Social Good: One of Three Elements For Startup Success
So you’re ready to quit your job and start a business. That’s exciting. Just remember, the reason we see business ownership as a path to success is because a big percentage of those who started a business and lost it all are somewhere working a job. The rest succeeded. And that’s who we aspire to be.
The good news, there are three essentials most successful entrepreneurs have in place when they start. They are:
1. Money, Money, Money — For Six Months. Depending on product or service, it could take months before you break even or turn a profit. However, experts agree that six months is a good starting point. To make certain you’re using your funds wisely, develop a personal and business budget and stick to it.
Start by listing potential expenses and do your best to negotiate payment for these purchases so you don’t run out of cash faster than anticipated. Keep in mind that your clients may take longer than planned to pay your invoices, and your reserves may have to cover you while payment arrives.
2. Get One Flagship Client. Creating a unique product or service is great, but it won’t matter unless someone is using it in the real world. Think of the ideal client for your company. The bigger the better. Then make a list of their competitors. Reach out to your ideal client and offer your product or service as a test. You don’t have to do it for free, but think of ways to minimize their risk. Once they take you up on the offer you can officially call them a client. With this client by your side (because they’re big) others will allow you to pitch them, and will likely give you a chance because if the big client did…well…
3. Leverage Social Good. Imagine that you’re a local cupcake shop and one of the six little league teams just hit you up for sponsorship to buy uniforms. Typically, if you give money to one other teams will ask as well. Then other groups and nonprofits, right?
In a social good partnership, instead of making a one-time donation, your business agrees to pay a percentage of what the little league team generates in sales for your business. It’s like having many supporters selling for you. And you are their supporter in potential much bigger ways than a one-time donation. Besides money, you’re earning their loyalty and they are earning your support. It’s a sustainable and happy way of support your community.
Congratulations on deciding to become an entrepreneur. It’s not easy, but it is rewarding. Please send us a note or tell us how we might be able to assist you in succeeding.