Remember a while back when we addressed the value of walking a mile in someone else's shoes to gain fresh perspectives that might help you run your business better? Well, it appears some CEOs have actually done this - as a recent Fortune piece highlights. The participants, Maxine Clark (founder and CEO of publicly held Build-a-Bear) and Kip Tendell (cofounder and CEO of the privately held Container Store).
And yes, just as we anticipated, these retail veterans found they gained a great deal from the experience. Spending time in someone else's realm, dealing with their daily challenges shook things up and while dealing with employee issues, product questions and in-store management issues, they found themselves continually stumbling across ideas and inspiration that they could incorporate into their own operations.
Here's a peek at a few of their takeaways:
Clark, for instance, appreciated how the Container Store acknowledges sales associates for a job well done with Post-It notes left on lockers. Kendell, meanwhile, liked Build-a-Bear's "Strive for Five" technique, which is designed to sell each customer five items. (via MarketingProfs.com)
True leaders know that real ideas must come from a variety of experiences, sometimes you need to take on something completely new to move to another level. Innovation comes from so many places, from crazy situations to mundane tasks, maybe even, from spending time working in a different industry.
To me, the above insight is part of the beauty and value that our Indianapolis consulting services team here at Milestone Advisors brings to our clients. We have worked in a variety of industries, been tasked with an array of projects. Outsourcing bookkeeping, we've done that. Providing market research forecasting for a new business plan or endeavor, we've done that too. What about building a technology architecture to streamline a company's work flow and make them more efficient? Been there. With or staff's diverse backgrounds, we've done it all which better equips us to advise and inspire. What can we do for you and your operations?
I found a great compilation of tips in the New York Times online today that address the challenge of bringing your products or services into new markets, particularly those overseas. The need to expand into new and different markets can come from a variety of places, new ambition or sometimes, a given offering simply becomes popular in an area or with a demographic that is a complete surprise. If this is happening to you, take advantage, this is a great opportunity!
1. Choose a market When expanding overseas, it's best to just pick one and focus on that at first, perfecting your business there, establishing relationships with vendors etc.
2. Build relationships And not just with vendors. In foreign countries you'll need to understand local governments and typically count some friends among its officials (not for special favors but for inside knowledge that will be sure your business succeeds)
3. Customize your products You may already have a following in a foreign market, but a little bit of research to make it even more targeted to that audience could go a long way to translating into great sales.
4. Remember to make a profit Make sure you understand the foreign market's stipulations and customize your offering to still remain profitable in the new arena. This may be something as small as a tweak to packaging. Also be sure to familiarize yourself with the tax structure of the new market.
Ultimately, expanding into foreign markets is a great idea, particularly if you've already started to see interest in your products there. Just be sure to do your research before committing to it completely.
Any marketing professional worth their salt these days not only understands the importance of the Internet and technology to deliver a company's message and solidify their brand identity - they're incorporating these new platforms into their company, their marketing plan strategies, product marketing plan or marketing communication strategy.
But a truly smart, savvy marketer is going on step further and seeking out the next wave of Web 2.0 innovations that can bolster, aid or make more efficient their marketing outreach.
I did some research and found what some believe to be the emerging social media tools (via Social Media Examiner) that will continue to change the way we do business (and the tools we use to do it).
1. Foursquare This location-based social network/gaming application is rapidly gaining users and mindshare. Users “check in” at local businesses and earn rewards for frequently visiting participating establishments. Business owners can get value out of Foursquare by offering incentives for users to check in, such as special offers for repeat visitors.
2. Google Buzz This is Google’s latest entry into social networking. Buzz allows users to post status updates and upload pictures and videos to a Google profile, not unlike Facebook and Twitter. A user’s network is formed by contacts they interact with frequently on Gmail.
3.Loopt Another location-based social service, Loopt aims to connect its users with their friends by visually displaying their location and availability on a localized map. Users can connect with friends in the area, see reviews and recommendations of restaurants, and find events in the area that might be of interest. Businesses have tapped into Loopt’s location data to offer targeted promotions.
4. Blippy Blippy aims to connect people around the purchases they make. Blippy publishes the amount and location of customer purchases (with user permission), which the rest of the community can then react to.
5. Groupon This site offers “collective buying power” by providing deals to groups of people who buy products and services in bulk from participating retailers. The site uses social networking to get users to share offers with their communities, in order to reach the target number of customers the “Groupon” requires to activate. Businesses could gain exposure and new customers by making offers on the site.
