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What to consider when starting your own business

Hernaldo Turrillo — Tue, 26 Oct 2021 19:18:19 +0000

Starting your own business is exciting. The possibilities are attractive: you won’t have to report to a boss, you’ll have more control, you can pick your own hours and the profit will be yours to manage. But there are plenty of considerations you’ll need to evaluate before you get started. Below we explore the key things to arrange before starting your own business.

Business plan/idea

The first thing you need is that winning idea. Ideally, it’ll be something that’s unique and that will stand out amongst your competitors. At the same time, the idea will have to be practical. You need to be able to form a coherent business plan from the idea, so it needs to be feasible. Maybe you have an amazing idea, but if it’s too expensive to get up and running you could find yourself in trouble.

Finances/funding/budget

The next step is to work out how you’re going to finance your business plan. Once you’ve worked out the investment, you’ll need to get your business off the ground, you need to identify how you’ll meet this. Perhaps you’ll have savings to get the business going. Or maybe you’ll need to attract outside investment. Either way, for your business to succeed, you’ll need funding for that first stage of its life cycle.

Competitors

For your business to find its niche you’ll need to understand the market. Who are your competitors? What can you offer that will help you stand out? By understanding you competitors’ strategies, you’ll be able to plan more effectively for your own business.

Premises

You’ll also need to plan ahead for where to house your business. Selecting the wrong premises can be a costly mistake – both in terms of time and money. Make sure you thoroughly research the area and street you’re planning on opening in, especially if you’re starting a retail business. If you just need an office, then consider transport links and ease of access to give you a head start when it comes to recruitment.

Employee management

Attracting and keeping talented employees at your company takes skill. No matter how large your company is at the beginning, you need the workplace to be a positive, nurturing environment. Hiring a HR professional and implementing HR management software can help you efficiently keep track of the paywall, recruit staff, promote improvement and generally meet the goals of your business.

Starting your own business is a thrilling moment in life. Just make sure that you consider the location, employee management, financing, the idea and the market before you get going. By following this you should give yourself the best chance to succeed.

Hernaldo Turrillo

Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.

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Take These Critical Steps Before Starting A Business

Hernaldo Turrillo — Mon, 16 Aug 2021 08:23:41 +0000

Most people aren’t aware of the many sacrifices and emotional pressures that come with starting a business. Instead, hopeful entrepreneurs decide to proceed based on the perks of doing something they love, calling the shots, and affording a better lifestyle. It’s not until they’re fully submerged in the life of a business owner that they discover how their lives are impacted. Some entrepreneurs overcome the obstacles as they evolve, some succeed professionally but fail personally, and others find it too challenging to navigate.

Why go through unnecessary obstacles, sacrifice true happiness, or watch your dream fade if you don’t have to? It’s better to learn from the mistakes of others and adequately prepare personally and professionally before beginning your journey as an entrepreneur. As such, here’s a look at some critical steps to take prior to starting a business.

Define Your Purpose For Starting A Business

Today, some of the most successful business owners will tell you that what kept them going despite the trials and tribulations was their reason or purpose for starting a business. When you have a meaningful goal in mind, it provides a source of motivation to keep you pushing towards accomplishment.

Many entrepreneurs start a business because they want to make money. However, it can take several years to generate income. Are you going to have the strength and endurance to overcome entrepreneurial challenges if you’re not getting paid much?

So, before starting a business, dig deep to find a true purpose. Maybe it’s a passion, you want to help others, or you’re interested in securing a future for your family.

Learn What It Takes To Start A Business

You may have a general idea of what you need to start a business, but how much do you know about how being an entrepreneur will impact your life? Before you begin this journey, you need to find out to ensure it’s the best decision for you and your family.

You can read guides, blog posts, books, and even listen to podcasts, but often the best way to learn what it takes to start a business is to talk to someone that’s where you want to be. Have a conversation with other entrepreneurs, consider finding a mentor, consult a business coach, or even talk to your employer. Their experiences can give you more insight on what to expect and how to prevent or overcome specific challenges along the way.

Evaluate Your Finances

The concept that you have to spend money to make money is accurate when starting a business. Owning a company will require you to invest every extra penny you have into maintaining its operations. Believe it or not, some entrepreneurs go years without seeing a dime. While you’re waiting for the money to start rolling in, you’re still responsible for your personal and business expenses.

