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Entrepreneurs Looking For Investors In Your Business Heres Where To Find Them

Youve got the great business idea, you are all set to start your new business all you need now is some finance. So where do you find those elusive investors or better still some no strings money?

When looking for investors in a new business first seek out any grants or government assistance that your state, county or country offer as this money is often subsidized and easier to obtain for a new business.

Your next stop would be the bank. They will be seeking to lend you money that is secured on some kind of collateral. A business loan is more usually for 2 5 years. I think that you are maybe thinking of an overdraft facility when you state repayment within a few months but I have never had the pleasure of visiting Barbados so it may be different there. A bank will not generally want to get involved with your business just some confirmation that they will get their money back with interest.

The next port of call is an investor. Now these people are totally different to banks in that that are actually investing in you and your business and they often want to get involved with your business as well. So lets analyze this a little more.

What are investors looking for?
* In your business: They want a sound business or business idea with some kind of unique concept that they believe will rapidly move to profitability. They want a well thought out and credible business plan with realistic financials.
* In you: They want a hard working entrepreneur with good experience in the business area. They will look at your personality, your abilities and your past resume to see if your are the kind of person that can make a success of this type of business. Similarly they will want to feel that they can work with you because they will be.
* From the loan: Investors will only want to invest in your business for a few years, often a low as one year. They expect to be able to obtain a good rate of return on what they see as a risky investment. They will also often require a share of your business as their security. If you are seeking a large loan they will often request a seat on the board of your company so that they can exercise some kind of control on the business activities.

What they will bring to your company:
* Experience and Guidance: Investors often invest in areas that they know a lot about. They are obviously keen for your business to be a success as their return on their investment is dependent upon this factor. This means that they will often offer guidance and help to you as part of the package.
* Cash Injection and Cash Flow: Sometimes you can request a staged investment from an investor, subject to you reaching agreed deadlines. This not only concentrates the mind in your business development, but also ensures that money is available when you need it. Suffice it to say that cash is always welcome in a business.

Your business plan is very important. You need to prove that you meet all the requirements above, but you also have to include what is called an Exit Strategy. This basically answers and lays out in detail, the four questions that every investor will ask:
* Whats in it for me?
* How soon do I get my money back?
* How risky is it?
* How much will I make from this investment?

One last suggestion for you if you have no actual experience of the customer side of a restaurant such as cooking or serving, then I would consider bringing such a person onto your team. Good luck with your new business.

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Copyright 2008 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites including www.startmynewbusiness.com where she provides advice and assistance for the new business entrepreneur as well as our Entrepreneur PowerPack.

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you require assistance in setting up your business and writing your business plan the visit www.BizGuru.us

This article may be freely distributed if this resource box stays attached.
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Entrepreneurs Getting Your Plumbing And Heating Business Better Known

Youve got a great plumbing and heating business going. You thought that everyone needed a plumber but business is slow and you just dont seem to be getting your name out there. What do you do?

Well first of all sign write your van this is your travelling advert. Park in on the road. If you can safely park it somewhere where there is a lot of passing traffic even better. Put a sign on the back saying no tools kept in the van and make sure that you dont. Lock it well so that your business does not disappear overnight. Ensure that it is always in good condition and clean of course.

Now get a good quality metal or wood sign made up that you can put in the garden of the house you are working on. You will be surprised the number of people that will come up to your customer and ask if you are doing a good job or even up to you. These are great for referrals.

Vistaprint do a magnetic van sign very cheaply, that you can put on your van if you cant afford sign writing.

Always ask your customers for referrals and leave business cards to remind them to call you again. Of course you know that it is important to do a good job and leave everything clean and tidy, so that they want to refer you.

So we have people seeing your business and they go about their life, being referred to you from happy customers so now you need some good advertising as well, which is the third way that people are going to find you. Put an advert in the Yellow Pages as soon as you can as a lot of enquiries will come in from here.

I have a local plumber who puts a small advert in the newspaper each week offering to put in a bathroom for a good fixed price. He is very busy and from the bathroom comes other work like re-tiling, painting, kitchens etc. I know it works because he did my kitchen and bathroom, including retiling, redecorating and new floors. If your skills dont run to this extra work, find a good workman to work with. They can refer work to you in exchange for getting work from you. Or you can charge a percentage of the extra work for referring them. Either way thats two happy workmen and one happy customer!

