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8 Tips for Starting A Business

Seniors start more businesses than people under the age of 30! I know, I was surprised, too. It may surprise you even more that the ones started by seniors have a greater chance of success than those started by the young. These two facts taken together should show you that you are never too old to start your own business, and should also suggest that there may be more opportunities for seniors looking to fund a new business.

 

Here then are 6 tips to help you get started:

 

1. Pick something you are passionate about. Don’t just jump on the bandwagon of a product or service that is supposed to be “the next big thing,” instead, pick something you are passionate about. A new business will take a lot of time if you do it right, and you want to spend that time doing something you love.

 

Steve-Strauss--in-article-Medium.png

It is also true that if you are passionate about something and you know that area well, then that experience will be a big leg up. It is also a major reason why senior entrepreneurs are so successful.

 

2. Don’t take a big risk when funding the business: When you are older, you have less time to make up for financial mistakes. Because a startup is, of course, somewhat risky, one way to hedge against that risk is by being prudent where

possible.

 

So, for instance, don’t look to take out a second mortgage on your home to finance your venture, and you shouldn’t tap into your retirement account. Instead, consider these options:

  • Talk to your state Department of Commerce and see what grants and loans may be available to senior entrepreneurs; you might be surprised.
  • Also, consider crowd funding sites like Kickstarter. If you have a unique idea, getting friends, family and the public to fund it is a more preferable way to go.

3. Come up with a strategy and/or business plan: Even if your plan isn’t to become a major global corporation, you need to treat your business venture as a serious proposition. This means that you need to sit and come up with a plan and a strategy. Your business plan doesn’t need to be elaborate, but you do need to have a strategy for how you plan on getting from A to B to C.

 

Click here to read more articles from small business expert Steve Strauss

 

4.  Learn to love the Internet and social media. Like it or not, the internet and social media networks have become the place for word of mouth marketing and business promotion. Forget placing ads in print magazines or making flyers, because that is yesterday’s news. You will get a far better response using, for instance, a Google or Facebook ad. So, take some courses online or at your local community college, and research just what is available to you in internet marketing.

 

5. Embrace the mobile revolution. I was recently at an Internet marketing event and they said that 60% of all email is now read on a mobile device. Similarly, almost half of all searches now are done on a mobile device. Whatever business you start must be searchable and findable by a mobile device.

Mobile is not only the future, it’s also the present.

 

6. Become a lifelong learner. One of my favorite business authors (Barbara Winter, author of Making a Living Without a Job), says that one of the best parts of being an entrepreneur is that you have to become a lifelong learner. If you develop the habit of always learning about business and what is coming down the pike, you will be well prepared to serve your customers.

 

The bottom line is that as a senior, you have valuable experience that translates well into the world of entrepreneurship. Use it wisely.

 

About Steve Strauss

Steven D. Strauss is one of the world’s leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest,The Small Business Bible, now out in a completely updated third edition. You can listen to his weekly podcast, Small Business Success, visit his new website TheSelfEmployed, and follow him on Twitter. © Steven D. Strauss.

http://www.smallbusinessonlinecommunity.bankofamerica.com/people/Steve%20Strauss/content

You can read more articles from Steve Strauss by clicking here

 

November 4, 2014 Today's Business, , , , , , , , , , , , , , , , , , , , 0 Read more >

3 Rules of a Compelling Value Proposition

3 Rules of a Compelling Value Proposition

Posted by Inc. in Advertising, Sales and Marketingon Nov 16, 2012 2:04:36 PM

To create a compelling value proposition, you have to know your three C’s: competencies, customers, and competitors.

 

by Karl Stark and Bill Stewart

 

A new school year has arrived. As teachers and students wipe away the cobwebs that formed over the summer, so too should we return to the basics of business: creating a compelling value proposition. This is the first topic on the first day of Business 101, yet the news is consistently filled with the stories of companies that have fallen out of favor because they have lost sight of how they provide value.

 

A gripping value proposition is important to a business at any stage, but never more so than at the start. In any new business venture, you are trying to motivate the most apathetic type of person: the consumer. You are either convincing them to move from a competitor or to buy something they did not know they needed. In either case, you have to provide them a reason to buy.

 

To create a compelling value proposition, you have to know your three C’s: competencies, customers, and competitors.

