. Here’s how to get started.

Equity is key. It is not only an optimal solution if your short on cash, but a great source of motivation for hard working employees. Offer a talented crowd an attractive yet reasonable bit of equity. Get to know them during a probation period, give them an incentive to stay and motivate them to help make your startup a success. 

Plan to run your business with the word lean in mind. Vendors might agree to let you pay for goods over time, or you may be able to trade services with another start up. Think creatively and frugally. You may be able to squeak by in the beginning by bartering for equipment, computers, and even furniture. Have a clear idea of what you need to get started, and leave the “wants” for later.

Take care of your personal financial life. Smart entrepreneurs take risks, but they aren’t putting it all on the line. It’s important to be willing to invest your own time, resources, and money in your new venture. Just don’t put yourself in a situation where you could lose your home, car, relationships, and good health all in one swoop. Keep a cool head and move forward one calculated risk at a time.

Transitioning from working full time for someone else to being your own boss is a rocky road. But if you can keep your expectations realistic, control your spending, and bet on yourself in a smart way, you’ll see the kind of economic success that every new business owner dreams of.

For more information on how to UFOstart your startup and how to experience economic success in the first year feel free to contact us.

-bmt

Turning your great idea into a business: First things first.

There are some who say that being a successful entrepreneur is a tough road. There is no direct route - you will hit rocks, make turns into the uncertain and will need a pretty good roadmap. Turning your great idea into a viable business is just a dream for many people, but if you are sure you want to try to make it a reality, here are the first things to do.

Think about it some more. The U.S. Small Business Administration offers a free tool that will help you evaluate your skills, experience, and personality and help you determine whether or not moving forward with your plans is a good idea. You can find it athttp://web.sba.gov/sbtn/sbat/index.cfm?Tool=4. This tool will also help you with a list of steps you’ll need to take next.

Research is necessary. Your idea should fill a need in the marketplace, and to determine whether or not it does, you are going to have to spend time in research mode. Many successful entrepreneurs use local resources to help them assess their idea. Community colleges, your local chamber of commerce, and many trade associations are wonderful places to find help.

Write a business plan. Before you start, read Why Your Business Plan is Probably Incomplete by Kevin Hiser (http://www.youngentrepreneur.com/blog/why-your-business-plan-is-probably-incomplete/). The “normal” business plan includes your objective, description, start up costs, sales plan, and marketing plan. Hiser says,

I have the privilege of helping entrepreneurs and startups on a daily basis. And in almost every case, the entrepreneurs I meet have a business plan. But very few have a roadmap of how to achieve their goals or to monitor their progress along the way. That’s what I call the ‘missing link’ among most startups.

Start saving your money. Figure out what it’s going to cost to launch your business and then realize that most entrepreneurs come up with that cash on their own by using their savings or borrowing from friends and family. Investors expect a major return in a short amount of time, and most new businesses aren’t poised to make those kind of big promises. For a detailed look at what it’s going to take to create your financial statements, check out this advice offered at SBA.gov: http://www.sba.gov/content/preparing-financial-statements. Always keep an exit strategy in mind, one that will not put your financial situation and livelihood at risk. Tap into crowdfunding ressources, pay in equity and let us help you! We recommend reading our other blogs about bootstrapping, success in the first year of being an entrepreneur and crowdsourcing in general. 

For more information on how to turn your good idea into a successful business and the way we can help you through our innovative crowdsouring platform, feel free to contact us!

-bmt