Tags: business, credit-card, entrepreneur, Investors, startup, Startup-capital
Getting a business financed is tough. As many as 27% of businesses claimed that they failed to receive the funding. Are you one of those? If yes, then this blog is for you and for anyone who wants to succeed in securing startup capital.
Startups never have it easy. Their journey is an arduous and painstaking one. Of all the various challenges they have to confront, the most challenging one strikes them in the beginning – that of acquiring startup capital.
Depending on the capital needs, a startup will find many options on the table from Loans, venture capitalists, Trade credit from suppliers, to line of credit and so on. There are obvious risks attached to almost every form of funding method. Your success depends on the ability to do the basic things right and in avoiding the mistakes that contribute to failure. Following are the 5 mistakes along with their solution:
Knowing the exact capital requirement is quite important before you pay a visit to the investors. Entrepreneurs like to think that if they ask for a smaller amount, they’ll have a better luck in acquiring it. Sounds good in theory, but this approach backfires in two ways: Firstly – investors will see that you’ve clearly undermined your startup’s capital requirements and would simply decline your request by assuming you’re not serious about it.
Secondly, even if you do succeed in acquiring, there’s every possibility that you’ll run out of money in little or no time. At this point, you’re looking at a very dire scenario possibly threatening your business’ survival.
So it’s always better to accurately estimate your capital requirements and then make a solid pitch to the investors. They’re more likely to consider your application when you ask for a valid sum of money.
A larger share of equity always draws investor’s interest in. There’s always the temptation to give away more equity than you should just to get your startup financed. But you’re better off resisting that temptation.
Startups are always tricky and you never know what circumstances may arise in near future. Imagine a scenario where your startup doesn’t go as per plans, and you begin to incur huge losses. As the normal business operations begin to suffer, you may turn to further financing. That will just shrink your ownership share to the bare minimum. That’s why as an entrepreneur you have to value the equity and carefully approve a reasonable share to the investors.
Thinking of funding your business with your personal credit card? Well, our humble advice would be – think again. Even if you have an all impressive credit card rating, there’s no reason to fall prey to the ‘worst-case scenario’. Credit-score is just a rating provided by your credit-card issuers and is in no way indicative of whether or not you’re capable of funding your startup. Studies have shown that people who bank on credit card financing eventually end up in failure.
That’s why piling up credit as you attempt to realize your startup’s vision isn’t a good idea. Should you fail, your personal finances could take a major blow and you won’t have any means to pay back the dues.
We’re all aware that there’s been a surge in the number of people seeking funds for their start-ups. That’s where some of the scammers have attempted to cash-in. With Advance fee loan scams, entrepreneurs are guaranteed to get necessary funding irrespective of their credit history.
How these programs work is quite interesting. They initially ask for an upfront fee and once you pay that out, you’re required for the loan to be approved – well in truth, the loans never really happen.
The Governments around the world try to keep a close check on such programs, but still, the surreptitious manner in which they work, some people do end up falling victim to them. So you have to be ultra careful with these scams, and if you happen to get a hint of any suspicious activity, you’re required to report them to the security agencies.
Investors often take a keen interest in cash-flow statements and for good reason. They want to know how you’ll use the money lent by them. So you have to present a detailed summary of every pound and penny and where it’ll be spent in the daily business operations. Investors like to see you have a firm grip on everything.
Should they see you’re unsure at any point, their decision to grant you the loan could be affected. Furthermore, it’s not very prudent to consider faking a cash-flow analysis. The more ambitious your idea, the more answers you’re likely to have up your sleeves come the face-to-face time. So analyze everything and make an authentic cash-flow analysis that really convinces investors to help you up with the funds you’re seeking.
Capital-funding is a ‘big deal’ and it’s something a business-owner has to prepare him/herself as best as they can. Knowing the aforementioned pitfalls should prove useful as you get ready to make a pitch to the investors.
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Tags: business, Entrepreneurship, startups
In the recent past, we’ve seen a sudden increase in the number of entrepreneurs. The fact that many people are preferring to put their ideas to work is an encouraging one. But there’s a harsh truth that goes along with that – 9 out of every 10 end up in failure.
Starting a business is not easy. There’s no magic trick to make it succeed. Most businesses fail due to the negative cash flow. But there are obviously a lot of things such as incompatible business model, poor management, and inferior product/service quality that add up before you reach the final precipice.
