Small Business Trends conducted research and surveyed more than 4,000 people asking them this particular question. 51% of respondents answered that the best way is to start their own business. And it works. Now, dozens of new firms emerge on a weekly basis. Sadly, a lot of them fail.
If you’re planning to launch a startup or want to grow the existing business, you will need several components. Three key elements are employees or advisors, information, and money. Without these, it’s almost impossible to grow a business. Further, we will cover the best sources of these essentials.
The Importance of Planning
But let’s start with the basics. Both new entrepreneurs and experienced business owners should understand the primary role of planning. Without proper algorithms, it’s impossible to build a profitable enterprise.
For newcomers, business plans act as entry points. In the traditional industries, plans are required to get the initial funding from investors and prove that the project is viable. In more innovative spheres like blockchain and cryptocurrency, plans, or roadmaps, are used to attract early customers. As well, they are useful for entrepreneurs who want to clearly visualize their business strategy. If you need a checklist for newbies, the Australian government has one.
Owners of the already established businesses also need plans. They should focus on a marketing campaign to find new clients, on the development process to create better products/services, and so on. Plans should evolve together with your business to ensure the best results.
Resources Needed for Your Business
Regardless of your company’s current state, it will require three main resources. Employees, experts, and colleagues develop business and create products or services. Information or knowledge acts as a driver of operations and growth. Financial support ensures that you will be able to create value, pay salaries, etc. When combined, these resources make a successful business that attracts customers.
Now, let’s look at the three points in detail.
1. Human
The first element that supports the growing firm is human resources (HR). This category can be divided into two smaller sections related to advisors and actual employees. Experts can help a lot when you just want to start a business. And employees are required to keep the company running.
Advisors
With skilled experts, you can save a lot of time and money during the business launch. Feel free to look for reliable partners. Here are a few ideas on where to find them:
Family and friends. Apart from industry knowledge and management hints, close ones can motivate you, support, and help when you need it.
Mentors. Professional advisors are useful when you want to explore a new sphere. They guide new startups through the entire development process.
Other entrepreneurs. You can easily find like-minded people at different events, meetings, and conferences. Just talk to them to get fresh ideas.
Regulators. Official bodies and international authorities often provide business owners with valuable insights related to laws and rules.
Employees
It’s clear that you need dedicated employees to keep the business running. Apart from industry-specific employees, consider hiring those who focus on core general tasks. For instance, every business requires an accountant to manage money flow, a lawyer to deal with regulations, and a recruiter to find other employees. As for other roles, you may want to have a marketing manager to build your relationship with clients and an information officer to research new tech.
2. Information
The second resource required for all companies that want to succeed is information or knowledge. It helps to direct your business in response to market and customer insights. Look through the main sources of information to know which to prioritize:
Customers. This is the main source of business knowledge as it helps to focus on your product’s usefulness for clients. Every voice matters, remember this motto.
Employees. People working in the team are priceless. Collect their feedback to understand what to change internally and externally.
Markets. This point includes other businesses that operate in your industry. Always pay attention to how your competitors perform.
Other environments. Apart from markets, there are several systems that affect your business: politics, society, science, etc. You should study them, too.
Professionals. Here, we mean other entrepreneurs from different industries. Acting as mentors, they can provide you with valuable info about niche markets.
Services/products. This is all about the value you provide to clients. By improving your offers, you will be able to upgrade the entire business.
3. Money
Finally, the third resource is less important but still crucial for businesses. Of course, it’s possible to attract investment if you have the right team and enough information. But it’s almost impossible to succeed without regular funding. Thus, you want to compare different sources and choose one or a few of the most suitable:
Loans and credits. There are a lot of business loans offered by banks and private companies. Loans can help a lot at the beginning by providing the required initial capital. If you are eligible, consider this option.
Personal funding. It’s simple. With personal funding, you invest your own money in business. Alternatively, you can borrow some money from friends or relatives – it’s another form of a loan, more informal and favorable.
Startup angels. These are wealthy individuals or companies that invest huge amounts in startups. With an angel, you will not require other funding options. However, remember that angels invest because they want to get high returns.
Subsidies and grants. Several organizations and government bodies run programs that support small businesses. You can find the conditions and check your eligibility at the official sites.
Venture capital. It’s the most traditional form of investment. Investors give you money but ask for certain equity ownership instead. Venture capitalists can help by providing advice, too.
Final Words
There are three key resources any business needs: human, information, and money. All of them can be obtained from a number of sources. By combining these three components and managing them properly, you can make your business profitable easily. But don’t expect it to be a cakewalk. Modern markets are highly competitive because there are hundreds of startups emerging over time. If you’re ready for this challenge, enter the game!