Lastly scatter your business card around, put one on every notice board you find in supermarkets, colleges etc.

A good plumber is indeed a joy to find!

Good luck!

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Copyright 2009 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author her books Entrepreneurs Apprentice and How Much Does It Cost To Start A Business? as well as detailed information on how to start many low cost businesses, can be found on www.StartMyNewBusiness.com

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you would like more help and assistance in setting up your new marketing strategy as well as some great marketing services then visit: www.MarketingGuerrillas.com

This article may be freely distributed if this resource box stays attached.
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When you first start your business, it is tempting to sell a lot of high price products, but that may not be the most profitable way for you to go. A better way might be to sell low ticket items. Low ticket items are those that sell at a low price and are primarily used:
* To interest customers in your company and product range. The will feel that purchasing a low price introductory item has less risk attached to it.
* To increase foot traffic to a retail business or web traffic to a web site. Again people will come to see what they can get at such a great price.
* To provide an easier cash flow as it is far less complicated to sell several low price items than it is one high price item.
* To provide a natural funnel or upgrade path to your more expensive products or services. It is far easier to sell to people once they have experienced your products or services. Similarly they may want to upgrade the low ticket item to another more expensive item that you sell. You should ensure that this is easy for them to do.
* To create a customer list so that you can sell more to them at a later date.
* To get your business known and let the product act as good marketing.
* To give customers an example of what your company can do and encourage them to come back.
* To establish a good rapport with the customer so that they feel better about spending large amounts of money with you. Customers like to buy where they have been treated well in the past.

So you can easily see what benefits you will accrue from them in building up your business.

So how do you decide upon the price of your low ticket item? It should be a mixture of:
* The cost of producing the item.
* The cost of providing the item once it is sold.
* The perceived value of the item to your buyer.
* The cost of similar items that you or your competitors are selling.
* The cost that you believe the market will stand.

You should also ensure that you do not under price the item so that it is seen as not worth the effort of buying. Cheaper is not always better. People like to think that they have spent well for a product and strangely feel little loyalty to companies that give things away! People think that if an item is too cheap it is not worth anything!
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Copyright 2009 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author her latest book Entrepreneurs Apprentice can be found on www.startmynewbusiness.com

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you would like more help and assistance in setting up your new marketing strategy as well as some great marketing services then visit: www.MarketingGuerrillas.com

This article may be freely distributed if this resource box stays attached.
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Entrepreneurs Selling The Benefits Of Your Products To Your Wholesalers

Do you know in my heart that the products you sell can greatly benefit your customers but are struggling to get companies to believe in what you do. Do you want to increase your customer base and sell more to your existing customers?

You need two great advantages that you should work on. You need to know what the benefits of your products are and what your wholesalers want.

With respect to your understanding the benefits of your products. There is an old saying in marketing You dont sell the steak you sell the sizzle. Which briefly means that you dont sell the product you sell the benefits of the product or what the product can do for someone or how it makes them feel if they use your product.

Look at car adverts they dont sell the car they sell the lifestyle that you will get from buying the car! Look at hair product adverts they sell how you will feel when you use the product. Now I know that your products may not be as glamorous but there must be a reason why people want to buy them.

People buy your products, if you are solving a problem meeting a need or making their life better. So find out what needs they solve or how they make peoples life better.

Help your wholesalers they are in the middle and they will only buy from you if people buy your goods from them. So sit down and list 3 5 benefits for each of your products. Make these benefits central to your sales talk and put them on your marketing details. Put them on your packaging etc if you repackage.

Now look at what your buyers want. Is it quick service the ability to buy odd amounts, you stock unusual items etc. Well you get the idea.

Is there something that the wholesalers want that you dont do at the moment? Perhaps you can do this for them?

Once youve looked at all the benefits of using your company and buying your specific products. Then make them a feature of your marketing materials and your sales calls.

