You've probably heard the term Micro-Business and Small Business, but do you know the difference? Micro-business is defined as less than five employees, including self-employed. Small-business is defined as a business with revenues between $750,000 and $35.5 million between or below 100 and 1,500 employees which can vary depending on the industry. Micro businesses face numerous challenges with lack of capital being number one! Many people believe that government grants are available to start a small business, this is false information. Capital funding will most likely come from personal loans, possibly lower interest loans with help from the SBA (Small Business Administration) or Venture Capital. Let’s talk Venture Capital. What is it? Venture Capital is a type of financing that helps fund entrepreneurs and is provided from high net worth individuals (Angel Investors) and Venture Capital firms. These investors usually require a high rate of return and you can’t simply pick up the phone and make an appointment with a Venture Capitalist or an Angel Investor. Most likely you will need a direct connection to even be considered for this type of funding. Beware of business sharks! Sadly, there are organizations that promote themselves as advocates for small businesses, and these "advocates" will gladly take your money and leave you very little or nothing. Recognize that starting a business is tough. You must understand that you will, most likely, be funding your own start-up, your hours will be long, and your nerves will be strained. More than half of all new business survive five years. Avoiding some of the following pitfalls may help you survive your first five business years: Understand that you opened a business, not a charity. A business is designed to make a living and, if you can explain the benefits of your product or service, demonstrate consumer advantage and have researched your pricing, then don’t defend it and certainly don’t apologize for it. Beware of comments such as, "We need to see what kind of work you do” or “I can’t refer you unless I know what type of work you do”. Explain that you guarantee your work, but your fee’s stand. You can't expect anyone else to place value on your product or service if you don't. Charitable donations are great, but as a micro business, donations are probably not in your initial budget. It is okay to say no. Be courteous and let the asking organization know that you will certainly consider their request in the future. Business networking is vital for micro businesses; however, an individual could spend every day at a networking event and this is not productive. Networking doesn’t replace grassroots marketing. Membership fees can drain your budget quickly. Discern whether or not the memberships are a must; if not, forego them for a while.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories
All
|