Tag: Entrepreneurs

New Business Loans Guide for Small Business Owners and Entrepreneurs

It’s not the easiest thing in the world for a new business to obtain the money it needs to help get started. New business loans can be difficult to get unless you have excellent credit and a good plan in place. If you can get approval, you’ll get the proceeds you need for things like working capital, equipment, supplies, machinery, inventory, advertising, or maybe even real estate construction or commercial building rental.

One thing many lenders will expect you to do is determine your personal equity. How much of it will you be able to bring to the table? Lending institutions tend to require that you are able to bring 20% – 40% of the total loan amount you are requesting.

In the 21st century, there are many more options available for start-ups than the traditional loan from a bank. However, before you apply for any type of funding, you must prove that your company qualifies as a small business. Small businesses are usually measured by factors such as number of employees, number of years (under 2) in operation, number of employees, generated income, types of assets and their value, revenue, and so forth. Most traditional lending institutions require that you put of collateral and a guarantee that you will repay.

Your Credit Score and New Business Loans

If your personal credit score is very high, you might want to look into getting a credit card to use towards your business. The line of credit might not be enough to cover everything you need, but it’s a good start. There is no rule that says you have to get all of your funding from one source. There are a variety of microloans for which you might qualify, such as those offered by the SBA and other non-profit organizations. These types of new business loans can be used for the purchase of inventory / supplies, furniture, working capital, etc.

As for alternative start-up business financing options, such as grants and crowdfunding, you’ll want to put more of a focus on our business model as opposed to your credit score. These types of funding are worth looking into if you have poor credit. However, in order to impress crowd-funders, grant organizations, angel investors, etc… , you’re really going to have to come up with a great message and marketing campaign.

Once you get all of your documentation, files, financial records, financial plan, etc. together, you can start checking for new business loans at US Business Funding. This organization has 95% approval rates and offers flexible terms and payment options.

Nike – Philip Knight’s Success Story – Famous Entrepreneurs

“Play by the rules. But be ferocious.”

Starting The Business

Like Fred Smith and the origins of FedEx, Philip Knight’s first ideas of what would become Nike Inc. came to him while he was at

school. While working on his master’s at Stanford, Knight – an accomplished runner during his undergraduate days at the University

of Oregon – wrote an essay that outlined a plan to overcome the monopoly Adidas had on the running shoe market. He thought the way

to realize this was to employ cheap Japanese labour to make a shoe both better and cheaper.

The plan was put into action shortly after graduating in 1962. Knight went to Japan to meet with the executives of Onitsuka Tiger

Co., a manufacturer of imitation Adidas runners, claiming to be the head of a company called Blue Ribbon Sports (which did not

exist, except in his mind). Knight convinced Tiger to export their shoes to the States though Blue Ribbon and had them send samples

so his associates could inspect them.

Knight paid for the samples with money from his father. He sent a few pairs to Bill Bowerman, Knight’s track coach from his days at

the University of Oregon, who became interested in the venture. Knight and Bowerman became partners and put $500 each into the

purchase of 200 pairs of Tigers. Blue Ribbon Sports was formed, and Knight began going to high school track and field events

selling the shoes from the trunk of his car.

Sales were at $3 million dollars when Knight chose to dissolve the partnership with Tiger in the early 1970s. Blue Ribbon began

producing its own line and began selling its Nike line (named after the Greek goddess of victory) in 1972. These first Nike shoes

were adorned with the now-internationally recognizable swoosh logo – which Knight had commissioned for $35 – and had the

traction-improving “waffle soles”, conceived of by Bowerman while watching his wife using a waffle iron.

Building An Empire

Blue Ribbon’s success (renamed Nike in 1978) throughout the 1970s and into the ’80s can largely be attributed to Knight’s marketing

strategy. He thought it best not to push his Nike shoes though advertising, but rather to let expert athletes endorse his product.

Fortune smiled on Knight as his partner Bill Bowerman became the coach of the American Olympic team and many of the best performers

on the team decided to shod their feet with Nikes. Of course, when the runners performed well, the shoes they wore were

highlighted. Steve Prefontaine, a brash and unconventional American record-holder, became the first spokesperson for Nike shoes.