Are you prepared to cover these costs for years? The only way to determine this is to evaluate your finances. If you’re not sure, you can always seek guidance. A quick online search of financial advisor San Diego or other metropolitan areas can route you to some of the best experts in the industry. They can help you sort through your finances and discern whether you can afford to start and sustain a business.

Another great reason to talk to a financial advisor before starting a business is to help you finetune and streamline your finances to reduce obstacles. Financial advisors can also provide tips on acquiring funding for your business and investing in helping you stay afloat.

Starting a business is easier than ever before, but that doesn’t mean it doesn’t come with obstacles and struggles. While you shouldn’t be discouraged from pursuing a dream, you don’t want to jump into it blindly. That’s why it’s essential to define your purpose, learn what it takes, and evaluate your finances before getting started. Once you’ve done these three things, you’ll find that your experience is more manageable.

Hernaldo Turrillo

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5 Types of Business Insurance Every Entrepreneur Should Consider

Hernaldo Turrillo — Thu, 01 Jul 2021 06:04:19 +0000

Whether you’re just starting your business or you’re a well-seasoned entrepreneur, keeping your business running smoothly requires successfully keeping all your balls in the air at once. Some of the most important tasks — like keeping your business adequately insured — are the most tedious and time-consuming.

And while most businesses operate with some sort of insurance (it’s a must), it’s crucial to stay up-to-date on all your coverage options. This will ensure your business has proper protection from every angle.

Use this guide to the 5 types of business insurance every business owner needs to consider to check off a few more boxes on your to-do list today.

What Does Business Insurance Cover and Why Do I Need It?

Generally, you buy into an insurance plan by paying a monthly premium. This plan covers the various risks faced by a business during the course of operation. As a business owner, you need to protect your investments from several angles, including your finances, physical equipment and property and, if you’re an innovator or creative, your intellectual property.

Different types of business insurance will cover different things.

5 Types of Business Insurance You Need but Might Not Have

There is a wide variety of business insurance coverage policies to consider:

Commercial liability insurance
Professional liability insurance
Workers’ compensation
Commercial auto insurance

1: General Liability Insurance

If you’re looking to buy the best business insurance, but could only pick 1 type, general liability insurance may be the way to go. General liability insurance is a policy that protects companies. In what way? General liability insurance protects your business in case of the following:

Property damage
Bodily injury
Reputational harm
Advertising injury
Copyright infringement

Liability claims are part of running a business, so it’s best to be prepared. These claims can be a hefty expense for a small business owner if they don’t have insurance to cover the claim. Without a general liability cover, you may have to pay these claims out of your business profits or even your own pocket.

Who needs general liability insurance? While state laws don’t always require that business owners have it, not investing in general liability insurance increases a business’s financial risk and vulnerability. Well-meaning businesses or partners will also want to make sure that you have met this minimum business operation requirement before they can agree to do business with you.

In most cases, you will be asked to provide a certificate of insurance as proof. Consider buying general liability insurance if you:

Are active on social media
Advertise and create marketing materials for your company
Handle or work in close proximity to client property
Have a store, office, a business that is open to clients, vendors and the public

2: Professional Liability Insurance

Professional liability insurance covers you and your business in case of mistakes while offering professional services. The other name for this insurance cover is errors and omissions insurance (E&O). In other countries, it is known as professional indemnity insurance. So what does this insurance cover?

Inaccurate advice
Misrepresentation
Negligence

You might not commit any error, but still, a client may sue you if they believe that you made a mistake. This coverage ensures you do not have to put your personal assets on the line. Do note that professional liability does not cover everything. Some of the claims this insurance does not cover are bodily harm, property damage, data breach and work-related injuries or illness.

Different types of businesses require professional liability insurance and even in some states, it is a requirement. You will want to get this insurance coverage if you:

Regularly act as an advisor to your clients
Offer professional services directly
Sign contracts requiring you to carry coverage

3: Commercial Property Insurance

Commercial property, as the name suggests, is the insurance that covers commercial property. With this cover, commercial property is protected from theft, fire, and natural disasters.

