Arrangement for Startup

Resources which You Need to Arrange for Your Startup

Starting a business is a daunting task, it can be stressful, demanding and exciting, yet many people open successful businesses each year. Those who do succeed typically spend significant time raising capital, developing a realistic business plan, and doing market research before launching their idea. However, careful preparation isn’t an absolute guarantee of success, but it can improve the chances enormously. So, take stock of your resources and be prepared to meet the challenges you will encounter in your venture.

Financial Resources

The essential component of starting a business is the funding. Indeed, even the most basic home business brings about a huge number of start-up costs which included registering the business name, obtaining business telephone line and printing business cards. You can obtain financial resources from a variety of sources, the simplest being from your personal accounts. The other alternatives include taking business loans and lines of credit may be granted from financial institutions, you can even borrow from friends and family or look for private investors to invest in your start-up. In addition to this, many grants are offered from private and public sources to entrepreneurs of all demographics and personal situations.

Educational Resources

One of the best things a business person can do while setting up a new business is to gain as much knowledge as possible about their industry. This can be done by understanding the competition and gaining in-depth knowledge of your industry. Educational resources can be found through professional trades associations, a local chamber of commerce, by attending conferences, enrolling for training and certificate programs. By doing this you will be better prepared to make smarter decisions regarding the direction of the firm.

Human Resources

The success of your venture or other peoples is heavily dependent on the talent and strength of its employees. The hiring of experienced personnel with track records of excellence within their area of expertise ensures that the mission and goals of the company will be carried out efficiently and with competence. Strong team members can be enrolled using a variety of methods. Staffing agencies like labour solutions recruitment agency specialise in placing talent at all levels within every industry so you can look up to them. Another alternative is to find employees through employee referrals whose judgement is trusted.

Physical Resources

Regardless of whether a small home business or a company with multiple locations, each business needs to have suitable physical resources to survive and succeed. This incorporates legitimate workspace, adequate information systems and effective marketing tools to help you stand amongst the rest. This aspect of business planning is one the most expensive things, as such, it is important for the business owner to realistically assess the needs before making any purchases.

Emotional Resources

Starting a business is extremely stressful endeavour and to stay motivated and maintain the sanity, it is essential to have a support team that can provide inspiration and guidance whenever needed. This team may be composed of family and friends as well as a mentor or a professional group to help you out when you are stuck in a difficult situation.

So, these are few of the resources that you need when starting your business.

Makeup Artist

Financial Requirements to Start a Makeup Artist Business

If you have got away with makeup, know how to create magic with powders, lipsticks and shadow and like transforming Cinderellas into princesses then this could be the business for you. As a makeup artist, you help your customers look best for weddings or other special occasions, give beauty makeovers to people who want to update their everyday images or might specialise in helping people disfigured by accident or illness to look and feel good again. If you live in an area with the viable film industry, you can also become a makeup artist for stars. The advantage of this business is that you can start part time and get the reward of helping people look and feel good about themselves. However, the business is ideal for those who are very skilled and talented in turning an average looking female into a dazzling diva as well as teaching skills to send your clients home with tips on how to achieve everyday glamour.

However, like other small businesses starting a makeup artists business is not an easy one, there are many things to look into and one of them is a financial consideration. So here are some ways for start-up entrepreneurs seeking capital.

Use your savings

If you are starting your business, it is likely that you will have to put up at least some of the money yourself. You can use your personal savings to do so. There are various advantages to this, as you will know exactly how much money is available to you to run a business and gives you much more control than other finance options. You will also retain full ownership of the business. As there are advantages, self-financing a business has disadvantages too. It can be a bit risky as you may not have enough to cover all the funding you need.

Borrow from family or friends

Borrowing money from friends and family for your business often have favourable terms. Family members can be the most patient investors, not demanding profits and only seek their principal returned if the business is sold. Friends and family offer less arduous terms than equity investors. The equity investors build the firm’s balance sheet before adding debt but not family and friends.

Business Loans

As you will be starting a makeup artist business, you will need proper equipment beforehand. Banks provide business loans to finance your equipment and other expenses. These loans are generally short term, but the duration can vary based on the type of financing required. For example, if you want to also offer other procedures such as hair removal, skin rejuvenation, body slimming etc. Then you would need high-end equipment for them and for this the loan term can be increased. However, ensure that you buy the equipment from reputable companies like the Universal Medical Aesthetics. Business loans offer the security of a fixed monthly payment and a fixed interest rate.

Attract outside investors

Outside investors include angels and venture capital and they are accredited investors with expertise in a particular industry who buy equity in early stage start-ups and also offer invaluable mentoring. As you want to open makeup artist business as well as offer skin rejuvenation and body slimming procedures, they can help you buy the cryolipolysis machine and other equipment needed. VCs are only interested in rapidly growing businesses and yours is a beauty business that is growing at a faster pace, the VCs will invest immediately. However, you need to give up shares and investors may want some control over its management.

The above-mentioned are few of the ways that can help you set your business.

Real estate investment

Investing in real estate? Some interesting points to know

Even though there is a general trend to equate real estate with residential properties alone, there are many other categories too. These include commercial and industrial properties and agricultural or vacant land to set up residential or commercial complexes. Owning real estate is considered to be an asset, primarily because there has always been a rising demand for it. True, when economic recession and downturn hits the world, price of real estate goes through the floor. But time and again it has been seen that it always bounces back to old levels and often more when economies recover.