After the tennis player John McEnroe hurt his ankle, he began wearing a Nike three-quarter-top shoe, and sales of that particular

brand jumped from 10,000 pairs to over 1 million. As Knight had hoped, celebrity athlete’s endorsements brought success to the

company. Knight also capitalized on a jogging craze, and through clever marketing persuaded the consumer that they should only be

wearing the best the best in the world.

The Air Jordans helped the company continue to thrive into the 1980s. In their first year, the shoe made more than $100 million.

Knight realized his initial goal of replacing Adidas as the number the one shoe manufacturer globally in 1986. By then, total sales

had surpassed $1 billion. However, by neglecting the growing interest in aerobics shoes, Nike would have to face a few

difficulties.

Through Problems and Controversy

Sales dropped 18% between 1986 and 1987 as Reebok’s trendy, stylish aerobics shoes came to be in high demand. Knight had to

acknowledge that the technical achievements of the Nike shoe would not satisfy those who placed appearance above performance. The

Nike Air was Knight’s response to Reebok. It revived sales and put Nike back in the number one spot in 1990.

Corporate Monster that it had become, Nike was the object of public outrage in 1990 when stories of teenagers killed for their

Nikes began floating around. It was believed that Nike was promoting their shoes too forcefully.

That same year Jesse Jackson attacked Nike for not having any African-Americans on its board or among its vice-presidents, despite

the fact that its customer base was in large part black. Jackson’s Nike boycott lasted until a black board member was appointed.

There has also been a controversy around whether Knight’s use of Asian factory workers as cheap labour s exploitative.

Through all of the bad press that has been foisted on Nike through these events, Nike shoes have continued to sell well. And in

1993, The Sporting News voted Knight “the most powerful man in sports” though he was neither a player nor a manager. Knight’s

marketing mastery is to be lauded and regarded as a major factor in his impressive successes.

Skills for Entrepreneurs

Today’s world is not one that encourages anyone to sit with arms folded. Even with the prevalence of white collar jobs, it is expedient to acquire entrepreneurial skills, which can be used as a means of generating extra income. Records of the most successful men and women today revealed that they are not people who sit in one place from dawn to the dusk, for some monthly wages, but those who took up the challenge to start up worthwhile ventures, not fearing risks or the lack of finance. These are the real entrepreneurs.

The challenge of today’s world economy calls for nothing but entrepreneurship. It is a well known fact that one of the major problems facing many countries of the world today is unemployment. It is no longer news that unemployment figures are increasing at an alarming rate. There have been various austerity measures rocking major countries of the world. The story is not different in my own part of the world – Nigeria.

We all know the terrible effects of unemployment – the crimes it brings and the monumental waste of invaluable manpower it creates. There have been various concerted efforts by different tiers of government at job creations and poverty alleviation programmes. But the truth of the matter is, there is no way these efforts can entirely wipe out this ugly menace called unemployment.

Economists have identified one possible way out of this problem. This is entrepreneurship. Entrepreneurship is considered as one sure way of growing the economies of nations, especially of third world nations. This is why it is for example, being recommended that it should be introduced as a general course in all the tertiary institutions in my own part of the world.

This is a challenge to our youth of today. As you nurse the ambition of pursuing a particular career and profession in the higher institute of learning, it will be wise that you begin to plan towards being an entrepreneur. Such mindset will help you to become very proactive towards being a job maker rather than being a job seeker. This will save you the trauma and frustration of wandering about wasting invaluable time and resources looking for non-existent job in the labour market.

Entrepreneurship involves starting and running a business. This begins with deciding on a business idea to embark on. A business idea can be developed by identifying a need and trying to meet the need – this actually defines who an entrepreneur is, someone who identifies a need in a locality and looks for ways to meet the needs, and in so doing he builds a business around it. To do this, you have to be either creative/ innovative i.e. bringing up a new business idea; or by being adaptive, i.e. tapping to an already existing business idea.