Businesses that can benefit from this insurance are service-oriented businesses, retailers, and non-profit organizations. Commercial property is usually bundled with other types of insurance. This insurance covers the following:

Buildings
Equipment
Furniture
Tools
Inventory

Who should consider buying commercial property insurance? You should consider getting this cover if you:

Own manufacturing or processing equipment
Have sensitive and essential accounting records and company documents
Value your office equipment such as furniture and computers
Have stock inventory

As an entrepreneur, consider your business as your pet which needs the best pet insurance. As a matter of fact, people do also get insurance cover for their pets, so why not do the same for your business?

4: Worker’s Compensation Insurance

Worker’s compensation insurance allows your employees to get compensated due to work-related illness or injuries. There is no walking out of this one since this insurance is mandatory in most states. The responsibility is left to the employers to provide this insurance for their employees. What are some of the benefits reaped from worker’s compensation insurance?

Death and funeral services
Medical treatments
Vocational rehabilitation
Disability benefits

It should be noted that not every insurance company offers similar worker’s compensation policies. The state fund worker’s compensation plan is the general standard in the insurance industry. Some insurance may offer an extended cover. The benefits and coverage requirements may vary from state to state.

Worker’s compensation insurance mutually benefits the employee and the employer. The benefits help your employees recover lost wages while they recover and are unable to work. Their medical expenses are covered, while if the employee passes away, their family gets the benefits. It should be noted that health insurance does not cover work-related injuries and illnesses.

Does worker’s comp cover pain and suffering for employees? It usually doesn’t cover that. Worker’s compensation claims are typically just for injury settlements for lost wages and medical bills. However, there may be extremely unusual instances where it would be covered.

The state in which your company is located determines the kind of worker’s compensation insurance you offer. So what if yours is 1099? 1099 contractors do not require coverage, but it is still best practice to ensure you have your workers’ best interests protected. This is good for your optics too.

Another angle to this is that suppose your contractor or worker is not covered and they get sick or injured while at work. They could sue you. Worker’s compensation insurance is cheaper than legal fees.

5: Data Breach Insurance

Do you run a small business? If yes, then you are prone to facing risks such as injuries or property damage. Apart from this kind of damage, some risks come as a result of integrating technology into your business operations. It could be hacking or data breaches. To be able to mitigate these technology-related risks, most businesses have turned to cyber insurance.

There is also data breach insurance which helps businesses offer sufficient protection and response to breaches.

Why does your business need data breach coverage? Cybersecurity is a serious concern. Hackers are able to hack computer systems and go for personal information. The coverages help if you need to protect company reputation, your computer systems get a virus that exposes private information, customers sue you due to the personal information being leaked, etc.

Does your business need data breach insurance? Well, ask yourself these questions:

Do you collect, store or receive personally identifiable information (PII) or personal health information (PHI)?
Do you work in an industry with regulations on how to handle customer information?
What would you do if your business became the next data breach victim?

Bonus: Commercial Umbrella Insurance

Commercial umbrella insurance is the sort of cover that comes to your rescue when paying for some costs that exceed what your liability policy allows. This means that without this insurance cover, you will be forced to pay out of pocket. Some of the covers that normally exceed what is allowed include:

Medical bills
Legal fees
Damage to another’s property
Judgments and settlements

Commercial umbrella insurance tops up what you have in your general liability policy. This insurance cover should be purchased by businesses by businesses that have high levels of interaction with clients. The risks are even higher if employees use dangerous equipment or heavy machinery.

Commercial umbrella insurance helps if you are working on someone else’s property or you allow the public to visit during open hours. Where people are involved, anything can happen, so don’t wait for it to take place. Be reactive and purchase insurance coverage for the same.

Choose the Right Insurance for Your Business

The nature and location of your business determine what type of insurance the law demands of you. Most states require businesses to have worker’s compensation insurance. In some states, the regulations depend on the industry. For example, accountants could get professional liability insurance.

As a business owner, make sure that you are well acquainted with your state business insurance laws and regulations. You can hire insurance agencies to help you comply with regulations and customize insurance policies that are in sync with your needs and budget. Get recommendations on the types of business insurance that you may need.

Hernaldo Turrillo

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Miscellaneous Costs to Consider When Starting a Business

Hernaldo Turrillo — Wed, 24 Mar 2021 10:06:45 +0000

Are you in the process of starting a business? Are you already in the early stages of doing so? Are you beginning to have questions and concerns about the costs that you continue to rack up?

Some businesses cost more to start than others, but all of them require some level of cash outlay. And for that reason, it’s critical that you plan as far in advance as possible.

