Every business sells something. The challenge is attracting customers who will buy what you're offering.
The buzz word today is "networking". Everyone says you get clients and customers through networking. Even big consumer package goods companies and auto companies are trying to network with consumers via social networking sites. Networking is just the first step in establishing a relationship.
This past week I've undertaken a new project for myself -- reconnecting with potential customers, keeping up with current clients and reaching out to contacts who might have ideas for new customers for me. It was hard to start. But now that I'm going, I'm picking up momentum.
Of course, my first step was having a goal. The second was to make a plan. The third -- to execute.
If you want to build your business, you have to contact your customers and potential customers.
Friday, August 29, 2008
Wednesday, August 27, 2008
10 Tips for Starting a Business - Tip #10 - Get Going
You've done your research. You've developed a great plan. You've assembled a super team. You have an exit strategy.
Now, you have to launch. Execute your plan. Take action.
The first action you need to take, if you haven't already, is to be aware of any legal or tax restrictions or implications. It's best if you contact your attorney and accountant for advice. You can also read up on local, state and federal requirements.
Sometimes you don't need money to start. Other times, you do, but you can be creative in finding money. If you have savings or friends and family who are willing to bet on you and your team, you can get going. Banks, angels and VCs usually want to see that you have started and have a revenue stream or amazing intellectual property protected by patents before they'll jump in.
As you take action, you'll probably deviate from your plan. Things will happen. You have to be resilient and open to the possibilities while having enough focus to not get sidetracked. For example, Teroforma was originally going to sell its tableware via its unique website directly to consumers. But so many retailers were interested in their wares, they are now more of a B2B model.
Now, you have to launch. Execute your plan. Take action.
The first action you need to take, if you haven't already, is to be aware of any legal or tax restrictions or implications. It's best if you contact your attorney and accountant for advice. You can also read up on local, state and federal requirements.
Sometimes you don't need money to start. Other times, you do, but you can be creative in finding money. If you have savings or friends and family who are willing to bet on you and your team, you can get going. Banks, angels and VCs usually want to see that you have started and have a revenue stream or amazing intellectual property protected by patents before they'll jump in.
As you take action, you'll probably deviate from your plan. Things will happen. You have to be resilient and open to the possibilities while having enough focus to not get sidetracked. For example, Teroforma was originally going to sell its tableware via its unique website directly to consumers. But so many retailers were interested in their wares, they are now more of a B2B model.
Tuesday, August 26, 2008
10 Tips for Starting a Business - Tip #9 - The Exit
What is your Exit Strategy?
This is an essential question to answer, particularly if you are going to be seeking capital from outside investors. Venture Capitalists want their money out in three to five years. Most expect you to sell your business or go public.
Developing your exit strategy means you have to think about what you want to do with your business and what you want out of your business. Do you enjoy starting things but not running them? Think about getting the business going, then hiring a chief executive officer and other C-level executives to run the business for you. Think about selling the business to a larger firm in about five years. You could sell to competitors, suppliers, customers or strategic allies.
Companies with dramatic growth and profits that become household names can go public. (Think Google or Apple.)
Or maybe you just want to run and grow your business, letting it throw off cash in the form of dividends. Maybe you just want a business that is a joy to run and will steadily grow and provide you with a living.
In some cases, you can have a business that your kids take over.
Whatever you do, plan it out. Make your business do what you want it to -- be in control -- make your business suit the life you want -- not the other way around.
This is an essential question to answer, particularly if you are going to be seeking capital from outside investors. Venture Capitalists want their money out in three to five years. Most expect you to sell your business or go public.
Developing your exit strategy means you have to think about what you want to do with your business and what you want out of your business. Do you enjoy starting things but not running them? Think about getting the business going, then hiring a chief executive officer and other C-level executives to run the business for you. Think about selling the business to a larger firm in about five years. You could sell to competitors, suppliers, customers or strategic allies.
Companies with dramatic growth and profits that become household names can go public. (Think Google or Apple.)
Or maybe you just want to run and grow your business, letting it throw off cash in the form of dividends. Maybe you just want a business that is a joy to run and will steadily grow and provide you with a living.
In some cases, you can have a business that your kids take over.
Whatever you do, plan it out. Make your business do what you want it to -- be in control -- make your business suit the life you want -- not the other way around.
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