While coming up with a business idea may be a difficult task for the majority of people, I will like to use this medium to suggest a business opportunity for the would be entrepreneurs – Freelance Photography. Yes, I mean you can start your entrepreneurial journey by going into freelance photography. This is a cool business that is often neglected by a majority of people. The beauty of freelance photography is that you can do it on part-time or on a full-time basis, without any interference on your other business(es). Why not give it a thought.

The focus of this article however, is on entrepreneurial skills. If entrepreneurship will bring an end to one of the major problems of the world, then it will be wise we learn the skills that will enable us to succeed as would be entrepreneurs.

There are a number of skills and qualities apart from your academic or professional qualifications, that you need to be a successful entrepreneur. Outlined below are some of these skills.

Risk Taking: As a would be entrepreneur you must be ready to take risks, because running a business involves a lot of risks. You should know when to take risks and when not to.

Taking Actions: Having dreams and aspirations without taking necessary steps to bring them into reality is building castles in the air. Vision without action is a mere illusion. A successful entrepreneur must know what necessary actions to take to make his business succeed and must be ready to take these actions. In other words, he must work to succeed.

Being Persistent: Everything comes to him who hustles while he waits. In your entrepreneurial journey, success may not be instant, you need to keep going. The hallmark of champions is the ability to go through, irrespective of challenges.

Being optimistic: A positive mental outlook to life is an invaluable asset. Before you set out to embark on any business, have a strong conviction that you will succeed, and you will. As a would be entrepreneur, if you want to succeed, you must have a “Can do” mentality, and see opportunities where others see problems.

Being Goal Oriented: Set achievable goals. You may categorise your goals to long-term and short-term. And always keep your dreams alive by placing your goals where you can see and remind yourself from time to time. The Holy Scriptures says and I quote, “Write the vision, make it plain that he may run that reads it”. What the scriptures means is that you should keep your dreams/visions alive by writing them down.

Being customer oriented: Always place your customers first. You business can go nowhere without your customers. Always work towards their satisfaction.

Being passionate: develop an interest and a burning passion for your business. You must love what you do, else failure is inevitable.

Good Time Management: Schedule your day and stick to your schedule. New entrepreneurs need to realize that every minute is valuable. Utilize “Free time” to learn more skills related to your business, and find ways to advertise and contact potential clients.

Good Financial Management: In business, a proper knowledge of finance is a must. Knowing how to cost a service, track expenses, balance an account and keep track of numbered invoices are all most small business need to start out. Entrepreneurs must know acceptable means of sourcing funds and profitable management of such funds.

Why 90 Percent of Entrepreneurs’ Businesses Fail

Entrepreneurship has become the general dream work for both the employed and unemployable. Business opportunities are springing up everywhere, enticing and calling you to make the leap of destiny into the wealth and affluence you’ve often dreamt about. It is also notable that 9 out of every 10 businesses collapse within 2 years of starting. Even the best of well-read gurus collapse in the face of numerous tests that would have heralded the enthronement of a celebrated business idea.

Despite the numerous complaints about the challenges of building businesses in Nigeria, some are still transforming themselves into formidable forces of repute. It is therefore important to know the necessary factors that affect the entrepreneur, his idea, and his growing business.

Not considering pests!

Pests are crazy little creatures that cause immense damage to food and materials in a house, shop or office. Ok, I am not talking about local pests, but in business parlance means Political, Economic, Socio-Cultural and Technological environment; factors which are not necessarily within your control. Some other standard business books give their own academic variations.

PESTLE/PESTEL: Political, Economic, Sociological, Technological, Legal, and Environmental.

PESTLIED: Political, Economic, Social, Technological, Legal, International, Environmental and Demographic.

STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical; and

SLEPT: Social, Legal, Economic, Political, and Technological.

This considers external factors, which if not well considered, can suck life out of any aspiring business. I remember Sokoa Chair Center (Nigeria)’s story for which they explained how the National Government’s ban on importation almost ran them out of business. Her ability to navigate her business out of the murky waters of challenges became the foundation for the world class enterprise she manages today.