There are a variety of miscellaneous costs to consider when starting a business, including but not limited to the following:

Consulting a Tax Professional

This is every bit as important as it sounds. If you don’t hire a tax professional early on, you could make mistakes that cost you a lot of money in both the short and long-term.

A tax professional can provide guidance, answer your questions, and ensure that you’re always making sound decisions on behalf of yourself and your business.

Find a tax professional you can trust and let them guide you through the process of starting and managing your business.

Equipment

You never know what type of equipment you’ll need until you sit down and make a list. You may be surprised to find that there’s more on your list than you ever thought possible.

When deciding what type of business to start, focus on the types of equipment that you’ll need. This will ensure that you have the budget for getting what’s required to achieve your goals.

Tip: if you find that you can’t afford brand new equipment, consider the benefits of buying pre-owned. This can go a long way in saving you money.

Office Supplies

Office supplies have a way of adding up on you as the days turn to weeks and weeks turn to months. This is particularly true if you have employees.

Office supplies come in many different forms, including but not limited to paper, printer ink, envelopes, pens, and pencils.

If you want to save money on office supplies, shop online. Adding to this, search for deals. You’re likely to find that some stores have a better price on specific items. And of course, when you buy in bulk, you’re able to save money.

Travel

As the COVID pandemic comes to an end, it’s safe to assume that business travel will begin to slowly pick up.

While you don’t want to get ahead of yourself, this is something to plan for in the near future.

Travel expenses are nothing to take lightly, as you could quickly find yourself spending thousands of dollars.

The most common types of travel expenses include airline tickets, hotel accommodations, and rental cars.

Tip: by using a travel rewards business credit card, you’ll get something in return for every dollar you spend while traveling. You might as well take advantage of this if it fits in with your financial plans. You can also implement a real-time travel expense reporting through the use of a software to help you track all of your travel expenses.

Entertainment

Just the same as travel, client entertainment is likely to become common again in the near future. And for that reason, you should set a budget and stick to it.

For example, you may want to take a new client out to dinner. Or perhaps you want to take a prospect to a sporting event with the idea of winning their business.

Entertainment costs can quickly add up, especially when you’re not paying attention to how much you’re spending.

Be sure to set a budget and follow it closely. This will allow you to stay on the right track at all times.

Final Thoughts on the Cost of Starting a Business

There’s no shortage of business resources you can lean on to determine how much it will cost—on average—to start a business in your industry.

In addition to the above, you may have other questions on your mind, such as:

How much does a passport cost?
What’s the cost of hiring and training a new employee?
Can you save money by hiring contractors instead of employees?

No matter what type of business you’re starting, it’s essential to have a clear idea of the costs that you’ll run into. With the right knowledge, it’s easier to stay on budget as you get your company off the ground.

Hernaldo Turrillo

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How to Start a Business When You Have Bad Credit

Hernaldo Turrillo — Fri, 12 Mar 2021 05:25:12 +0000

Starting a business is both the easiest thing to do and the hardest thing to do. You don’t need a special education or special equipment to do it. You can start a business for very little money depending on the business. You can start some businesses without any regulatory red tape. Other businesses require a room full of well-paid attorneys just to get you started.

A lot depends on how big of a business you want to start. You can start an online business where you sell goods and services without needing to handle any inventory. You can do it right from your kitchen table and start taking orders in a few hours. You can start a neighborhood restaurant with a handful of employees which will take considerably more time. Or you could start something like an interior design business where you are the sole proprietor.

Regardless of what type and size business you want to start, money is likely going to be the limiting factor. If you don’t have enough of it, you are going to need some type of loan to get you started. That will be difficult to pull off with bad credit. But you still have a few options to consider. Before doing anything, work on raising your credit score.

Debt Consolidation

One of the easiest ways to deal with that mountain of debt that is holding you back is to get a debt consolidation loan. That brings together your high-interest credit card debt into a single loan at a significantly lower interest rate. Use a credit card debt calculator to see how much you are paying in debt service versus how much you can save with the right consolidation loan. The savings, alone, can get you cashflow positive without changing anything else. That pocketed cash could be all you need to get started in a few months.

The other positive benefit of a consolidation loan is it can immediately raise your credit score. You will have fewer creditors and a lower bill to pay. Check your credit score regularly to see the changes. That way, you will have a better idea of your chances of getting the next loan.