 

Know Your Competencies

The first step in creating a value proposition is knowing what you are good at (and what you are not). These core competencies serve as the building blocks for determining how your business creates value. What will you provide customers that they cannot get today, and how can you provide it in a way that uniquely differentiates your business?

 

These competencies are the foundation of your value proposition, and you should consistently work to further develop and improve them to maintain a compelling offering.

 

Know Your Customers

Having competencies that differentiate your firm from competitors is not enough. You also have to have a market, which means you have to understand your customers, their needs, and how best to serve them.

 

We recommend an activity from the Business 101 playbook: describe your first customer. To really know your customer, you have to have a deep understanding of their life, what drives them, and what keeps them up at night.  Take time to describe who your first customer is and how you can couple your competencies to better meet their needs. Designing a value proposition around your customers’ needs will better prepare you to move the apathetic consumer.

 

Know Your Competition

The final piece of a truly effective value proposition is knowing your competition. Markets and competitors tend to gravitate to the areas with the most distinguished and developed customer needs. However, these strategies limit differentiation and often do not represent the future direction of the market. Know your competition, their strengths and weaknesses, and develop a value proposition that meets the needs they are unable or choose not to address.

http://smallbusinessonlinecommunity.bankofamerica.com/community/growing-your-business/salesandmarketing/blog/2012/11/16/3-rules-of-a-compelling-value-proposition

November 20, 2012 Today's Business, , , , , , , , 1 Read more >

Flea Market Q&A: Entrepreneurial Lessons from the World of Secondhand Retail

Flea Market Q&A: Entrepreneurial Lessons from the World of Secondhand Retail
by Erin McDermott.

Flea markets rang up $30 billion in sales last year, according to the National Flea Market Association. Ki Nassauer (pictured) is executive editor of Flea Market Style magazine and founder of Junk Revolution a popular online forum for devotees of tag sales, vintage markets, and “junkers.” She recently spoke with writer Erin McDermott about what small businesses can learn from the tables and stands of these surprisingly big businesses.

EM: We know the old saying: “One man’s junk is another man’s treasure.” But that could also be called a niche market. What surprises you about what sells?

KN: The most difficult part is finding the place to sell it. So what sells in the West is different from what sells in the East; what sells in an antique shop is different from what sells in a flea market. That, to me, is the most interesting part of it all. There’s a buyer out there for pretty much anything, depending on your location.

EM: The Internet, with Ebay and Amazon, has added so much competition for many of the goods you might see at a flea market. And now there’s Etsy.com, which is so much more visual and appealing. How has this affected flea markets?

KN: It’s a different style of shopping. Etsy came at the right time: Everyone’s used to shopping online and they made it very easy. And in the last year, they’ve really improved their search, which personally has helped me dramatically with shopping online. You can search and go right to the vintage category and call up ‘crocheted potholders’ or ‘comic books’ or specifically search for the item for which you’re looking. And that’s actually easier than shopping at flea markets because you can narrow the search if you’re looking for something in particular. It’s more difficult to browse, certainly. I do it all of the time for magazine articles.

PQ_QAkinassauer.jpgEM: Flea markets are at the forefront of recycling, reusing, and repurposing materials. That’s also often true for entrepreneurs and small businesses when they’re starting out. What are you seeing in terms of a new focus on being green?

KN: It’s definitely a younger demographic than we’ve ever had before that appreciates flea markets. They appreciate recycling. They’ve grown up with it and it’s a cool thing to recycle, whereas, say, 50 years ago or even 25 years ago you didn’t see as many young people at antique shows or flea markets.

EM: What have you learned from flea and antique markets over the years? Are there lessons for entrepreneurs and small businesses?

KN: Flea markets themselves are an opportunity for people to start new businesses. There are people who would have never considered opening a small business, because of financial or time commitments. But here they can stick their toes in the water and try something. I get frequent calls and emails from people who say ‘I want to open a business’—maybe it’s decor or antiques or a vintage shop. I always recommend that they buy a few things, load up a truck, and go to a flea market. It’s the first step if you’re going into the antique or vintage industry.

Flea markets can teach so much to potential business owners. They won’t be isolated. There is competition among sellers and they will be right there with them. They can watch other vendors who’ve been doing it over the years. Be it business practices or their style, there’s so much to learn from the people who’ve been doing it. And it’s all around them.

EM: Have you seen some great success stories?

