10 Lessons for Every "Shoestring" Entrepreneur

Written by Isabel M. Isidro

Starting a business requires adequate capital. However, many entrepreneurs are finding that capital alone is not a guarantee for success. Some businesses start out with millions inrepparttar coffers, yet end up inrepparttar 117170 dumps. While a few businesses with shoestring budgets eventually grow to become extraordinary successes.

How can this be? Success in entrepreneurship is not necessarily a contest of havingrepparttar 117171 fattest wallets. Rather, it is an exercise of smart financial management, careful strategic planning, and yes, lots of luck. Successful entrepreneurs know how to stretch and maximize every single dollar.

Here are ten ways entrepreneurs on a tight budget can still come out a winner:

1. Set realistic goals. The first step every start-up entrepreneur must do is to determinerepparttar 117172 right scope and size of your business. Many entrepreneurs simply jump intorepparttar 117173 idea of starting a business, without understanding whatrepparttar 117174 business really entails - financial requirements, management know-how, and technological skills, human resource requirements. They eventually fall short of what they can really do. Reviewrepparttar 117175 business you have in mind and determine if it is within a range that's both attainable and desirable.

2. Plan your costs properly. A lot of entrepreneurs start a business withoutrepparttar 117176 faintest idea of whatrepparttar 117177 costs will be. They either overestimaterepparttar 117178 cost, or worse, underestimaterepparttar 117179 financial requirements needed to properly capitalizerepparttar 117180 business. This is particularly evident inrepparttar 117181 preparation of financial projections inrepparttar 117182 business plan. Some entrepreneurs prepare financial projections with numbers that don't square with other sections ofrepparttar 117183 business plan (e.g. marketing section calls for local television advertising yet budget is only $200). Some do not even include a list of assumptions to explain their numbers. From out ofrepparttar 117184 blue, they feel that their business can grow from 20% inrepparttar 117185 first year to 40% inrepparttar 117186 second year, without explaining howrepparttar 117187 increased growth can be achieved.

3. Smart financing for your business. Financing a small business is not a lock-stock-and-barrel proposition. For many entrepreneurs, there is no single source to finance their entire operation. The money provided by one source (e.g. your mom) may be enough to buy your raw materials, but you still need money for your working capital. Entrepreneurs need to look at financing asrepparttar 117188 sum ofrepparttar 117189 parts of their business: what you finance arerepparttar 117190 individual assets needed for your business. Your question should always be: "What'srepparttar 117191 best way to finance this asset usingrepparttar 117192 least upfront dollars?" The ideal financing source is one that providesrepparttar 117193 longest payback period, carryrepparttar 117194 lowest interest rates, require little or no collateral and demand no personal liability. Alas, that may be fairy tale. The next best thing is to choose what makesrepparttar 117195 best sense for you and your business, given your priorities

4. Put your money where it will bear fruit. Shoestring entrepreneurs have one common characteristic: they lack money and often struggle to raise capital for their businesses. Capital of a start-up venture goes to either of these investments: "fixed assets" (furniture, fixtures, and equipment), or "working assets" (inventory and working capital). Despiterepparttar 117196 lack of capital, many small business owners put most of their money to buying fancy equipment and chic office space - costs that a struggling start-up can do without. This is a common error in business decision-making. Successful business owners put as much money as possible intorepparttar 117197 working assets - which bears cash and sales - and as little as possible into fixed assets.

Do You Feel Overwhelmed Running A Web Business? Try This

Written by David Coyne

Do You Feel Overwhelmed Running A Web Business? Try These Techniques. by David Coyne

One thing that fascinates me about web entrepreneurs and marketers like Joe Vitale, Yanik Silver and Terry Dean is how incredibly productive they are. They seem to create a near constant stream of information products like e-books, special reports, courses, software and compact discs.

On top of that, they juggle allrepparttar daily activities required by anyone running a small business.

If you haverepparttar 117169 resources, you can hire employees or contract workers. But I think most web entrepreneurs prefer to keep their businesses as “solo operations.”

But handling everything yourself requires maximum efficiency.

I certainly have my own techniques for time management, but I asked for feedback from other entrepreneurs. Here’s some of their solutions.

”I always take about 30 minutes to an hour to look at my emails atrepparttar 117170 beginning ofrepparttar 117171 day” says Stephanie Hetu (http://www.stephaniehetu.com) “Then, after that, I try to look at my emails again only every 2 hours or so.

“When I started online I used to look at my emails every 10 minutes, this was very time consuming and counter-productive because you end up spending more time reading than actually BUILDING your business.”

However, not everybody thinks checking email first thing is a good idea.

“I always devoterepparttar 117172 first hour ofrepparttar 117173 day to revenue producing activities,” says Bill Hibbler ofrepparttar 117174 RudlReport (http://www.rudlreport.com) “I never check email or voice mail until after that hour is completed.

“If you open your email first and find a refund request or a customer with a big tech support problem, it tends to stay on your mind and distract you fromrepparttar 117175 task at hand.”


One technique I used to help to me reach maximum efficiency was to figure out when my brain was most creative.

For me, that’srepparttar 117176 morning. Duringrepparttar 117177 hours of 9 am to noon, I do most of my creative tasks, such as writing my articles, editing my ezine, working on sales copy, or coming up with new marketing ideas for my website.

My energy sags between noon and about 2:30pm. I use this time to do less mentally taxing activities. Answering email, fixing a typo on a web page or uploading pictures.

Determine when your creative energy peaks. Maybe you're more of a night owl and find this isrepparttar 117178 best time to work on projects that require creativity. Adjust your schedule accordingly.

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