Top Fears You Must Overcome as an Entrepreneur

entrepreneurFor entrepreneurs, starting from scratch can be both frightening as well as exciting. As an entrepreneur, you are faced each day with a lot of decisions to make, whose outcomes are uncertain. It is the same situation I faced when I wanted to start Pressure washing services in Fredericksburg. The fear for the unknown can make or break you. Fear can mean the difference between living an average life or living a life that many would like to emulate.

Here are some of the fears every entrepreneur should aim at avoiding.

Fear of Change

Change of any type can be threatening or even frightening. Normally, our brains are programmed and coordinated to avoid change. It is a natural instinct to seek comfort and security.  The reason we seem to resist change is because it poses a threat to the status quo. Moreover, complacency can keep us comfortable from taking action and moving forward. The fear of change makes us anxious about the future and will certainly make us adopt a closed mindset. The truth is that we can’t avoid change forever. We need to find ways to embrace and accept change, as well as innovation.

 

Fear of Failure

failureFailure can be viewed as the worst of all possibilities. When we think of failure, we think of some sort of unbearable embarrassment and the associated anguish of losing everything we have spent our time building. When failure happens, we tend to believe that all those who doubted us were right. Whenever you want to do something, ask yourself if 10 years from now, you will regret not taking an action. When you have to implement something that is tough, develop a plan B that can get you off the ground and kicking.

 

Fear of Knowledge

It is not a rocket science that you don’t know what you don’t know. We all have blind spots and gaps in our acumen, business-wise. When you are aware of different things, you are better placed to take necessary steps that can help you in mitigating those gaps. If by any chance you are worried you are missing on some sectors in business, start by doing what is right, and what can help you to rectify the situation. You should not be afraid to ask for help and guidance from mentors and others who have made it.

 

Fear of Unknown

Fear of the unknown can be a tough one to deal with. We are naturally afraid of being in a situation whereby we can’t manage outcomes. Our bodies do not want to be in a situation of taking massive leaps on things that we are uncertain about their outcomes. The unknown normally has an effect on our overall performance. We are also faced with the fear of committing to business expenses. You need to develop a business plan and set clear goals and objectives. You should also avoid the fear of taking risks. Every time we take risk, we put ourselves or business in a line of reputation. A risk can pay off, if well managed.

 

 

 

 

How to Make Better Business Decisions as CEO

strategyQuality and equally speedy decisions determine the success or failure of an organization. CEOs must not only be able to make good decisions themselves but also grow decision-making capabilities and abilities within the teams they manage and lead. As a business owner, you don’t have to make every decision. Only new CEOs make every decision irrespective of how small it is. A guy working with West Palm Beach Towing Service decided to give a friend a huge discount off the charges on emergency towing services he needed, such decisions don’t always come by mistake, and it’s through careful and calculated customer retention efforts, groomed by the business owner.

 

Goals of strategic decision making

Good decision making involves avoiding some basic pitfalls. Companies get much advice on how to make decisions, and as CEO of an organization, you too will be faced with many decisions to make. The types of decisions you will need to make may be from a variety of areas including deciding on expanding into new products or services, organizational changes for other reasons, investing in existing products or services, building new infrastructure, mergers, and acquisition, maintenance of existing infrastructure among others.

 

What involves good decision making?

startIn most cases, decisions initiated and approved by the same person generate the worst financial outcomes. Decisions made by companies without strategic planning are also very likely to generate extremely poor results. There are several elements if the decision-making process that is associated with excellent financial and operational outcomes. There is a need for clarity on who is supposed to implement certain aspects involved in the overall decision making.

To achieve success in decision making, ensure that you don’t make every decision on your own. CEOs need to make decisions on strategy, hiring and firing, resource allocation and other significant ones that affect the overall structure of a business. When executives want to discuss something, make them propose a well-considered position.  If you have hired your people well, you have to trust them in making decisions. Give them the chance to make decisions and back their decisions up.

 

Act Swiftly

CEO needs to get comfortable when making decisions with incomplete information. In most cases, CEOs operate with limited data and are supposed to make decisions and accurate ones for that matter. You need to change bad choices quickly. It can be difficult to admit failure, but it is more dangerous to make bad decisions. To be credible and remain relevant in your managerial positions, you need to reverse bad decisions before it is too late.

You should also not overrule very often. If your team is sticking to your company’s vision, strategy and goals when making decisions, they will most probably agree on the right decision. However, if you find yourself at crossroads with your team, then there is a big problem. The frequent overruling of people may not be a wise move, as there needs to be a balance lest you make people silent when it comes to making vital decisions.

 

Tips to Become a Better CEO

ceo companyBecoming an excellent Chief Executive Officer is one of the ultimate goals people aspire to achieve in their life.  A CEO is the highest ranked executive officer of a company and sets the strategy as well as the future direction of a business or company. Many ambitions professionals aspire to and work their ladder up to become CEOs. But what does it take to become one? What can you do today to set yourself on the path of becoming a CEO?

 

The Role of CEO

From one organization to the other, the role of a CEO differ. This difference is brought up by the unique demands of each business as well as the structure of the board. But typical tasks include creating and implementing the mission, vision, strategy and the overall direction of a company. CEOs work at formulating a strategic plan and representing the organization on all matters including media.

 

What it takes to become a CEO

If you are looking forward to becoming a CEO, you will require a great amount of knowledge, focus, intelligence, determination and business flair. Because the career pyramid gets narrow as you move up the ladder, it means there is no shortage of suitable candidates interested to fill the role of a CEO.

The requirements of a modern CEO continue to evolve as a business operates in a very competitive and dynamic environment. In most cases, a great CEO has a strong educational background with a wide experience in various business fields. They also have a proven work experience. CEOs evolve to become better professionals as they acquire knowledge, sound judgment and wisdom over time.

