small business

Oct

2021

Warning Signs Your Business is Failing

Reading Time: 2 minutes

It is hard to start a business. It is even harder to keep a business afloat most especially during trying times. In fact, statistics reveal that about one in five businesses fail within the start-up period. Although no entrepreneur wants his or her business to fail; nevertheless, it is important to be aware of warning signs your business is failing. Here are some red flags to watch out for.

1.Diminishing Funds

The most obvious sign is the diminishing funds. Your capital is running out. And if you still have not made enough sales to keep your business afloat nor are you able to get additional funding or investors, then it is a sure sign that your business is falling. Almost all businesses need capital to survive. There are operational costs. Thus, it is difficult to operate with low funds available.

2.Ineffective Team

The success or a business especially for. a start-up relies heavily on the people managing it. A great business idea or perfect business is worth nothing without a group of individuals who share the same vision, passion and drive to make the business a success. Each member of the team must be on the same page. Thus, it is important to ensure that you have your dream team managing your business with you.

3.Low Demand

Sales and revenues play an important role in any business. In order for a business to survive, there should be enough sales to cover much more than the operating expenses. The higher the revenue, the better it is for the business. It not only equates to profit but it also means opportunity for growth and expansion. And sales and revenues are all dependent on demand for the product or service. Without demand, no one will buy.

4.Nonstop Problems

If you find yourself facing problems one after another, then that is a sign that your business is failing. It is so easy to be caught up in the day-to-day operations of a business that sometimes we fail to look at the bigger picture. It is just like problems in life. If you are faced with the same challenges over and over again, it simply means you are not learning your lesson. You need to address the root cause of the problem in order to move forward.

5.Unchanging Business

Times are always changing. In the past a few months alone, we have witnessed how the world changed. We just woke up one day and suddenly, we are in a whole new world. Just as it is important for individuals to adapt through changes in life, adaptability and innovation are also important for businesses. Just look at what happened to multimillion dollar businesses such as Kodak, Nokia and Blockbuster.

Now take a look back at the last 12 months; what changes have you made in the business. Just because your business is still doing well does not necessarily mean that it will continue to do well in the future. Learn to adapt to change.

These are just some warning signs. It does not necessarily mean that your business will ultimately fail. It is just important to spot them early on so you can address them quickly.

Feature Photo by Andrea Piacquadio from Pexels

Sep

2021

Grow Your Small Business with Helpful Apps

Reading Time: 3 minutes

You can grow your small business with some helpful apps. Apps or applications are useful software that you can use on your computer and mobile phone. They can help you in different ways depending on your needs. Here are a few of them that you can consider to help you in planning, managing and growing your small business.

Canva

Create beautiful posters, calling cards, invitations, or social media posts using Canva. There are hundreds of templates to choose from which you can customize to suit your needs. Different fonts and designs are available so you can have fun and be as creative as you want. You can also design graphs and charts, logos and flyers, as well as presentations. This is a good application to start with if you don’t have the budget to pay for graphic design software or to hire a graphic designer. This is one of the most popular apps used by many small business owners.

Evernote

In taking down notes and in planning; Evernote has been a useful tool for students and business people too. With this app, you can categorize your notes into different notebooks and tag them for easy searching. This means that you can keep all your meeting notes with clients or customer orders as well as have a place for jotting down any new business ideas you have. All you need is your email address to register for an account and you can download it on your desktop, mobile phone or it on a browser. The FREE version allows you to use it one device. Use it on the device that you use most often.

Google Apps

If you have Gmail, then you have access to Google Apps. Here you can use Google Docs for documentation; Google Sheets for recording a database and Google Slides for your marketing presentations. You can also use Google Meet to schedule and conduct meetings and Google Calendar to track your schedules. Since everything is stored in the cloud, you don’t have to bring the documents with you. You only need to be online to be able to access all these applications for free.