Therefore, it’s important to keep a close check on minor details right from the word go. Learn what are the common culprits that can deal a serious blow to your ambitious startup hopes:
No idea could ever be big enough if it isn’t fulfilling any purpose. You need to be solving some kind of a problem. If you’re not solving anyone’s problem, no one will hear about you or take interest in your service. It’s just as simple as that.
But even if you are solving some problem, ensure that its solution is a good one. Every business has a certain kind of USP to lure customers in. The USP could be anything from cheaper prices, quality solutions, swift product completion or as something as simple as active customer support.
Your co founders are obviously going to be the most crucial people for your business. There’s always a debate about how many are too many? Ideally, you want to have 2-4. Any more would just create trouble. There would be disputes, arguments and a number of times you’d find yourself in the middle of a situation where decisions making would be hampered by lack of agreement.
For the same reason, irrespective of the number, the co-founders should be able to get along with each other alright. If they know each other for a very long time or happen to be college-buddies, then even better. That way there’s lesser risk of disagreements and most obstacles can be easily tackled with a collective effort of all.
Start making money as opposed to funding money. Business can’t survive if it isn’t making money. A lot of people think they can turn their hobby into a self-styled profession, but not many of these ventures go on to be really successful.
Business is about earning more than what you’re spending. It’s pretty clear if you’re not making any revenues, your biz won’t be around for a very long time. You like to call it a biz, but in reality it’s more or less just a pastime.
Don’t rely too heavily on funding. What happens with a number of startups is they initially succeed in generating huge amount of funds. But once they have the funds, they end up spending most of it on irrelevant and unimportant things.
Think of things like fancy office apartment, and a portion may be to fulfill some personal wishes – That can prove to be a fatal mistake very early on in the startup’s run. Color’s failure is the best example in modern times.
You don’t want to be doing that. Look to spend your funds as judiciously as possible. Make the best of the resources you’ve got in your hands.
Since the very early days, you’ve got to be really certain about where you’re headed. Many startups end up pursuing an altogether different path from the one they embarked on initially.
It could be because of a change of interest or a realization of better gains in a different field. As long as the route somehow takes you back to your core business’ purpose, everything is fine. The reasons are that business should first be allowed to mature.
We haven’t heard of an entrepreneur that just wakes up one day and sets up a business. There’s a great deal of thought-process, planning, money and effort that goes into any startup.
The pre-planning is actually a huge time-investment for any entrepreneur. So take all the time you need before kicking things in motion. Diversion should only be considered in very exceptional cases.
Process and systems are the frameworks within which everything happens. You want to make sure that your framework is a sturdy and workable one.
A process that defines the flow of work and everyone’s responsibilities is a bare minimum. Your aim should be to continually improve it and go from strength to strength and make things more fluid and streamlined.
As mentioned earlier, there’s no guarantee of success whatever your endeavor. You can only do so much to make you business a success. But the harsh reality is about 90% of startups eventually fail.
Still, that stat hasn’t discouraged any budding entrepreneurs from pursuing their goals. Most successful entrepreneurs swear by how much focus is essential for any startup. So focus, spend long hours studying the market trends, identifying problems and devising simple solutions is the way to go!
In the end, as is with the failure, success is a mix of many components. It happens when all those components come together. They could be the timing, the mood of the customers, or your solution itself. Be sure to get everything right to stand the best chance of success.
If you think we’ve missed out any significant point, please let us know in the comment section below:
Tags: business, Business- Failure, Enterprise, Entrepreneurship
Business World is full of challenges. It’s no easy thing to be an entrepreneur. There’s a lot going on in your mind and it’s difficult to find time to collect your thoughts and think calmly as to where your business is headed.
Through the course of this article, we’ll discuss 6 reasons that lead to the downfall of many talented entrepreneurs.
We look at things and form a certain perspective of them. From that point on, our decisions are influenced by the same understanding. But what if that viewpoint were to a miscalculated one?
In a business environment, such mistakes could be the difference between success and failure. Many entrepreneurs have admitted how they failed or incurred huge losses simply because they shunned themselves from the outside world.
The fact is that entrepreneurs consider merely conferring an idea as a confirmation of their incompetence in a certain domain. But this thinking can be problematic.
As an entrepreneur, you have to be honest with yourself and really think long and hard about the consequences of your decisions. Put your ego aside and start listening to other, even if their opposing views.
