How to start a business with confidence?

In this 5 minute blog – if you are thinking of starting a business of your own – you will learn how to deal with the uncertainties that inevitably come with running a business.

Table of contents

• #1: where do I start?
• #2: I have (too) little experience
• #3: how do I deal with less income?
• #4 Uncertainty: what if I fail?
• #5 Uncertainty: I cannot do everything alone
• #6 Uncertainty: how do I know if I am ready?

It is quite something to say goodbye to the certainties of permanent employment to make your entrepreneurial dreams come true. What are the most common uncertainties for starting entrepreneurs? And are these fears justified?

#1: Where do I start?

You have been walking around with an idea for a while, but you actually doubt to take the necessary steps, to work on it, and actually start a business. You find that difficult. 

For example: how do I actually market a new product (or service)? What are the legal rules? Where do I get the correct data to write a business plan? How will I build up a pension later? And how much income will I initially miss if I give up my job (and what does this mean for my private situation)?

These are just a few examples of questions that many entrepreneurs have asked themselves before starting their businesses. There will always be some risk associated with doing business, there is no other way.

Entrepreneurial risks

Fortunately, you can cover certain risks, such as disability or liability, with insurance. And do you need external capital to get the company off the ground? Then financing from the bank or micro-credit might be the solution. However, if the bank declines your business plan, you can always ask your family, friends, or fools.

In general, there is often more possible than you initially think. The best thing to do is to make your plans concrete, for example, in a business plan. But don’t write this plan only for potential financiers, but mainly for yourself.

Whatever your idea is, start putting it to practice. Go out and let potential customers experience what you have to offer.

Dr Martijn Driessen – entrepreneur

#2: I have (too) little experience

If you have no (or few) customers or clients, it may be difficult to convince other prospects of your qualities. Your established competitors have achieved more in this area than you. But that certainly does not mean that customers or clients will always choose the more experienced party.

In fact: you look at the market with a fresh and innovative look. As a result, you are probably more willing to change your strategy (read our next Blog about strategy) and say ‘yes’ to new challenges faster. Because someone who has been successful for years with a certain way of working has more difficulty letting go of that strategy.

Take advantage of that flexible attitude. Make this known to potential clients and customers: emphasize that you like to work proactively and, together with clients, look for the solution that best suits their needs.

Do you have the talent to run your own business? Do the entrepreneurial potential self-assessment test

#3: How do I deal with less income?

Starting a business means investing. You must immediately think of the financial part, because how do you get through the start-up phase if you do not yet earn (enough) money with your company? Fixed costs, such as the rent or mortgage and energy bills, simply continue and do not take into account a possible dip in your income.

Dealing with financial uncertainty is, therefore, one of the biggest stumbling blocks for many starting entrepreneurs. However, if you are well prepared, a limited budget does not have to be an insurmountable obstacle to starting a business.

When you initially work from home, for example, you no longer have to spend money on commuting. Besides, choosing a flexible workplace will result in new network relationships (and often assignments). And in the first instance, you can also choose a hybrid start (that is, next to your job).

It is necessary to make an actual calculation of all expected income and expenses prior to the start so that you get a picture of your financial situation during this uncertain period and how you should deal with this.

Can you compensate for the (temporary) fall with savings, or is your partner’s income sufficient? Then nothing has to stand in the way of your entrepreneurial adventure.

#4 Uncertainty: what if I fail?

No matter how much you (including us) would like to have a crystal ball: no one can look into the future. Whether your product or service is promising and this is the right time to start a business is, therefore, difficult to predict. But if you don’t try, you will never know if it could have been a success.

You can increase your chances by researching the market well in advance and putting your ideas extensively on paper in a business plan, even if you do not need financing. A business plan forces you to make your plans concrete and to map out all opportunities and risks. A business plan is a tool. A good basic plan that you regularly update is a document that gives direction and on which you can fall back in uncertain times.

Failure is simply the opportunity to begin again, this time more intelligently.

Henry Ford – superpreneur

#5 Uncertainty: I cannot do everything alone

Entrepreneurs are usually very adept at multitasking. Whereas in the past, you were generally employed as a single employee, you suddenly have to start working for your company on activities that have nothing to do with your profession.

This includes committing to acquisition, hiring staff, and setting up an administration. Unfortunately, one task suits you better than the other.

