Looking to start a business? What a great idea! Every
day I get requests for tips on what to do or what to
avoid when starting a business. In 2016 there are so
many types of services and products that you can sell
to become independent and become a business
powerhouse. Over the years I’ve seen countless
business failures that have attempted to grow a
business without wanting to spend money on a
Business Consultant.
Tip #1. Being Cheap is definitely not the way to go.
Talk to the experts. Pay them.
Here is a short list of tips that I can share with those
interested in starting a business.
Avoid Business Consultants that have no
experience in the field. Today it’s so easy to
get duped into signing a consulting agreement
with a person that has no real business
experience. Once signed, you’re into them for
an invoice even if you’re not impressed with
the Consultant. Do your homework and ask for
past performance.
Can my Business Idea Be Protected? Get a non-
disclosure agreement signed so that this
Consultant does not run away with your
business model. Some items can be protected
such as intellectual property. Not everything
can be protected. You will need to research on
how to protect your business ideas.
You hear and see free business consulting
available. It’s a simple rule, you get what you
pay for. Avoid these free resources as they
don’t deliver any results. Several of these
programs treat clients as if it were social work.
Don’t waste your time with these symps
(sympathizers). It will turn into doctor visits for
them. They get paid to report numbers with
their donors and have no real metrics for how
well businesses are developing.
You don’t need an MBA to become a business
expert or owner for that matter. Classroom
theories vs. Real Life needs are clear as water
and oil, and don’t mix. You get more out of
speaking to a former or current business owner
that is in the line of business that you have or
are attempting to do. Don’t be surprised if
they decline to help you. Its business, not
personal. You will need an industry insider, aka
the Business Consultant.
Banks give away Free Money? Never. Try to
avoid financing immediately. Starting a
business with debt is the worst thing you can
do. Try to save a little and spend a little. Avoid
Bankers or Consultants that push you to get
financing. These are your typical Sales Agents
and most likely will get commissions, referral
fees, or residual payments from the loan
payments you make on the loan. Also, Banks
are not experts in the whole Scope of Business.
They are banks and have no prior knowledge or
ability to forecast your success or failure rate.
Keep this in mind.
Avoid business partners if possible. This should
be number one. Too many people will click to
the idea of wanting in. If this person does not
have the (1) money, (2) time, or (3)
experience to thrive your business then you
should not consider them as a good candidate
for a business partner. These are three key
factors that will help you avoid a headache and
possibly a legal battle. Consult an attorney
before you sign any type of partnership. You’ve
been warned.
If you fail, get back up and try a new concept or
strategy.
You will hear a lot of no’s but in the end its your
decision since you are the owner. Don’t forget,
you’re the one writing the checks.
Failing can be a form of winning. At least your
trying. Look at your circles and you can see
who’s really winning out here. A majority of
your family or friends are not in business. No
disrespect, but what they know about business
if they’re not even in your lane? Learn from
your mistakes and make the adjustments
accordingly. #StepYourGameUp. A majority of
businesses fail within the first two years.
Wonder why?
Identify your markets, and end clients so that
you may focus on them. Don’t become a
Symp. A lot of people will waste your time.
Don’t feel bad when you’ve exhausted your
contacts list and find yourself not being able to
generate a sale. Family and friends are not
there to become clients. Think, how can I
obtain organic leads? Do I need to poach
competitors? Pay a Market Research Firm to
provide me with the Contact information of
10,000 leads? Maybe? Think outside the box
and strategize. Speak to a Sales Marketing
Expert.
Be wary of prowlers in your Garden of Eden.
There’s always a snake in your Garden. People
will try to infiltrate, steal, mooch, pretend and
compete. Your objective is to make money and
trash the competition. Be cut throat and don’t
drop your guard.
#TheseCl!ent$sAin’tLoyal. Don’t expect clients
to be loyal. You can give them the discounts,
waive fees, do work for no charge, and they
still will go and do a deal with your competitor.
Be observant of what works in your strategy for
client retention. Have a solid consulting or
services agreement that will allow you to bill
for your work to its fullest. It’s better to be safe
and charge for all your work effort or product.
Businesses are always looking for ways to
reduce costs and will find themselves in the $5
bin basket for Service Providers. Keep your
foot down and don’t water down your product
or services just to retain a cheap client.