KN: Oh, absolutely! There have been a lot of small businesses that have started with people opening a booth with a friend. I think a lot of it has happened with women hitting mid-life or couples who are retired, or considering retirement, or, particularly, people who have had corporate jobs with crazy schedules who finally say ‘Enough is enough: I love vintage and go to flea markets as a hobby. How can I turn this into a business?’

And they start by just buying and selling stuff at a flea market, and that turns into maybe a shop, or something larger if they’re traveling cross-country to a show. And you know—people are earning a good living from buying and reselling. There are even people who get a TV career out of it!

May 4, 2012 Today's Business, , , , , , , , , , , , , 9 Read more >

My Way or the Buy-Way? Should you start your business from scratch or buy a franchise?

by Cindy Waxer.

Cary Cheung wakes up at 4:30 a.m. every morning to run a business that requires him to pay a fee. He doesn’t own it outright, and it doesn’t even bear his name. And yet he couldn’t be happier.

That’s because Cheung is a franchise owner of Doc Popcorn, a maker of flavored popcorn that uses a variety of organic and all-natural ingredients. In fact, Cheung abandoned his career as an assistant vice-president at WaMu Investments to become Doc Popcorn’s very first franchisee in November 2009. And just a few weeks ago, Cheung and his wife, Judy, opened their second Doc Popcorn location in California.

Pull-Quote-Tall.pngThe Cheungs aren’t alone. According to the International Franchise Association, approximately 4 percent of all businesses in the United States are franchisee-worked. And the consultancy Franchise Marketing Systems says that franchising is a business model that generates more than $1 trillion in U.S. sales annually across more than 70 industries. Franchised businesses ran 767,483 establishments in the United States through 2008, including establishments owned by both franchisees and franchisors.

But while running a franchise business can be both professionally attractive and personally satisfying, not everyone is cut out for the task. Just ask Amy Bennett, owner of The Greene Grape, a Brooklyn, New York-based seller of fine food and wine. The choice was obvious to Bennett: “Part of opening my own business rather than a franchise was for it to be a creative outlet for me. I wanted something I could contribute to meaningfully.” Add that desire for creativity to the many negatives associated with franchising, such as royalty fees, restrictive licenses, meddlesome franchising authorities, and a lack of ownership, and it is easy to see why many are dissuaded from signing up to become a party to a franchise.

For many others, of course, those negatives are more than outweighed by the many benefits of running a business associated with an established brand and backed by the marketing muscle and support of a large corporation. So how do you know if you’re best suited to run a franchise or if you should strike out on your own? Answering these five questions can get you a step closer to the right answer.

1. How much legwork are you willing to do?

“When you invest in a franchise, you’re getting the brand name of the franchisor, the operating system, a proven track record, not to mention ongoing support, education and training,” says Brian Miller, president of The Entrepreneur’s Source, a business ownership consultancy in Connecticut. “If you started out running your own business, however, you really wouldn’t have anybody to rely on.”

That kind of pre-existing structure was precisely why the Cheungs opted to run a franchise. “My parents owned their own restaurant so I saw the struggles they had starting off and all those lessons they had to learn,” he says. “The attraction of a franchise is the system is created for you.”

“There are very few people who are true entrepreneurs and who can really go out and make a business their own,” says Miller. “But there are a lot of people who have that passion and fire in their belly and know that they want to take control of their own destiny but need a little bit of help.”

2. What are you willing to invest financially?

Launching your own business often requires little to no capital, especially if you start small. But many popular franchises demand lots of upfront capital and collateral—sometimes up to millions of dollars—from a prospective franchisee before offering a contract. These “working capital reserves,” as they’re called, are often required by franchisors so that they will feel comfortable that a franchisee can stay in business until he or she reaches the financial break-even point.

In the case of Cheung, he invested between $100,000 and $150,000 to open his first store, including upfront franchise fees. “That was a main reason why we chose Doc Popcorn—the low entry point.” Every other franchise he looked at was going to cost from $200,000 to $250,000 to start, he says.

Still, some franchises are willing to lend a helping financial hand. “My wife and I funded the store on our own, but I know that Doc Popcorn has third-party connections to help with funding,” says Cheung.

To learn more, check out our previous article on franchise startup costs.
3. Can you back someone else’s product?

While there’s definitely something to be said for creating your own business, many entrepreneurs are proud to peddle a franchise’s products. “The only reason we signed with Doc Popcorn is because of the product and what it represents,” says Cheung. “Of course, trying to make money is always a goal for all business owners but you have to believe in the product.”