Know your weaknesses

Realizing that you cannot possibly be good at everything is the first step towards a happier entrepreneurial existence and self-confidence. Everyone has good and bad points, but most people overrate themselves. Research shows that only 28% of starting entrepreneurs have an accurate self-image. So, learn to honestly look at yourself: do the DISC and find out what your strong and weak points are. 

Take a business coach

There are so many ways to develop a business. At times you will feel quite isolated. No one to talk to that understands the dynamics of your business and challenges. You can easily go in the wrong direction.

It makes a huge difference if an experienced listener asks you the right questions or when you, who is in the midst of problematic situations, ask these questions. That’s why you need a business coach.

Find out for yourself which doubts, tasks, or action points (such as writing a business plan) you might want to find a coach for. In many cases, the investment pays for itself quickly and saves you a lot of annoyance, energy, and failure costs.

It is also recommended to spar with an experienced entrepreneur who is active in a comparable market and sector: a mentor. That is not the same as a coach! A mentor has the knowledge and a network within a specific industry.

#6 Uncertainty: how do I know if I am ready?

First of all: you are not the only one who thinks about this. Many a starting entrepreneur wonders what the perfect moment is to take the leap into entrepreneurship.

We don’t think that moment exists. At least, that is different for every entrepreneur. Together with your business coach, you can determine when you are ready to start.

 

Can you set even smarter goals? Smart goal-setting tips for small business owners.

We have been setting goals for ages. Very handy when hunting for food. Setting goals ensures focus.

I can hear the order from the cave: “honey, would you please take a deer with you this time?” 

It may sound funny, but this is precisely where the importance of SMART goal setting lies. But honestly, how many goals did you really set and achieve yourself? The truth is that entrepreneurs struggle to formulate smart goals, let alone reach them. Below are some smarter goal setting tips for small business owners.

Table of contents

• Everyone sets goals, but a few set real smart goals
• How do you formulate a smart goal?
• How important can you make your goal?
• SMART goals wizard
• But what about following my intuition?

Everyone sets goals, but a few set real smart goals

Think back to your school days. You still had to pass school. Now you always had those overachievers who went for a minimum of nine. Others have long been happy if they didn’t have to defend their poor scoring at home.
Either way, at some point, you will have done your best, and in itself, that was goal setting.

However, there is a big difference between someone aiming for a nine, while someone else is happy with not failing. Now, if you think I mean the difference in ambition, that is not what I am suggesting. Instead, the vital point to make here is about how you set your goal. How do you formulate your goal, and how important is your target to you?

How do you formulate a smart goal?

Do you have to set goals in entrepreneurship? No, of course not. That’s totally up to you to decide. But if you want to grow your business, you will have to put a dot on the horizon. Nowadays, there is a handy acronym for that, setting SMART Goals. 

SMART stands for: 

• Specific
• Measurable
• Action-oriented
• Realistic
• Time-bounded

For example, let’s say this is one of your business goals: 

“I want to have written a blog of at least 300 words before the end of the day that tells you exactly how to set smarter goals.” 

A couple of things are striking. Please note that this goal is written in the past tense: “… have written a blog …” With that, you force yourself to have done something for a specific time. Now, suddenly it becomes a choice. However, had you written: “… I want to write a blog before the end of the day …” your brain believes it is a wish. Now, that is much less action-oriented. It is something you would like. Do you feel the difference?

Furthermore, your goal is also particular and measurable. It states the number of words, and what the blog is precisely about. Moreover, it is time-bounded, to make sure you feel the pressure of achieving in the foreseeable future. As you can see, it makes it all the more concrete and, as a consequence, more comfortable to execute and achieve. Most people start their pursuing their goal, but procrastinate along the way. 

How important can you make your goal?

I am not sure who came up with this handy mnemonic SMART. However, it is not entirely complete. Instead, I use SMARTER myself. The last two words represent Emotion and Result. 

• S for Specific: the more specific, the more focus you apply. Vague goals don’t inspire.
• M for Measurable: needed to measure your progress.
• A for Action-oriented: here, you indicate how you will achieve your goal.
• R for Realistic: the more challenging your goals, the more results you will achieve. But don’t be too ambitious, because then doubts will set in.
• T for Time-bound: there must be a deadline.
• E for Emotion: make the goal important to you. And make sure you get pleasure from achieving your goal.
• R for Result or Relevant: a goal that impacts your life or work makes the result much more relevant to achieve.

