So, you’ve decided you want to be an entrepreneur. Congratulations! Starting and running your own business is something that many people dream about. Now that you’ve made this decision, you will want to do all you can to make it succeed.
When you’re thinking about starting a business, any number of things will cross your mind. These could range from the practical, like finance and facilities, to the creative, like marketing or product design. When all of these ideas are going around in your head, that’s when it’s time to write a business plan.
High growth tech startups often need to raise multiple rounds of funding. In a competitive marketplace if you only grow organically by reinvesting your own cash-flow, then you can easily get left behind. Each round of external funding into your company adds much needed cash that can be spent on marketing, R&D and product development.
Here is a simple truth: there would be more jobs if there were a better understanding between banks and the businesses that want to borrow from them. But this appears to be lacking.
Large corporations offer great business opportunities to many small companies, so it’s little wonder that CEOs of SMEs will spend numerous hours deliberating over suitable partners. Not only will bigger businesses help provide a stamp of approval and attract other large customers, but they give SMEs the potential to scale their business by gaining access to the large company’s customer base.
Like most people, when I was setting up in business for myself, one of the biggest challenges I faced was how to sell. Although I was convinced of the value of my products, how could I communicate that value to other people effectively?
For many entrepreneurs, launching a business can be the most exciting time. Putting so much effort into your ideas and seeing them take form is a great achievement. However, I have spoken to a lot of start-ups in the past that feel as though they have reached the finish line by simply getting their business off the ground. In reality, this is when the hard work really begins.
Businesses are yet to feel the effect of the lending boom.
Although UK mortgage lending during April was 36 per cent higher than a year previous, net lending to companies has fallen for almost seven consecutive years.
There is a plethora of articles and blogs about what small businesses can learn from large businesses but very few that turn the phrase on its head. So, what can large businesses learn from small businesses?
It’s not easy to second guess exactly why someone wants to invest in your company but you can usually take more than a fair stab at guessing – they love your product/service, they think you’ll be great at the helm or they are convinced there is a gap in the market for your proposition etc. There are a few reasons that come up time and time again though and here’s what they are.
The Enterprise Finance Guarantee scheme (EFG) brought in by the government in 2008 was deemed as a perfect opportunity for small business owners to secure a bank loan, even if they didn’t have the security for regular loans. However, many small businesses and entrepreneurs have found themselves with serious problems due to the scheme being misrepresented by the banks. Vince Cable last week warned the banks to make sure the Business Innovation and Skills processes were being followed and the EFG principles made clear to potential borrowers.