Beginning businessmen who are inspired by the idea of the business, looking for ways to implement it, often for the implementation of the idea it requires start-up capital, which is not provided. And it starts the search for investors, and those who are weak in spirit at all refuse to implement the idea. Is it possible at all to organize a startup without a budget? On this question, there is already a reply. “! Really”
Not to be unfounded in the article are some examples from world practice, when startups were created with a zero budget, grow to companies with millions of revolutions. How is it managed?
Startup without a budget: What is most important?
Do not just say that newcomers have little chance to meet the global ideas. What dreams will remain dreams without the financial support of investors and highly professional team? But all is not as trite as it seems at first glance.
After all, there are examples of entrepreneurs who despite the lack of money, moved to his goal and achieve it. Why someone would succeed, and some do not?
Why do teams in which high expectations fall short of expectations, and someone without ties, money can bring the idea to live? Bright historical example!
Inventor Samuel Langley had a good team, have excellent communication. He worked at Harvard, he was a professor of mathematics, and he had opened the door to the most successful people who could support him.
He was given a grant of $ 50,000 from the US Department in order to invent the first flying machine in the world. His work was covered by journalists, which he always promised to the first plane.
At the same time in the state of Ohio, the Wright brothers were also trying to build an airplane. They did not have a grant, there were no relations, and they did not have to fund. They’re in the garage, which sold bicycles, gathered with his friends and invent the airplane. December 17, 1903, the Wright brothers flew the first airplane, and they changed the world.
What is the basic approach S. Langley and the Wright Brothers? Langley would pop seek to be the first brothers, in turn, would improve the world. And their friends, to help them, they were like-minded people, who also was a dream.
Moving forward to the dream depends on the motivation and belief in success!
What is the secret of a successful startup?
Simon Seneca orator in the popular show TED made the following conclusions.
- 100% of companies know what they are doing, what kind of product and services are produced.
- Some companies understand how they differ from other, what their competitive advantage.
- Companies know what they are engaged in this business. Here, there is no profit in mind, as it is only the result. Why is the original cause, a belief in something, a dream, a process engine?
What can you raise the bed in the morning? Why do you need your startup? Why does it have to fall in love? The answer to the question “Why?” is the secret key to a client’s heart!
Scientists conducted the study, and the most successful people have learned what they think, communicate, and are suitable for their work is done in a special way. What they are doing is completely different from what others are doing.
Consider the following example, if Apple has been the same as all. How would she communicate with their customers?
- We manufacture computers. They are easy to use and beautiful design! Want to buy?
This approach is basic for many manufacturing companies.
A similar example in other sectors:
- We have opened! Shop products 24 hours! Come to us!
We’re a large law firm. We serve such a prestigious client. We are waiting for you!
Such an approach is not effective.
What is the ideology of the company Apple, which brought them popularity?
“Everything we do, we believe that it brings new quality standards. We believe that it is possible to think differently. Believing this, we make our products easy to use, modern and beautiful. It so happened that we make good computers, iPads, iPhones. ”
The very first buyers of these products first to believe what they believe.
Believing ideology of the company, that it is changing the world for the best products to buy for the big money, despite more cheap analogs of competitors!
Another example is the first MP3 player was released a Singaporean company with name Krietiv Technology 5GB3MP, but it was not popular. After 21 months, Apple released the iPod player with the name “100 favorite songs in your pocket”, which is loved by all. You see the difference in the supply of goods?
When we tell what we do, what we produce – it should not force people to buy our product. How do we make customers loyal for many years? The demand for the product cannot be maintained only at the expense of giving permanent discounts.
You need something that will allow customers to become like-minded with the manufacturer. And this can be done only if the broadcast ideas which themselves believe.
What is the target audience to attract?
Why is it important to find buyers? Because they are the engine in the formation of new demand!
There is well-established rule for the development of demand. Entering the market of the product consists of several stages:
- 5% of customers who will buy the first product is the innovators;
- 5% of early adopters;
- 34% before the majority;
- 34% later than most
- 16% of laggards.
The very first customers of the new product with the purchase rely on intuition and experience of the product; they will be the engine for further sales through “word of mouth”. We need to find customers who will believe in what you are doing.
How to create a team of professionals with no money?
By selecting people in the team, it is necessary to look for like-minded people who also will believe in your idea, willing to work for free until the result, and not for the sake of the salary.
A striking example was the creation of Facebook, when developers implementing partners offered instead of wage share in the company because no one knew where it could lead.
There are other non-monetary motivators, such as the creation of flexible working hours, a comfortable place of work or a chance to work remotely from home, public praise staff to arrange activities for them.
Where can I look for employees? A good way to negotiate with the higher and specialized educational institutions, where to get the trainees for practice as interns and they can be useful as a mentor in turn.
Instructions for the implementation of a startup!