Political: political stability, security, freedom of press, regulation and Tax policy, and trade and tariff controls

Economic: Stage of business cycle, economic growth, inflation and interest rates, unemployment and employee turn-over, impact of globalization (Global Financial Crises)

Socio-Cultural: education and social mobility, market demand, public opinion, social attitudes trends,

Technological Environment: Impact of emerging technologies, (automation, internet, e-commerce e.t.c.). Compaq recently launched a 24hr laptop battery, while DELL was busy putting finishing touches to launch their 16hr laptop battery, if DELL were a run off the mill company, they are grounded!

Eating your investment, and not profit

No sooner than a small business begins to level up in terms of income, our wonderful entrepreneur begins to think of changing levels and status. He buys a new car, wardrobe, changes office space, all from the proceeds of the business which is actually the capital and not profits. When spending, it pays to separate personal funds from the business. The business pays you your money, and you must learn to live within that means. Problems occur when initial deposit is given for business only for our aspiring business man goes to celebrate the huge success of his business.

An entrepreneur seeking to build a business must understand the separation and marriage between business and personal life.

Mismanaging reality

When entrepreneurs venture out, they are usually motivated by a deep passion-either for themselves, their idea, getting rich, an opportunity or some other object of enthusiasm. Armed with such passion, they take risks and set sail against unexpected signs of reality.

Yet passion tends to distort reality. The ability to succeed in business depends on the skill of adjusting the plans and dreams to the prevailing conditions. The idea that the challenges will bow to your plans and dreams will burn the drain the entrepreneur’s time, energy, and money pursuing an ill-defined endgame without a realistic path. And when the issues start pouring in… expenses not turning into expected results , potential customers are not that crazy about the product, missed deadlines, shortfalls in sales,- objectivity and reason become even further blurred by the mind-bending distractions of doubt, fear and disappointing replies to investors. Entrepreneurs are found to cave in under these kinds of pressures not knowing it is a bend towards the shining light of achievement.

When personal failures affect business

The personal faults, habits and failures of an entrepreneur are usually obvious especially when he has a lot of people under him. Inability to manage funds, not being detailed and bad people management skills are some indirect factors responsible for the high rate of business failures. Entrepreneurs, like any pioneer, have their own lapses, but must be able to manage them extensively. I know an entrepreneur who does not negotiate price but leaves it to his financial manager because he never succeeds in negotiating a beneficial deal. Many entrepreneurs are successful in spite of themselves. The key is in working well, and enjoying, full understanding of their weaknesses and mitigating the likely risks.

Good at starting business, bad at running them.

This is very true of many entrepreneurs, since most of them are powerful initiators, but terrible managers. Most are more interested in making money than it is to build a business. Most technicians think because they understand their product or skill, they will automatically transform those ideas into business. Most of them have this great obligation to run their businesses and become a great manager. Working on a business and working in a business are two different worlds. While the entrepreneur works on his business, the technician works in the business. He feels if he gave in more, worked harder, profit will come. How untrue!

These are some of the factors I have considered and will love if you ponder on them while thinking, planning, starting and managing your business. Don’t forget also, out of the first 20 richest men in America, only 4 are employees.

Making Way for Community Entrepreneurs

Community entrepreneurs are typically groups or organisations that seek out and act upon opportunities to transform communities and create a positive impact on community values.

Why this is different to social entrepreneurship is that many social entrepreneurship models focus on individuals and disadvantage.

Community entrepreneurship focuses on the community as a whole and creates a sense of abundance for all.

Examples of activities can include:

• A new indoor-outdoor community facility in a built up neighbourhood

• A community focus on activities that reduce the carbon footprint

• Business attraction in rural communities

• Making strategic use of IT to connect communities

• Creating community identities through music and the arts

What does a Community Entrepreneur look like?

They’re in your community. They have a story to tell – a story that has transformed your community. Or they probably haven’t stepped forward to make their mark yet? Maybe it’s you. Here are some ways to spot your local community entrepreneur or even one in the making.

The anatomy of a Community Entrepreneur

1. Laser sharp vision

Community entrepreneurs have a clear idea of what they want to achieve – both physically and in terms of impact on the community. Their vision is ambitious and ground breaking by anybody’s standard. Their challenge is not just to get the interest and support of the community, but to keep the community patient as all good things take time to build.

