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How a Startup can Create Significant Change for Sustainable Business Growth

Business development of any startup is a process of “Life-Long Learning”. A matter of ongoing business improvement rather than a once-only action concerning organizational change. In this post, we’ll look at how a startup can create significant change for sustainable business growth

Life long learning

In that, life long learning as a company, in terms of organizational development, is as important as personal and team development of personnel. To stand out, an entrepreneur needs to know his strengths and weaknesses, and it doesn’t matter whether we live in times of decline in times of economic growth.

In the real world, however, other words, the business development plan of many entrepreneurs is geared to the market, the improvement of the product or service, and the growth of quick returns which often is threatening developing nations. Entrepreneurship not only relates to terms of professional competencies but also in the personal qualities and skills which make him differ from his competitors.

Startup Founders’ Dilemma

In a study involving 212 US startups, 50% of the founders were no longer the CEO after 3 years of firm creation, less than 25% of the founders were occupying CEO positions during IPO, and four out of five founder-CEOs were forced to step down. So let’s look at the startup founders’ dilemma. 

These are the facts. Most entrepreneurs are keen to make a lot of money and run the show. However, it can be difficult to do both. If you cannot set for yourself straight, which matters most to you, you could end up being neither rich nor in control.

To make a lot of money from a new venture, you need financial resources to make the most of the opportunities before you which you probably already have learned through international collaboration in college.

Crowdfunding and Crowdsourcing – the new trends

There’s definitely a great deal of excitement about the best way the startups can benefit your crowdfunding and rightly so if you take a look at how much the crowdfunding industry has increased since 2012. Yet another phenomenon, crowdsourcing, has also increased significantly over the last years. So let’s take a closer look at Crowdfunding and Crowdsourcing – the new trends.

With that at heart, the MBA Resources website has presented five good reasons why companies and organizations really should take a good look at crowdsourcing.  The most important reasons why businesses should check out Crowdsourcing are:

  • to save money,
  • to save time,
  •  to innovate, to increase customer satisfaction and
  •  to scale up.

Another way of crowdsourcing is turning to consumer feedback for generating new content or products. For example, you might ask website visitors for their opinion about online courses versus traditional classes. If you summarize the outcome of your survey you will be able to create interesting, original content and maybe a new product. This New Economy won’t displace all the old rules and some will still be faced with buyer’s remorse.

Paid vs Owned vs Social Media (Earned Media)

A recent survey revealed that advertising and marketing executives ranked “Social Media” as the most annoying industry buzzword. I believe that this is probably caused by a lack of understanding of how Social Media fit in the company and in its media efforts towards customers. So let’s look at paid vs owned vs social media. The following video will, just like the infographic, later on, explain a lot about what it’s all about:

In fact, I believe that many organizations (including those specialized in communications) have lost track of what media look like nowadays. Examples include company websites and Twitter accounts as students today already learn during their studies towards a rewarding career.

Angel Investors vs Venture Capitalists

For start-up companies that are without an established performance record or enough assets to obtain a bank loan, finding financial backing is critical for both business growth and success. Therefore, many start-up companies endeavor to secure finances from outside investors. So let’s see what it’s all about: Angel Investors vs Venture Capitalists.

The difference between these two types of outside financing is a question that we often receive; therefore we have outlined the differences below.

A typical angel investor will invest $50.000 up to $200.000 in any one company and may seek a hands-on role in the management of the company or will look to act as the company’s mentor, often in online businesses. 

How to Raise your Chances of Acquiring Finance? Get ‘Investor-Ready’

In practice, it is not easy to acquire a substantial investment in your venture when assets are lacking. You desperately need funds to finance your growth plans, to expand or sometimes even to survive. How to act? How to raise your chances of acquiring finance? Get ‘Investor-Ready’!

Later on in the process, your focus must shift to the details and how you present yourselves and perform as a team. It’s like singing in a choir. Everything comes together: the team, the content and the presentation.

The investor casino, a 1% chance to get funded.

As banks become more and more strict and reduce their risk portfolio you have to find money with risk investors for example Business Angels or Venture Capitalists.

Mergers and Acquisitions- Valuation of the Firm

The aim of valuation is to determine what a firm is worth. Value is determined based on historical and future financial parameters. Determination of firm value is a highly subjective exercise that calls for judgment. It changes and varies when business drivers and factors (both internal and external) change as well as when the environmental conditions like we’ve seen in Brooklyn, change. Since value estimation is subjective, it often serves as a basis for discussions. Moreover, there are many aspects of a business that is hard to quantify such as consumer behavior.

Two perspectives
Companies can be valued from two perspectives: from looking at the inside of the firms -internal- or from the expectations of the market -external-. The internal methods estimate the value of all the future potential cash flows generated by the company. Therefore it relies on methods based on the concept of discounted cash flows (DCF).

With the external methods companies are valued through benchmarking competitors. These methods capture the market view of these companies, through which the value of a firm can be determined. Methods relying on external views are called multiple valuation methods because they involve the use of multiples but it take some higher business education to get it all as there are a number of methods to estimate what a company should be worth.

Crowdfunding Now and In The Future

Crowdfunding by definition is “the process of financing activity or endeavor by way of generating lots of modest sums of capital from a huge number of persons, generally by using the Internet”.

Nowadays, start-ups are under huge pressure to remain profitable, and business owners are not going through the best of times when it comes to making any profits, so it seems.

Crowdfunding creates a good possibility for success for this kind of entrepreneurs and businesses, by displaying their initiatives and assignments to the whole global community and let’s not forget that through online education, lots of things in the process, becoming invisible.

The infographic shown below, designed by Eventstir events crowdfunding service, gives an excellent review of the global crowdfunding arena. It includes broad subject areas, such as the total amount of funds generated and platform explanation by region, along with specific parts of the world, together with the greatest platforms and ventures.

How to Become a Recognized Expert in Your Field

It’s possible to boost your personal brand by establishing a reputation as an expert in your niche. Experts are sought after, they get noticed, they can command higher fees for their services, and they get interviewed by journalists. In brief, becoming a recognized expert can help you achieve your business goals using less effort.

Until recently, becoming a recognized expert took decades and only the MBA degree or the academic degree granted the status of the expert but today even if you got your diploma through online classes you can be easily perceived as the expert.  Showcase your knowledge in online and offline events, choose the right strategy, and start your journey towards becoming a recognized expert using online marketing and social media. …

Exposure

I’ve been thinking about this a lot lately. How much I loved school. How much I miss it. What I’d do differently if I were to do it again.

  • Would I put more effort into my final year?
  • Would I plan my career?
  • Would I listen to my parents’ advice or my own?
  • Would I… would I… would I…?

I don’t regret anything. I try not to regret anything, with my life’s motto being “Never regret something that once made you smile” – and school certainly made me smile. Without a doubt. It was the happiest time of my life. Sure, it didn’t feel like it at the time.

I’d love to go back, even for just one day. I’d love to have that feeling of knowing my work was good. Getting good grades was my main aim in school and I did.