Start Small

When it comes to digital acceleration, the best strategy is to think big and start small. That is also true with regard to starting a new business. One of the first and worst mistakes new business owners make is starting too big. First, they need to gain some experience in running their own business. Even if you have worked in the industry for a while, there is a lot you don’t know about running a business.

The next problem is money. Entrepreneurs often miscalculate how much money they actually need to make a go of it. On paper, you can start any size business you want. In reality, high levels of business require more capital. If you get too small of a loan, you might find it difficult to get another one right away. It is a lot easier to calculate what you will need when you start small when bringing your big idea to life.

Find Citizen Investors

If your credit is too bad to get a traditional loan, you are still not out of luck. A lot of people manage to get the capital they need from efforts like GoFundMe, Kickstarter, and Indiegogo. While the most popular, these are certainly not the only avenues of crowdfunding. You don’t need banks, angel investors, or eccentric billionaires to throw you a bone. Plenty of everyday people would be happy to get in on your big idea. You just need to structure a funding and reward scheme that makes sense based on the service you are using. This works particularly well for manufactured goods and art projects.

Being broke is miserable, but not hopeless. Bad credit makes it worse. Sometimes, the best way out is to start your own business. You wouldn’t be the first person pushed by necessity to do so. Just remember to consolidate those debts, start small, and try alternate routes for getting funded.

Hernaldo Turrillo

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Starting Your Own Business? Here Are Some of the Best Funding Options

Hernaldo Turrillo — Wed, 29 Apr 2020 16:33:26 +0000

Starting Your Own Business? Here Are Some of the Best Funding Options

Running a business typically involves spending more money than you have in your bank account. Thus, it’s important to familiarize yourself with different financing options. Knowing how to secure funding for small businesses and larger enterprises is key to your success.

It’s also easier than ever before. Business owners now have access to a wide range of financing sources. The following are the major types you need to familiarize yourself with.

Bank & SBA Loans

This is one of the most common financing options business owners use. If you have a strong financial history and good credit, a bank or similar lending firm may be willing to loan you a lump sum, which you will pay back (with interest) over time.

Of course, lenders take on a certain degree of risk when providing business loans. One recent survey indicates major banks approve such loans less than 20% of the time.

That’s why you might also consider an SBA loan. To promote economic growth, the SBA will sometimes guarantee a certain portion of the loan to reduce the amount of risk a lender takes on. While qualifying for an SBA loan isn’t always easy, this option may still be worth pursuing.

Credit Cards

Using a credit card to make business purchases is certainly a viable approach to financing. That said, there is always a certain degree of risk involved in using a credit card. Don’t be impulsive with your spending. You should only finance your business with a credit card if you know you can pay back what you owe.

Business Line of Credit

Traditional loans provide business owners with lump sums. A line of credit gives you regular access to a potentially larger amount of funds. You only pay interest on the amount you actually draw from your line of credit, making this a useful option for making large, unanticipated purchases.

Equipment Financing

Many business owners need to purchase pieces of equipment in order to operate. Sometimes a lending company will allow you to pay for a piece of equipment in installments (again, with interest) if you can demonstrate that the value it provides your business exceeds the cost.

However, it’s important to know that lenders often require business owners to put up other assets as collateral when offering equipment financing. Failing to make your payments could result in the seizure of your collateral.

Invoice Factoring

Do you have any unpaid invoices? If so, you can turn them into fast cash by contacting an invoice factoring company. They’ll buy them at a discounted rate, and cover the balance (minus their fee) once they collect the remainder.

Merchant Cash Advance

A Merchant Cash Advance is ideal for businesses that regularly perform credit card transactions. A lender provides a lump sum, and you pay it off by allowing them to collect a certain portion of your daily credit card sales. Keep in mind, however, that interest rates for MCAs tend to be very high.

Crowdfunding

Online platforms such as Kickstarter have made it easier than ever to crowdfund your business. This helps you gauge customer interest if you’re not sure there’s a market for your services. Customers provide funding, with the promise of some form of reward later.

It’s important to conduct thorough research before choosing the right financing option for your goals. Each offers its own set of pros and cons. The basic information here will simply help you get started. When you find the ideal financing option, you’ll be better prepared for success.