2. Mind over matter

Bringing a new idea to fruition requires strategic thinking. People can be suspicious of anything new. New ideas challenge those who are slower to accept change. From the start community entrepreneurs think and plan above the fray.

Conserving energy to focus on achieving results, community entrepreneurs focus on big picture thinking. Don’t try to bog them down, they will find a way to move ahead no matter what the obstacle.

3. The language of change

To be effective, they must be able to understand and communicate well to influence change. These groups operate within the community so the change they are influencing impacts on them as well. They are already talking the language of the community.

Their role is to motivate and lead through dialogue within the community and get the support of stakeholders and other agents of change to achieve the desired results. Failure is not in their vocabulary.

4. Shouldering responsibility

Leadership is a responsibility not to be taken lightly. Along the way others may want more control or will fade into the background when things are not going to plan. Individual personalities can make or break a community venture. At some point the group leading the project must step forward and own its responsibility, especially when it comes to finances, resources and process.

5. Maintaining a steady balance

They leave the knee jerk reactions to others. Negotiations require a steady nerve as they walk the tightrope of change. Navigating obstacles, ducking the slings and arrows of opposition, community entrepreneurs harness their vision and start with a goal and use a plan to get there.

6. Forward momentum

Community entrepreneurs are going places. No looking backwards for them. Propelled by positive energy that permeates throughout the community, they will succeed.

The only thing holding you back is your own self-doubt. Group think can get bogged down in dogma. Smash the chains once and for all and bring the dream to life.

Is your group the next generation community entrepreneur? Congratulations. There’s no better time to start than now. Don’t let self-doubt win before you begin.

Women Entrepreneurs: How To Make Your Business A Success

With entrepreneurship holding out the promise of a lucrative future, together with the freedom to be your own boss, many women are choosing to walk the road to free enterprise rather than stay in dead end jobs. Research has shown that twice as many women as men opt out of corporate jobs to start their own business.

Advantages of Starting Your Own Business:

1) Earlier, women were expected to work towards the goals of their organization without considering their own professional satisfaction. Now, more and more women are discovering the joys of being their own boss.

2) As the boss of your own organization, you have more flexibility about setting corporate goals.

3) As a woman entrepreneur, you need not worry about any glass ceiling that may hamper your professional growth.

4) You get to earn more as an entrepreneur.

5) Your contributions will be valued more when you run your own business.

What Makes Women Entrepreneurs Successful

The world over, business analysts are sitting up and taking note of the contributions women entrepreneurs are making to the economy. Entrepreneurship used to be a male bastion, and the glass ceiling in corporate sector is driving many women away. Therefore, an increasing number of women are choosing to leave their corporate jobs and start their own businesses.

Here are some startling facts about women entrepreneurs:

1) Women start more companies than men do.

2) A third of women who left their jobs to become successful entrepreneurs said their employer did not take them seriously.

3) 51 percent of women left corporate jobs because of lack of flexibility.

4) In the US, women own 28 percent of small businesses.

5) Women entrepreneurs in the US employ a little over 9 million people and earned $3 million in revenues for the US in 2005.

Groups for Women Entrepreneurs:

Many organizations support the growth of women entrepreneurs. You can join groups like Women in Entrepreneurship that aim to train women entrepreneurs and provide them with resources.

Women Entrepreneur Groups: Advantages of Joining;

Some of the advantages of joining groups for women entrepreneurs include:

1) Opportunity to share experiences and network with other women entrepreneurs.

2) Get updates on workshops, seminars, trade shows etc.

3) Have access to a directory listing of women entrepreneurs.

4) Participate in competitions for women entrepreneurs.

Women entrepreneurs can also avail grants and loan programs run by many federal, state and private agencies. With more and more women starting their own businesses, the number of grants and loans allocated to them has also gone up. If you are a woman entrepreneur and need to know more about funds, business plans, and organizations that help women entrepreneurs, you can consult a small business expert.