The options or opportunities for creative innovation or implementation into your marketing plan, marketing process or strategy with the above tools are endless. Whether you're revamping a brand and plan to utilize giveaways and promotions as part of a product launch plan, all of the above are technologies that should be explored.
Under the impression that Linkedin is really a site just for people looking for jobs? Do you find it a little boring? That makes two of you. Ann Handley recently admitted in a MarketingProfs newsletter that for a long time, that's the way she viewed the networking site.
Guess what? You both might be wrong.
As she says in the note, "It's a happening place. It has more than 60 million members in over 200 countries, on all 7 continents. Execs from every Fortune 500 company are there. And 81% of business-to-business marketers use LinkedIn."
That changes things a bit, making it a place you and your company need to be. Do you have a company page and an established presence on Linkedin? Take a look at the case studies the brilliant folks at MarketingProfs have put together to show success stories for different uses of the forum.
Linkedin can give your company a valuable presence online, it can be used as a part of your marketing strategy plan to get in front on clients or as a part of an overall business strategy plan (think start up phases), it can even be used to survey people for either customer service or market research services.
Either way you look at it, you should be jumping on there!
Post Super Bowl several discussions are bound to occur. Why the team who won was so deserving. What decisions were made by the opposition that led to their downfall. What the future looks like for the league. And inevitably, what everyone favorite commercials were.
My favorite this year was Miller High Life's spot that gave four small business owners a chance to shine and show off their humor. What a great idea! To begin with, this concept of buying a spot and advertising for another entity (let alone advocating for small businesses) generated more media attention and exposure than any of the other commercials did buy simply airing commercials during the big game. Because of the gesture, Miller Coors have probably solidified some passionate brand ambassadors for life.
Big business advocating for small business. We certainly don't see that a lot but when it happens, we should publicize it. I believe Miller Coors' efforts are proof that corporate America realizes that an essential part of our economic recovery will be small businesses launching, surviving, growing and thriving.
This is a truth we believe in at Milestone Advisors which is why we do what we can to extend accounting advice, facilitate the market research process, build product development business plans and equip thought leaders to bring to market new products and services, fulfilling their passions and dreams.
So, we tip our hats to Miller Coors and their Miller High Life commercial. We hope to see more advocacy for small business in the future.
Running a business is hard. Developing an original idea and building an organization upon it requires passion, dedication, time and creativity. Not only that, those four intangibles must flow forward continuously, providing you with a steady stream of inspiration and motivation. This doesn't leave a lot of time for all the additional nuts and bolts of running a company including hiring, firing and communicating with employees, managing vendor relationships and (many entrepreneurs least favorite task) balancing the books and projecting future growth.
Odds are, you don't have time handle all your company's finances. Maybe you have time to cut checks and perform a daily assessment of your bank account. Maybe you have time for more than that. The bottom line remains, more often than not, entrepreneurs are idea people, not numbers people.
Even if they do enjoy calculations and percentages, odds are they don't have the level of expertise that will allow them to compare their company to current market research and trends, build a sustainable financial model and project for the future (creating reports that enable you to make decisions that will ultimately allow your company to grow).
Many startups and small businesses can benefit from using the services and expertise of a part-time CFO. They can provide you with important information and advice to aid in decision making that leads to growth, avoid numerous business accounting pitfalls and aid in problem solving efforts positioning your operations for as much success as possible.
I was approached recently by the CEO of an upstart software as a service company to consider helping his company develop a corporate finance strategy and raise the requisite capital. We talked at length about the application that the company had built, the customer base, the channels that the company sold through, and the market opportunity. We also talked about some of the obstacles that the company faced in order to be successful.
It appeared to me on first blush, that while the product was a great solution, the "problem" wasn't painful enough to the prospective customers to cause them to beat a path to the new application or even make the purchase if proactively presented with the solution. But that was only my first reaction and I've been wrong before. We needed to dig a little deeper.
I offered to review the business plan and bring in our part time CIO to help assess the technology and the opportunity. But before we had received the information for our discovery process, we received an interesting call from the CEO.
The company had decided to put everything on hold. Everything. The board had met over the weekend and decided that it would take too long to pull together the necessary funding to continue the next phase of the product development plan. The other option would be to attempt to grow the business organically but they didn't feel that could be done successfully either.
What initially appeared as an incredibly large target market was actually not nearly as large as thought. The challenge? The pain factor, or lack thereof, that I mentioned before. I was afraid of that...
