Small businesses are such an important part of our community. They offer us unique experiences to connect with those who wish to share their passions with us in a professional but comfortable way. We fall in love with these businesses and make friendships with their owners and workers. Unfortunately, after years of being such a special part of our communities, we may see these establishments close. In many cases, small business closures are due to a lack of resources, support, or financial stability.
With unlimited access to resources and information, learning better ways to operate your business is right at your fingertips. This article will share the Do's and Don’ts of raising money for your small business. While you may find yourself focused on the "Do’s", be mindful that knowing the “Don’ts” is just as important, as they can often save you the hassle associated with taking unnecessary steps.
2. Don’t Sign A Traditional Lease For An Individual Location
While it is important to remain excited and motivated to succeed, it's equally as important to be practical and aware of what's ahead. Remember that you are aiming for long-term success, you want to build endurance and you do that by taking smart strategic steps. According to the writers at Bond Collective, signing a lease at an individual location raises your overhead costs for things like cleaning, utilities, furnishing, and additional fines and fees. Opting for community workspaces such as those that A\Places provides, is a great way to secure a home for your business while also minimizing startup costs and focusing on the growth of your business. These locations also provide opportunities for you to foster key relationships with other entrepreneurs and establish a strong community. In these spaces, everyone works together to create a thriving business hub that benefits everyone. A\Places offers top-notch locations, additional services that can enhance your business, and more.
3. Don’t Spend Your Earnings Just Yet!
When you start making money and you feel the urge to spend - don’t! The first priority should always be to 'save your earnings, before splurging'. This is a great habit to form on a personal and business level because a hefty savings is crucial for those rainy days. Rainy days will come in your business and bills still need to be paid. If your business can’t survive several months of low revenue, you should save more than you spend. This does not mean you should never spend, but this mindset helps you stay focused on spending on the vital things that keep your business going, first.
When writing a business plan, we generally write down the model of how our business will function, what product or services we will offer, pricing, and some basic steps on how to get started. These are all very key to a successful business plan, but your plan is not complete until you create a section for short-term goals. Short-term goals are actually more important than long-term goals. This applies to almost every area of life. Think about it - when you're watching a child grow, of course, the long-term goal is for them to be independent and active, but the more important short-term goals are to help them first learn how to walk, then run, and giving them smaller steps toward independence. If you're too focused on the long-term goals you will miss many key lessons that come in the journey toward accomplishing those short-term goals! Start off by writing what your business goals are for the first six months to one-year, detailed steps on how will you achieve them, and how you'll prepare your own mind for the hard work ahead. Focus on accomplishing those goals and correcting, perfecting, and growing your business within those first months. You want to create a solid foundation and a reputable name for your business.
2. Consider Your Nest of Support!
It's normal for an entrepreneur to fund their business from their own money and from the customers and clients that support their business, but it is also important to consider your nest of support. Your nest of support is the friends, family, Angel investors, and community members who believe in you enough to support your vision. Consider asking for a boost for your business in the form of donations, support of your products and services, or a generous investment that can help with the costs of starting and functioning your business.
3. Stay On Course When Things Get Slow
This is where those earlier tips about saving and staying close to your short-term goal list, come into use! Business does get slow, it’s a natural part of any business journey. Like the market, revenue will peak and then drop again. The goal is for each peak to get higher and higher and for each valley to serve as a setup for greater success. Stay on course, continue advertising, and invite people to support your business. Though digital media is most popular, flyers, business cards, and brochures are still valuable. Do the work to see what locations you can drop them off at. You never know who is in need of your product or service!
These tips are offered by A\Places staff. We are committed to creating a community of success and growth. We encourage business owners to add these tips to their business plans as a way to set their minds for long-term success and endurance. Subscribe to our blog posts and comment your thoughts below!