10 Tips For Parents of (Pre) Teen Entrepreneurs

For teen entrepreneurs, it’s not just homework or hormones and friends or fashion. For these exceptional young people, it’s all of that – plus finding funding, building business and securing their futures at an early age.

And it’s important that their parents understand and appreciate their struggles and offer them support every step of the way. These 10 tips are a great way to help young entrepreneurs start down a path toward success.

1. Start early.

By exploring interests at an early age, it encourages children to take an active pursuit of their passion – and perhaps eventually turn it into profit. Visit museums or parks, check books out of the library – anything to help cultivate their genius.

2. Try different stuff.

“If at first you don’t succeed…” It’s a good quote for a reason. Help potential profiteers learn this for themselves by encouraging learning by trial and error. Keep trying plans or products until they find the one that excites them into entrepreneurship.

3. Discuss values.

Equip them with the tools they need to make important decisions by discussing ethics and the importance of playing fair and being honest – on the field, in life and in business.

4. Make a business plan.

A business plan needn’t be long – a one-page plan should work for most efforts. By answering the below questions, teens will be able to clearly define their products, customers and advantages:

What business am I in?
Who are my customers?
How will my customers know about me?
How am I different?

5. Ask questions.

Enforce the need to think everything through early by asking questions – even if they may be hard for young people to answer. And remember: Be careful to come across as a partner, not as a nag! During this step, you should discuss materials, inventory, funding and budgeting.

6. Use the Internet.

From research to retail to advertising, the Internet is an important tool for fledgling businesses. Many teens have a marked advantage here, as they’re better online than any generation before them. Remember, always monitor site usage and message board posts!

7. Serve others.

It’s important that children have a plan that includes giving back to the world. Does the business offer a product or service that those less fortunate would benefit from? If so, work or product could be given away for free or at cost. If not, discuss setting aside a portion of the profits for a reputable organization that helps those in need.

8. Film a commercial.

This step is fun, and the confidence that children get from being on screen is amazing. Brainstorm ideas – from serious to silly – write a script and enlist the help of friends and family to round out the cast.

9. Develop a marketing plan.

Even the youngest entrepreneur should be actively involved in sales from day one. Ask them to develop a plan – and encourage them to think big (“no” should not be a part of this step!). Guide them to consider promotional or partnership opportunities; community stores or leaders who would allow advertising/product placement; advertising activities and more.

10. Define a style.

All children are leaders: They just have different styles and a unique selling point. Help fine-tune that style by building a leadership platform based on individual strengths and weaknesses.

These 10 tips are a great way to kick off what will hopefully be a long and successful business endeavor. But remember: Just as every child is unique, so is every business and every plan. There are no rules – other than to have fun, work hard and continue to learn and grow along the way. Good luck!

Micro Entrepreneurs

Micro entrepreneurs are the owners of small businesses that have fewer than five employees and have startup costs of less than $35,000 and annual revenue of less than $100,000. There are nearly 21.5 million micro entrepreneurs in the U.S. Examples of micro entrepreneurs are owners of bakeries, beauty parlors, child care facilities, repair shops, arts and crafts shops, painting businesses, contracting businesses, family-owned shops, auto body shops, small-scale restaurants, and small-inventory trading businesses.

Micro entrepreneurs face many hurdles in getting startup financing, and they sometimes lack the skills necessary to manage the financial aspect of their business. As a result, many micro entrepreneurs cannot grow and develop their business beyond a micro enterprise. Various micro enterprise development programs have helped micro entrepreneurs achieve great success and growth. These micro enterprise development programs have immensely helped micro entrepreneurs who lack collateral needed to secure a loan or those who have low or no credit by providing them with training, support, help in developing a solid business plan, and assistance in building their businesses. Successful micro entrepreneurs have contributed much to society by creating wealth, economic assets, and jobs.

How To Become A Micro Entrepreneur

It is essential to study the market thoroughly and understand that market’s customers before deciding on the type and kind of product or service to be offered.

Here are some suggestions:

Work out a sound business plan by doing extensive research and seeking help from the various micro enterprise development programs.

Make arrangements for the startup capital by using savings, opting for a micro loan program, or applying for a grant.

