Experienced entrepreneurs will tell you that great businesses are founded on great partnerships. These same experts will be the first to admit that great businesses can also be destroyed by bad partnerships. Because of the uncertain business climate, more people are deciding to pool their talents and go into business together. But because partnerships fail and businesses crumble all the time, there are things you need to know before going into this type of business relationship. By knowing what to expect, you can choose the right business partner, reduce the risk of failure, and work towards the best results. Done correctly, a partnership is an unstoppable force that can bring several advantages to a business. From shared resources to complementary talents, a solid partnership brings many benefits that can ensure a company’s survival and help it thrive in a competitive industry. What You Need to Know About Getting Into a Business PartnershipYou can build a partnership with anyone, but if you want your business to do well, you need to find the right partner. The first step in building an effective partnership is identifying the best person for the job. Savvy entrepreneurs use various strategies to make sure that every business partnership is a match made in heaven. Ideally, you want to work with someone you’ve known for at least one year. Similar to dating, you want to get to know a person before committing to something more serious. Think of a business partnership as a marriage. You won’t marry someone you barely know. If it’s possible to work with someone on a smaller project just to see how it goes, do so. If the projects don’t work out, move on. This way, you will see if you can work well together. Having Complementary SkillsYou want your partnership to be more than the sum of its parts. Look for a partner who is better than you at certain things—someone who brings something to the table that you can’t do yourself. Don’t let ego get in the way of a great partnership. Some people can’t stand it when someone is smarter than them or better at something. But when it comes to business, having complementary skill sets will take your company to new heights. Here at Kennected, we have multiple partners, but they all have different roles and skills. Devin is the CEO, Cody is in charge of sales, Brandon handles operations, Elliot works on marketing and video creation, and Stephen manages website branding and content marketing. Everything works smoothly because we all bring something different to the table, and we all work for the growth of Kennected. Developing a VisionIn addition to being able to work well together, business partners need to have a similar vision. You can’t have different goals if you’re working on the same business. You need to be one coherent unit, working towards a particular goal. Discuss with your partner how you envision the business and how it will grow over five or more years. Iron out the details, compromise whenever necessary, and make sure you are on the same page. How many hours a week do you want to dedicate to the business? What staff do you want to hire? What are your end goals? Sharing ResourcesOne of the main benefits of going into a business partnership is being able to share your resources. This is especially important during the startup phase, where you are both trying to get the business off the ground. A partnership reduces the financial impact of launching a startup, because there are two or more people investing on the business. Just make sure to put everything on paper: a poorly written and researched general partnership agreement can open you up to personal liability issues. Hire an experienced lawyer to help form your company. Getting it all on PaperDocumentation is the lifeblood of business partnerships. Like certain marriages, businesses require a pre-nup. The reality is that many partnerships eventually break up. When you and your partner decide to go your separate ways, you need to know exactly what will happen to the company. Prepare for that scenario by having a document that outlines what happens when one or more people leave. This way, you can handle this difficult situation in a way that you both agree on. Another thing you want to discuss with your partner and document on paper is each other’s specific roles, boundaries, compensation, and exit strategies. While it’s important to trust each other, it is also important that you are on the same page before you start. Sometimes people have different understandings and interpretations if they are not put into writing. Decide from the outset the responsibilities each player will have, how you will resolve disagreements, and who should serve as a mediator when settling issues. Building a Fun RelationshipLastly, you need to have a little fun. Successful businesses are built on passion and the excitement of building something worthwhile. If your gut tells you that a person is not the right partner for this endeavor, then you might want to look for someone else. Business partnerships are a long-term commitment. It’s going to become a part of your life, and you will inevitably go through various ups and downs. If you can go on this adventure with someone you can trust and someone you can have fun with, the journey would be much easier. from https://kennected.org/partnership-advice/