With respect to how to increase your customer base? Think like a lion they catch hoofed animals to eat but they often run faster than the lion can. Lions have learnt that the best place to catch food is at watering holes. This is where these animals have to congregate each day. So your challenge is to find your own watering hole. Where do your potential customers congregate? Where do they go often and where can you find them? A trade show is always a good start, trade magazines, a certain area of a town, a web site directory etc. Put your advertising and yourself where your potential customers are.

With respect to contacting your potential buyers make an appointment to see a few in the next month. Ask them what they would want from your company and leave a few samples and a brochure. If you go in offering to solve a problem for them then you might have more success. Also try and sell more to existing customers using the same technique.

Good luck.

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Copyright 2008 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites including www.startmynewbusiness.com where she provides advice and assistance for the new business entrepreneur as well as our Entrepreneur PowerPack.

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses.

If you would like more help and assistance in setting up your new business then visit www.startmynewbusiness.com for advice and assistance as well as our Entrepreneur PowerPack.

This article may be freely distributed if this resource box stays attached.
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Entrepreneurs – How Can You Start A Business During A Recession?

Starting a business during a recession seems such a silly thing to do. You may have no other choice if you are sitting at home with your redundancy cheque. Or your entrepreneurial spirit may have been stirred up. Disney started during the recessional period of 1923-24, HP started during the Great Depression and Microsoft during the 1975 recession so it can be done. Here are a few pointers for you.

Think Positive: Dont let the doom and gloom get you down. Think that you are on an adventure that is going to make your world much better.

Work Hard: Getting a business started is hard work in the best of times and a recessionary period is not the best of times so be prepared to work hard very hard.

Good solid Business Plan: Be very detailed in your planning and almost pessimistic on your forecasts. Ensure that you are able to become profitable within a year or two at the most. Design a lean company that can be easily up scaled when the better times come.

Research your market well: Make your market research very detailed and ensure that any data you use is tailored to these more difficult times. Confirm that you know exactly what people need (as opposed to want) and how you can meet these needs.

Understand your risks: They will be different and more prevalent. Ensure you have good contingencies to meet and overcome them.

Need as little cash as possible: Start your business small and test the waters. If possible, try not to need funding as this will be difficult to obtain and is one less problem and stress for you.

Lease or borrow, not buy: Keep your costs and your risks down by keeping your start up costs down. Dont buy anything unless you have to. Borrow from friends and your home if you can. Use a home office rather than rent an office if possible. Many large corporations started in sheds or on kitchen tables including all those mentioned above. It is becoming more and more acceptable to use a home office now.

Good strong branding: Ensure that your brand meets the needs of those in a recession. You will note that many supermarkets have changed their branding by bringing out low cost/good value ranges.

Very high perceived value: In recessionary times people are looking for bargains. Design your products and services so that they have a high perceived value at a low cost. Make your customers want and need your offerings. In your marketing sell the benefits and lifestyle that they will accrue by using them. Look at how more experienced companies have changed their marketing.

Route to market: Look at different ways of bringing your products to market e.g. use direct sell, mail order, kiosks, party planning etc. instead or opening a retail outlet.

Scale your products to a recession budget: Review what you are offering and make changes so that the product and the price are suitable for a reduced budget and a reduced wish to purchase. This may mean offering tasters of larger items and then building an upward product funnel for the better times. If you are providing services consider a few seminars and then up sell your bigger services. If you are offering large items then consider either breaking them down, or if this is not possible, leasing instead of selling or even just offering repairs or maintenance.

Scale your prices to a recession budget: Similarly your prices should reflect the market ability to pay. This might mean offering better terms, but definitely means getting the best wholesale price you can or the lowest manufacturing prices. If you are consulting, offer on-site seminars rather than use a hotel. Scale down your business costs so that you can cut your prices as much as possible.

Provide good quality products and understanding services to keep them coming back: Build loyalty to your company and profits so that people will stay with you rather than jump to your competitors. In a recession people are very price sensitive but they still want good products and service.

Pay commission rather than salaries: Keep your costs down by paying as much as possible in commission. Help your staff make sales by providing quality products, good marketing, great adverts and appropriate training then incentivise them to sell. Do it yourself as much as possible.

