Monthly Archives: April 2017

Beware! These Personal Habits Can Ruin Your Business

If things are not falling into place for your business then it’s time to stop and analyze! There may be a flaw in you which might be the bigger reason for the setback or failure.

Read on to know about habits which if not mended can affect your business.

Lack of Proper Rest Decreases Efficiency:

Many entrepreneurs feel that staying up late will increase their efficiency and finish up the tasks early. But in fact, efficiency decreases when the mind gets tired and sleep is the only antidote to rest and not coffee or a short break.Lack of Proper Rest

Remember: A good night’s sleep makes you more productive, creative and efficient at work and thus helps to take your business to the next level. 

Poor Personal Finances can Lead to Crisis:

If you don’t plan your finances on timely basis then it can only put your business in a crisis. Lack of personal finances will reduce your creativity and productivity at work. So, it’s better to plan your finances before you start implementing plans.Poor Personal Finances

Remember: Hiring a reputed financial advisor can save your business from a bankruptcy or crisis. This is the reason many start-ups fail within first five years of their launch. 

Relational Problems Take Away Your Work Energy:

If your personal life is screwed up, you cannot do wonders at your business life. Problems with relationships can affect your energy levels at business and also affect you emotionally, mentally and physically.Worries In Business

Remember: Take out some time from your busy schedule to fix screwed up relationships. This will improve your professional life as well. 

Poor People Skills can Affect your Employees:

Managing people effectively is also a crucial quality which every good business owner should possess. You should remember that you work with people and not with robots.Poor Communication Skills

Remember: Wear a smile on your face whenever you talk to a employee instead of pressuring them with a bossy look. 

Ignoring Reviews can Affect Quality of Work:

Reviews reveal true information about you, your company and the quality of the services you provide. This is like a reality check which helps you to know whether your customers are happy with you. This can help you to work over your weak areas and build a better reputation.Ignoring Business Reviews

Remember: Conduct surveys on timely basis to get the real picture of your company. 

Things You Must Know to Raise Capital for Your Business

The following are 5 important things you should consider before you plan to raise capital for your business.

Analysis- The Capital You Need:

The first question you need to ask yourself is how much capital you will need for your new business venture. The answer to this question is a strong business planning. A complete and comprehensive business plan makes you think about your business critically, and identify the capital required for your business to operate at each stage of growth.

 

Having a realistic picture about the current and future capital needs of your business can save you from chances of failure and debts. After all, even a freelancer needs to eat before his work is accepted, published and marketed.

Strategy- How to Raise Capital?

The next step after knowing the amount of capital you need is to look for the source from where you can raise the capital. This depends on your aim to raise the capital. The primary source of raising capital for startups is generally oneself in the form of home equity loans, credit card advances, loans from family, etc.

 

But in case you are thinking of taking your business to next level then you will have to look for private investors such as investment banks, accredited investors, and venture capital funds for capital. They usually propose an investment in the form of debt, equity, or a combination of both.

If you are confused about your options about the capital raising sources you can even consult a reputed business consultant or financial advisors. These people are expert and experienced enough to show you the right direction.

Explore- People Interested in Investing in your Business:

Raising large capital for your business can be challenging. Therefore, you will need to find out sophisticated investors seeking maximum return for assuming the risk of a new business venture.

 

The first option that strikes everyone’s mind is family and friends because they are less discriminating than professional investors. Other investor options are Venture Capitalists, Angel Investors, Institutional Marketplaces, or Crowdfunding Sites and Platforms.

Documentation- Know Your Legal Responsibilities to Potential Investors:

If you are seeking funds from individual investors, a legal responsibility towards them is necessary. These legal obligations and offerings are regulated through the US Securities Act of 1933 and the Securities Exchange Act of 1934.

A great business consultant will guide you through the procedures, making it simple for you to access the equity markets and compliance with the required regulations. This can help avoid future legal problems.

Negotiate- A Win-Win Agreement:

A funding event involves two parties- the investor and the company. In some cases there may be a single investor while multiple in some others. Some situations even reach to a take-it-or-leave-it while in others, there is intense negotiation. In some cases, parties strive to conclude at a point or an agreement that is beneficial for both.

Negotiation is a skill that comes through learning and practice. It is recommended to seek advice and assistance from a professional in order to make the wisest decisions.