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6 Money Management Tips to Aid Your Startup Success [Infographic]

6 Money Management Tips to Aid Your Startup Success [Infographic]

A discussion on Quora revealed that there are 4 million entrepreneurs worldwide. In the US alone, there are 11.5 million entrepreneurs and approximately 2.6million venture backed startups. Moreover, the percentage of successful startups is significantly lower than that of unsuccessful ones. With these numbers in mind, we can assume just how important of a role money management plays in a world of “break-even” and “ROI” KPIs.

In order to aid young entrepreneurs and startup founders, here are 6 money management tips that might save the day.

1. Money Comes With Patience So Don’t Rush It

Before the grand launch, make sure you have a clear business plan and enough funds to cover both your immediate, longterm and unexpected expenses. Your safety net should cover the first three years and by the second year, stop relying 100% on external funding.

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Carefully separate company needs from personal desires. You may want your entire team to have the latest technology access and gadgets, but think twice before creating your paradise. Do you really need it? Can you still perform over 90% with more affordable options? If the answer is Yes, you know what you have to do.

2. Do What’s Best For Your Business, Not For You

Choose your business partners and employees or contractors with care. Pay attention if you don’t want to pay later for the lack of it. Don’t build your startup involving various services just because the people that offer them are your friends. At the end of the day, business is business.

As the infographic below by Mirador Wealth suggests, research before investing especially before going big. The most dangerous enemy is yourself: often, entrepreneurs push themselves into a “make it or break it” world, without realizing you can actually achieve success with baby steps. Empires were not built in a day. Most likely, it took years, decades or even centuries.

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Personal advice: “Don’t throw the nets into an ocean unless you are absolutely convinced it will bring you more fish.”

3. Don’t Let Competition Distract You

Just because your competitors are “older” on the market and can afford over spending, does not mean you have to follow in their footsteps. You may find that creativity gets you out of tight spots and a small, yet smart strategy can be more fruitful. As seen on Forbes. Be smart and engage your consumers wittily.

4. Constantly Keep An Eye On Expenses And Profits

Take into account what your monthly costs are, as well as any changes that can occur. If you don’t have a financial expert, pick up the pen, separate your fixed and variable costs, draw the line and monitor them closely. This alone will help you understand your monthly and quarterly profit, and provide a clear view on growth. The secret recipe is a good accountant + good bookkeeper + open minded business owner.

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5. Establish Clear Goals

Start with clear goals, as this Inc.com article suggests. Quarterly and yearly goals can do the trick should your startup be a new player on the market. A clear understanding of required resources and realistic deadlines must be taken into account. Important: stay away from these two extreme behaviors:

  1. Setting low goals and thinking you’re exceptional when you’re simply average.
  2. Setting goals almost impossible to achieve and blaming failure on others.

Communicate and consult with your partners and employees (or contractors) and be open to suggestions. A brainstorming session could make the difference in your pockets at the end of your third quarter, for e.g.

6. Re-evaluate Throughout the Whole Year

Any small business in its first five years of survival could benefit from this tip. For e.g., should your goal be generating a minimum of USD 5000 profit per month in a collapsing market, then it makes no sense to keep investing. Relax, re-evaluate your position and your odds and adjust your strategy to the “business flow”. Being inflexible might cost much more in the long run.

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Wrapping It Up

While we all tend to “listen, nod and then do whatever we want”, the best piece of advice that you can follow is to be realistic in terms of investments. Set achievable goals, keep a close eye on the bigger picture and be flexible. Last but not least, as a friend of mine often says: “Be an epic doer!”.

money management tips

    source: Mirador Wealth

    Featured photo credit: Sean MacEntee via flickr.com

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    Last Updated on April 25, 2019

    How to Write a Career Change Resume (With Examples)

    How to Write a Career Change Resume (With Examples)

    Shifting careers, tiny or big, can be paralyzing. Whether your desire for a career change is self-driven or involuntary, you can manage the panic and fear by understanding ‘why’ you are making the change.

    Your ability to clearly and confidently articulate your transferable skills makes it easier for employers to understand how you are best suited for the job or industry.

    A well written career change resume that shows you have read the job description and markets your transferable skills can increase your success for a career change.

    3 Steps to Prepare Your Mind Before Working on the Resume

    Step 1: Know Your ‘Why’

    Career changes can be an unnerving experience. However, you can lessen the stress by making informed decisions through research.