With unlimited access to resources and information, learning better ways to operate your business is right at your fingertips. This article will share the Do's and Don’ts of raising money for your small business. While you may find yourself focused on the "Do’s", be mindful that knowing the “Don’ts” is just as important, as they can often save you the hassle associated with taking unnecessary steps.
THE DON’TS
1. Don’t Take Out Big Loans at The Beginning
Assess your small business and the products and services you are providing. Be honest with yourself about the potential revenue you are likely to make, your current customer base, and the price you've set for your product or service. Taking out a huge loan at the beginning of your business journey can be risky. The truth is, we don’t know if our financial gain in the first year or two will be enough to pay back a big loan. Business Collective refers to it as “speculative debt” or debt that is too large for the money you make. They also note that it's better to seek small business loans that may be much easier for you to pay back and that are more customized for the unique circumstances of your business.2. Don’t Sign A Traditional Lease For An Individual Location
While it is important to remain excited and motivated to succeed, it's equally as important to be practical and aware of what's ahead. Remember that you are aiming for long-term success, you want to build endurance and you do that by taking smart strategic steps. According to the writers at Bond Collective, signing a lease at an individual location raises your overhead costs for things like cleaning, utilities, furnishing, and additional fines and fees. Opting for community workspaces such as those that A\Places provides, is a great way to secure a home for your business while also minimizing startup costs and focusing on the growth of your business. These locations also provide opportunities for you to foster key relationships with other entrepreneurs and establish a strong community. In these spaces, everyone works together to create a thriving business hub that benefits everyone. A\Places offers top-notch locations, additional services that can enhance your business, and more.
3. Don’t Spend Your Earnings Just Yet!
When you start making money and you feel the urge to spend - don’t! The first priority should always be to 'save your earnings, before splurging'. This is a great habit to form on a personal and business level because a hefty savings is crucial for those rainy days. Rainy days will come in your business and bills still need to be paid. If your business can’t survive several months of low revenue, you should save more than you spend. This does not mean you should never spend, but this mindset helps you stay focused on spending on the vital things that keep your business going, first.
THE DO'S
1. Make A List of Short-Term Goals!When writing a business plan, we generally write down the model of how our business will function, what product or services we will offer, pricing, and some basic steps on how to get started. These are all very key to a successful business plan, but your plan is not complete until you create a section for short-term goals. Short-term goals are actually more important than long-term goals. This applies to almost every area of life. Think about it - when you're watching a child grow, of course, the long-term goal is for them to be independent and active, but the more important short-term goals are to help them first learn how to walk, then run, and giving them smaller steps toward independence. If you're too focused on the long-term goals you will miss many key lessons that come in the journey toward accomplishing those short-term goals! Start off by writing what your business goals are for the first six months to one-year, detailed steps on how will you achieve them, and how you'll prepare your own mind for the hard work ahead. Focus on accomplishing those goals and correcting, perfecting, and growing your business within those first months. You want to create a solid foundation and a reputable name for your business.
2. Consider Your Nest of Support!
It's normal for an entrepreneur to fund their business from their own money and from the customers and clients that support their business, but it is also important to consider your nest of support. Your nest of support is the friends, family, Angel investors, and community members who believe in you enough to support your vision. Consider asking for a boost for your business in the form of donations, support of your products and services, or a generous investment that can help with the costs of starting and functioning your business.
3. Stay On Course When Things Get Slow
This is where those earlier tips about saving and staying close to your short-term goal list, come into use! Business does get slow, it’s a natural part of any business journey. Like the market, revenue will peak and then drop again. The goal is for each peak to get higher and higher and for each valley to serve as a setup for greater success. Stay on course, continue advertising, and invite people to support your business. Though digital media is most popular, flyers, business cards, and brochures are still valuable. Do the work to see what locations you can drop them off at. You never know who is in need of your product or service!
These tips are offered by A\Places staff. We are committed to creating a community of success and growth. We encourage business owners to add these tips to their business plans as a way to set their minds for long-term success and endurance. Subscribe to our blog posts and comment your thoughts below!
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