It's difficult for early stage or startup companies to consider spending time or money on market research - largely because both resources are so scarce. The other concerns are that asking prospects for feedback and input could "let the cat out of the bag" too early, cause challenges with meeting deliverables, create competitors, or put intellectual property at risk.
All of these concerns are legitimate and should be addressed and treated with caution. However, the risk of spending time in production or development ahead of completing a thorough market research process can cause greater problems down the road.
If you have a great idea that you are considering turning into a product or business, work with an individual or firm that can provide you with the market research services to support business plans for small business. You'll be glad you did and you'll be better positioned as a result.
One of the many insightful professionals whose tweets I follow and read on a regular basis drew my attention to this article about two weeks ago. 'Why Victims Can't Invent Anything' takes a fresh approach to why many struggle with innovation to either enter a new marketplace or continually develop in order to compete in their current one.
Part of the article can be broken down into a simple concept we're all familiar with - that is, in life, do you typically see the glass as half empty or half full? However, when applied to your business outlook, this theory naturally becomes a bit more complex.
When problems arise do you welcome them, knowing that in the end whatever product or service you produce will ultimately be more complete solutions for your customers/clients due to issues faced early on? Do you see these challenges as times to innovate, to stretch yourself, your employees, your company?
Or do you throw up roadblocks, adopt exasperation as an attitude and complain?
If you regularly do the latter, the piece asserts you're robbing yourself of the ability to innovate. When you complain about hiccups in time lines, frustrations with research and development or any other inevitable hurdles you make yourself a victim. And as the article argues, victims never invented anything.
To lead your company or organization into the future you're going to need the ability to innovate which means no excuses, problems/challenges = opportunities to change the landscape of your marketplace.
This outlook doesn't have to be inherent, it can be learned. After all, many traits or characteristics of entrepreneurs are more skills they have honed than anything else. You can't be the only one whose adopted this attitude either. It should be a part of your organization's identity and brand so all employees not only identify with it, but exhibit it in their approach their every day routines. This means assessing your business plan, product marketing plan business strategy or marketing communications strategy - make the can-do attitude a part of your company culture and you'll be able to innovate on a daily basis.
We meet with people literally every day. We have people into our offices for introductions, to discuss the potential needs of their companies or operations and how we might assist them in their goals. We meet with each other to get on stay on the page. We meet with current clients to share with them market research, build business plan strategies or develop a product marketing plan for a new service or product they plan to roll out. Our conference room is always busy and often we're on the road, meeting our clients where it's most convenient for them.
Unfortunately, sometimes meetings can become a waste of time if they're not run properly and people don't demonstrate proper business etiquette. After all, running effective meetings is a way to build positive relationships with clients and prospects. Here are some tips we found and liked:
1. First decide on how formal your meeting will be
2. There is a skill in inviting the right people to a meeting
3. Prepare a meeting agenda in advance and circulate this to your attendees - remember that meetings can come in all different durations, so get people’s attention by having weird duration meetings
At Milestone Advisors we believe an opportunity assessment is an essential exercise and integral part of any business plan strategy. In the small business world, terms such as this are often thrown around but never clearly addressed or clarified (many consulting firms could have different interpretations of the general concept).
An opportunity assessment includes a description of the product or service, an assessment of the opportunity, an assessment of the entrepreneur and the team, and specifications of all the activities and resources needed to translate the opportunity into a viable business venture. The assessment of an opportunity requires answering the following questions:
What market need does it fill? Is there a compelling reason to buy the product/service verses the alternatives?
What personal observations have you experienced or recorded with regard to that market need?
What social condition underlies this market need?
What market research data can be marshaled to describe this market need?
What patents might be available to fulfill this need?
What competition exists in this market? How would you describe the behavior of this competition?
What does the international market look like?
Where are the real profits to be made in this activity
After these questions have been answered, a clear vision for business plan structure should start to emerge and the building blocks for a successful venture will start to fall into place. By taking part in an opportunity assessment you are laying the foundation for brand identity and a deliverable service or product, coming that much closer to operating a profitable business.
Yes, you guessed it. I have even more ideas on how to use a corporate or company blog as a part of a greater marketing strategy to manage day to day operations. Some of the biggest benefits to doing so can actually come from not trying to generate cash at all.
Here are some other uses that may not have crossed your mind yet:
A customer service tool Your blog is already intended to be a way to relate to your customers or those you do business with - a conversation tool that humanizes the company and provides them with information of value, communicating that you care about them for more purposes than just making a buck. Turn the blog into an area where you can respond to the needs and issues your customers may be facing. Use it handle issues quickly with clear, concise communication.
