There is something about the popular saying ‘money makes the world go around’, that feels incomplete. That is not to say that money, by itself, doesn’t have a huge influence on global proceedings. But it is the constant quest in finding new ways to make money that is what keeps the globe spinning on its axis. Fresh ideas to innovate or maximize efficiency is often the backbone for any new business venture. With the key being firstly finding a business can fit in the existing marketplace then finding the unique points where profits can be made. Well the thing of it is, every single person or group of people who are willing to take the steps in order to open and operate a proper business will need the proper guidance and tools in order to initiate their plan. These tools could range from financial – with loans from friends and family, lines of credits from financial institutions or public grants to educational facilities such as professional industry trade associations or knowledge based podcasts like the Kevin Miller podcast; there are certainly avenues where a person with viable ideas could get the resources they need to begin their entrepreneurial journey. But what exactly are the different kinds of resources available for potential entrepreneurs and business owners to aid this process of starting and ultimately maintaining a business.
What Are The Resources Needed In Business?
1. The only thing harder than starting a business is keeping one going. For that there is a need for strong support systems. Obviously, there will always be fears and anxiety about attempting to either turn a passion into a product or service or capitalize on a market inefficiency. The reality of starting and owning a business involves persistence paired with hard work and a person has to be prepared to overcome many setbacks and failures. So having people or systems in place to put minds at ease is essential. Remember while chasing after a dream it should not mean that a person should isolate themselves and feel that they are all alone. Everybody is trying to create something in their life and searching for fulfillment and satisfaction. A supportive circle of friends and family should give a sense of belonging and will help the business owner find comfort. In addition, seeking help from a professional therapist is a pretty good idea. If a business owner or potential entrepreneur is feeling overwhelmed with the pressures of the often harsh industrial environment. They definitely should not hesitate in getting the help that they need. With the current realities of work from home, there are solutions to avail therapy through remote patient monitoring that exist and are convenient for all who are involved while also potentially lifesaving. Also as a business owner, one should stay focused on health. Getting a good sleep routine going could help manage stress daily. Also eating as healthy as possible is very important for a budding entrepreneur. People should ensure that their body gets all the right nutrients to function healthily and also try to do an hour, or more, of exercise each day.
2. Funding has to be the thing that most business owners, and potential entrepreneurs, obsess about – almost constantly. With good reason as that is primarily the reason why most people get into business to earn money. But before earning money, money has to be spent to set the foundation for a business. For many their personal savings is the place they can get their toe in the water of business ownership. These sources of funds could be insurance policies, real estate equity loans or early retirement funds.
- Many life insurance policies allow their owner to borrow against the cash value of the policy. This money could then be used to get the ball rolling on a select business venture.
- Similarly, home, or real estate, equity loans could be cashed out. If a business owner has an existing mortgage, it can provide funds on the difference between the value of the property and the unpaid mortgage amount. That difference could be used as a line of credit.
- There are a couple of, what are coined financial instruments, that banks have available to encourage potential entrepreneurs to keep them in mind whilst seeking financial assistance. Unfortunately, many just getting into business will not pass all the requirements banks universally need including business plans, positive financial track record and collateral. However, if an entrepreneur has the business going for a few years and sees a path for expansion. So if profit and loss statements, cash flow budgets, and net worth statements are provided, the business owner should be able to garner additional funds to take the next step.
- There are other ways to get funding for a business venture. Venture capital, angel investment, grants and initial public offering (IPO) are certainly options for the ambitious.
- Venture capital refers to funding that comes from businesses or people in the business of investing in young, privately held businesses. They are supposed to provide capital to young businesses in exchange for an ownership share of the business.
- If this is not something a business owner would want to do then there is the angel investment option. Angel investors are people and businesses that are interested in helping small businesses survive and grow. So their objective may be more than just focusing on economic returns from a new venture.
- Federal and state governments often have financial assistance in the form of grants; grants are one-way payments to businesses which are then expected to use the funds to serve some larger good, often for the direct community or industry the business is involved in.
- IPOs generally don’t happen until businesses have been in business for several years. Even after that businesses have to have profitable operations, management stability, and strong demand for their products or services in order for the best results to be attained. Lastly, friends and family might be asked to invest funds into a business venture. It may, or may not, be in the form of equity financing in which the friend or relative receives an ownership interest in the business. If money is borrowed from friends or family, it is only right that it should be done with the same formality as if it were borrowed from a bank or another existing business.
3. When getting into business, people should try to educate themselves as much as possible about, well pretty much everything. By understanding their competition and gaining an in-depth knowledge of their chosen industry, potential entrepreneurs will be better prepared to make smarter decisions regarding the direction of their businesses. This could range from articles, business courses, professional trade associations, books, videos, and podcasts. Seemingly everyday there is a new resource for people to research and learn from. Mostly due to the number of tasks that potential entrepreneurs are faced with and the financial risks associated with building a business from the ground up, any costly mistake could spell the end for a vulnerable, young startup business venture. Potential, and existing, business owners need all the advice and assistance they can get in assuring that their labor of love (and potential income) doesn’t end up another statistic. As a failed business idea and forgotten revenue generator.
4. There are also physical resources that need to be tended to as new business owners. Physical resources refer to the resources used by the business to cater for the customers and provide the service. Depending on the business, whether a small home online delivery service or a retail operation with multiple locations, every business should have the appropriate physical resources to survive. This may include but not limited to a proper work space, working telephone line, storage facility, adequate information systems, high speed internet and effective marketing materials for example. This aspect of doing business could end up costing the business owner the most. Therefore, it is important for every potential entrepreneur to realistically assess their needs before making any purchases.
5. The last, but certainly not the least important, is the human element of doing business. What should never be forgotten is that every business that has lasted has known how to solve relying on humans as a resource. Every potential entrepreneur should be aware of what would be needed by their business to have it run efficiently and effectively. Recruitment, onboarding, managing payroll, employee benefits, holiday management, training and development, employment law compliance and safety compliance are only a few of functions to be considered that would ensure that the mission and goals of a business will be carried out with competence. And that is all about the management of human resources.
Entrepreneurs across the country realize their dream of starting up a new business every day. So it is important for any aspirant to make note of the resources that are needed and make an informed decision on whether or not to keep the business world spinning on its axis by adding their unique business value to the marketplace.