For Bennett, however, launching The Greene Grape was an opportunity to express herself and act on her vision of a perfect wine shop. “At the time I opened my first wine store, there wasn’t really a franchise that focused on handcrafted, affordable wine,” she says. “My twist on a regular wine store was part of the creative process.”

4. How much say would you like in the business?

“The advantages to running your own business are mostly in creative control,” says Bennett. “I can market the way I want, my store can have a personality that reflects who we are. This means a lot more work, of course, but at the end of the day I can step back and be proud of how the store is presented.”

That’s not to suggest that franchisees don’t have any input. Rather, Miller explains, “As you become successful in a franchise system, there are opportunities for you to work collaboratively and to develop new products and services.”

5. How long can you wait to break even?

According to Miller, “the support given by a franchise in the beginning in terms of brand recognition means that you might have a quicker start in terms of sales. Educating the consumer for a new business definitely takes more time. Depending on how a franchise agreement is structured, that could mean breaking even for the franchisee earlier.”

Still, if the substantial franchise buy-in requirements are too steep, taking the franchise route (and its more desirable, early break-even point) may not be a realistic option for many budding entrepreneurs. Instead, they may have no other option but to launch on their own, either diving into entrepreneurship full-time and striving for a quick rise in profits or running a side or part-time venture for a longer period of time, until the business proves it can stand on its own.

November 8, 2011 Today's Business, , , , , , , , , , , 3 Read more >

My Way or the Buy-Way? Should you start your business from scratch or buy a franchise?

Cary Cheung wakes up at 4:30 a.m. every morning to run a business that requires him to pay a fee. He doesn’t own it outright, and it doesn’t even bear his name. And yet he couldn’t be happier.

That’s because Cheung is a franchise owner of Doc Popcorn, a maker of flavored popcorn that uses a variety of organic and all-natural ingredients. In fact, Cheung abandoned his career as an assistant vice-president at WaMu Investments to become Doc Popcorn’s very first franchisee in November 2009. And just a few weeks ago, Cheung and his wife, Judy, opened their second Doc Popcorn location in California.

Pull-Quote-Tall.pngThe Cheungs aren’t alone. According to the International Franchise Association, approximately 4 percent of all businesses in the United States are franchisee-worked. And the consultancy Franchise Marketing Systems says that franchising is a business model that generates more than $1 trillion in U.S. sales annually across more than 70 industries. Franchised businesses ran 767,483 establishments in the United States through 2008, including establishments owned by both franchisees and franchisors.

But while running a franchise business can be both professionally attractive and personally satisfying, not everyone is cut out for the task. Just ask Amy Bennett, owner of The Greene Grape, a Brooklyn, New York-based seller of fine food and wine. The choice was obvious to Bennett: “Part of opening my own business rather than a franchise was for it to be a creative outlet for me. I wanted something I could contribute to meaningfully.” Add that desire for creativity to the many negatives associated with franchising, such as royalty fees, restrictive licenses, meddlesome franchising authorities, and a lack of ownership, and it is easy to see why many are dissuaded from signing up to become a party to a franchise.

For many others, of course, those negatives are more than outweighed by the many benefits of running a business associated with an established brand and backed by the marketing muscle and support of a large corporation. So how do you know if you’re best suited to run a franchise or if you should strike out on your own? Answering these five questions can get you a step closer to the right answer.

1. How much legwork are you willing to do?

“When you invest in a franchise, you’re getting the brand name of the franchisor, the operating system, a proven track record, not to mention ongoing support, education and training,” says Brian Miller, president of The Entrepreneur’s Source, a business ownership consultancy in Connecticut. “If you started out running your own business, however, you really wouldn’t have anybody to rely on.”

That kind of pre-existing structure was precisely why the Cheungs opted to run a franchise. “My parents owned their own restaurant so I saw the struggles they had starting off and all those lessons they had to learn,” he says. “The attraction of a franchise is the system is created for you.”

“There are very few people who are true entrepreneurs and who can really go out and make a business their own,” says Miller. “But there are a lot of people who have that passion and fire in their belly and know that they want to take control of their own destiny but need a little bit of help.”