Hernaldo Turrillo

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Get Your Finances in Order Before Starting A Business

Hernaldo Turrillo — Sat, 18 Apr 2020 11:56:23 +0000

Get Your Finances in Order Before Starting A Business

Owning your own business is a goal for many people. Unfortunately, the majority of small businesses fail within the first few years. This does not have to happen to you. Preparation greatly improves your odds of success. Take the time to research the market and make sure you are in the best position possible before making the jump into self-employment.

Streamline Your Budget

When you start your own company, you are the person who is responsible for the day to day activities, making sure products are ordered, and bills are paid. It is a huge responsibility, made more stressful if you don’t have a handle on your finances. Before jumping into becoming an owner, make sure that you have a personal budget in place, your bills are paid on time, and that you make regular contributions to your savings account. It is important to know exactly what you spend each month on everything from utilities to groceries. What areas could you cut if necessary? You don’t need to live on a bare-bones budget when you start a new business, but you should have a feel for how much you can cut, and where those cuts could be made if necessary.

Reduce Debt

Putting yourself in the best possible position to launch a business means not dragging unnecessary debt with you. If you have credit card debt, work on paying it down. If your credit is in good shape you can look to transferring your balance to a zero-interest or low-interest card while you work on paying the debt off. Reducing credit card debt before starting your business has another benefit. If times get tight, having available credit can help you through the lean periods. You should never plan to live off your credit cards, but having that open line of credit can smooth the rough edges of a business start-up. Check the interest rates on your student loans. You may be surprised at how much money you can save by refinancing your loans at a lower rate. This will free up money and lower your monthly expenses without making any changes to your lifestyle.

Don’t Expect to Make a Profit Immediately

If you need to draw a salary from your new venture immediately, you may want to delay your launch. Even if your business is an immediate success, it is nice to have the freedom to invest that money back into your business in the early days. Count on everything involved in starting a new business to cost more and take longer than you plan, and if you are wrong, you will be pleasantly surprised. Having a cushion in your savings account that allows you to hold off drawing a salary immediately has another benefit. If yours takes off quickly, you can use the money you would pay yourself and start staffing. Launching and running on your own is rewarding, but demanding. Having someone else to share the burden with will allow you to focus on the many management issues involved in being an owner, and helps prevent burnout.

This is an article provided by our partners network. It does not reflect the views or opinions of our editorial team and management.

Contributed content

Hernaldo Turrillo

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Revealed: Half Of UK Business Owners Regret Their Attitude Towards Cashflow During Start-Up Phase

Hernaldo Turrillo — Wed, 24 Jul 2019 10:54:25 +0000

Revealed: Half of UK Business Owners Regret Their Attitude Towards Cashflow During Start-Up Phase

48% of UK business owners have a naive attitude to cashflow
2 in 5 owners regret starting business with budget they had
Quarter of owners didn’t know about grants or loans

Nearly half of business owners fear they’ve held back their business by having a naive attitude towards cashflow during their company’s infancy.

Almost two-thirds (64%) of those who identified cashflow naivety as their largest regret suggested that they overspent before gaining any profit, ultimately leaving them in larger debt than they could manage.

Those in the business services, such as sales or marketing regretted their attitude to cashflow, with 65 per cent in these sectors claiming it almost ended their business venture, training providers were second most regretful (63%) and manufacturing third (53%).

Industries in Leeds had the biggest regrets around their naivety towards cashflow with 65 per cent of business owners feeling this was a major mistake, Leeds was followed by those in Brighton (63%) and Sheffield (58%).

The study conducted by Hitachi Capital Invoice Finance gathered data on 1,000 business owners to identify what UK SME’s view to be their biggest financial mistakes.

Gaining enough funding was also a major regret with two in five business owners claiming they made the wrong decision in starting a business with the budget they had.

Recruiters felt they made the worst choice with 62 per cent stating they didn’t take advantage of better funding options; this was followed by the manufacturing (54%) and retail industries (49%).

Those in the arts felt the most comfortable with their start up budget as only 1 in 5 claimed they had any regrets regarding funding.

More than a quarter of business owners (27%) claimed they “didn’t know they could receive loans and grants” and simply used their own money to help support their start up.

Those in the legal sector (51%) had the least knowledge on funding options available to them, this was followed by owners in transport and logistics (46%) and healthcare (40%).