Organic SEO benefits The more content you put on the Internet, the more likely your company or organization will be found when people Google the types of services or products they're searching for. But the organic SEO benefits from your company blog could be enough that you could scale back on the money you might be paying to an SEO firm or, even stop outsourcing those efforts completely, freeing up those funds for other needs.
Market research, for free I have said it before and it remains true, social media should be used to start a conversation with important people who affect your business. It should be a two way street with good information being offered up for nothing in return. However, you can also use it to gauge how your customers feel about your products or services. Invite them to share their opinions and comments on your blog. You can even use your regular readers as a focus group for the release of something new.
There you have it, three additional reasons to include blogging in your marketing strategy as a part of a greater business plan or strategy. You could even make blogging a part of new product development strategy. These are smart tactics that can lead to important savings.
Long commutes are awful. The horns, cell phones and congestion add hours to a work day and are a complete drain on energy. Joel Bomgar, an IT professional was fed up with his daily commute in a rusted out Buick with questionable air conditioning.
Joel's job required him to drive from client to client in the heat trap, solving their issues on site. What if there were a way to solve their problems remotely, from the comfort of his own home and more importantly, from an adaquately air conditioned space? Thus, Bomgar Corporation is born.
Joel went to work designing a technology that would allow him remote access to clients computers and access to multiple machines at a time. After six months of work, he had an effective model and a small business was born.
Bomgar Corporation now employs 125 people and pulls in an annual revenue around 19 million and is facing new challenges such as how to differentiate his product in a market saturated with software billed to make life easier for professionals. Joel continues to make market research and market strategy and important aspect of his company's development. He understands that above all, you have to be offering a product or service completely different from what competitors are promoting. Not only does is have to be different, it has to be better.
My favorite part of this story and about Joel - he went to work finding his own solution for a problem that plagued him daily and turned the bain of his existence into his livelihood.
Meet our marketing guru, Jeff Chapman. A runner, father and an avid photographer Jeff has been a welcome addition to our team of Indianapolis business consultants as a senior level advisor.
Buying a business or adding services? Jeff can help you create and plan for a new product, conduct marketing research and analysis, strategically bring said product to market or oversee your outsourced creative – streamlining your marketing efforts and managing your brand.
Jeff has worked for over twenty years in marketing departments where he regularly oversaw new product/service development, new product launches, brand identity and management campaigns and strategic planning/business development. His Indianapolis strategic planning extends to such companies as Thompson Consumer Electronics, Brightpoint, United Healthcare and the Indianapolis Motor Speedway.
Agency experience is another facet of Jeff’s resume setting him apart from other marketing experts. He has represented a vast array of clients in retail, manufacturing, health care, insurance, banking, distribution and technology.
This exposure to the marketing needs of both business-to-business and consumer companies gives Jeff a unique prospective that often provides our clients with a significant competitive edge.
We’re growing by leaps and bounds, adding both staff and offerings to our current suite of services.
We will continue to offer consulting in part-time accounting and corporate finance; however, we can now supply clients with expertise in technology and marketing to continue to improve and enhance their overall business strategies.
Arriving at the decision to expand our services has been a natural progression. Over time, our clients had begun to ask additional questions concerning functional areas of running a business other than accounting and finance. They ranged from such basics as how to draft a marketing plan to more complex issues addressing how technology strategies should be handled or tweaked during time sensitive stages such as early start ups or mergers and acquisitions.
As a result, we have developed a comprehensive list of service offerings that now boasts market research and analysis, management and operation services, human resources and technology strategy. Our goal is to become a ‘one-stop-shop’ for Indianapolis strategic planning. It's our desire to become the premier go-to resource for the small business owner or entrepreneur seeking senior level expertise to help grow their operations and become profitable.
To support these expanded services, we have made valuable additions to our team that include seasoned experts who are veterans in various business disciplines. We couldn’t be more thrilled about the impact they will have on Milestone and the goals they will help our clients achieve.
As we grow our company in terms of both capability and size, we look forward to continuing to nurture and grow entrepreneurial ventures as well family-owned and small businesses throughout the state of Indiana and beyond.
Six years ago on August 1, 2003 Tom Gabbert and I founded an Indianapolis consulting firm based on a growing need we had identified in our business community – many small businesses and start-ups we had come across were in need of expertise but didn’t have the necessary resources to gain access to this essential, but seemingly elusive knowledge.
The bottom line is that many small businesses and start-ups haven’t assembled the senior management team to navigate through the business’ early stages. In many cases, they don’t need a full time C-level executive. Instead, the companies need access to strategic level advisors who can help organize the business and keep it moving in the right directions.
