Business Funding: Playing the Family Card

You have this awesome idea for a business…

…You’ve performed your due diligence: you know there’s a market for your idea; you’ve researched the competition and know how you’re going to best them; and you’ve run the numbers and are sure you’ll see mad profits within a year. Just one problem…

…you don’t have the money to self-fund your venture.

And you know that startup capital is by far the most difficult funding to get from traditional sources. But wait! Your parents (or grandparents, or Uncle Charlie) have some money put away. What about asking them to help you?

Plenty of entrepreneurs – who are often speaking from personal experience – will tell you that borrowing money from family to get your new business off the ground is never a good idea. In fact, many could tell you horror stories about how their families were ripped apart by someone loaning someone else in the family money for a business venture that didn’t work out.

Or is there a chance that the majority of those tales of misfortune are the result of the borrower and lender not going into the lending relationship in a way that decreases the possibility of conflict and increases the chance for a harmonious outcome?
Below are four questions that need to be answered if borrowing from family is your only option for starting your business. Answering these questions and taking the steps suggested doesn’t guarantee there won’t be issues, but it will reduce the likelihood of someone not being invited to Thanksgiving dinner!

1. Have you really covered all your bases?

This is a question every entrepreneur needs to ask, whether borrowing from family or not. Some of us have a tendency to get really excited about a business idea, and we can become blind to potential challenges. Before you ask mom and dad for ten grand, do whatever it takes to look at your idea objectively and make sure you can identify potential obstacles – and that you have a plan for overcoming them.

2. Do you have a compelling proposal?

Just because you’re dealing with family, and not a bank, doesn’t mean you shouldn’t create a formal proposal and business plan to walk through your idea in detail and spell out what you’re asking for, your plans for growth, and your plans for repayment. Give your family member the respect of treating the transaction like a real business decision. Not only will this help to separate the business relationship from your personal relationship, but it will increase the chances of them wanting to help you in the first place.

3. Can they afford to lose the money?

The biggest reason people approach family members over a bank or VC is that they’re more likely to say yes. Unfortunately, some will even say yes when doing so might mean financial peril if things don’t go as planned. If you’re asking your grandmother to invest her entire life savings, you’re taking a much bigger risk than when you take out a loan from a bank. You might have a fantastic idea, but you can’t predict what’s going to happen in your industry, the economy, etc. No one’s looking to stick the bank with an unpaid debt, but they won’t have their hearts broken like grandma might.

4. Are you and your family member both willing to sign a formal deal?

Just as with your proposal and business plan, a formalized loan agreement helps to separate personal and business relationships. It also makes sure that everyone is on the same page. If your family is like most, people don’t always say what they’re thinking. Putting it all in writing will avoid assumptions and misunderstandings. Having a lawyer draw up the agreement is best. It will cost some money, but the strife it might avoid down the road will be worth it.

Bonus tip!…

Keep communicating. While it’s not something we like to think about, we all know there are no sure things. You can have the best intentions, the best laid plans, and formalize everything, and your venture could still fail.
The key to keeping the family together is communication. If things aren’t going so well, it can be difficult to tell the person who lent you money, because you don’t want to worry them. But they deserve to be kept in the loop and told the truth. They’ll respect you for it, and it will go a long way toward making things less traumatic if the business fails.
No one likes to be surprised at the last minute with news that their investment is lost. That’s the kind of thing that will have you eating Thanksgiving dinner at Denny’s!

Marketing in the World of Smartphones

The word “Colossus” is defined as something giant, abnormally large, or powerful. This is probably why the first computer created was given this title. The Colossus, built in the 1940’s, was the first electronic computer made. It took up nearly 1800 square feet of room and weighed in at more than one ton.

Since the Colossus, we have seen the dimensions of our computers drastically reduce in size, from modern PCs that fit comfortably on a small desk, to laptops that are portable and can easily be carried in a shoulder bag. Recently, the miniature smartphone has replaced many PCs and laptops through its pocket-sized convenience and at-your-fingertips accessibility to the internet.

Recent surveys show that nearly half of the people in the United States use a smartphone while one in five people access the internet daily through mobile web browsers. How can we tailor our marketing towards consumers who have adopted this new, easily accessible tool?