- Make a plan of what you would like to achieve in the market, ie, the ultimate goal.Knowing it should be understood that it is necessary to do about this. The normal business plan is doomed to failure because it is static, not flexible. Do not attempt to adjust the development of your new idea under the old framework are any market. Write what you would like, in no way limited.
- Analyze the current situation on the market in this area. Find a niche that has the least competition. Select one as the primary.
- Make a trial consignment of goods or services, offer it to customers. We must make sure that people will want to buy it.
- Make short-term planning for the quarter. The focus needs to be done to achieve the immediate objectives.
- Officially registered with the tax authorities. Build a system of repetitive business processes.
- The output of goods and services in proportion to sales. You do not need to do big commodity stock. Minimize costs.
- Correct development of the business.
To address changing market dynamics are not easy to clean up processes. Plan short-term, while keeping the ability to make operational adjustments in the current plan.
Business franchise: A detailed analysis of the pros and cons of this business!
Modern enterprise market has a better chance of doing profitable business than ever before. A casual businessman by buying a franchise can start their own business with a guarantee of profit and with the support of development in all business areas from equipment purchases to finished marketing strategy. Franchise – is ready to a successful brand, which provides tools for development in other regions.
The market franchise service!
The business franchise is gaining momentum and is now on the market franchise service many companies, local or international companies, who provide their services for the sale of franchises. Business areas are different, with different input threshold; there is not the luxury available to the beginner as well as that do not require a potential franchise experience in this field.
In which sectors can arrange business franchise? The market offers the following industries: construction; realtor, travel services, beauty salons; clothing stores and beauty products; catering from small to large networks caffeine as McDonald’s; automotive repair services, training and educational services, laundry, cleaning and other services.
The impetus for the development of franchises has served as support for banks that offer specially designed programs to budding franchisees credit with lower interest rates.
Terms of the franchise of choice!
Directories franchises set; only how to choose one that will be able to settle down in the region and will give a good steady income.
By choosing a business franchise is approached very carefully, after checking the franchisor and system of doing business.
Criteria for evaluation of the franchise system!
In the study conditions, consider the following criteria:
How long does it market? The younger the franchise will be the riskier choice. Features of the proposed product, what are the preferential differences from others. Are there any documents Paten to the brand.
What restrictions are imposed on the franchisee? For example, it is forbidden to conduct the same type of activity to another brand. Is it profitable for you?
Operating conditions for obtaining and running the franchise:
How long is the contract?
What are one-time payments are required and which are monthly. Close initial fee and monthly royalties may differ from region to region. There should be a justification why this amount is charged as a royalty calculated as fixed rate or percentage of profits or turnover of sales, etc.
What are the conditions of premature termination of the contract? How much will a way out of the franchise system? There are onerous not favorable conditions for franchisees in the event of a system, as a business selling at a price below the market price.
It can help with the selection of premises, staff training, and assistance in the purchase of equipment. If it’s tough conditions to buy from certain suppliers, it is necessary to find out why; maybe it’s one of the ways to make money on you.
What kind of support in marketing promotion, holding a supply of advertising production of advertising companies.
What are the favorable conditions for more favorable terms? It will control by the franchisor as it will go.
To verify the work scheme and be sure to comply with the declared support of the franchise business, it is necessary to communicate with existing franchisees.
Ask around from them, pleased with the results bought the franchise. If not, find out the reasons of the enterprise unprofitable. Whether it complies with all the conditions stated in the contract for support. It is better to ask the franchise in a nearby region that has not seen you in a direct competitor. Not everyone will want to share the results of their work, but still those who talk about their results.
What are the advantages of the business franchise?
This type of business is great for beginners. If you have no experience in business, the franchise can serve as an excellent school to start their own business.
Franchise though imposes a number of restrictions on the choice of the development strategy, but it serves the insurance area of successful development. You get advice on suppliers, the organization’s processes. You combine both and entrepreneurial skills and to exercise managerial ability as a manager-manager.
The easiest way to get loans for the development of franchisees, as guarantor acts franchisor.
Different levels of barriers to entry, both for the inexperienced novice businessman, and a high threshold requiring high standards.
Here you can calculate the profit return in advance, beginners very difficult to predict the profitability of new business.
What are the disadvantages of the franchise: Who does not fit the business?
Will you be able to engage in franchising? This activity is not suitable for everyone! There is a category of entrepreneurs who develop their own business in their ideas, and they will be difficult to consistently withstand the requirements of the contract the franchisor.
You will be promoting someone else’s brand, so the top brand overall impact on your income. We’ll have to pay the franchisor a monthly share of the profits, sometimes it flows into very large sums.
Big mistake illusion aspiring entrepreneurs on the franchise that when buying it, they act as investors, and especially they do not have to invent anything. Nothing like this – this activity is business as usual, just to support, and how it can evolve and what will be the income depends only on you.