We thought, “why not fill in these gaps for entrepreneurs by providing a service to meet their needs, regardless of what stage they happen to be at?” And with that idea, Milestone Advisors was born.
Today, our original two-man operation now includes a third partner, Jeff Good, has grown to 25 employees and has helped over 350 Indiana companies meet their goals, deal with obstacles and most importantly, grow. Originally opened and billed as a ‘Rent-a-CFO’ shop, Milestone now boasts a comprehensive list of strategic-level services covering most functional areas of business from market research and analysis, to management and operations, and finance and accounting services – all targeted to provide assistance to our clients as they grow and put their plans into action.
We are proud of what we have achieved, and nothing gives us more satisfaction than seeing our clients succeed and thrive. Tough economic times have forced all businesses to examine their current models and operations. This has given us the opportunity to work with new companies at the strategic level and assist our clients in navigating these difficult and uncertain times.
As we look to the future, we hope to reach more companies with the desire to grow their businesses by helping them define their goals and map out clear strategic plans to achieve them.
Our passion has always been and will always be getting the best, most complete information in the hands of the decision makers for small companies and start-ups. These businesses, built out of passion and ideals, are an integral part of entrepreneurial and capitalist America. Here at Milestone, we will continue to do whatever we can to ensure they continue to survive and prosper.
We are grateful to all of our clients and staff for the past six years and we look forward to the next six years and hope they will be full of new challenges and even more solutions.
At Milestone Advisors, we complete dozens of business plans for our clients on an annual basis. Over the years, we've developed our own process that we follow when developing the plans. We start with the market and opportunity assessment, marketing plans, management and operations, and finally the financial projections. But from time to time, our Indianapolis business consultants are asked to start the process by developing the financial model first. Our response is typically, "Based on what?"
The Economist released an article about business planning that emphasized the importance of working your way through the tougher elements - market analysis, market planning, team development, etc. - before spending too much time on the financials. Here's a snippet:
In an influential article in Harvard Business Review, William Sahlman, a professor of business administration, suggested that business plans “waste too much ink on numbers and devote too little to the information that really matters to intelligent investors”. What really matters, suggested Sahlman, are four factors that are “critical to every new venture”:
• The people; • The opportunity; • The context; • The risk and reward.
A great business plan, Sahlman suggested, is one that focuses on asking the right questions about these four things. It is not easy to compose, however, because “most entrepreneurs are wild-eyed optimists”. In any case, as he says, “The market is as fickle as it is unpredictable. Who would have guessed that plug-in room deodorisers would sell?”
Our business advisors would agree whole-heartedly with the areas of focus for a business plan. While we believe in the importance of sound financial projections, they need to be supported by a great deal of research and analysis. If you are struggling with your corporate strategy, give us a call. We'd love to help you with our consulting services!
Many small business owners have successfully started and operated franchises, many as their first foray into business ownership. Franchises have many great things to offer: recognizable brands and products, well-developed processes, training and support, aggregate purchasing programs, corporate and co-op marketing, and research for site selection are just a few of the potential offerings and benefits.
Earlier this week, however, I was reminded about some of the challenges of owning a franchise. The topic came up at a networking event that I was attending where one of our Indianapolis car dealers was lamenting the fact that, despite things going well for his dealership, his franchise was being pulled because the car company was limiting its dealers and opted to leave another dealer open due to seniority.
Think that threat was listed in the SWOT analysis of his strategic plan a few years ago? I guarantee you it wasn't. As Americans were purchasing new cars at record paces, I'm sure the last thing on dealers' minds was that they could lose their franchise if they were performing well.
Therein lies one of the risks of franchising - you often lack control of your own destiny. We've seen small examples of control in franchises. For instance, one restaurant franchisee wasn't allowed to play Rush Limbaugh in the dining room over the lunch hour for fear of upsetting liberal patrons. Never mind that it had proven very popular and had boosted business. Another was forced to honor corporate coupons for free ice cream that didn't require a purchase. The franchise didn't sell a thing while this promotion was going on and it nearly killed them.
But aside from what could be minor operating control resting in others' hands, much of your destiny relies on the health of the parent organization and the corporate owned stores. Whenever we provide consulting services to prospective franchisees, we always recommend spending ample time with current and former franchisees to get their impression of the health of the overall franchise. Some questions to ask are: What's their reputation? Have any franchises failed? How many? What are the reasons? How do they stack up against the competition?