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#kennected #linkedinautomation #kennected #linkedinautomation Securing funding for your business is one of the most important steps in launching a startup. You simply cannot get anything done without money. You can always start small and sell to your family and friends, but if you are ready to introduce your startup to the world, you need someone to back you up financially. Some entrepreneurs use their savings, some take out a loan, while others seek out angel investors. Here we will be talking about venture capitalists: everything you need to know about attracting VC money into your startup, from finding the right VC to pitching your business properly. But first, let’s define what VC is. Venture capital refers to big-money investments managed by professional investors who are spending other people’s money. Do not say venture capital if you are really looking for angel investors. Angel investors are accredited investors who are investing their own money. Venture capital is the hardest type of outside investment to secure because it comes from extremely wealthy people, insurance companies, big corporations, etc.—and they usually come in millions of dollars. Angel investment is much more likely to be in hundreds of thousands than in millions of dollars. So before you look for the right VC to fund your startup, learn the difference between the two and find out which one your company really needs. How to Get Venture Capitalists to Fund Your StartupWith that out of the way, let’s talk about how to get venture capitalists to fund your startup. The process is way more difficult than getting funding from friends and family, and it always takes much longer than you expect. It may or may not work out in the end, but here is how to increase your chances of success. For starters, you need to have your business plan ready before you work on your pitch. It’s true that sometimes investors will reject your business without reading your plan. But they won’t invest in it without reading the business plan. This is called due diligence, and your business plan will serve as the active document for that. Prepare your business plan before working on your pitch. Usually, you are asked to send a video or summary and then wait to be invited to pitch. If you do get an invitation, it is your chance to share your story, tell them about your startup, and explain why you should receive their help. Once you are ready to give VCs your pitch, make sure you have an extremely good tagline and an instant summary. The old 60-second elevator pitch isn’t going to cut it. Instead, you need to be able to catch their attention within your first two to three sentences. 60 seconds is too long. Describe your business in a few intriguing sentences. The rest of the pitch is all about fleshing out the details and keeping their attention. While the pitch is certainly important, don’t think that success or failure depends on it entirely. What matters more to investors is the story, the credibility, and their assessment of your startup’s prospects. Be patient because due diligence alone will be several months of unending requests for more documentation. How to Find Venture CapitalistsPitching your business is an art form. But before you get to that point, you need to find venture capitalists first. It all begins with research. First you need to understand which VCs are a good fit for your company’s goals. You can only score meetings by creating a targeted outreach list of firms that are aligned with your business. Unless you already have some connections, you will do most of your research online. LinkedIn is a good resource because it is the biggest platform online for building professional and business relationships. You may find several VC firms here. Create a list of VCs that are a good fit for your company. Remember, all venture capitalists have a specific focus when it comes to the kinds of companies they fund. Some invest mainly in software, in consumer products, in AI, etc. It would be pointless to reach out to a VC firm that is not interested in your type of business in the first place. Try to create a roster of VCs that are likely to be interested in the kind of product or service you are offering. Make sure you include firms that have a track record of investing in your industry. Another thing to consider is the stage of financing that you are currently in. Figure out if a VC firm you listed is actively pursuing deals in your stage. Check out the individual websites of different venture capital firms: they often share their investment ethos or criteria there. Just by looking at their website, you can tell if your business is qualified. Another good way to determine if your company fits within a VC’s investment ethos is to review their recent deals. These can also be found online. VC firms are transparent about the types of investments they make, so use this to your advantage. You can even research similar businesses and find out which firm invested in them. Lastly, consider your location. There are firms that invest beyond their city and state, while others only invest locally. When applicable, be sure the firm makes out-of-state investments before sending an email. How to Approach VC FirmsYou know how to find them and you know how to pitch: but getting the opportunity to present that pitch is the tricky part. They say that “the deals chase the money; the money doesn’t chase the deals.” This is the part where you start chasing the investors. Avoid email templates like the plague—because apparently, investors hate receiving them, just like how most people hate receiving spam emails. Most investors don’t read summaries or watch a pitch when it looks like it is being sent in bulk to multiple investors. Personalize your emails. Kennected is a LinkedIn automation tool that lets you set up automated messages and personalize them so that they don’t look like spam. Kennected simply makes the process of sending these messages easier. You can even use Kennected to help you find leads using LinkedIn’s data-rich filters. Kennected understands the importance of sending personalized emails to individual investors. Once you have your target list, it’s time to secure those meetings. If you have a mutual connection from your business or personal network, that can work in your favour because VCs are more open to deals that come from trusted sources. Ask your team if any of them have people