In a recession, it takes a lot of hard work to get a business started, but if you are prepared to study hard, design a robust business model and work smart you should have a lean, robust, business ready to make a great deal of profit when the recession ends. Good luck.

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Copyright 2009 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author her latest book Entrepreneurs Apprentice can be found on www.startmynewbusiness.com

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you require assistance in setting up your business and writing your business plan the visit www.BizGuru.us

This article may be freely distributed if this resource box stays attached.
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Entrepreneurs Want To Start A Business During The Recession?

Recessions are periods when economic output is reduced for some time. In periods of recession some may be tempted not to start that business just yet. Others may think that it as they are now out of a job now is the best time to start a business. But how can you start a business in a recession and more importantly is it a good idea?

Well the answer is yes BUT you must have the following three things:

* Enough money to get started and survive for a few months.
* A product or products that are particularly required during a recessionary period.
* Good marketing so that you can become established.

First of all, if you can start a new business whilst maintaining your existing job, in a recession, this is the best option for you. Start your business slowly, test your market and build up gradually with a minimal of risk. This will allow you to keep your bills paid, although it will require a lot more work from you. For those who are working less hours this is an ideal solution.

During a recessionary period, and indeed for some time afterwards, people do not spend as much and manufacturing is reduced to a minimum and people treat new things with suspicion. It is therefore vitally important that you ensure that your products and services are ones that people will want to and be able to buy with their reduced income. If your products are in the luxury area, or are not necessities then think a little sideways. Lower the price or change them slightly so that they appeal more to the cash strapped consumer. Hold sales and be prepared to pare any profit to a minimum and budget for this.

Conversely go for the super rich who are not so hit by recession problems. If you cannot change your products, then think of others within your market that may sell. If you really cannot change your products or price levels then you need to rethink starting a business for a while. Or else only invest small amounts of time and money.

Lastly you should look at your marketing and advertising strategies. Be prepared to spend more than expected on penetrating and establishing your markets. Be prepared to spend more time on guerrilla marketing activities which are much cheaper. Be prepared to compete against established companies that are also feeling the pinch and may resent you taking some of their sales. Network like crazy so that your company name is spread as wide as possible. Persevere and spend a lot of time investigating your market and learning your trade before you invest large amounts of money. Be confident and enjoy yourself.

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Copyright 2009 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author her latest book Entrepreneurs Apprentice can be found on www.startmynewbusiness.com

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you would like more help and assistance in setting up your new marketing strategy as well as some great marketing services then visit: www.MarketingGuerrillas.com

This article may be freely distributed if this resource box stays attached.
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You have heard that many businesses fail in the first few years. You want to set up your own business and are sure that you wont fail. So what are the mistakes that the entrepreneurs make?

1.) Believing that you will make money quickly.
Starting your own business is hard work and it usually takes a long time to become profitable. Read some of the entrepreneur millionaires biographies and you will learn that they had to work hard and long before they became rich. If you believe that your will make money quick you are likely to soon become disheartened and put less than the required effort into your business. You should concentrate on having a good steady cash flow and control both your costs and the time taken to receive your money from your customers.

2.) Starting a business with not enough money.
Just as a successful business needs time, it also needs money. You should budget for at least 6 months personal bills and company expenses plus a little bit more. If you are not worrying about paying your living expenses you can concentrate upon developing and running your business.

3.) Believing that everyone wants what you are selling.
One of the biggest mistakes people make is to believe that just because they and their friends like what they are selling everyone else will. Market research is so important it should be the first thing that you do. Before you start your business in earnest you must make sure that what you are selling has a good market at the price that you want to sell it for.

4.) Not planning or strategising.
It is that old adage Plan to succeed or succeed in failing. When you sit down and decide to start your own business it is important that you plan what your business will look like, how it will behave in the current market and what you will sell, at what price and how. At the very least you should have a Business Plan which contains your business model, your financial strategy and your marketing strategy.