Moreover the rate of return on investments in real estate is always higher than conventional financial instruments such as FDs of banks. However, for the uninitiated in this field, it is best to know why investments in real estate should be a preferred route amongst all other options.

Here are some interesting things that you should know before investing in real estate.

Investing in real estate is not complex

There is often a wrong perception that given the huge paperwork involved and the many laws that have to be navigated, investing in real estate is very complex. In reality it is not so. If you have your finances sorted out and have done adequate research on selecting a property there is little risk of overpaying for it or buying a dud one. Valuation and inspection and other due diligence should be entrusted to experienced property lawyers who are well versed with both Federal and State laws. For example, if you are buying property in the State of Victoria, you will do well to get in touch with PB Lawyers, a property law firm based in Melbourne.

Control over your investment

Unlike other forms of investments, that in property offers a high degree of liquidity and many options. You have control over when to buy, where to buy and when to sell. If you have bought residential property you can go in for large scale additions to the existing structure or renovations thereby increasing its curb value. Selling real estate might take you about a couple of months for the deal to materialise but you will always get good value for it. On the other hand, stocks and shares and securities are more volatile with great fluctuations in price almost on a daily basis. These instruments are strongly linked to economic indices, emotions and news whereas real estate is much more stable in nature.

Breaking even on investments

Real estate is probably the only investment option where you get all back over time, breakeven and start earning profits. When you rent out the property, it is your tenants who are paying down your mortgage while all the time you see your original investment appreciating in value. Another benefit is that you can claim a wide range of tax deductibles on your investment property. It will not only reduce your tax bills but also put surplus funds in your pocket through enhanced cash flow. Get a good accountant to guide you and you can cut down thousands of dollars in taxes through your investment property.

Predictable and recession proof investment

While it is true that property value to a certain extent is volatile, it is not to the extent of stocks and securities. With real estate, your investment is insulated from fluctuations for at least the next 18 to 24 months while value of stocks may change every few seconds on the exchanges. A reason why property is often thought to be recession proof is because it fulfils a very basic need and that is housing. Even in most difficult times, people will still need a place to live and will forgo other luxuries to pay rent and mortgages.

These are some of the things that you should know before investing in real estate. It all boils down to the fact that property is a blue chip asset and will give you a high rate of return at most times.

start-up idea in Reality

How to make your start-up idea into a Reality

First, what is a start-up and what is the difference with small business? It is in the attitude and goals of the two. While small businesses have a fixed outlook and a specific market to concentrate on, start-ups primarily are designed to grow quickly, reach out to large markets and be a force to reckon with in a very short time. This is one reason why it is seen that most start-ups are in the tech business as it is very easy to reach out to large captive markets online and over the Internet.

These are some of the basic steps to take if your start-up is to grow quickly –

  • Have a business plan in place – A business plan is the vehicle that will take you places. There are top financial consultants and industry experts who can be roped in to devise suitable strategies for you. It will be a comprehensive plan detailing future marketing approaches, cash flow projections, setting of sub goals to reach larger objectives, optimum allocation of resources and financial projections. This document will be so comprehensive that you can even submit it to financial institutions for additional credit limits or for getting partners on board.
  • Devise digital marketing campaigns –In modern business settings, traditional advertisements in print and electronic media is passé, online digital marketing campaigns carry a lot more weight. This is because more and more people are researching online to look for similar products and services. If your website does not figure at the top of results pages of major search engines you’ll surely miss out on business opportunities and growth. Entrust you marketing campaigns to specialized digital marketing companies that use advanced techniques such as SEO and Social Media Marketing.
  • Outsource liberally – Try as you might, you simply cannot handle or monitor all aspects of your start-up. Hiring highly trained personnel and investing in hardware and software to run departments in-house will pull you down financially. The same functions can be outsourced to dedicated agencies at a fraction of the cost without compromising on the quality of output.

The main function that you should outsource is bookkeeping. This task is tedious and repetitive and does not require any real managerial discretionary powers. Such crucial heads such as accounts payable and receivable, bank and credit card reconciliation will be processed promptly and updated reports will be regularly submitted to you. You will thus have a strict control over your finances and can make suitable diversification and expansion plans.

Data entry and document management should also be outsourced as infrastructure processing and cost of installing security systems can be very costly, something which as a start-up you can ill afford. Outsourced agency will build up a database for you that will be precise and accurate in all respects while ensuring fool-proof security.

  • Conduct business health check up – It is crucial that you have a thorough control over your start-up and be in the loop about its state and operational efficiency at all times. And it is also important that you entrust this responsibility to external financial consultants. Get a second opinion as it is always difficult for any person closely associated with the business to view things objectively.

What is your take away from a business health check up? Opportunities will be identified where you can optimally allocate your cash resources, recommendations to increase ROI on market spends will be chalked out and any possible working capital crunch will be intimated to you. Most importantly, a check will be made of whether all statutory requirements are being complied with. All these will only facilitate growth for your start-up.

There are a whole lot of variables that will make sure that your start-up gets off to a flying start. Follow these simple basic ones and you couldn’t possibly go wrong.