Although grants and loans can vary depending on business location, it was those in Brighton who knew the least, with 45 per cent of those surveyed admitting they never researched options, followed by Southampton (44%) and Bristol (39%).

Shockingly, more than a quarter of UK business owners (51%) regret not creating a financial plan or forecast during their start up.

Those in Northern Ireland regretted their financial planning the most with 40 per cent of business owners in Belfast fearing that they’re hampering their business due to a lack of forecasting; this was followed by companies in Southampton (39%) and Manchester (37%).

Lack of funding for marketing during a start-up was also highlighted as a major regret for UK business owners, with more than a quarter (27%) claiming they didn’t budget for this expense.

The biggest culprits that didn’t have marketing budgets include business owners in transport and logistics, recruitment (42%) and manufacturing (42%).

More than a third of businesses registered in Newcastle (34%) failed to put any budget towards marketing, as did a third in Leeds and 30 per cent in Nottingham.

Surprisingly, 13 per cent of UK business owners don’t regret any of the financial decisions they made during their start up.

Andy Dodd, Managing Director at Hitachi Capital Invoice Finance, comments on the findings: “It’s fascinating to find out just how many businesses have lacked financial planning such as not forecasting or budgeting for key start up essentials such as marketing costs.

“We are really passionate about helping people start their own businesses and try and support wherever we can, I hope this survey allows new business owners to look at their own financial planning and re-consider those critical spends they need to plan for.”

Hernaldo Turrillo

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Cheung Kong School To Show Off China’s Business Opportunities At London Event

Hernaldo Turrillo — Thu, 21 Mar 2019 10:33:14 +0000

Cheung Kong School To Show Off China’s Business Opportunities At London Event

With economic confidence in the UK at the lowest in a decade amidst the uncertainty of Brexit, more young Britons are considering opportunities abroad. As the second largest economy, China has put enormous investment in innovation and entrepreneurship, which young entrepreneurs are capitalizing on. What is the best way to access the network and insights which are needed to succeed in the China market? How do you make the most of China’s business opportunities? These, and many other questions will be discussed at an event – “Career and Start-up Opportunities in and with China” – hosted by the Cheung Kong Graduate School of Business (CKGSB), at Asia House in London on April 2, 2019.

Established in Beijing in 2002 with support from the Li Ka Shing Foundation, CKGSB is China’s first faculty-governed and independent business school. To provide on-the-ground insight into China business with a global perspective, CKGSB has recruited a faculty of more than 40 full-time professors, many of whom previously held tenured positions at leading business schools such as Wharton and Yale. The faculty members, predominantly natives of China, have achieved outstanding recognition in the international academic community by producing cutting-edge research on Chinese businesses, industries and economy that is practically relevant to business leaders who want to work in and with China.

China’s success story is reflected in the new generation of entrepreneurs who have benefited from a CKGSB education. They now form one of the most influential business networks; a key source for any entrepreneur or leader looking to transform their career or launch their own business. More than half of its 10,000+ alumni are at the CEO or Chairman level and, collectively, they lead one fifth of China’s most valuable brands. With strong ties to China’s most powerful VC funds and leading tech companies such as Alibaba (NYSE: BABA), Baidu (NASDAQ: BIDU) and Tencent (HKG: 0700), CKGSB has become an entrepreneurial hub for start-ups around the world.

CKGSB’s world-class, 14-month long MBA program will be giving away 2 golden tickets to a successful career in China

With heavy investments into the tech and start-up space, China is the perfect place for young ambitious business leaders. Furthermore, CKGSB’s world-class, 14-month long MBA program will be giving away 2 golden tickets to a successful career in China by launching the Education Development Foundation Scholarship – giving away close to ￡100,000 in scholarship funding to exceptional UK or EU MBA candidates looking to develop their careers in China. The two successful recipients will enjoy a full-ride scholarship to attend one of China’s top business schools.

“This accelerated English-language 14-month MBA program helps young professionals transform into global business leaders with a strong understanding of China and other emerging economies. Participants will tap into unique mentoring opportunities that will connect them to the Who’s Who of business in China as they learn from some of the best academics in one of the most dynamic markets in the world,” the institution stated in a press release.

Candidates should have exceptional professional and academic backgrounds with plans to start a business that promotes economic and social value in China or Europe. To be considered for the scholarship, applicants must be citizens of the United Kingdom or the European Union.

Hernaldo Turrillo

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