Paypal

All businesses need a way to send and receive payments and PayPal is the most popular application for online transactions supported by over 10 million online stores and 200 markets worldwide. It has partnered with major banks and credit card companies. You can link your credit or debit cards to be able to send and receive payments for your orders and deliveries and other transactions. It has 24/7 transaction monitoring and anti-fraud technologies for your safety and protection.

Trello

Need a space to work with your team for a project? You can write down tasks and assign them to your team mates, as well as indicate deadlines on Trello. You can use it on your computer or mobile phone’s browser. It works like a kanban board where you can move tasks around to indicate whether they in progress, pending or completed. Or you can move tasks from one department to another if that applies to your business. Tasks can also be broken down into checkboxes or lists and can include links or files. You can also tag team mates in your messages.

Most of these apps are free but they do have options for upgrading to a paid subscription later on if your business needs it. Once you get to know your way around these applications, it will become easier for your to identify the specific things you need for your particular business. This will make it more convenient for you to decide whether to upgrade your app or look for another one that suits your business more. Being accessible online is now the norm so it helps to learn about these apps to digitize your business.

Feature Image: Original Photo by Nikita Khandelwal from Pexels.

Dec

2020

Dream Team: People You Need in A Start-Up

Reading Time: 4 minutes

Who is your dream team: the people you need in a start-up? If you are thinking of starting a business; you will need people who will help you to build the business and keep it going. Just like the people you need in your personal life, you need a team to help you develop the business to its full potential. Here are the 4 people that you need to help you prepare and develop your business.

The Creative / Innovator / Concept-Oriented

You need a person who is very creative and can dream up new ideas. This person has a vision for what the product can do and where it will take the business. This person may also be an innovator. The Innovator is someone who is able to take an existing product or idea and turn it into something new. Or by adding or changing a component they can come up with a new product or service. They are usually risk-takers who are not afraid to try out new things.

These people don’t only have a concept in mind; they also have an idea of how a product can benefit both the business and its customers. It is important that this person also has good communication skills. This will help other members of the team to understand their ideas clearly. Often, they are in-charge of product conceptualization and design. They also play a significant role in actual product creation.

As a visionary, they are the people who can keep the team on track when the business hits roadblocks. Their creativity and innovative nature are key factors in helping the business find solutions to issues. They are an important member of your dream team, the people you need in your start-up.

The Doer / Builder / Detail-Oriented

The Doer will work with the creative person to work out the specifics of the product. Therefore, they are detail-oriented and puts in the time to research on the information needed to help build the product. They are the one’s who will figure out the specific components of the product or service offering. The main focus of this role is to plan the details and create a blueprint for the product or service; and eventually to build it by incorporating all the components they have identified.

Being detail-oriented, this person will ensure that the requirements have been meet before the creation process starts. They will also focus on ensuring the quality of the product as they build it. These people will have great technical skills, are problem solvers and are passionate about learning as they work. They are usually tech-savvy too. Some of them may be a generalist, with good competence in many fields. Or they may be excellent in their field of specialization. They see the big picture like the visionary. Just as easily, they can drill down on the details and build the product or implement the steps to make a concept work.

With their eye for detail, they will be able to exchange ideas with the creative. Together, they can come up with the best combination of ideas and components to help build the final product. They can also give practical advise to the creative. Their focus is to help ensure that the product or service is feasible for production and is produced in the best quality.

The Processor / Task Master / Process-Oriented

A business has many components working all at once. In a start-up dream team, someone has to be good at overseeing all the processes and assigning tasks accordingly. They need to ensure that the operations are efficient and that goods and services are delivered on time.

Like the builder, they are also detail-oriented. They apply their talent to creating systems that make the business operations smoother for all parties involved. Also very technical-oriented; they see the requirements for each department or unit in the business.

They also need to have a creative side. This helps them anticipate and piece together the different pieces of the business system that they need to create. These individuals are highly organized and are also visionary in nature. They are mainly in-charge of making sure that each part of the business is working properly; from top to bottom, start to finish. Usually impatient and very deadline-oriented; they still need to keep an open mind. They should be ready to spot-correct at any time for any troubles that may come along the way. You may think of them as slave drivers sometimes, but for your dream team, they are one of the people you need in your start-up.

