Tag Archives: Entrepreneurship

Why Starting Your Small Business from Scratch Makes Sense

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Why Starting Your Small Business from Scratch Makes Sense

For the independent-minded entrepreneur, starting a small business from scratch makes a lot of sense. Relative to buying into an existing franchise, achieve several important advantages when going it alone.

Complete Control of the Operation

Within legal parameters, you have much greater control over your successful or failure as an independent business owner. Franchisors put strict rules of operation in place for franchisees. As an independent owner, you make the rules for your company. You decide your internal policies, the products and services to sell, the prices to charge and how to promote. For entrepreneurs who desire to prove their own business model works, or that just want autonomy in operation, this advantage is important.

Control of the Brand’s Reputation

Along with control of your operation, an independent owner has complete authority over the company brand. On the downside, you do not get the value of an established franchise brand. However, you also do not suffer like a franchise owner when the brand goes sour or other owners fail to live up to standards. Control the evolution of the brand image from day one.

No Franchise Fees to Pay

Most start-up companies have costs of entry. However, you decide what to invest as an independent owner. With a franchise, you pay an upfront franchise fee as well as annual royalty fees to the franchisor. Starting from scratch saves you as much as hundreds of thousands of dollars in initial franchise expenses.

An independent owner pays for any building, equipment, inventory, supplies, licenses, services, employees and operational costs. However, you budget these expenses in accordance with your financial resources and anticipated revenue from the beginning.

Local Support

Typical consumers do not distinguish a franchised chain store from a corporate chain store. Therefore, a local business owner may not benefit from community support with a recognized brand name. Many small-town residents “buy local” as a philosophy. It is easier to garner that community support if the business has a distinct name, or one that is associated with a prominent resident.

Conclusions

A franchise setup appeals to people who want external support. For aggressive entrepreneurs who want the highest ownership control, an independent operation makes more sense. Develop your brand from scratch, generate local support and avoid franchise fees.

 

Accelerating Your Entrepreneurial Success with Networking

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Networking is the accelerant you can use to set your entrepreneurial career aflame. It can do so much for your career, from letting you meet potential mentors to helping you find contacts and opportunities for your start-up. The problem you likely share with many people is simply not knowing where to start.

1.      Approach Networking with the Right Mindset

The problem with most people is that they approach networking as work. Don’t approach networking thinking that it’s all about how many business cards you can get or hand out. Look at it as a way to develop genuine relationships with the people involved in your industry. Treat people as possible friends and not just potential assets.

Become friends with the people you meet. They are going to help take you and your business to the next level. These people deserve your respect and to be treated as more than just assets.

2.      Have a Goal

Don’t just network — network with a goal in mind. Have something you want to happen, a goal you can work towards, before you step into a networking event. Think about where you want to be in five years, where the start-up should be. Write it down. Write down what you need to get done in a year to get closer to your goals. Then write down what you need to get done in three months to get closer to your goals.

Look at each of those goals and figure out who can help you achieve them. Do you need a better accountant to help you get the resources you need? Do you need a mentor to teach you a couple of key skills that will allow you to succeed? If you’re having trouble deciding whom you need, simply figure out what you lack and who can fill that hole.

3.      Learn How to Connect with People

Knowing how to connect with people is an important skill to have as an entrepreneur. It’s not just for networking, it’s for what happens afterwards. You don’t just make a new friend and then never interact with them. Relationships are ongoing and require maintenance. You need to learn to connect and keep on connecting with the people who will help you succeed.

Ask the right questions. Asking better questions leads to better answers, which results in memorable conversations. Ask difficult questions, such as how they expect to achieve their goals considering the kind of opposition they face.

How will you know which questions to ask? Pay attention, not just to what they’re saying, but how they’re saying it. Learn more about the convention you’re attending and the industries that will be represented, so you’ll have something to contribute to the discussion.

4.      Connect People to Each Other

One of the best ways to accelerate the growth of your network as an entrepreneur is to serve as a bridge. Someday you’re going to meet someone who needs something you cannot provide — but you’ll know someone who can help. Take the time to introduce them to each other. At best, they’ll appreciate the effort and then be more inclined to help you find people who can help you solve your problems. At worst, you’ve helped out a couple of your friends. After a few months, follow-up on your connection and find out if you actually helped them.

It is important to note here that you shouldn’t keep score. Do it because you want to help out.

Networking can help you accelerate the success of your start-up and your career as an entrepreneur. It can help spread word about your business and about your skills as an entrepreneur. Talk to people. Connect people with each other. Learn how you can create and nurture relationships with others. You’ll find yourself surrounded with interesting people and your start-up going places you never thought it would.