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Tag: entrepreneurship

Essential Tips for Starting a Business: How to Ensure Longevity and Sustained Growth

Launching a business is an exciting step for many entrepreneurs. It’s the result of years of planning and, if you play your cards right, can put you on the path towards financial freedom and generational wealth. 

However, data collected by the Colorado Secretary of State shows that 175,650 new businesses started in the state in 2022 — many of which are doomed to fail due to unseen challenges. 

Defy the odds and start a successful business by accounting for these challenges before it’s too late. Even a little planning and preparation can help you dodge issues like lawsuits, financial mismanagement, and low customer retention. 

READ: Top Tips for New Business Owners to Empower and Guide Their Teams to Success

Finances to adapt

Many firms start life with the goal of solving a common problem amongst consumers. This is a noble, profitable goal as most customers will pay a premium for a product or service that makes life easier. However, the problems that you seek to solve won’t be around forever — particularly if you’re operating in a field like marketing or technology. Eventually, a bigger business will enter the market and shut the door that your firm worked so hard to open. 

Secure your firm’s long-term by starting a financially sound, innovative business. Innovative small businesses are stronger than their competitors and more profitable in the long run. They set aside capital for experimentation and have a strong enough credit profile to strike up fresh funds should they need to suddenly pivot towards a new product. 

Protect your personal and business credit profile during the early stages of your entrepreneurial career. Build up your trade accounts with vendors and use business credit cards to build your score and improve your ability to raise fresh capital should you ever need it. 

Data protection 

The global average data breach costs a business $4.45 million — that’s more than enough to sink most small businesses. However, few new business owners take time to ensure that their customer’s private data is kept safe from prying eyes. 

You can protect commonly stolen types of data, like account log-ins, by taking cybersecurity seriously from day one. Use two-factor authentication on all work devices and log on to a VPN whenever you’re handling sensitive information. If you collect private financial data, be sure to use encryption programs that will protect you against malicious actors. 

As your firm grows, consider bringing on a team of cybersecurity experts or outsource your cybersecurity to a trusted team. This will minimize the risk of lengthy, expensive lawsuits and focus your efforts on building your brand. 

READ: Ensuring Business Survival — The Vital Role of Cybersecurity for Small Businesses

Customer retention

New businesses are almost always well-received at launch — but how do you plan to keep folks coming back after their first purchase? 

Improve your chances of securing long-term success by tracking the customer experience. If you run a business from a physical location, survey the folks who come into your store. If you primarily sell your wares on the web, use key data points like bounce rate and engagement to determine whether or not customers really resonate with your branding. 

Use the insights you gather to give your next marketing campaign a clear direction.

If, for example, folks say that they like your product but can find similar wares at a lower price, you should probably run a campaign that highlights the superior quality of your product. This will help customers understand your brand while you build a loyal consumer base amongst folks who are willing to pay for the finer things in life. 

The bottom line

Starting a business requires plenty of planning and preparation. Put yourself in the best position to succeed by increasing your working capital and improving your credit score. This will help you raise funds when you need to pivot and can protect you should you ever face a data breach. As your firm grows, be sure to reinvest your profits into things like customer retention, as this will secure the long-term profitability of your firm. 

 

Indiana Lee Bio PictureIndiana Lee is a writer, reader, and jigsaw puzzle enthusiast from the Pacific Northwest. An expert on business operations, leadership, marketing, and lifestyle, you can connect with her on LinkedIn.

Managing Stress as an Entrepreneur: How Stress Can Impact Your Work, and How to Regain Control

If you’re an entrepreneur working to get your business off the ground and you’re experiencing headaches or you’re constantly tired, you’re likely experiencing stress. Everyone manifests stress in different ways, but if you don’t control it, it could make building your business much harder. Let’s talk about how stress can impact your work as an entrepreneur and how to regain control.

READ: From Employee to Entrepreneur — Top Tips for Making a Successful Switch 

Stress affects your physical health

One of the most obvious ways that anxiety can hurt you as an entrepreneur is through physical pain. If you start to notice obvious signs of stress, like headaches, insomnia and stomach pain, look at your workload and determine if you’re overdoing it. 

There are also some less obvious physical signs you may experience, like teeth-grinding, which can lead to more significant oral health issues. If you’re getting so stressed that you’re causing yourself harm, then set healthy boundaries and strict working hours so you don’t push yourself so far.

Stress affects your work performance

Stress can also affect your mental health because when you’re not getting enough sleep, or you form bad habits like drinking alcohol, then you could lack the concentration that you need to create your brand. You might also try to overcome the stress by working harder and longer hours and getting caught up in hustle culture. 

You need to know when to stop and take a break. Failure to do so could result in burnout. When you’re tired and burned out, your work can suffer because you’re more prone to make mistakes, and you may even get so exhausted that you give up on your business.