The Connector / Sales Master / Social-Oriented

Businesses need to connect with their material suppliers, third-party service providers and other partners. One of the people needed in a start-up is someone who can communicate with external partners and maintain a stable relationship with them.

Most of these people are good networkers. They also have a flair for sales. One of their tasks is to convince potential partners to work with the company. They need to be able to “sell” the brand to other people. They also have a large network of people on their contact list as they are naturally sociable by nature.

These types of people are often extroverted and are not shy to introduce themselves to other people. They are also quite confident and naturally curious. One of their talents is to find out information without being too prying. A casual conversation could lead to an information mining session with this person. An important member of a start-up dream team; they can help expand the business thru partnerships and other external resources.

Depending on the nature of your business, these are some of the people that you need in your start-up dream team. Consider having a mix of both generalists and specialists in these roles as they can learn from each other. You don’t necessarily have to assign an individual team member for each role. You may start-up this way, but eventually, you will grow so that one member may head the business unit that fulfills each role.

It is important that these people collaborate with each other well. After all, you will end up spending more time with them as the business grows. You may notice that almost everyone on this list share similar attributes of being creative, detail-oriented in different areas, being open-minded and having a willingness to learn new things. Also, keep in mind that as a small team, you may end up with overlapping roles or even swapping roles from time to time. You may even be working on different aspects of each of these roles.

Another thing to consider when starting-up a business is to ensure that your organization has the characteristics of successful start-ups. This way, your business will be able to sustain its operations and fulfill your team’s goals for a long time.

Feature Image: Original Photo by Antonio Janeski on Unsplash.

Dec

2020

Characteristics of a Successful Start-Up

Reading Time: 2 minutes

Have you heard of the phrase “survival of the fittest”? Made famous by Charles Darwin’s theory of evolution; the phrase means that in natural selection, only the strong can survive. And they are the ones who have adapted to the environment well. The same is true with the world of start-ups. Just like in the theory of evolution, only the strongest can survive among start-ups. Faced with limited resources, fierce competition and the challenges of brand creation and promotion plus finding a dream team; no wonder only a few start-ups survive. So, what separates those who succeeded? What are the characteristics of a successful start-up?

1. Flexibility

Flexibility is an essential trait for entrepreneurs, more so for start-ups. Being flexible means the ability to adapt to changing environments. Yes, it is tough to allow some changes to your original idea but it is the only way to survive in this fast-changing world.

Be clear about your goal but be flexible about the process of achieving it.
– Brian Tracy

2. Their Product is a Solution to a Problem

Before you start your business, ask yourself the following:

Will the product solve an existing problem?
Who are my target consumers? What are their existing needs?
How can the product address the needs of my target consumer?
What problems can my product solve that my competition cannot?
Why should your target consumer use your product?

Every new product has to solve an existing problem in the market. That is the only way to attract your target consumers. Addressing these questions can help you develop a strategic plan to create a valuable product.

3. They Test Their Products First in a Small Market.

You have a product that you want to sell. But how do you know if people will actually buy your product? The answer is to test first. Testing the market before launch can help you evaluate your business strategy and make adjustments to your product. Start small. Mark Zuckerberg launched the site to Harvard university first, extending to other Ivy League schools before making it available to all US universities and then ultimately the world. For example, if you want to open a restaurant, try to get some feedbacks of the food that you want to sell from your family and friends before actually opening a restaurant.

Testing leads to failure, and failure leads to understanding.
-Burt Rutan

4. A Dream Team

Studies have shown that one of the most important factors in the success of a start-up is the founding team. Your dream team is composed of key individuals that will work with you from the very beginning to achieve your business goals and dreams. Any successful start-up rarely is the work of just one person but has a group of people behind it. The fate of the company lies in the strength of the founding team.