in their extended network who have VC relationships. You can even utilize Kennected and LinkedIn to connect with VCs in your area, to make the process easier. If you don’t have direct connections, you can still reach out to them via cold emails. In your email, mention why that VC is most likely to be interested in what you have to offer. Personalize it according to their interests and previous investments. Finally, be direct and concise. You want to get to the point quickly because people have short attention spans. If your email can’t catch their attention, then your pitch probably won’t work on them either. Everything from your subject line to the layout of the text should be clear and direct to the point. Explain why your company is relevant to that particular VC. Be patient and know that this process takes a long time. You are securing a large fund for your startup after all. It’s all going to be worth it. Book a demo with Kennected today to learn more about how it can help bring you a steady stream of connections, sales, and appointments. from https://kennected.org/attract-vc-money-startup/ Many people are leaving behind their 9 to 5 jobs and trying their hand at entrepreneurship. But new entrepreneurs need to be aware of the risks. A lot of startups fail because founders are unprepared, unable to manage their cash flow, or unable to keep up with the demanding nature of running a business. Just to put things into perspective, around 90 percent of new startups fail, while 75 percent of venture-backed startups fail. Under 50 percent of businesses make it to their fifth year. Even fewer startups make it to the 10-year mark, with only 33 percent of businesses reaching this milestone. If your startup actually becomes profitable, then you are part of the 40 percent that make it. It is therefore important to take a look at some of the most common reasons for startup failure. It will help guide your decisions and keep you on the right track. Avoiding these common mistakes will increase your chances of becoming a successful entrepreneur. Why Most Entrepreneurs Fail: Because They QuitA lot of entrepreneurs make the mistake of quitting too soon, not realizing that building a business from the ground up is going to be a difficult experience—one that requires resilience and perseverance. If you quit at the first sign of trouble, then all your planning, research, and investments would be for nothing. If you don’t have the patience or persistence to keep going, then entrepreneurship might not be for you. But if you do want your startup to succeed, then you need to understand that there will be tough times. Your startup will go through all sorts of ups and downs, and you need to keep working on it, or else that is as far as you will go. Focus on your capabilities and don’t give up right away. You don’t need to become a “Jack of all Trades” overnight. As the founder of a startup, you need to focus on the most important aspects of your business instead of getting distracted by all the things you think you need to do. Otherwise, you might find yourself overwhelmed. Set your sights on what’s important and channel all your energy into that. Scaling and growth will come later. Ignoring CompetitionWhen you do start getting customers, it’s easy to feel like you are on top of the world. Unfortunately, this can be the downfall of many startups. They think they are the only ones in the market, when in fact there are already thousands of players in the same industry. Assuming you are the only one in the market is not a good idea. If you realize that you have competition around you, you can start conducting proper analysis on them so that you can adjust your strategy accordingly. Studying your competitors can help you get ahead and become a leader in your industry. Ignore your competition and your startup will fail to grow. Not Building a TeamIn the beginning, you will want to focus on yourself and your co-founders. But as your startup grows, you will have to start hiring other people to do certain tasks. Having a team of people who are experts in their own respective fields will help your company grow by accomplishing more. But you shouldn’t just hire people for the sake of it. Your goal should be to build a team of people with complementary skills. You will find it easier to reach goals when everyone is reliable and accountable. While you are the main force of the startup, doing it alone is a bad idea. You will need a lot of people if your goal is to build your business from the ground up. It’s about empowering yourself and then empowering others around you. A big part of entrepreneurship is about trusting and empowering other people. Running Out of MoneyThis is the most common reason why startups fail. Not all entrepreneurs are experts when it comes to managing their finances, and this is especially true for those who are launching their very first startup. Sometimes founders invest too much money too soon, not knowing whether there is an audience for their product or not. Some founders don’t put in the required amount of money in the first place. Even if you have a brilliant idea, you need funds to get your startup rolling. Lack of proper funding can lead to your company’s failure. Do not start a business without sufficient capital in hand. Always remember that it will take time before your startup begins being profitable. You need to have enough funds to survive for months with almost no income. Invest wisely and learn how to manage your cash flow intelligently. Marketing ProblemsEven if you spend years perfecting your product, your startup won’t take off if you don’t know how to market it properly. A lot of entrepreneurs think that if they “build it, they will come”. But this is certainly not the case for startups. Ignoring marketing is like opening a company and not wanting other people to know about it. Without marketing, you will struggle