Emotion

Maybe you didn’t feel like going to school or trying to do your best. That brings us to the E of Emotion. One of the smart goal-setting tips for small business owners is how vital that goal is to you.

To what extent have you connected yourself to your goal? Or, how well can you attach yourself to it emotionally? 

Result

Besides how emotionally involved you are with your goal, it depends on how important or relevant the outcome is for you. That directs us to the R of Result. One of the other smart goals setting tips for small business owners is what yields your target?

How will you benefit from the result if you reach it? If it is that vital to you, you will experience a different emotion, in contrast to if you don’t care. By actively looking for what the goal will bring you AND to what it ultimately contributes, it will bring in more focus and, ultimately, more results!

Check out this Video on GOALS

SMART goals wizard

Many small business owners struggle to set goals. Even though they are better goal-setters than the average population, they perform poorly in formulating their goals. Moreover, the badly written goals hinder achieving them. That’s an even bigger problem. 

Because small business owners fail at writing their personal goals smartly, they never reach their goals. They would not even have reached their goals if they tried. That’s why we have designed and developed a smart goals wizard that helps business owners step by step and intuitively formulate a proper smart goal.

But what about following my intuition?

Some entrepreneurs prefer to follow their intuition. There is nothing wrong with that. Yet, is setting goals still appropriate? However, setting goals doesn’t have to be counterproductive to following your gut feeling. It would help if you used your intuition to feel what direction you should be heading. 

What do you want instead of being forced to do something? When your gut feeling directs you into a different path, enthusiasm, and passion often evolve from that. It generates so much energy that smarter goals are automatically set. That goal may even become crucial to you. Thus, the E and the R are even more strongly felt in your SMARTER goal.

Without a goal, no goals

Dr. Martijn Driessen

Big
Hairy
Audacious
Goal 

 The startup ecosystem pulsates with innovation, ambition, and the drive to create impact. Yet, the path from a brilliant idea to a successful enterprise is often riddled with challenges. Enter the realm of business coaching—a lifeline for many budding entrepreneurs. Business coaches play a pivotal role by offering guidance through the intricate maze of decisions and strategies that startups encounter. They provide strategic insights and enhance founders’ personal development, ensuring the individual and the business grow. With the right coaching, startups can navigate hurdles more effectively, turning potential pitfalls into stepping stones toward success.

Challenges Faced by Startups

The startup ecosystem is a dynamic and ever-evolving space, buzzing with innovation, opportunities, and, undoubtedly, challenges. For every success story we hear, countless others face setbacks, often not due to a lack of vision or effort but because of unforeseen hurdles that come with charting unfamiliar territory.

Startups often grapple with a myriad of challenges that can range from:

• Financial Constraints: Limited capital can hamper growth, especially in the initial phases, where revenue streams might not be stable.
• Team Dynamics: Building a cohesive team with the right skills and mindset, all while maintaining a harmonious work culture, can be taxing.
• Market Validation: Ensuring the product or service meets a real need in the market and effectively reaches the target audience can be daunting.
• Operational Hiccups: From supply chain issues to regulatory compliance, the operational aspects can be overwhelming.

Common Pitfalls and the Role of Coaching

In their enthusiasm and haste, many startups might overlook market research, undervalue marketing, or even neglect the importance of a solid business canvas. These oversights can be detrimental in the long run.

Business coaching for startups intervenes precisely at these junctures. Coaches, with their seasoned perspective, can:

• Spot Red Flags: They identify potential pitfalls before they become pressing issues, allowing startups to course-correct early.
• Offer Tailored Solutions: Every startup is unique, and coaches help devise custom-fit strategies for a business’s specific needs.
• Provide Moral Support: Beyond just business strategies, coaches serve as support pillars, helping founders navigate the emotional highs and lows of the entrepreneurial journey.

Understanding the startup landscape is pivotal for success, and with a coach, startups are better equipped to turn challenges into opportunities for growth and innovation.