 

Personal Qualities of CEOs

ceoWhen it comes to personal qualities, CEOs need to be excellent communicators capable of giving both expert directions and well-thought opinions. They must be always energetic, motivated, ever objective, calm under pressure and creative. They should be able to give solutions where it appears clear no any.

Anyone with preliminary skills and experience has the opportunity to become CEO. In some cases, some candidates have a better chance of becoming CEOs over others – a good example is if becoming a CEO is based on background, family companies among others. Patience is a fundamental stepping stone to reaching the top job.

Standout Qualities

There are some important and specific skills you need to become a CEO. First, as a CEO, you are the keeper of a company’s vision. You are the leader of the company and you must be willing to absorb the pain for the team. You must be ready to take a great burden of stress, mental torture as well as pain. You must be excellent in scouting talent and recruiting. Find the smartest people to join your team and delegate tasks.

As a CEO, you must be a good link between the company and investors. A good investor picks 2-3 companies per year to work with; you must make investors work easier. Be able to learn on the job as you will be required to be good at almost everything. You must have the courage and unwavering ability to say NO. Additionally, you must have some technical knowledge and skillsets.

 

 

 

 

 

Financial Tips for Entrepreneurs Launching a Company

One of the biggest challenges and constraints of launching a business is ensuring its financial success and making it profitable. If you are a startup or just a young entrepreneur, I applaud you – building a company is without a doubt one of the hardest things people aspire to achieve in their life. Starting a company is one hard part – managing and controlling finances are another.

Let us discuss some common financial mistakes and important tips youstartuphould follow to ensure the success of your company.

 

Educate Yourself

First, you need to educate yourself on matters of financial management. If you are a starter, learn to read financial statements and how to interpret them. By reading financial statements, you will be able to know where finances came from and how many hands it changed. In a financial statement, there are four important details; income statement, cash flow management, balance sheet and statement of shareholders’ equity.

 

Learn to Interpret Financial Statements

The cash flow section analyses operating activities including investments and finances inflow and outflow. Balance sheet analyses information that relates to the company’s liabilities, assets and shareholder’s equity. The income statement looks at the revenue earned within a certain time. The shareholder’s equity looks at the amount by which a company is financed through.

 

Separate Personal and Business Finances

It is always wise to separate your personal and business finances. This involves getting a business credit card and then putting all related expenses on it to help you track your spending and keep you in control. You should also open a savings account that is dedicated to your business.

 

Cut Costs

As an entrepreneur, you need to cut expenses as much as you can without interfering and hampering customer satisfaction, especially if you’re a small business. Every business will always endure fixed and variable costs. Fixed expenses have to be met irrespective of the financial position of your business. You can save a considerable amount of expenses by using free online software that helps to automate common operations in your business.

 

Limit Fixed Expenses

successAs a business owner, you should limit your fixed expenses from the very beginning. Keeping your expenses very low is key to achieving your business success. You don’t need to operate in a huge office in the heart of the city where you are served three meals a day. Operate as thin as you can, so that you can allocate the bigger part of your capital to grow. Many startups focus to spend on the wrong things and they end up financially stranded in the next couple of years after launch.  AS a startup, you should remain optimistic but also prepare for the worst. You can be hit with very challenging lawsuits that can take a substantial amount of your finances.

 

Monitor and Measure performance

It is very important to keep tabs on the movement of your business money – especially if it involves large sums. Keep looking and analyzing your company’s financial performance in leu to past financial statements. Be aware of all aspects that may force you to make bad decisions. If possible, hire a professional accountant or financial analyst to help you determine where your business is.

 

 

Easy Ways to Get a Business Loan

loanEvery business needs to grow, and one of the critical ways business grows is through injection of cash. If you need to finance this growth, one way to go about it is through taking a business loan.  It is not a secret that small businesses face a lot of struggle when seeking to get a loan. However, there are a couple of essential issues one need to look into before going for a loan. If you are looking forward to meeting lenders, here are some critical issues you need to get right.

 

Show Reason Why You Need a Loan

The reason as to why you need a loan is the first question you will face when you meet the lenders. So you need to prepare a proper response ahead of time. It is very vital you know your needs and how you will utilise the loan. You may need a loan to acquire machinery, purchase inventory, and have a working capital among others. The reason behind your credit will determine the nature of the investment you will get, as well as the terms.

 

Available Lending Options

It is essential to look at all available lending options that you can go for. Apart from the traditional and conventional lenders, you may get other types of lenders providing financing to SMEs. Opportunities such as credit unions, nonprofit microlenders and local banks may all present an excellent source of funding for you. Other financing options include crowdfunding, personal loans, business credit cards among others.

 

Demonstrate your Business Ability

businessYou need to demonstrate that your business has been generating a steady cash flow that can facilitate loan repayment. Cash is always king and one of the leading factors of the health of your business. You need to demonstrate that you have ample and steady cash flow. Such assurance proves to potential financiers that you have what it takes to pay employers and creditors on time. You need to provide financial statements, banks statements and tax returns to support your abilities.

 

Maintain a Manageable Debt

You need to maintain a manageable debt load. When we talk about debt load, we mean the amount of debt that is carried on your balance sheet. You need to prove that you can handle both your current loan amount and any other additional amount you look forward to increasing. If you want to get a loan to expand your businesses, be ready to prove why the extra money will be beneficial to your business. Demonstrate how the added liquidity will be used and forecast any other revenue streams.

 

Sustain a Positive Repayment History

One of the most critical factors your financiers and lenders will look into is your payment history. A financier will always seek third-party reports to see how your repayment history has been. Additionally, to get a loan, you will need to prove a business case. Potential lenders will want to get an assurance that you look forward to having some challenges. In this case, you must show to them how you look forward to tackling these challenges.