Do extensive market research, get the necessary training and skills required, and learn how to use technology to help run your business easily.

Study the competition and analyze how you can better them.

Get a good retail space to run your business as well as decide on the price, making sure it is right and has a profit margin; decide how to utilize the profit, whether you want to save it or reinvest and expand your micro business.

Make sure that the quality of the product is never compromised and that your customers are happy, ensuring customer retention.

Assistance for Micro Entrepreneurs

Micro entrepreneurs in the U.S. are in need of training and skill development workshops as well as help in utilizing technology to help run their business. Some micro entrepreneurs need access to easily available funds for startup and growth. In order to encourage more people to become micro entrepreneurs, state, federal, and private sectors should make available ample funding for such enterprises.

With a little effort, you can find firms that sell their services as well as products to help run successful businesses. You can even seek professional help to arrange business credit for micro enterprises.

Top 10 Mistakes Entrepreneurs Make When Choosing a Business Name

In this rapidly growing economy, it is commonplace to see businesses in every nooks and crannies of the world. Sole proprietorship is having the highest number of registration. From the home-based entrepreneur to the shop owner, and then the small office consultant, people are taking advantage of the freedom enjoyed in becoming their own boss.

Billions of corporate monies are invested yearly in starting new businesses. A visit to the Lagos office of the nation’s registrar of business names buttresses this fact.

While it is true that anybody can start up a business of their own, many entrepreneurs have fallen short of the leveraging that accrues from this experience. This, to a large extent, has to do with the disadvantaged names worn by these businesses.

A business does not actually begin by formulating a business plan or opening a bank account. It starts from choosing a name. There’s more to business names than just identity. The right name is an advertising tool. If the name doesn’t describe the nature of your business, potential clients may not realize that you offer something they need.

Let’s take a look at the top 10 mistakes to avoid when choosing a business name:

1. NOT KNOWING WHAT KIND OF BUSINESS YOU ARE IN. It is surprising that some entrepreneurs choose a name with little or no indication of what type of work the organization actually does. Including a descriptive word in your business name can be useful when marketing your products or company. This may be made possible if you have identified what differentiates you from competitors. Take the following examples:

Adenix and Sons

One Love Enterprises

Just You Shop

Can you tell me what any of these companies do? No! They’re relying on customers already knowing who they are (a tricky proposition for new businesses).

2. USING A NAME THAT IS TOO LONG, DIFFICULT TO REMEMBER, SPELL OR PRONOUNCE. A good name is something that can be mentioned on radio or over the phone without explanation. People will make a quick decision based on their first impression of your business name. Put the name through a spelling test and ask others to spell it. So, choosing a name such as “Lolitoesy” is not a good one.

3. NOT SPENDING QUALITY TIME BRAINSTORMING. Business names are not “spur of the moment” creations. It is the result of possibly long days and nights of brainstorming, digging the Thesaurus for synonyms and antonyms, interrelated words and words that have some kind of relationship with the proposed business activity. The big companies even hire expensive consultants to help them choose the right name for their businesses or products.

4. PROMOTING A NAME WITHOUT TESTING AND CHECKING ITS AVAILABILITY. Once you have chosen a few names, test them out on friends and family, potential clients and everyone you know. Ask them what kind of service they feel you provide and feeling they get about the name. You’ll be surprised at how honestly they give you suggestions. Then you can proceed to check availability at the name registry nearest to you after being convinced it’s best. Don’t waste money on letter heads and complimentary cards trying out a business name already chosen by someone else.

5. CHOOSING WORDS WITH NEGATIVE OR NEUTRAL CONNOTATION. A word’s connotation can be positive, negative or neutral, depending on the emotional associations that people generally make. If you are starting a transport business for instance, you don’t want it to have a weak sounding or negative name, such as “Willow Twig Trucking” or “Kitten Transport”. You want a business name that conveys strength and reliability. A choice such as “Stone Creek Transport” would be much better. Remember: Words are powerful.