Marketing to Smartphone Users

There are some websites that have been designed so effectively that they catch our attention as soon as we open the page, and there are others that we may give very little attention to due to how bland or dull they seem at first glance. When viewing a webpage on a smaller screen like that of a smartphone, the design and layout of the page is crucial. The visitor’s interest needs to be caught immediately within that cramped eight square inch screen so they will give the site a chance and look into it further. By using easy to read fonts, and dressing up a page with colors and pictures, short paragraphs, and catchy titles, we can be certain that visitors don’t get bored of a website too quickly. As a result, they may take the time to look into it further, exploring more and seeking more information available on the website.

This brings us to the next important accommodation needed for a smartphone browser. Navigation of a site can be the key that makes or breaks the chances of a page visitor continuing to browse the website or getting frustrated and leaving. When a page adjusts to fit a smaller screen, it limits the amount of zooming in and out that can make navigation difficult and nearly impossible to have patience with. Some sites tailor to the smartphone user and automatically open a mobile view rather than the full site view for larger computers. Here, only the most important information should be viewed by the consumer. This means the remaining information that is not immediately needed must be omitted. However, text and most pictures comfortably format to the smaller screen with minimal or no resizing needed. By having the page adapt to the size of the screen used, you can be assured that the website guest will not lose patience with navigation and may step into the full view to research the site further.

Don’t Forget the Apps!

Along with easy web browsing, smartphones are created for various apps and use in the social networking world. Some phones come with apps already installed like that of Facebook and Twitter. Recent studies show that nearly half of adults and a larger percentage of teens and young adults use these social networks. Within that number, the percentage of those using mobile devices is greater than those using desktop computers. If we increase our marketing on social network sites and related apps that are readily available to this growing number of smartphone users, we will tremendously increase the amount of people viewing our website.

Technology is getting smarter, faster and smaller. Having a website that grows with the times is just as important as simply owning a website once was when web browsing first began. A couple of decades ago, companies that led the way through branching out online have been shown to have grown more than companies that didn’t make use of the new technology. In present day, those that fail to reach out to the mobile world will also miss a great opportunity. If we properly set up a web page so that it’s easy to navigate and small screen friendly, it will accommodate the growing number of smartphone users. By designing your website accordingly for the smartphone user, you will have greater confidence that your company will continue to prosper in these new and changing times.

Being an Entrepreneur can Encourage Personal Growth

It has been said that in order to be an entrepreneur a person has to be selfish and self-centered so that they can achieve their goal. While success in any field requires dedication and focus it is disingenuous to tar all wannabe entrepreneurs with this rather outdated brush.

The truth is somewhat different. In reality, to become successful a person has to develop a number of characteristics that are all positive and will in fact help that person become a more rounded human.

The bottom line is that becoming an entrepreneur can assist personal growth in a number of ways that are key not just too successful business but also to the enhancement of an individual’s standing.

Sacrifice

To be a successful entrepreneur there is little doubt that sacrifices will have to be made. These could be a reduction in social life, getting up earlier than you might ideally like or working away from home. None of these situations should be forever, but many successful businesses require a much bigger commitment than the normal 9 to 5 of the world of the employee. Understanding and experiencing this can help the entrepreneur grow as an individual as they learn the importance of sacrifice in certain situations and how sometimes present hardships and inconveniences are not just inevitable but should be welcomed as they can help guarantee a brighter future.

Decision making skills

Another way in which the entrepreneur can develop their personal growth is through the process of decision making that is central to successful business. Being an entrepreneur means having to make a lot of decisions, some harder than others. This helps build judgment and a willingness to take those tough decisions when they come along. Becoming a person who does not shy away from decisions and can take control when others are hesitating can help personal growth.

Confidence

In many ways the one single attribute that separates those who succeed and those who do not is not money, influence or knowledge but confidence. This is not to be confused with over-confidence or arrogance, but rather is a core belief in oneself. After all, if someone does not believe in himself or herself how could they possibly expect others to believe in them? Self-belief translates into confidence that in turn equates to a more fully developed individual. Confidence in oneself is contagious and a person is much more likely to inspire trust and faith in others if they can see that person truly believes in what they are doing.

Planning

This may be somewhat of an umbrella term, but in the case of an entrepreneur it means the ability to formulate a clear, concise and robust business plan that is easy to explain to others (whether that be bank manager, investors or friends). The ability to have a clear plan means that the goals are always in site and a business is much less likely to go off the rails. This ability to plan well is a great way to build personal growth as it helps create clear thinking as well as the real-world benefit of making the most of time so friends and family do not suffer from a badly planned business.