We also recommend doing a complete market analysis, business plan and finance model of your own to support your decision to start the franchise. So if you're thinking about starting a franchise, don't just take the franchisor-provided information as the gospel. Do your homework and avoid partnering with a franchise that isn't performing well.
Without predictable cash flow, you run the risk of stalling the growth of your business and damaging your credit. Here are some ideas that will help you manage your receivables and expenses so you don't get caught in a cash flow crunch.
Improve your chances of receiving timely payments from customers by utilizing the accounts receivable module of your accounting software program to track current and past-due balances.
Study your customers' paying habits so you can project roughly when and how much they will pay. The amount you forecast should be within 5 percent of your receivables each month. If your financial projections are way off the mark, a cash flow problem could be looming.
Compare your projected expenses to your actual expenses each month. This will help you anticipate the need for more cash and react immediately.
Base your projected sales on facts - don’t assume the demand for your products or services will always be high.
If you are a start-up, use market research to help you determine how much demand exists for your product or service.
Monitor your actual sales to make sure you are on track. If sales dip below your financial projections, the sooner you make adjustments — cut expenses, extend credit or borrow money — the better.
Anticipate when your sales are likely to drop throughout the year. Then make sure you have put some cash aside to cover your expenses during the lean months.
"People won’t buy your product!" is a phrase often heard from skeptical investors. Fortunately, the business planning process should help discover and define who will. In preparing your business plan, you will identify and analyze the target market for your product or service. This analysis will help you determine who they are, where they live, how much they make and additional demographic information that will help you tailor your efforts to meet their needs. When preparing your business plan you need to be assured that you have a large enough target market to support your business and that there is a compelling reason for your customers to buy.
Poor Research
As we’ve previously mentioned, a major mistake committed by many entrepreneurs is not taking the time to adequately prepare. As a result, many do not take the time to double-check facts and substantiate their claims. If you make a claim or assumption in your business plan that is critical to the success of your business, there’s a pretty good chance your investor is going to challenge it before risking their savings. If they do and can’t find anything to substantiate your claims, your credibility (and the investment community is a tight-knit one) and subsequent chances of receiving an investment may be gone.
Inadequate Consideration of Competition
There is no such thing as not having any competition, and stating to the contrary is a clear indication of your lack of understanding and preparation. Competition for a business is everywhere – there are direct competitors, there are substitute products and alternatives, and there’s the threat of customer inactivity. Even if current competition seems to be nonexistent, your business idea (if compelling) will attract new competitors to the marketplace. Therefore, a business plan must include a discussion of all of these competitive forces, as well as a business strategy for how your business will overcome them.
Over-Hype
Too much hype and the use of superlatives can be the downfall of a good business plan. Investors aren't concerned with the proverbial "dressing", but want to get right to the "meat" of the business plan. Therefore, don't disguise it with too many adjectives and clichés. Investors are investing in you because you have a good business plan and model, not because of your creative writing skills.
In business we all plan for success. However, in order to succeed, we also need to plan to manage risk. This is especially true when starting a new business, since this is a time when risk is the greatest and resources are the scarcest. The following are a few steps that can be taken to manage business risk and increase the odds of success.
Research. Spend the time necessary to research your market – customer groups, potential size, growth prospects, etc. The management team that will lead your company and the nature of what you are offering (product or service) are things you can control. How the market will react to your product/service is something you can’t control. Therefore, make sure you know as much as possible about how your target customers will react before investing your valuable time and money.
Put a Toe in the Water. If possible, look for creative ways to prove the business/finance model before jumping in with both feet. This could mean operating the business at night or on weekends while you continue in your current job, or introducing a scaled-down model of your business first. Either way, receiving some validation before fully committing yourself will allow you to preserve resources in the event you need to make subsequent changes to the business/finance model.
Stay Focused. Most business/finance models have room for expansion. However, in the beginning, it is imperative to stay focused on the core business plan. Don’t allow yourself to get distracted with all of those "other opportunities" – they will come later.
Rent, Don’t Buy. Don’t get distracted by the long-term benefits of owning property. At this point in your company’s life cycle, it is more important to focus on the short-term needs and goals of the company. The decision to purchase real estate is one that will tie up company resources for a long time and is also a decision that might not match the company’s business strategy over the next few years. So when possible give yourself some flexibility by renting.
Buy Used. In keeping with the theme of conserving resources, start off by acquiring used equipment and furniture instead of brand new pieces. While new things are always nicer, used equipment and furniture can help preserve cash flow which might be more important in six months.
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