to find customers outside of your own social circle. Market your new brand and tell the relevant audience about it. You don’t have to go for TV commercials or any other expensive medium. You can use social media marketing, for example, which is free and can help you reach a wide audience. LinkedIn is one of the best social networking sites for marketing, especially for B2B marketing. It is the biggest platform for professionals online, and it is full of leads and prospects. There are plenty of common mistakes to avoid, but hopefully you can improve your chances of success by following this guide. A brilliant idea is not enough to keep your business afloat in the extremely competitive world of entrepreneurship. You need passion, dedication, funds, marketing strategies, and a team of competent individuals who can bring out the best in your startup. To take your lead generation to the next level, use Kennected. Kennected is an automation tool for LinkedIn that uses laser-accurate data to help you find your ideal clients. You can use Kennected to reach out to more people at scale so that you can focus on more important tasks instead of spending all day looking for leads in LinkedIn. Kennected brings you a steady stream of connections, sales, and appointments. Book a demo today to learn more! from https://kennected.org/why-entrepreneurs-fail/ #kennected #linkedinautomation Launching a startup is hard, but turning it into a real, profitable business is even harder. You may be anxious to find out whether your startup is on the right track or not. It is common for founders to wonder how long it takes for a startup to be successful. Here, we’re going to define success as “profitable” since that is the most obvious goal for entrepreneurs. But keep in mind that every startup is different in terms of goals, resources, and challenges, so success should be measured in relation to your business. How Long Does it Take for a Startup to be Profitable?Kennected has been profitable since month 5, which is great progress for a startup. However, not all companies would go through the exact same experience. Even if your startup doesn’t enjoy that sudden boom in sales and clients right away, remember that entrepreneurship is all about patience and resilience. Even though businesses have different trajectories, and startups may go through different ups and downs, there is a common pattern that forms during the first few years of business development. The short answer is that your first few years will be a rocky ride. Many startups fail in their first year while others don’t make it to their fifth. Even fewer companies get to their tenth year. It usually takes at least 4 years just to become a real, profitable business. If your startup is struggling in its first year, just know that thousands of other companies are dealing with these hardships as well. Easy Victories and Obvious WinsThe moment you start your company, you will get dozens of easy and obvious victories. Launching your startup is hard enough—and that is worth celebrating. Getting your permits, securing your funding, launching your website, even hiring your first employee will all feel like major progress. But don’t let these tiny victories fool you. It typically does not include lots of revenue to keep your startup afloat. It shows you that you are off to a great start, but keep moving onward and upward or else you will fail to maintain that momentum. Difficulties, Challenges, and DebtBecoming profitable should be your main goal on top of building your brand, maintaining cash flow, keeping up with the competition, and perfecting your product. Your startup will inevitably go through various challenges, and you might even blow through your savings just to keep it alive. At this stage, you may realize that launching a business is different from validating one. You need to get early customers and turn them into long term buyers. During this point, you will begin worrying about whether or not you made the right career move. To get through this stage, you need to turn your anxiety into motivation and achieve even more small milestones. You want to work day in and day out to help that business grow. This is the time to grind. Validation StageIt is at this point that your excitement towards your business has transformed into stress. This is the stage where you have a clear idea of whether or not your company is viable. You know from experience that your startup has different strengths and weaknesses. You can pinpoint exactly what your company needs in order to grow. At this point, you know exactly what you are signing up for. Whether you commit to it or not is up to you. If by the third year you are still struggling to break even, then your company might be years away from becoming profitable. It is the right time to ask yourself if it is still something you want to pursue. Understand that success may come later—or maybe never. Nothing is set in stone. You have taken the time to validate your idea and you can tell if it is worth pursuing or not. Ask yourself if you can go at that pace for another 2 to 3 years. No one knows if your business will become successful in the future, so don’t pay too much attention to what other people are telling you. You have to make the call. Finding Your FootingMany major companies ran in obscurity for many, many years before they found their footing. Even some of the smartest entrepreneurs struggled to get their business off the ground. It’s normal. Overnight success stories are rare and should not be your basis for what success looks like. Do not use that as a guide. Before you can find your footing, you need to refine every aspect of your business: from customer acquisition to team management. All of these things take lots of iterations to get right. You may spend more time in a certain stage than others. Once you get every aspect of your business right, you