READ: Avoiding Founder Burnout — A Guide on Fighting Hustle Culture for Entrepreneurs

If you’re working excessively long hours, you’re probably also losing sleep, and the effects of sleep deprivation can be catastrophic for your life as an entrepreneur. The function of sleep is to rest your brain so you can take on the new day. When you don’t sleep, you wake up with limited cognitive function. That means you may have trouble thinking, learning and remembering important information. 

When you sleep, you also rest your eyes, and if you’re not allowing yourself seven to nine hours of shut-eye, you could experience vision-related ailments like blurry vision and eyelid twitches. These are unhealthy distractions you don’t want to experience when trying to concentrate on your business. 

Stress affects problem-solving 

Your problem-solving skills could also be under attack. In a recent study, two groups were asked to complete tasks testing their verbal problem-solving skills. One group had additional stress while the other didn’t. The result was that the stress affected the participants in different ways. The stress did not phase some participants, but researchers did see that the stress affected the functional connectivity of others in the survey. The point is that sometimes stress can keep you on your toes. But you don’t want to be stressed all of the time.

READ: 7 Ways to Reduce Workplace Stress in the World of Finance

Stress affects your relationships

Anxiety can also affect your personal relationships with customers and business partners. Psychologists have found that stress can make you feel more withdrawn and distracted. That’s not how you want to be, especially if you sell to and deal with customers all day. Stress can also make you much less patient than you typically are. Patience is often required during the primary stages of starting a new company, so don’t let stress rob you of that quality.

Get control of your stress

If you feel like stress is taking over your entrepreneurial journey, then you need to manage your anxiety right now. You can try many strategies, from taking time to laugh to breathing exercises. You also need to try to seek joy when you can. Think about how lucky you are to be an entrepreneur who can start your own business, and the excitement could trump your anxiety.

When DIY stress reduction techniques aren’t working, you may need professional help. In 2021, Denver Psychologist Terri Finney began offering free therapy sessions to small business owners in Colorado, and she saw positive results. During the sessions, the business owners talked with her and each other and realized the stressors they faced and the methods to try to get over them. If you think a session like this might benefit you, research resources in your area.

Stress can affect you and your company in many ways. By recognizing the risks, you can avoid them and continue on your journey to business success.

 

Indiana Lee Bio PictureIndiana Lee is a writer, reader, and jigsaw puzzle enthusiast from the Pacific Northwest. An expert on business operations, leadership, marketing, and lifestyle, you can connect with her on LinkedIn.

From Employee to Entrepreneur: Top Tips for Making a Successful Switch 

In 2018, I was diagnosed with PTSD after working in a highly demanding corporate job setting for the majority of my career.  It was then that I decided to leave corporate America and become an entrepreneur in the health and wellness space. Although this decision was crucial for my well-being in the long run, transitioning from the corporate world was not without many trials and tribulations.

Transitioning from corporate life to entrepreneurship is a big change, both mentally and emotionally, and it can be tough to adjust to a new way of life. But there are some things you can do to make the transition smoother, help ensure your long-term mental health and run a successful business. Here are some top tips for successfully making the switch.

READ — Avoiding Founder Burnout: A Guide on Fighting Hustle Culture for Entrepreneurs

Know When the Time is Right

First, it’s important to take some time to reflect on why you’re making the switch. Are you looking for more creative freedom? More control over your work-life balance? Or are you simply tired of the high-pressure environment of corporate America? Whatever your reasons, it’s important to be clear about them before you make the transition. This will help you stay focused and motivated when things get tough.

Ensure Financial Stability

Before starting any new business, the first step is always to consult your personal finances. After all, a business is a huge investment, and you want to make sure you’re in a good position to take on the project. Even the smallest business will require a sizable initial investment, and most new businesses take months (if not years) to start making a profit.

Unfortunately, this is often where people get tripped up. They get caught up in the excitement of starting a new venture and forget to do their financial due diligence. As a result, they find themselves in over their heads and quickly sink into debt. In Colorado, you’ll also need to register with the IRS to get an Employer Identification Number for separate banking. So, if you’re thinking about starting a new business, be sure to take a long, hard look at your personal finances first. It might not be the most exciting part of starting a new venture, but it’s definitely the most important.

Make a Plan

Now that you’ve determined financial stability, a successful career transition requires careful planning and execution. Before making any drastic changes, take the time to assess your goals and develop a solid plan of action. Define what you want to achieve and identify the steps needed to get there. Research your new industry or field and make sure you have the necessary skills and experience. If possible, connect with professionals who are already working in your desired field. They can provide valuable insights and guidance as you make the transition.

READ — A Guide to Modern-Day mentorship

In Colorado, there is no general business license or permit required, but depending on your business, you may need a special license to operate legally. In addition, don’t forget to register your business with the Secretary of State and find insurance from a local provider. Once you have a clear plan in place, you’ll be well on your way to a successful career change.

