Starting your own business can be a daunting prospect, but many people start businesses of their own every year and go on to taste the fruits of success. What is it about successful entrepreneurs that differentiates them from others who don’t go on to succeed? It is their ability to spend significant time on raising capital, developing a business plan they can follow before the start of their company and doing extensive market research in their target market.
Every entrepreneur needs specific resources to help them out in starting a business of their own. Here we look at the 5 resources for entrepreneurs to excel and why they are so important:
The cash you have while starting your business is important to your cause. Every new business faces problems with cash flow at one time or the other. Imagine cash as the oil that keeps the engine of your business running. You cannot operate without a decent cash flow, as you need to finance operations on a day-to-day basis.
Now, since cash sales will take some time, you need to have sufficient funding and financial resources when you start your business. A good entrepreneur should have enough capital to fund 6 months of complete operations after starting. Some entrepreneurs start with just the setup cost and expect the business to finance operations by itself.
An entrepreneur can obtain financial resources or capital from a number of sources, the easiest being from their own saving account. However, there are also numerous options for external financings, such as bank loans or overdrafts that can be utilized. You can also avail grants given by the government to deserving entrepreneurs. Planning is necessary here, as you would want to have enough capital to finance all of the operations that you have planned at the start of your business.
A business cannot function properly without heavily relying on humans or employees. As soon as an entrepreneur starts a new business, they need to consider the human resource they have.
A good entrepreneur would have all answers to whether they should hire people from outside or form their human resource by outsourcing tasks to different organizations.
If you’re looking to hire new employees, then be very selective during the screening and selection process. Make sure that you only hire people that can work well for your organization and would fit well within the kind of setup you have.
You can use the following methods for hiring:
● Go to staffing agencies and take their assistance in finding and screening people. Make sure that you present your needs in front of them and let them know the kind of employee you are looking for.
● Contact talented and experienced people in your close social circle and ask them whether they would want to work alongside you in your startup. Offer them incentives to lure them towards you.
● Advertise your position in on social media platforms and let people know of the packages you are offering. Have specified timings for an interview and keep interviewing/testing people until you have the perfect match.
Besides hiring the best talent, you also need to be educated about the industry yourself. Successful entrepreneurs know the kind of industry they are entering and study it in full before entering it. Not every industry is the same, which is why you will have to follow a customized pattern for studying the industry around you.
You can learn more about a market through the following means:
1. Know your target demographic. The kind of people who would be buying from you.
2. Study the demographic to know their buying behavior. By studying their buying behavior, you would be able to analyze what is required of you.
3. Leverage your understanding of the behavior of your target market to sell your product or service.
With proper market intelligence, you can actually understand the factors influencing a customer’s decision, and how you can control them. A good entrepreneur should be able to understand the customer’s psyche.
Every new startup needs to have a physical presence of some sort. The physical presence is necessary for surviving and having a tangible blueprint. The right physical resources required for surviving as a business include:
● A proper workspace
● Effective marketing material
● Adequate information systems
● IT systems like CRM and ERP
You need capital funding to start and manage all of these physical resources. Your primary workspace or premises are important to you, as this will be the face of your organization. If you are a retail outlet, make sure that you are conveniently located, and aren’t too far away from your target market.
You should have a basic understanding of the market before selecting all of these resources, as your understanding of the market would help you choose the best out of all resources. If you’re looking to rent your premises, then look around for rental rates across different areas and go for the most feasible one.
Emotional resources for entrepreneurs are as important as any other option. Entrepreneurs are required to mask their emotions at times and can become desensitized as a result. To keep their sanity intact and to ensure that the business is run professionally, an entrepreneur should hire a mentor or a support team.
The support team will keep an eye on their affairs and help them in being emotionally stable. A mentor can usually be perfect here, as they will listen to the entrepreneur and give them satisfactory answers to what is troubling them.
A successful entrepreneur should realize their emotional needs and take respective action to address them.