6. NAMING A BUSINESS AFTER THE FOUNDER OR ANY OTHER PERSON. It is a common tendency for a business to be named after the original founder. This approach can make customers expect the personal attention and care of the owner. Using your name, followed by the type of service works well if you have an already established reputation in your specialty. But, if you are planning to one day sell your company, a company-owner named business is less attractive.

7. NOT CONSIDERING THE FUTURE. Robert Dilenschneider wrote about a public relations person who broadened her services from just writing to media relations and had to change the name of her business from Miller’s Writing Services to Miller’s Communications. Aside brainstorming for ideas, you need foresight in choosing a name. Even if you are operating a highly-niched product, select names that would represent a broader category of your product line.

8. FAILURE TO GET THE RIGHT DOMAIN NAME FOR YOUR BUSINESS. If your business activity is almost 100% online or will do better having an online presence, you may need to consider starting your search by getting a suitable domain name for your website first. In the modern world of the internet, where people automatically turn to the web for information, it pays to have a domain name that reflects your site or business.

9. NOT AVOIDING LAWSUIT. Be unique. The best you can be trying to be someone else is second best. Avoid being a copycat. Using a name similar or identical to that of another business can get you into problems including legal issues. If you call your line of equestrian apparel “Polo Sporting Designs”, the holder of the trademark “Polo” – the giant Ralph Lauren – may slap you with a lawsuit.

10. NOT CONSULTING A BUSINESS NAMING EXPERT. While the services of lawyers, chartered accountants and chartered secretaries can be invaluable in the registration of a business name and company, these categories of professionals might not understand the selling and marketing principles that copywriters can use to your advantage. A good copywriter is always looking for ways to help you communicate more effectively to more people.

Small Business Ideas for Entrepreneurs

Introduction

Many people envision the day they start their own business. They know with hard work they will achieve success. That is the easy part. The hard part is coming up with the best idea of what industry it will be in. There are so many potential fields to choose from. Yet somehow, when it comes to deciding on one, their mind goes blank. Here are some potentially successful business ideas for you to ponder.

An Electronics Installation Business

There are a lot of folks who do not know how to install and/or set up the new electronic item they just bought. Either that or they do know how but lack the time to do it themselves. That is where this kind of business can come in handy. You hire skilled installation specialists to go out and perform these services for customers. Everybody wins with this one.

Software Teaching Business

What you would be doing in this case is hiring people who have a vast knowledge of different software programs. Then you connect them with customers whom they can teach to use the programs. This can be done locally on an in-person basis or over the Internet on a remote basis. The more programs one person can teach, the better. You should also seek people with a lot of patience. The prospective students will likely have lots of questions.

Create a Writing Business

Here is another industry that is full of potential customers. For a variety or reasons, scores of individuals are not able to do their own writing. It could be lack of skills, or lack of time, or whatever. Maybe they need a quick article on a specific topic, or a resume or a simple business letter. You can recruit experienced freelance writers to be a remote staff for your business. Then you are ready to seek clients. There is such a huge need for this these days, you are sure to succeed.

Personal Care Associates

What are they? They are individuals who can either care for children, care for special needs patients, or care for elderly patients. Of course, for this type of business, you ought to require that the candidates be properly trained and, at least, certified. Possessing a license is even better. With that said, there are plenty of qualified persons who are not currently employed. There are also oodles of people who need personal care. If you had a business in any of these industries, you could match them up. One more thing to be sure of is that they have the proper personality to assist patients on a regular basis. Someone with a short temper, or who is not a “people person,” would not be a good choice.

Begin a Yard Care Business

It goes without saying that there are already many landscaping businesses out there. That is not what we are talking about here. Full-service landscaping companies can be expensive. You would fill a big need by finding local workers who can mow lawns, take care of plants, rake leaves, shovel snow, etc. Your clients would be residents who cannot afford a large landscaping firm.

Wrap-Up Thoughts

For everybody’s sake, anybody you hire for any of these types of businesses should have an extensive background check done on them with a printable report available. Once that is taken care of, you can hire them and send them out to work.

People, these are merely a few ideas. If you give it plenty of thought, you are bound to think of something your community needs. Remember, the worst idea is the one you have never given a shot. Good luck!

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