Always Learning

Being a successful entrepreneur means never standing still. No one can know everything and therefore there is never any excuse to stop learning. The business world, just like the world in general is continuously changing and developing. It therefore does not just make business sense to keep abreast of new and interesting developments, but this thirst for knowledge can also be a great aid to personal knowledge that in turn will really benefit an individual’s personal growth.

Networking

A term that sometimes has a negative connotation, networking is in fact a great skill to posses. Not only in the business world where it makes the development of new businesses so much easier, but when these skills are transferred to the personal realm, they make for superb social skills which can make interactions much more pleasurable. As personal growth involves not just the inner being, but the ability to communicate as part of a community, the level to which an individual can engage with people from a wide selection of backgrounds can really help enhance the social experience.

Energy

Often overlooked, the ability to generate energy is of fundamental importance, after all, the greatest car in the world won’t go anywhere without fuel and the same applies to the entrepreneur. This should not be confused with caffeine or currently fashionable “energy” drinks. Real energy does not come from products, but from within. It is generated by a belief in what the business involves as well as its potential. This creates a sense of energy that not only powers the business forward, but also is infectious. This attitude can really enhance personal growth by helping develop a can-do attitude.

Overall, entrepreneurship can truly impact your personal growth in a positive way. Between learning from others through networking but also learned about yourself through the trials and tribulations of the field, being an entrepreneur is surely an educational experience.

Remember, business is all about proper approach, determination and dedication.

Let us tell you few strategies for starting a small business:

• Expand your business horizons by reaching out to different customers
• Recognize your Unique Selling Point which is uniquely different from your competitors.
• Formulate an expert and professional team to execute your business plans
• Create Goodwill, impetus and proper management
• Recognize and safeguard your Intellectual Property
• Expand your business through various medium
• Look forward for tie-ups and meaningful collaborations with other companies
• Win the faith and reliability of your customers
• Do not neglect the importance of internet and create your business website
• Gain from your experience, deploy standard machinery and methodologies
• Provide money back assurance
• Strike the perfect balance between vocation, family and leisure to go a long way.

10 Ways to Find Customers with Mobile Marketing

Smart business owners find customers by placing their marketing messages where the most eyeballs are focused. And nowhere are there more eyeballs than on the screens of mobile devices such as smartphones and tablets.

More than two thirds of the world’s population has a mobile subscription, and mobile users are highly active. Facebook recently reported statistics indicating that over half of its 500 million subscribers access Facebook from a mobile device and exhibit twice the activity level of non-mobile users. The time for mobile marketing is now.

Finding customers with mobile marketing involves either pulling people toward your messages or pushing your messages out. Here are 10 mobile-marketing channels that'll help your efforts: 

1. Text-messaging (SMS)
   Pull customers to your SMS messages by asking people to opt-in to your text-messaging list. Use a text-messaging provider such as eztexting.com or motomessage.com to access a short phone number known as a common short code and an opt-in keyword. Then, use the text-messaging service to push periodic text messages out to the people who opt in.
    
2. Multi-media messaging (MMS)
   MMS messages are like SMS messages, but they can contain pictures, sound and a lot more text. Pull customers in with the same opt-in process as SMS, and then push out multi-media content via your MMS service provider.
    
3. Mobile email 
   Pull customers to your email list with signup links on your website or ask people to text in their email addresses to join. When you push your emails out to mobile users, ask for mobile-friendly actions such as clicking phone numbers instead of links or using the mobile device to show an email coupon at the point of sale.
    
4. Mobile search
   People searching online with mobile devices are often looking for a nearby product or service. Pull customers to your business by including mobile-friendly maps and directions on your site. Push your location out to new potential customers by asking your customers to check in on their favorite social media service when they visit your physical location so their friends see where they are.
    
5. Mobile Internet
   Pull mobile visitors to your site by advertising your site's address or by including a mobile barcode -- also known as a Quick Response or QR code -- in your advertising that points to your site. Push messages through your site by formatting content and navigation to be mobile friendly.
    
6. Mobile apps
   Pull customers to your mobile apps by listing your apps in the app stores and by offering app download from your own mobile site. Then, push your marketing messages through the downloaded apps.
    