Remember Why You Made the Transition 

Finally, don’t underestimate the importance of mental health during this time. The transition from corporate life to entrepreneurship can be stressful, so it’s important to take care of yourself both mentally and physically–which is likely why you made this transition in the first place. Make sure you’re getting enough sleep, eating healthy meals, and exercising regularly. And if you start to feel overwhelmed or find yourself struggling to cope, don’t hesitate to reach out for help from a mental health professional.

READ — Top 5 Ways You Can Support Mental Health in the Workplace

Making the switch from employee to entrepreneur can be scary but it is also incredibly exhilarating and liberating. It’s important to make sure you are transitioning for the right reasons and that you have your finances in order before taking the leap. Once you’ve decided to become an entrepreneur, craft a plan and stick to it while keeping your mental health at the forefront of your mind. The challenges you will face as an entrepreneur will test you in ways you never thought possible but they are so worth it when you get to see your business succeed–and feel happy while doing it. 

 

Jennifer TierneyHaving worked in operational management for 15+ years, Jennifer Tierney, COO at Full Velocity Consulting, possesses a distinct skill set and is known for complex analysis of operations, finance, and technology to improve core business strategies. Jen is also the founder and CEO of Parker Neurofeedback, a Colorado-based Neurotherapy office and provider. She believes in using technological advances to improve daily functions, along with overall company direction and growth. She is trained in project management and process improvements having participated in several Six Sigma projects and is an adjunct professor at Red Rocks College.

Why you should consider co-employment for your small business

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Venturing into entrepreneurship is not an easy feat. You get to be occupied most of the time with making sure everything is going on well till you are able to find suitable hands to pass over some duties to.

Getting your business registered to begin operations is one thing, but making sure it is a going concern is the real deal. Investing a lot of money into it at the initial stage is a necessity.

So you will want to cut off any unnecessary spending that could harm your business. You will also be thinking of how to reduce costs and share some of your responsibilities. This is where co-employment comes in.

What co-employment is all about 

Co-employment is a relationship between two or more employers where all the employers have legal rights to the same employee. Having a working relationship with another co-employer as a small business owner can help alleviate the workload.

To further nurture this working relationship you can even think of fun activities, such as team building scavenger hunts or simply going out for a coffee.   

When talking about co-employment, you can’t do without mentioning Professional Employer Organizations (PEOs). PEOs enter into co-employment relationships with small businesses to help reduce their liability.  

Reduction of liability 

Since a co-employer usually takes over the client’s employment and administrative tasks, a PEO which is the co-employer will share in this liability as well.

What is in it for them is that they get to enjoy the benefits of the HR infrastructure usually found in larger businesses or organizations.

Co-employment is largely practiced in countries like Canada, India, and Singapore. Canada PEO services are readily available to small business owners in Canada.

Depending on your location and budget, you can co-employ with any Canada PEO of your choice if you are set up there.

Let us see other reasons why you should practice co-employment as a small business owner. 

Reduction in benefit costs 

 As a small business owner, partnering with a PEO service will help you save cash on major expenses like healthcare since they will provide more and better options than you will have available to you.

If you have a large employee base, a PEO may not work for you, in such cases, you can use digital tools such as an Applicant Tracking System that helps with the hiring process.

However, for a small business, PEOs can help you cut off about $2,500 out of every $6,400 which is the average cost of an employer’s healthcare plan contribution per employee.

So if you employ say 20 members of staff, your PEO will be able to shave about $50,000 off your contribution.  

Taxes and payroll are taken care of 

Starting a small business requires a lot of effort to make sure the business thrives. While trying to achieve this, you definitely don’t want to be known for breaking tax laws as it can potentially damage your company’s early reputation.

Unless you are an accountant, chances are that you may not know anything about the tax laws. You have a choice to hire a professional accountant to help you fix this, develop software outsourcing, or you can co-employ with the right PEO that can help you take care of employees’ taxes.

The PEOs will handle not just your yearly salary, but also provide payroll services and deduct the correct taxes from each employee’s wages each pay period.  

Workers’ compensation and unemployment are managed 

Once you get your small business registered, you have to pay unemployment and compensation costs. You will also be required to have workers’ compensation insurance.

The amount involved depends on the state you are resident in. Your company will get fined if you do not pay the exact amount you are billed let alone not paying at all.

A PEO will know exactly how much you are to pay and even help you verify that you are paying the exact amount.

In cases of business travel, you also need to make sure that everything is covered and your workers obtained the necessary documents, such as passports or even an international driving permit.  

Final Word 

If you are a small business owner, you would have known that you get to spend a lot in the initial stages, at least till your business starts giving back to you.

Another problem you will be faced with will be how to manage your time because you will have too many things to handle at the same time.

Working with a PEO will take away most of the burden of running a company and keep you within the state and federal laws.

If you have been having it very tough after starting up your small business, consider co-employment today.