Key Areas of Focus in Startup Coaching

As startups embark on their entrepreneurial journey, the roadmap to success often requires a multifaceted approach. In this context, business coaching is a compass, guiding startups through several key areas critical to their growth and sustainability. Let’s delve deeper into these focal areas:

1. Vision, Mission, and Purpose Alignment

Startups thrive with a clear sense of direction. Coaches help founders:

• Articulate a compelling vision for the future.
• Define a mission that communicates the company’s core objectives.
• Ensure that every action and decision aligns with the startup’s overarching purpose.

2. Strategy Development and Business Modeling

A solid foundation is vital for any startup’s longevity. This involves:

• Crafting actionable strategies based on market research and competitive analysis.
• Designing a robust business canvas that ensures profitability and sustainability.
• Periodically revisiting and refining the model in response to changing market dynamics.

3. Building a Strong Team and Fostering a Positive Culture

People are the backbone of any business. Coaches assist in:

• Identifying the right talent that complements the startup’s needs.
• Instilling a culture that promotes collaboration, innovation, and mutual respect.
• Addressing interpersonal conflicts and ensuring a harmonious work environment.

4. Effective Financial Management and Securing Investment

Cash flow and funding are startup lifelines. Coaches guide founders in:

• Planning and managing finances to ensure the business remains solvent.
• Crafting compelling pitches for potential investors.
• Navigating the complexities of equity distribution, venture capital, and other funding sources.

5. Scaling and Growth Strategies

As startups stabilize, the focus shifts to expansion. Here, coaches play a pivotal role by:

• Helping startups identify new markets and opportunities.
• Advising on product diversification or enhancements to meet evolving market needs.
• Strategizing on infrastructure, resources, and processes that support growth without compromising efficiency.

Startup coaching is an expansive domain, encompassing everything from foundational elements like vision and strategy to complex challenges like scaling. With expert guidance in these key areas, startups are better poised to navigate the tumultuous waters of entrepreneurship and chart a course toward sustained success.

The Importance of Soft Skills in Startup Success

While hard skills, technical knowledge, and business acumen are undeniably essential, the significance of soft skills cannot be overstated. These intangible qualities, which encompass interpersonal skills and personal attributes, often play a pivotal role in determining the success trajectory of a startup. Fortunately, business coaches can help you and your team develop these skills.

Let’s explore some of the most crucial soft skills and their impact on startup success.

1. Emotional Intelligence and Leadership Development

Emotional intelligence (EI) is the ability to recognize, understand, and manage our own emotions while empathizing with and influencing the emotions of others. For startup founders, Emotional intelligence aids in self-awareness, self-regulation, and resilience – key traits in the unpredictable startup ecosystem.

Coupled with EI, effective leadership fosters trust, motivation, and team cohesion. Leaders with high EI can navigate challenges while maintaining team morale and ensuring everyone remains aligned with the startup’s goals.

2. Communication

Effective communication is the bedrock of any successful organization, especially for startups where clarity and speed are paramount.

Founders and team members must articulate their ideas, concerns, and feedback transparently, ensuring no ambiguities can lead to misalignment or errors. 

Active listening is as vital as articulation. It fosters understanding, strengthens team dynamics, and helps resolve problems quickly.

3. Negotiation

Startups often find themselves at the negotiation table with investors, suppliers, partners, or customers.

Effective negotiation skills ensure that outcomes benefit all parties, fostering long-term relationships and sustainable partnerships. A successful negotiator understands the nuances of give and take, approaches situations strategically, and knows when to compromise and when to stand firm.

4. Conflict Resolution

Conflicts are inevitable in any organization. Their management, however, determines the health and culture of the startup.

Understanding and addressing differing viewpoints empathetically prevent minor disagreements from escalating into major disputes. A systematic approach to conflicts, focusing on problem-solving rather than finger-pointing, promotes a positive and collaborative work environment

For more resources click on the links in the side menu.

 Is Corporate Venture Capital Right for Your Startup?

How do you determine if corporate venture capital is right for your startup?

To help you determine if corporate venture capital is right for your startup, we asked startup founders, investors, and business leaders this question for their best pieces of advice. From making sure you have similar goals and expectations to considering the VC’s location, there are several signs to look for that may help you when determining if corporate venture capital is right for your startup.