7. Mobile content
   Pull customers to content such as videos, images and downloads by providing links and mobile barcodes that activate the content. Push that content by posting to mobile-friendly sites such as YouTube or your own mobile site.
    
8. Mobile advertising
   Pull customers to your advertising by placing ads on external mobile sites such as mobile versions of newspapers, blogs and other content sites. Push your advertising out by including ads in your e-mails, text messages, and mobile content and branded apps.
    
9. Voice
   Pull customers in by advertising your phone number. Push your messages out by answering the phone or by using Interactive Voice Response systems to answer calls and deliver voice messages automatically.
    
10. Capabilities and enablers
    Mobile devices come with built-in capabilities and enablers such as cameras, WiFi, and GPS. Pull customers in by asking customers to use their capabilities. For example, taking a picture of a product and e-mailing it to you for a discount. Push your messages out in reply to people who use their capabilities by using one of the aforementioned nine channels. 

How does small business become big business?

There is a well-known story about Mumbai’s dabbawalas. How did they become famous across Mumbai?

They are famous not just for the amazing service they provide, but also for the unfaltering accuracy with which they operate.

Now there is a well known proverb that says, “Tiffin time goes tech savvy”. Four years ago, when the BBC splashed Mumbai’s dabbawalas across TV screens worldwide the buzz was all about how this massive network functioned seamlessly, without  a hitch and especially without the help of modern, information technology. The mind boggled at the thought of a lone Raghunath Meghe sitting in his shantytown office, organizing the massive workforce that delivered hot meals to executives and businessmen throughout the bustling metropolis of Mumbai.

With no computers or online services, this lean machine was a management marvel; it made its way into business school case studies, into the headlines of major broadsheets across the globe and even caught the attention of Prince Charles. It even earned itself a Six Sigma certification long before most companies in India knew what it was. Before that, the stars of Mumbai’s launch hour operated akin to invisible men, barely noticed and never missed.

A practice that originated almost two centuries ago, the concept of the dabba is quite simple freshly cooked and packed food is brought to the work place from the home. The pick-up and delivery service began when the city began to grow in size and population.

 Mumbai is a densely populated city with a huge flow of traffic. Because of this, lengthy commutes to workplaces are common, with many workers travelling by train. Instead of going home for lunch of paying for meal in a café, many office workers have a cooked meal sent by a caterer who delivers it to them as well, essentially cooking and delivering the meal in lunch boxes and then having the lunch boxes collected and resend the next day. This is usually done for a monthly fee. The meal is cooked in the morning and sent in lunch boxes carried by dabbawalas, who have a complex associated and hierarchy across the city. A collecting dabbawala, usually on bicycle, collects dabbas from homes or more often from the dabba makers (who actually cook the food). The dabba have some sort of distinguishing mark on them, such as a color or symbol, but there is no name as the mark on the lunch box, because most of the dabbawalas are illiterate.

Advantages and disadvantages of franchising

Entering into small business is risky. However many would-be entrepreneurs minimize their risk by purchasing a franchise rather that starting from scratch. An entrepreneur, who has the right capital and infrastructure for manufacturing a product which is also the USP of a big enterprise, can buy a franchise from the company and his or her own outlet with the goodwill of the company.

And buying a franchise can be a quick way to set up your own business, but there are also a number of drawbacks.

Advantages

• Your business is based on a proven idea. You can check how successful other franchises are before committing yourself.
• You can use a recognized brand name and trademarks. You benefit from any advertising or promotion by the owner of the franchise - the 'franchisor'.
• The franchisor gives you support - usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice.
• You usually have exclusive rights in your territory. The franchisor won't sell any other franchises in the same territory.
• Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation.
• You can benefit from communicating and sharing ideas with, and receiving support from, other franchisees in the network.
• Relationships with suppliers have already been established.

Disadvantages

• Costs may be higher than you expect. As well as the initial costs of buying the franchise, you pay continuing management service fees and you may have to agree to buy products from the franchisor.
• The franchise agreement usually includes restrictions on how you can run the business. You might not be able to make changes to suit your local market.
• The franchisor might go out of business.
• Other franchisees could give the brand a bad reputation, so the recruitment process needs to be thorough
• You may find it difficult to sell your franchise - you can only sell it to someone approved by the franchisor.
• All profits (a percentage of sales) are usually shared with the franchisor.