It’s often said that quality results require costly investments. A number of entrepreneurs tend to be hell-bent on working with the same resources despite seeing no change in the outcome. Part of that has to do with budget and part maybe with vain hope.
Entrepreneurs have to be realistic though. Time doesn’t stop for anybody. So if you think a skillful resource can help you attain desired results, then, by all means, go ahead and hire one.
Yes, it’ll be heavy on your budget early on, but the same cost could multiply manifolds over time with a lack of talent in your staff.
There’s a sense of helplessness about most entrepreneurs when it comes to attempting things that they don’t qualify for. To a degree, it’s justifiable that they want to influence every sphere of activity in their company. But the problem arises when they overdo it.
A better approach would be to test out a job that you’re trying to influence. If you’re able to grasp the know-how’s without too much difficulty, then you may well go ahead performing on your own.
If it’s too complicated, put it off or have someone else do it for you. It’s often this readiness to do everything on your own and not asking for outside help, that leads to entrepreneurs feeling knackered all the time.
A business is nothing without its customers. Whatever it aspires to achieve can only be made possible if it has a cheerful customer base. Still, no matter how satisfied your audience is with your services, it could all go wrong very quickly if you decide to rest on your laurels.
There comes a time when a business scales and starts to imagine it has it all figured out. That’s when it’s at its most vulnerable. A number of entrepreneurs have been guilty of not knowing the customer opinion prior to implementing new policies. The solution lies in timely communication.
If you think that a policy change you’ve been contemplating for a long time is going to impact your audience’s decision making, then have it communicated to them properly.
Understanding customer behavior goes a long way in ensuring the successful run of a business. It’s one thing you don’t want to gamble on.
The process defines how people go about doing their job in the business. It also lays down every individual’s role and responsibility. When it comes to following the process, there’s often a temptation to overlook it.
People prefer to have some flexibility. Over time, reluctance to follow the process in full can lead to its complete avoidance. That’s the situation you want to avoid in your business.
A business without process won’t have a clear direction and you’ll find it difficult to hold anyone accountable for any mishaps or discrepancies in the workflow. Try to have maximum possible adherence to the process in your business.
Your startup isn’t just about doing right things right. The business world can be very unpredictable. The entrepreneur has the responsibility of guiding the startup safely out of such situations. But not everyone can.
The unsuccessful entrepreneurs fail to pivot because they fail to see the shifting patterns of business and persist in their ill-fated course. The dynamics of business-world take everyone by surprise at some point in time. Letting your guard down and thinking you have everything figured out is sure to get you in trouble.
As mentioned earlier, being an entrepreneur is a cumbersome task. Very few are able to crack the code and take their business to the much-desirable dizzy heights.
Did you have it easy when you started up as an entrepreneur? Have you come across the situations highlighted above. Let us know how they affected your run as an entrepreneur in the comments section below:
Tags: business, startups, success, work ethic
Running a startup is a challenging task. From setting up milestones, meeting tricky deadlines, understanding the market shift, to keeping a check on your competitor’s moves, a startup just has too much on its plate.
No wonder, the stats coming out of the startup arena don’t really inspire confidence. Almost 90% of the startups fail. But at the same time, one has to acknowledge the fact that most of the billion-dollar multinationals in the Silicon Valley once began as startups.
It clearly indicates that although running a startup is no walk in the park, there is a success to be had if you get your act right.
So what does it take to keep your startup going in the right direction and overcome the bumps and slides that come along the way? Following points should be of help if you’re running a startup and need some guidance:
As a startup, nobody is really expecting anything extraordinary out of you. Instead of assuming a relaxed approach, go for a proactive one. Take this as an opportunity to shine and make a name for yourself.
In a startup world, the challenges you encounter prove to be like nothing of the sort you’ve experienced before. So it’s important you keep a watchful eye on the goal you’re working towards. Believe strongly that you’ll achieve it sooner or later.
Given you’re a beginner, there’ll be plenty to learn from people around you. There’s no point in staying aloof and self-centered. From time to time, take note of how your competitors are performing and what’s their modus operandi to get things done. This way your rivals can act as a source of inspiration for you.
As mentioned earlier, life as a startup is really a hectic one. There’s always a huge backlog of tasks piling up and you consistently find yourself running a race against time Even working overtime or on weekends doesn’t prove enough.