Here are eight signs to look for when determining if corporate venture capital is right for your startup:

• Be Sure You Have Similar Goals and Expectations
• You Have a Product Used by a Specific Company
• Get an Insider Look at Parent Business
• Ensure Aligned Vision With Key Stakeholders
• Assess Your Company’s Needs
• Assess Sustainability Over the Long Term
• Research The Venture Capitalists’ Names and Reputations
• Consider the Location of the VC Investor

Be Sure You Have Similar Goals and Expectations

The most important thing to look for when determining if corporate venture capital is right for your startup is that the firm you are pitching is actually the best fit for the stage of your business. While it may seem like a good idea to get a big, fancy investor for your startup, the reality is that it can actually be a hindrance to your business if it’s not a good fit.

Large investors are often looking for companies with a large profit margin and a proven track record of success. If you’re looking for a VC who can help you grow and develop your business, you’ll want to be pitching to a firm that has similar goals and interests as you and be reasonably sure that you can comfortably meet their growth and financial expectations.

You Have a Product Used by a Specific Company

There are many different factors to consider when determining whether or not corporate venture capital is right for your startup. One key sign to look for is whether or not you have a product or service that could be used by a specific company. If you have a product or service that would be a good fit for a particular corporation, then pursuing corporate venture capital may be a good option for you.

Corporate venture capitalists are often interested in investing in companies that have products or services that could be used by their own businesses. Therefore, if you have a product or service that would be of interest to a specific corporation, then pursuing corporate venture capital may be a good option for you.

Get an Insider Look at Parent Business

Understanding the relationship between the CVC and its parent business might help you decide if it’s the best option for your startup. Speak with personnel at the parent business to discover more about the CVC’s internal reputation, its connections inside the organization, and the KPIs that the parent has for its venture arm.

Ask questions about how the CVC has been able to communicate its vision internally, the depth of its connections to the various parent divisions, and whether the CVC will be able to provide the internal network with what you require in order to get a sense of the relationship between the CVC and parent firm.

Additionally, you should find out how the parent company evaluates the CVC’s performance and what kinds of reporting and communication are anticipated. All this will help you determine whether the CVC is right for your startup or not.

Ensure Aligned Vision With Key Stakeholders

Make sure your goals and views align with CPC stakeholders. For example, if you want to keep the integrity of your startup – small, innovative, and creative, you need to make this known and be sure key stakeholders are on board.

The last thing you want to do is get in a position where you accept funding, but you no longer have control of your vision.

Assess Your Company’s Needs

There are a few things to keep in mind when determining if corporate venture capital is right for your startup. First, consider your company’s stage of development. If you’re just starting out, it may be difficult to meet the requirements set by corporate venture capitalists. They typically invest in later-stage companies that have already gained some traction. Second, look at the structure of your business. Venture capitalists often prefer companies with a leaner structure and fewer employees. This allows them to have a greater impact on the company’s direction. Venture capitalists usually provide more than just financial support – they can also offer valuable resources and mentorship. If you’re still not sure if corporate venture capital is right for you, consider speaking with a professional advisor.

Assess Sustainability Over the Long Term

In my opinion, for it to be worthwhile from the perspective of an investor, it must be something with longevity. Though not normally from the perspective of a venture capitalist, a short-term project may somehow be viable and profitable. Venture capitalists invest millions of dollars and seek multiple times returns on their investments. Due to this, VCs place a strong emphasis on an idea’s long-term viability. They won’t invest if they don’t think the shelf life is long enough.

Research The Venture Capitalists’ Names and Reputations

I think that each venture capitalist has a unique reputation, which is based on the VC’s experience, skill, and historical results. Future investment rounds are frequently influenced by the name and reputation of a VC and reflect nascent firms. Affiliates with a good reputation will typically add substantive and signifying value to your business. Be mindful of the reputation of any possible partners because it will be linked to your business!

Consider the Location of the VC Investor

One sign that you should target corporate venture capital (VC) investors for your startup is geographical proximity. Investors that are close to your company can provide valuable access to resources and networks, which can be helpful as you scale. Additionally, these investors may be more familiar with your local market, which can give them a better understanding of your business.

I followed this rule and narrowed down my search for VCs within my country – Taiwan. And ultimately I was lucky to find an amazing partner that lived in my city. This close proximity make our interactions frequent and more effective. Therefore, the location of VC is an important consideration when finding the right fit for your startup.

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