Teams are incredible things. No task is too great, no accomplishment too grand, no dream too far-fetched for a team. It takes teamwork to make the dream work.
– John C. Maxwell

5. Persistence

Entrepreneurs face challenges on a daily basis. Thus, persistence is a vital ingredient to success. Entrepreneurs should be willing to overcome failures. After all, failure is part of success. Never ever give up. Be willing to take that extra mile to success. The people who succeeded are those who persevered. Walt Disney, Colonel Sanders, Elon Musk and Jack Ma are just but some examples of highly successful entrepreneurs who persisted.

Energy and persistence conquer all things.
– Benjamin Franklin

Dec

2020

Start-up Terms That Every New Entrepreneur Should Know

Reading Time: 2 minutes

Starting a new business? Here is a list of start-up terms that every new entrepreneur should know:

1. Angel Investor

Also known as a seed investor, an angel investor is a high net worth individual who invests money in a start-up. This person can be a family or friend of the business owner. in return for the money invested, the investor will then become a shareholder of the company.

2. Business-to-Business (B2B)

A B2B business means that your product or service is being offered to other businesses.

3. Business-to-Consumers (B2C)

A B2C business means that your product or service is being offered directly to consumers.

4. Beta Test

Beta testing is the final testing of a product before it gets released to the market. This allows the company to receive direct feedback from its target customer. It is the same as a soft opening soft or soft launch. In short, it is a trial run. By doing this, a company gets a chance to improve the product or service.

5. Bootstrapping

Bootstrapping is building a company from scratch with limited resources using your own personal savings.

6. Burn Rate

Also known as the run rate, it is amount of cash that is being used by the company to finance its operation. In a way, it is the rate of money that the company is losing each month because the company is not yet earning. In short, it is the negative cash flow.

7. Minimum Viable Product (MVP)

The minimum viable product is a version of the product with just the basic features. This version is just enough for the product to be usable to its target customers. Releasing a minimum viable product is cost-effective. It also shortens the product development phase. In addition, the business can start receiving feedbacks from the customers that they can use to further improve the product.

8. Pivot

A pivot is a shift of business strategy when the initial product or service failed.

9. Return-on-Investment (ROI)

The return on investment is the measure of whether a business is profitable or not in a given fiscal year. To calculate the ROI, simply divide the net profit with the total investment made then multiply by 100. Generally, an average return of 5-12% is good.

10.Venture Capital

Venture capital are private firms that offer financing to start-up companies. These firms can be pension funds, financial institutions, investment banks or even universities. They see potential long-term growth in the start-up. These firms will buy a stake in the company for a certain period of time and then exit once they are already profitable.

Photo by Startup Stock Photos from Pexels

Dec

2020

Start-up

Reading Time: 2 minutes

Have you seen the latest K-drama that is topping the charts lately? The series, Start-up is about the story of individuals involve in the start-up world of technological companies. It is about the struggles and challenges that people faced when starting a company.

By definition, start-up pertains to a newly-formed company by entrepreneurs who wants to bring their product or service to the world. According to Forbes magazine, nine out of ten start-ups fail. That is how hard it is to start a business from scratch, especially with little capital. It’s really a great challenge.

Despite the low success rate, there are still the 10% that succeed. The statistics might be low but it is still worth a shot compared to not trying to all.

The biggest failure you can have in life is not trying to all.
-Emil Motycka

Did you know that the most successful people on the planet have failed their way to success? Thomas Edison, Albert Einstein, Walt Disney, Sir James Dyson, Bill Gates, Colonel Harland Sanders, Oprah Winfrey, you name it; all failed first before reaching the level of success that they are enjoying or have enjoyed in their life. That is because they understand that failure is part of success.

The one who falls and gets up is stronger than the one who never tried. Do not fear failure but rather fear not trying.
– Paolo. Coelho

Whether you are trying to start a business, changing careers, migrating to a different country or taking a relationship to the next level, take courage. Don’t be afraid to try to start something new. After all, success happens outside your comfort zone.