But that’s the startup world for you. You have to accept it and keep the energy levels up as much as possible.Time-utilization becomes quite crucial. Mulling over a task for too long isn’t an option. Since there are always tasks to take care of, spend time on those that can be best handled in a given time-period.
It’s easy to forget about your commitments to family and friends when you’re so absorbed in taking care of the startup affairs. Irrespective of the nature of your loved one towards your newfound endeavors, it’s best to communicate your situation to them as soon as possible.
You won’t want the people closest to you beginning to believe that they don’t have a place in your world now. Often in tough circumstances, these are the people we look towards for motivation and support. It’s best to convey your work-schedule to them. That way they’ll know when to reach without disturbing you.
Plans, requirements, deadlines, and estimations can change within a short span of time. To ensure that everyone is abreast to the latest info, communicate it often. However, avoid those long and dull discussions where there’s a lot of talking around the bush but no attempt to address the nub of the issues.
In an ideal world, you’d always have someone taking care of a job. But the startup is far from an ideal world. You can’t expect things to work out on their own. If you’re unsure about a task’s status, learn to ring the alarm bells and ask around if anyone is taking care of it. Don’t expect things to work out on their own.
When you’re in a startup, one thing that’s got to come naturally to you is the ability to take initiatives. As startups are still trying to figure out the best methods that work for them, it’s a good idea to always be trying and testing things out.
You’d be amazed how this sort of attitude can rub off on your colleagues.These are the values that once instilled in your workspace can go on to define the nature of your company as it starts to mature and gains recognition.
At last, learn to draw a breath of relief when you’ve given everything on the field. From time to time you need to sit down and see where you’re headed. Depending on your progress, revise or follow the plan in motion.
If everything is going as planned, you could hang out with your friends and family whom your busy schedule hasn’t allowed to catch up with. Once you’ve recuperated your strength and got the batteries recharged, it’s time to take another dig and pursue your goals. The startup journey is always a tricky one. You’re never quite sure what will work out of a given course of action. But if the mindset is right, things tend to work out in your favor more often than not.
Following the aforementioned tips is sure to help any startup stuck in the quagmire of uncertainty and workload achieve stability and get back on track.
Let us know your thoughts in the comment section below.
Tags: audiences, business, Capital, Enterprise, investments, Prototype, startups, Tips
Raising capital has always been a challenge for enterprises and more so for startups! You want to approach investors? But don’t know how to reach out to them? Do you need certain as death and taxes, capital raising game plan?This blog is going to offer you some of the coolest and tested tips about raising capital!Unbelievable… Right?
Get amazed by just spending 5 crucial minutes of yours and know even the tiniest of details about Capital Raising. Still, in doubt why should you believe us? We are APPTUNIX, we are known to explore the deepest, buried and darkest of secrets and present it to our audiences. Capital Raising has always been considered as a fundamental act for enterprises.Most of the time, efforts, and energy of the startup owner is spent on building strategies that will gain traction and attract funds.I know… Right?
Various processes are also evolved with a view to get funds from venture capitalists, angel investors and by attending conferences (for the sake of impressing important people to join their enterprises as investors).
Apptunix, a smart iphone app development company knows how important it is to raise capital for your project.With a belief to procure some capital in their hands, these entrepreneur spend countless hours pondering how to refine their models of business.The startups need empowerment to reform their game/business plans, build strategies and intentions to move ahead with the right attitude in the market.
A structured approach is also called for to help them spot their prospects and potential investors – the ones who are in search of ventures, which are worthy of their investments. Here are some steps to ace your strategy for young entrepreneurs seeking capital acq uisition.
Merely having an idea is not going to make funds fly to you. The deeper you dig your idea the better it is going to be for you. Food for thought – always break your idea in small bits and parts so that you could engineer the uniqueness of it.You have to be on the ball about the solution you are bringing to the problems.
It is very important to identify the USP of your idea and how does it make you stand out from the crowd.You will have to find out what is your ‘Most Unique Feature’ that helps you stand out from others.Apptunix, best Mobile application development company can assist you in doing all the extra homework required for you to dig deep.
After identifying the ‘X Factor’ of your idea, now it’s your turn to build a prototype to grab the attention of your potential investors.This doesn’t mean that you splurge your money and make a final product out of your idea.Just a Minimum Viable Product with functionality detailing its use would do. A piece of advice – investors always appreciate things that are tangible as it gives them a fair understanding of the product and its functionality.