can start running a real company. Building a startup from the ground up is difficult, and there’s no need to sugar coat that. Remember that there is no shortcut, and that’s okay. from https://kennected.org/startup-success-duration/ How Long Does It Take For A Startup To Be Successful? https://t.co/KZHhe4x1UF #kennected #linkedin9/27/2020 #kennected #linkedinautomation #kennected #linkedinautomation All businesses have life cycles. Even startups go through different stages of evolution as they grow and develop. Many factors may influence its progress, and in some cases, startups fail before they can go through the whole cycle. Building your business from the ground up can feel like an overwhelming and confusing task. But by learning about the different stages of a startup, you can tell exactly where you are and how to chart a course towards your goals. Keep in mind that because all businesses are different, the time you spend on one stage will be different from others. What are the Different Stages of a Startup?Small businesses vary widely in size and capacity for growth. And yet all startups experience common problems at similar stages in their development. These points of similarity can be used to determine which stage of development a small business is currently in. Knowing where you are in your journey will help you manage your time and resources efficiently. For founders, understanding where your business is can aid in assessing which problems need to be prioritized. It can even help you anticipate future challenges so you can prepare accordingly. Planning and Research: Turning an Idea into RealityThis is the stage where the startup conceptualizes their product or service and assesses whether there is a need for it. The main problem during this stage is that turning ideas into reality is difficult. Even more difficult is finding a great idea that can get off the ground and find its perfect audience. You need to research your offering’s product-market fit, your competition, your budget, etc. This stage is all about developing a solid business plan. During this stage, it is often just the founders working together to make their dream come true. Commitment and Branding: Finding Your AudienceThis stage is where you move from a concept to a company. You put your research into practice and start following your business plan. You develop a prototype, or start selling to friends and family members to get that initial feedback. The main problem during this stage is finding an audience for your startup: identifying ideal clients and reaching out to them using various marketing efforts. Startups use different avenues to promote their brand, often using word of mouth and social media marketing strategies. Founders need to establish their brand. This ensures that they have a place in the market and a reputation to build upon. This is also the stage wherein you work towards perfecting your product. Startups may have their first few employees during this stage, all of whom are managed directly by the founders. Viability and Traction: Learning about What Works and What Doesn’tThe first few years are the most difficult for startups because your company isn’t well-established yet and you may run out of money before the business becomes profitable. The traction stage is where you begin to find out whether or not your company is truly viable. Traction should not be mistaken for growth. Both come at different stages in the life cycle of the startup. Traction is only the beginning of your growth. Focus on growing your customer base and reaching the goals you set. The main problem for this stage is delivering the product and managing cash flow. During this stage, the team may expand and add more people, or stick with the core members. Refinement and Growth: Scaling Your StartupThe refinement stage is where you apply everything you’ve learned so far based on your research and your experience with running your startup. This is the part where you apply feedback and shift your business strategies based on customer experience. Startups in this stage are already proven to be viable and are working towards scaling their company. If you are in this stage, then you are beginning to be profitable. Founders should focus on establishing credibility and building customer trust. It’s all about providing value consistently—and even improving in areas where you can. Scaling means expanding your customer base, your offerings, and your company itself. This stage can start at year 2 to 3 and may last for years. Here is where you refine your systems in order to become more efficient. Founders may hire more people who specialize in different aspects of the business. The focus shifts towards building a team of reliable individuals with complementary skill sets. When hiring more employees, founders should delegate non-essential tasks that are slowing them down or holding them back. You want to channel all your energy into one thing: growth. Becoming EstablishedIn this stage, your company is no longer considered a start-up, but an established enterprise. Some companies get here sooner, while others don’t reach this stage at all. You may see considerable growth, but not at the same rate you did while scaling up, which is when the most dramatic growth occurs. It is time to explore new ventures, expand your company where you can, hire more employees, and refine your marketing strategies. The main problem is dealing with the competition and further developing your strengths. Remember that every company is unique and comparing your progress to other startups can be counterproductive. Learn from your mistakes and try to reach the goals you set. If you do find yourself comparing your company with other startups, make sure that it is inspiring you instead of dragging you down. from https://kennected.org/stages-of-startup/ |
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