5.) Thinking you will get on the shelves of Walmart or Tesco.
This is the big one I am continually coming across people with a great sauce or new gizmo that they think they will be able to get straight into the major supermarkets. Not only will they not be able to cope with the manufacturing levels that these kind of companies require, but these large companies are able to squeeze profit margins until the small company can hardly breathe. Even if a small company can cope with these demands, the chances that they can even get in front of large company buyers is very low. Small companies must start slow and build up their capabilities and their customer base.

6.) Burning all your cash.
This was a problem that caused many a business failure in the internet boom period and where the term the burn was coined. Burning all your cash means spending all your investment at a great rate. It is very tempting when you start your new business to spend all your investment very quickly on things such as large office, latest office gizmos or too much stock. Make a plan as to what the least is that you can do with and then reward yourself with bigger and better as you grow your business. You keep your cash slow under control as well as giving yourself an incentive.

7.) Concentrating of making money.
Often, even in an established business, entrepreneurs get into the rut of just thinking about making money. Whilst this at first site, seems a good theory, it means that efficiency and growth is forgotten. It may be that spending time making your time making your business more efficient may make you more money. Similarly you may find that will you look down from your making money treadmill and discover that your competitors have taken all your market share by their sustained growth.

8.) Thinking you can make a profit part time.
So many people think that having your own business means that you only work part time. In fact the opposite is true. Starting a business is hard work and takes a lot of time so you should be prepared to put in the hours.

9.) Not balancing your spending.
When you first start a business and you are still learning, a common mistake is to spend too much on one item such as stock, staffing or advertising. It takes a while to learn what works most profitably for your business. There are set gross profits that each type of companies should strive for and your accountant will be able to advise you on these. Having too much stock is a common mistake as is spending too much on staff before they are needed. It is a fact of life that entrepreneurs need to be a master of all the jobs in their business and they learn these skills on the job!

10.) Not being organised.
Organisation means that everything that you do becomes so much efficiently, easier and ultimately more profitable. Work out how you will handle enquiries and send out products that you have sold. Set up some standard letters, invoices, your accounting and some standard books like a message book and work book. Set yourself goals and write to- lists so that you manage your business and the effort that you put into it.

Lastly dont panic and enjoy yourself. Good luck!

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Copyright 2009 Biz Guru Ltd

Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author her latest book Entrepreneurs Apprentice can be found on www.startmynewbusiness.com

With over 20 years management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses. If you require assistance in setting up your business and writing your business plan the visit www.BizGuru.us

This article may be freely distributed if this resource box stays attached.
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You have been asked to write a business plan by your bank so that you can borrow that much needed money or extend your overdraft.  What are they expecting to see?

Vision – they want to know that you have a clear vision as to where your business is going and where you intend it to be in a few years.

Commitment – this included a fair investment from you as well as the time, health and stamina to invest time and effort into the business.

Security – the bank is a business and will expect to have something valuable from you in exchange for your loan.  This can include something tangible from your business but they also look to your private life as well so expect to be asked about your own real estate.

So if you are asking for money for a new internet only company with little investment on your side and no security available your chances of obtaining a loan are very low.  Yes I know that google, facebook etc. all obtained loans at some time but that is because they had the following three things.

Potential – a lender wants to know that they will get their money back with considerable interest.  Your business must have potential to make a lot of secure profit in the future.  This is how market breaking companies get funded.

Experience – if you are a start up company they want assurance that you have the experience to run it and produce the services and products that you are selling.  If you are an established company they want to know how you have been doing recently and what orders you have in the future.

Market –  you must show that you know and understand the market for your products and services and that this market exists for some time to come.

Financial Planning – you must show that you have looked at all the financial aspects of your company and have a good strategy for utilising the money you are borrowing.

If you show all of this in a good, well thought out business plan you are well on the way to raising funding.  Good luck!

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© Copyright 2010 Biz Guru Ltd

With over 20 year’s management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses.  If you require assistance in setting up your business and writing your business plan the visit www.BusinessPlanNow.com

Lee Lister writes as The Biz Guru, for a number of web sites where she provides advice and assistance for the business entrepreneur. She is a published author – her books <i>Entrepreneur’s Apprentice and How Much Does It Cost To Start A Business? can be found on www.StartMyNewBusiness.com

This article may be freely distributed if this resource box stays attached.

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