This past weekend, I had the great pleasure of teaching a powerful workshop to a room full of Boss Babes at the “Meet You at Work” event, presented by Boss Babes ATX at The University of Texas at Austin (checkout Brand Your Biz for more resources).
3 MAIN POINTS I TAUGHT:
IMPORTANCE OF HAVING A STRONG BUSINESS PLAN WITH A PROFESSIONAL REVIEW
HOW TO FUND YOUR BUSINESS
HOW TO HAVE A POSITIVE CASH FLOW
Don’t worry, I got you covered in this Workshop Recap (grab a pen and paper)!
I. IMPORTANCE OF HAVING A STRONG BUSINESS PLAN WITH A PROFESSIONAL REVIEW
Have you started your business without a Business Plan?
If you have a Business Plan, did you get that Business Plan reviewed by a Business professional?
This my friend is a common mistake new business owners make when launching new brands.
You should ALWAYS create a Business Plan before starting a new brand or business, AND that Business Plan should be reviewed by a quality professional.
Before I started The Proverbs 31 Women’s Organization, I had a business mentor with over 30 years of experience review my Business Plan before starting.
My business mentor guided me through starting a business the right way.
HERE’S SOME FREE INFO:
CREATE A SIMPLE BUSINESS PLAN THROUGH: www.bizplantool.com
CREATE AN ACCOUNT (FOR FREE), USE TEMPLATE TO FILL OUT SECTIONS FOR BUSINESS PLAN, & DOWNLOAD PLAN TO YOUR COMPUTER
III. FUNDING YOUR BUSINESS
There are 3 main ways you can fund your business.
1. SMALL BUSINESS LOAN
SMALL BUSINESS LOAN PROS:
DO NOT HAVE TO WAIT ON PERSONAL FUNDING TO SUPPORT IDEA; CAN RECEIVE FUNDING HELP FROM LOAN COMPANIES LIKE UPSTART, OR BANK INSTITUTE
SMALL BUSINESS LOAN CONS:
HAVE TO PAY MONEY BORROWED BACK WITH INTEREST (CALCULATED BASED ON CREDIT SCORE AND FINANCIAL HISTORY); MUST ENSURE BUSINESS WILL BE PROFITABLE IN ORDER TO PAY BACK LOAN MONEY BORROWED FROM FINANCIAL INSTITUTE, OR HAVE MONEY SAVED TO PAY BACK LOAN
Have you ever applied for a business loan?
Based off personal experience, and testimonies from my clients and students, be very sure you can pay back a business loan before applying.
Never apply for a business loan when desperate. You will make an impulsive decision based on fear and not reason.
2. CROWD SURFING
CROWD SURFING PROS:
FRIENDS & FAMILY CAN SUPPORT ONLINE AND SHARE WITH PLATFORMS LIKE GO FUND ME, FACEBOOK FUNDRAISERS, AND KICKSTARTER; MONEY RAISED THAT YOU DON’T HAVE TO PAY BACK; ONLINE SHARING TO MULTIPLE NETWORKS EASY TO SET UP, FREE TO CREATE
CROWD SURFING CONS:
DEPENDENT UPON INDIVIDUALS HEART TO GIVE; SOME PLATFORMS HAVE FEES TAKEN OUT OF MONEY RAISED
I’ve used crowd surfing techniques and some of the platforms mentioned, and from my personal experience, this is a great option for new and exciting businesses that the consumer would find interesting and willing to support (i.e. businesses that support the community or go to a good cause, new technology companies, etc.).
3. PERSONAL FUNDING
PERSONAL FUNDING PROS:
DON’T HAVE TO WORRY ABOUT PAYING BACK MORE MONEY THAN BORROWED LIKE WITH LOANS; DON’T HAVE TO DEPEND ON OTHER PEOPLE TO SUPPORT DREAM
PERSONAL FUNDING CONS:
PERSONALLY LIABLE FOR MONEY SPENT; SOLE RESPONSIBILITY OF INDIVIDUAL TO HAVE MONEY NEEDED FOR BUSINESS
If you choose to use your personal financing to support your business, be sure to have a re-payment plan built in to pay yourself back the money you invested! Treat yourself like a financial institution.
III. HOW TO HAVE A POSITIVE CASH FLOW
When starting a business, your budget, financial plan and marketing plan will be the most important sections of your Business Plan you will want to pay attention to.
Fail on planning in any one of these categories, and your business could suffer major loss.
Trust me, most of my one-on-one client sessions deal with these 3 main categories.
ENSURE YOUR PRODUCT/SERVICE IS SOLVING A COMMON OR SPECIALIZED PROBLEM FOR THE TARGET CONSUMER
PROVE A CURRENT DEMAND OR COMMON REQUEST EXISTS FOR YOUR PRODUCT/SERVICE BEFORE LAUNCHING INTO MARKET
ADD THE PROPER PROFIT MARGIN & MARKUP COSTS TO PRODUCT/SERVICE RETAIL PRICE TO COVER PRODUCTION EXPENSES
IV. MAIN WORKSHOP TAKEAWAYS
I love teaching and training women on all things Branding, Business and Marketing (join my membership group for aspiring female entreprenuers and business owners).
For you, the there are 5 main takeaways I want you to take and write down from the information provided in this Workshop Recap:
- ALWAYS CREATE A BUSINESS PLAN BEFORE STARTING A BUSINESS
- HAVE YOUR BUSINESS PLAN REVIEWED BY A BUSINESS PROFESSIONAL
- RESEARCH & KNOW IN ADVANCE HOW YOU’RE GOING TO FUND YOUR BUSINESS
- HAVE A SOLID BUDGET THAT INCLUDES ALL BUSINESS EXPENSES & EARNINGS PROJECTIONS
- ALWAYS THINK PROFIT OVER REVENUE
I hope you found this Blog Post extremely helpful!
Leave a comment down below, and be sure to follow along with me on Instagram @crystalngumezi for all my behind the scenes footage.
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