Be picky and particular of who wants to take up
your time for meetings. Implement a
prescreen mechanism so that you don’t waste
your time or resources. Identify if this person
is a decision maker and authorized to negotiate
on behalf of that business. Can he or she sign
a contract and check? Beware of Clients that
become your friends in order to get free
consulting or services. You will find yourself
working for endless billable hours that you
can’t charge for because you never had them
sign a consulting or services agreement. It’s
been over five minutes, time to hang up.
#NoFriendZone #NoBrotherZone
Thinking of Donating time to another
organization? Don’t do it. You can be using
this time to build your brand and cold calling
for your business. I’ve seen it over and
over…Foundations, Non Profits, Chambers, and
Public Programs that want free resources and
can’t counter the work effort with something of
equal or greater value. I did my math on one
project that I used to volunteer for and my
work effort at the cost level exceeded $10,000
of work per year. They wanted to make an
exchange for a $300 exhibitor table that didn’t
cost them anything. You do the math…it
doesn’t add up. Don’t build another’s brand.
Build yours.
Use modern web tools to aggressively compete.
Try to learn and understand the dynamics of
marketing, Search Engine Optimization (SEO)
and Web Rankings, Social Media Marketing, the
need to create and develop content for your
business and brand, outreach, networking,
email campaigning, mobile ad placement and
more! You need to be up to speed with your
marketing. At least know what options you
have.
Spend on Marketing. If you’re not online, then
no one knows who you are. If you can’t hand
out a business card, then how do you expect
prospects to contact you? I always get a cringe
when I’m out of cards. Yikes. Even worse when
I don’t even have my own email with my
company domain.
123empresa@gmail.com....wtf?
Dress for the Part. I’m probably the worst for
this one, but it does make a difference. This is
a big one. When I wear a suit people look at
me like, What Does he do? Who is He? When I
don’t, He must be lost? LOL. For those in the
Construction or Cleaning Industries, when it
comes to big networking events or negotiations
wear a Suite. I’m sure in my days as cleaner
or construction laborer I would have shown up
in my work clothes and not cared. But I was
18 and it was 2003…its 2016, a lot has
changed.
Identify resources, companies, people that you
can utilize as sub-contractors, or vendors.
When in time of need, keep an eye out for
alternates. People will disappoint and leave
you with a work effort that you cannot produce.
You will need a plan B. Have a plan C.
Minimize your cost by phasing items that you
need. There are some things that you can do
without and some that you cannot. For
example, do not take a five-year lease for an
office space when you haven’t even developed
your marketing. No one will be able to find you
anyways! Prioritize. Again, talk to a Business
Consultant.
Keep track of all business expenses as you will
need all documentation when it’s time for
taxes. Try to scan copies as backups.
#UncleSamNeedsAllofHis, don’t cross that line.
If you have a non-compete agreement with your
employer and you still need the job while you
develop your start up, DO NOT TELL THEM
THAT YOUR IN BUSINESS! Employers will find
excuses (illegal and Legal ones) to remove you
from your position. Refer to your Employment
Agreement and Company Manuals for these
Policies. Consider talking to an Attorney also.
Measure your performance. Set a benchmark or
at least an expectation for what you feel you
need to have accomplished by said date.
There’s nothing worse than having passed a
year and not had accomplished anything. If
your young, time is on your side. If your old…I
think you get where I’m going with this one.
These are just a few tips. I would be more than
happy to assist those interested in hiring a
Business Consultant for their Business Planning
and Implementation. Feel free to check back at
www.123empresa.com, Twitter: @123_empresa,
YouTube Channel: 123 Empresa for more content
on how to start, develop, grow, and even exit out
your business. I’ve worked with clients that have
Fashion Brands, Accounting Services, Marketing,
Janitorial, Restaurants, Retail, Construction,
Electricians, Exporters, Tech, Business Consulting,
Barbershops, Hair Salons, Food Trucks, Staffing,
Outsourced Human Resources, and many more
business models. Feel free to email me at
jchavez@123empresa.com.
Written by: Jose M. Chavez, Sr. Accountant and
Business Consultant at 123 Empresa,
www123empresa.com
March 30, 2016
Feeling Start Up Ready
Another perspective and opinion on business Starts Ups in 2016.
03/30/2016 06:57 pm ET