2. What are you willing to invest financially?

Launching your own business often requires little to no capital, especially if you start small. But many popular franchises demand lots of upfront capital and collateral—sometimes up to millions of dollars—from a prospective franchisee before offering a contract. These “working capital reserves,” as they’re called, are often required by franchisors so that they will feel comfortable that a franchisee can stay in business until he or she reaches the financial break-even point.

In the case of Cheung, he invested between $100,000 and $150,000 to open his first store, including upfront franchise fees. “That was a main reason why we chose Doc Popcorn—the low entry point.” Every other franchise he looked at was going to cost from $200,000 to $250,000 to start, he says.

Still, some franchises are willing to lend a helping financial hand. “My wife and I funded the store on our own, but I know that Doc Popcorn has third-party connections to help with funding,” says Cheung.

To learn more, check out our previous article on franchise startup costs.
3. Can you back someone else’s product?

While there’s definitely something to be said for creating your own business, many entrepreneurs are proud to peddle a franchise’s products. “The only reason we signed with Doc Popcorn is because of the product and what it represents,” says Cheung. “Of course, trying to make money is always a goal for all business owners but you have to believe in the product.”

For Bennett, however, launching The Greene Grape was an opportunity to express herself and act on her vision of a perfect wine shop. “At the time I opened my first wine store, there wasn’t really a franchise that focused on handcrafted, affordable wine,” she says. “My twist on a regular wine store was part of the creative process.”

4. How much say would you like in the business?

“The advantages to running your own business are mostly in creative control,” says Bennett. “I can market the way I want, my store can have a personality that reflects who we are. This means a lot more work, of course, but at the end of the day I can step back and be proud of how the store is presented.”

That’s not to suggest that franchisees don’t have any input. Rather, Miller explains, “As you become successful in a franchise system, there are opportunities for you to work collaboratively and to develop new products and services.”

5. How long can you wait to break even?

According to Miller, “the support given by a franchise in the beginning in terms of brand recognition means that you might have a quicker start in terms of sales. Educating the consumer for a new business definitely takes more time. Depending on how a franchise agreement is structured, that could mean breaking even for the franchisee earlier.”

Still, if the substantial franchise buy-in requirements are too steep, taking the franchise route (and its more desirable, early break-even point) may not be a realistic option for many budding entrepreneurs. Instead, they may have no other option but to launch on their own, either diving into entrepreneurship full-time and striving for a quick rise in profits or running a side or part-time venture for a longer period of time, until the business proves it can stand on its own.

November 4, 2011 Today's Business, , , , , , , , , , , 49 Read more >

The New Face of Incubators: A Faster, More Focused Road to Small Business Success

Organizations that help launch successful start-ups were hot during the dot-com era when there were tens of thousands worldwide, according to statistics from the National Business Incubation Association (NBIA). Since the dot-com bubble burst in 2000, the number of business incubators has dropped to 7,000 globally and 1,400 in North America. However, they still serve more than 27,000 companies and are responsible for more than $17 billion in annual revenues (also in North America).

Following the economic downturn, there are small business incubators that are hoping to fill the gaps created by widespread job losses with local film and video production companies, design firms and other creative-sector industries. These types of incubators typically offer small businesses the access needed for resources, ranging from strategic business counseling to development support.

How to Start

evergreen industry.pngIf you are a new or start-up small business seeking incubator support, you need to prepare a detailed business plan a comprehensive start-up marketing plan and assemble a qualified staff. These employees should include a CEO, CFO, IT Director, and marketing and sales directors, as well as experienced external resources in areas such as accounting and legal counsel.

Industries of particular interest to incubators are green tech, clean tech and alternative energy. While the technology sector remains the focus of 39 percent of incubators, evergreen industries such as food and the arts can still find a receptive audience.

The Details

In the dot-com heyday, only some incubators took an equity stake in the companies they developed. Typically, incubator services focus more on “acceleration” –helping find senior leadership, securing venture capital, structuring financial plans and building a board of directors – and, in exchange, seek as much as a 70 percent stake. Additionally, they provide client assistance with such basic but time-consuming services such as marketing, sales, IT, finance and administrative staff development. There are more than 1,200 U.S. business incubators housing tens of thousands of entrepreneurial companies that help startups of all stripes take root, providing resources to turn them into thriving, growing companies. Not bad for an industry that saw such a tremendous decline following the dot-com bust.

September 26, 2011 Today's Business, , , , , 6 Read more >