Feature Image by Prateek Katyal from Pexels

Oct

2020

5 Tips in Succeeding in Your Own Business

Reading Time: 4 minutes

As the world economy slows down because of the pandemic, many business had closed. This forced millions of people to unemployment and underemployment. As a result, hundreds of thousands of small businesses emerged. But starting a business is hard. Making your business a success is even harder. If you think that a brilliant idea coupled with a sound business plan is enough, think again. There will always be moments of uncertainties. Different challenges will arise on a daily basis like hiring the right people, branding, market positioning, customer care, money management and even personal fatigue. That is why it is important to have a mentor or learn from those who already succeeded. Getting a few tips in succeeding in your own business can really help new business owners.

I know of many people who tried to put up businesses and failed. They tried multiple times but still to no avail. There are a few who persisted until they have succeeded. I’ve asked one of them for tips on how to succeed in doing business, and this is what he had to say:

1. Establish a Good Name

A good name is more than just a good business name. It is establishing a good brand. A brand pertains to the company’s reputation. It is the sum total of how others see and perceive your business. Dealing with your customers and suppliers take a very important role. It is also about

building credibility as far as payables and credit are concern. It is how you handle your after sales service. The relationship with customers does not end right after the sales. It goes beyond that. Most importantly, it is about the quality of your product or service. The key here is trust. People should trust your brand. That trust in turn will convert to not just loyal customers but to new customers as well.

2. Customer is Not Always Right

The customer is always right. Occasionally however, you will encounter customers who have their own emotional biases on certain things. If you sense a problem, a complaint or a disagreement, it is your duty as a business owner to guide your customers. Explain your thoughts in an amicable way. Give proper explanation on your products or service details. Do a demonstration if necessary.

Remember that everyone has their own forte. You are the expert in your craft. Help the customer understand the pros and cons of the situation. Explain clearly why you think a specific product or service is the one that best suits their preferences. Make them understand the logic behind it.

3. Do Something that you Love Doing

Running a business is always a challenge. There will be good days but there will also be bad days, more so during early stages. It is hard. You never know what to expect. There will be blood, sweat and tears. You will need to work until the wee hours. There will be little compensation. You might even find yourself in financial woes. Your family and friends might begin to question you. And worst, you might even end up doubting yourself.

The only thing that will keep you going is if you love what you are doing. If you enjoy what you are doing, then you will be exceptionally passionate about it. You will never get tired and will not give up on things easily. Your passion will become your key to success.

4. Learn from your Mistakes.

Mistakes are inevitable. So, don’t be scared to fail. Failure is part of success. What is important is that you keep trying. Learn from your mistakes. Analyze what went wrong and then focus on what you can do to make it right. Adopt measures on how to prevent that same mistake from happening again. It is a waste of time and energy to play the blame game. Just acknowledge that it is all a part of the learning process. Apply the lessons for the improvement of your business.

5. Work With Your People and Not Against Them

Difficult people do exist in any organization. They don’t do their work as agreed upon. They will insist on their own views or way of doing things. Some people won’t even show up when you expect them to. Dealing with these people drastically each time will not address the problem. You will only see yourself in the exact same situation but with a different person.

The best thing to do is to equip yourself with certain skills that will help you deal with these kind of individuals. First and foremost, you need to learn to control your temper. Understand where the person is coming from. Get their perspective on things. Accept the fact that you don’t know everything. Listen to their suggestions even if you are the boss. Be always open to change. Who knows, they might have a better idea on the task at hand. If it doesn’t work, explain your side of things. Let the person understand your expectations and views on the matter. Focus on the things that you both can do going forward. What is important is that there should be mutual respect.

Credits and special thanks to Mickey Pascual for the business advice. Mickey Pascual is the owner/CEO of Mickey’s Autosound, holder of the King of Sound title in the Philippines for 3 consecutive years now. He started the business more than 20 years ago while he was still in college because of his love for car audio. Mickey continuously gives his best to improve his craft and goes to Germany every other year for the European Mobile Media Assocation (EMMA) Judges Training. He has been invited numerous times to judge EMMA competitions worldwide.

Updated version. First published in Pinoy Smart Living on 05.10.2019.

Photo by Christina Morillo from Pexels