Do startups need to raise money to be successful in business?

post3

Many startups think that they should raise money for their business. Though some businesses have been successful in doing so, it is not necessary to raise money. It might seem to be a very lucrative option at the beginning, but you will suffer a lot later. Here are the reasons why.

Expensive over the long-run

If you are in the early stage of your business and is not earning much profit yet, then the fund you raise will be your most expensive cash that you will buy. If you are not earning much money yet, then you are at a higher risk and so the venture capitalists will want a bigger stake for their support.

Having a vision

You need to have a vision. Come up with a five year’s vision and see whether you need that money to achieve your goals. If you don’t need it, you shouldn’t take it. If you really need money then there are other options than depending on equity financing. For example, you can go for debt financing.

Generating revenue

Instead of thinking about raising funds, think of raising your revenue. Think of ways to sell your products or services. Increase your pricing and upsell to consumers.

Once you get more money for your business, your expenditure increases disproportionately to your income. But you don’t feel like cutting on the costs, so you borrow more money and the cycle continues. Cash is addictive. Once you start getting it easily, it’s very difficult to stop.

info

5 tips on how to find the perfect co-founder

post2

Finding the perfect co-founder is like finding a needle in a haystack. You should be patient and look intelligently for a perfect match. Here are some tips on how to find the perfect co-founder.

#1 Proven Track Record

Don’t start interviewing people unless you look at their proven track records. For example, a programmer may tell you that he or she can build a platform. But in reality, probably they haven’t coded for years!

#2 Self-Awareness

Be honest with yourself. A good business owner recognizes his or her weaknesses and tries to develop a team around those weaknesses. They also don’t hesitate to bring in people who are better than them.

#3 Setting Expectations

You should note down your expectations in writing. For example, how long will the team member try before giving up? When will they quit their full time jobs? This will be a document which will show whether all promises made have been kept or not.

#4 Risk Approach

You must understand one another risk profiles. Risk profiles vary between one person and another. For example, one person may be comfortable without six months salary, whereas, the other may be comfortable without a year’s salary.

#5 Personality

You should understand the type of personality of the person. You shouldn’t have similar people in your team. That way, there will be less creativity. It is better to have different people in a group.

You must consider these factors when choosing a co-founder. Remember, you are going to have a long term relationship with your co-founder. So, trust is very important. Look for someone honest and reliable.

4 businesses you can start in college

post1

Facebook, Napster, Dell and Microsoft were all formed by college students. So, it is possible to start business while you are in college. The major concern that college students have is capital. But there are businesses that need very less capital and doesn’t need office space as well. If you start business in college, then you can build up a good network and also start earning to cover your college tuitions. Here are some businesses that you can easily start in college.

#1 Information technology (IT) consulting

1

College students have fresh skills and know about new technologies that can help you start an IT consulting business.

If you don’t find the confidence to start the business right away, you can start helping students who have less knowledge on IT.

By doing so, you will soon have the courage to start an IT consulting firm.

#2 Social media consulting

2

College students know about the latest social media trends.

You can advise companies to use social media strategy in their businesses.

You can help them to market their products or services on Facebook, Twitter and other social media.

#3 Event planning

3

College students usually attend lots of parties. You can put your experience in use by starting an event planning business.

Event planning requires creativity, attention to detail, organization and ability to handle multiple tasks at a time.

College students are fresh, creative and hard working. You can start by organizing club events or college functions.

#4 Cleaning services

4

You can have flexible hours in cleaning business and you don’t need an office.

You can purchase the equipment from local grocery store.

You can offer cleaning services for a sorority house after a big game, for example.

Even if the business is started by a student, the business has rewards and risks. You must have insurance protection. College business is a great way to earn money and to find a direction for your career.