So putting together your ideas on a desk, photoshop or by wire-framing on paper will make you take the first step on the ladder to impress your investor.The developers are no longer tech savvy nerds sitting in their basement and coding.Many iOS developers now build MVP which clearly explains the features of your future product.
Your audiences have been your biggest critic as they will give you their unbiased thoughts. Approach some of your loyal customers and users to get their opinion about the new prototype.It is very important to examine their reaction and also to know if they’d like to use your product or not.Our smart strategy as being world class android app development company is that we always take our users’ feedback seriously.
Spreading the word out to the world about your product is the next big challenge.
Being fully prepared to win the battle and making sure that all the weapons are in your arsenal is a must.We are the leading mobile application development company, and we have promoted Apptunix with the help of various social media platforms.Shouting out loud about your product on various social media domains, by press releases or even by blogs, you can help your startup or product amongst the ‘most talked about topics’. A good chunk of users making a worthy customer base for your product is what you need at this point.
Unfortunately if even after putting in so much of efforts you fail to get potential users then you would have to walk the road of “reassessing – redefining- recreating and restarting” again.
At this point of time, you are confident about your product has legs of its own and also that it has managed to walk a mile or two and attract a good chunk of customers on the shoulders of its uniqueness and convenience.This is that stage where you have to move your idea along the continuum for it to now establish itself into a business.
It is also about time, to figure out different categories of your stakeholders.Monetizing your idea by considering various parameters and to negotiate your way through different hindrances in order to make profit is how you are going to roll your ball.
Herein you have to prepare a simple pitch touching on points like – product description, product features, the result obtained by the market research, traction levels, size of your market and about your team – as investors are going to buy your concept only if they bestow their trust on you.If you’d touch them at personal level mentioning about your team – they will feel they know you, trust you and will be easier for them to invest their money on you.
Look out for investors in the incubation center of universities, on angel investors networks, linkedIn, by attending seminars/conferences or by simpling joining an accelerator programme.Nowadays many Mobile App Development Company are doing very well in finding their angel investors and building top-notch mobile apps.
Getting money from someone else’s pocket is not a cake walk.Trust plays a vital role in convincing investors to believe in your idea and put their money in it.This is the phase where you have to act all smart.When you are finally in front of the investors, try to showcase your thoughtfulness, intelligence, and diligence to gauge trust of your investor.Be prepared with the possible questions that investors may ask and with solid answers.
Equal efforts need to be done on the product.Keep on improvising and refining your product, because if your product looks good, so does your speech, so does your idea and so do you.These are the major steps that a startup can follow to raise capital for your product. In this whole approach, an entrepreneurs has to have a lion-heart, if he fails once, he should not give up.The motto is – if you have fallen down, get up, wipe the dust off and walk again. These are just tried and tested methodologies which can be of immense importance and a great guideline for young minds!
Tags: business, Mobile Advertising, Mobile App Development, Mobile Apps
Digital Marketing is in high demand in today’s era and every business for their success and survival are trying their best to make a remarkable presence in Digital World. They are in a great search to understand the modern digital trends strategies and to find their target audiences.
Promotion of a mobile business is the really tricky. The question lies in the fact where to place more investment in mobile applications or in mobile advertising? In order to get recognition digitally it is very important to know the difference between the two and not to jump on a conclusion. So here are all the essential insights for you to have a deeper understanding of the two.
Mobile advertising is one of the rapidly rising industries, and passing up on the chance with mobile advertising is ill-judged. A strongly established strategy for mobile advertising plan can get new clients and can also increase the buying intent of existing customers.
Mobile ads are petite in size that adjusts well in the screens of smartphones, displaying higher visual graphics than words.Like other forms of advertising, mobile advertising will have its adaptability curve revised as the trends change.
Mobile Apps development helps to get higher clients via service provided by Mobile app.Mobile Apps are easy to use. A user can easily navigate a mobile app and get all the required information by just a click.Your business and business practices must comply with your mobile app. Simple navigation, compatibility across multiple mobile platforms and connecting with existing customers is what a Mobile App do.
Decision and choices in business are pretty important as it can bring a business one step closer or can put your business in a real bad situation. Whatever your decision may be, it has to be wise just to make sure that it doesn’t hamper your existing clientele and brings you new business with a tremendous increase in ROI.