    One of the best ways to do this is by conducting informational interviews.[1] Invest time to gather information from diverse sources. Speaking to people in the career or industry that you’re pursuing will help you get clarity and check your assumptions.

    Here are some questions to help you get clear on your career change:

    • What’s your ideal work environment?
    • What’s most important to you right now?
    • What type of people do you like to work with?
    • What are the work skills that you enjoy doing the most?
    • What do you like to do so much that you lose track of time?
    • Whose career inspires you? What is it about his/her career that you admire?
    • What do you dislike about your current role and work environment?

    Step 2: Get Clear on What Your Transferable Skills Are[2]

    The data gathered from your research and informational interviews will give you a clear picture of the career change that you want. There will likely be a gap between your current experience and the experience required for your desired job. This is your chance to tell your personal story and make it easy for recruiters to understand the logic behind your career change.

    Make a list and describe your existing skills and experience. Ask yourself:

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    What experience do you have that is relevant to the new job or industry?

    Include any experience e.g., work, community, volunteer, or helping a neighbour. The key here is ANY relevant experience. Don’t be afraid to list any tasks that may seem minor to you right now. Remember this is about showcasing the fact that you have experience in the new area of work.

    What will the hiring manager care about and how can you demonstrate this?

    Based on your research you’ll have an idea of what you’ll be doing in the new job or industry. Be specific and show how your existing experience and skills make you the best candidate for the job. Hiring managers will likely scan your resume in less than 7 seconds. Make it easy for them to see the connection between your skills and the skills that are needed.

    Clearly identifying your transferable skills and explaining the rationale for your career change shows the employer that you are making a serious and informed decision about your transition.

    Step 3: Read the Job Posting

    Each job application will be different even if they are for similar roles. Companies use different language to describe how they conduct business. For example, some companies use words like ‘systems’ while other companies use ‘processes’.

    When you review the job description, pay attention to the sections that describe WHAT you’ll be doing and the qualifications/skills. Take note of the type of language and words that the employer uses. You’ll want to use similar language in your resume to show that your experience meets their needs.

    5 Key Sections on Your Career Change Resume (Example)

    The content of the examples presented below are tailored for a high school educator who wants to change careers to become a client engagement manager, however, you can easily use the same structure for your career change resume.

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    Don’t forget to write a well crafted cover letter for your career change to match your updated resume. Your career change cover letter will provide the context and personal story that you’re not able to show in a resume.

    1. Contact Information and Header

    Create your own letterhead that includes your contact information. Remember to hyperlink your email and LinkedIn profile. Again, make it easy for the recruiter to contact you and learn more about you.

    Example:

    Jill Young

    Toronto, ON | [email protected] | 416.222.2222 | LinkedIn Profile

    2. Qualification Highlights or Summary

    This is the first section that recruiters will see to determine if you meet the qualifications for the job. Use the language from the job posting combined with your transferable skills to show that you are qualified for the role.

    Keep this section concise and use 3 to 4 bullets. Be specific and focus on the qualifications needed for the specific job that you’re applying to. This section should be tailored for each job application. What makes you qualified for the role?

    Example:

    Qualifications Summary

    • Experienced managing multiple stakeholder interests by building a strong network of relationships to support a variety of programs
    • Experienced at resolving problems in a timely and diplomatic manner
    • Ability to work with diverse groups and ensure collaboration while meeting tight timelines

    3. Work Experience

    Only present experiences that are relevant to the job posting. Focus on your specific transferable skills and how they apply to the new role.

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    How this section is structured will depend on your experience and the type of career change you are making.

    For example, if you are changing industries you may want to list your roles before the company name. However, if you want to highlight some of the big companies you’ve worked with then you may want to list the company name first. Just make sure that you are consistent throughout your resume.

    Be clear and concise. Use 1 to 4 bullets to highlight your relevant work experiences for each job you list on your resume. Ensure that the information demonstrates your qualifications for the new job. Remember to align all the dates on your resume to the right margin.

    Example:

    Work Experience

    Theater Production Manager 2018 – present

    YourLocalTheater

    • Collaborated with diverse groups of people to ensure a successful production while meeting tight timelines

    4. Education

    List your formal education in this section. For example, the name of the degrees you received and the school who issued it. To eliminate biases, I would recommend removing the year you graduated.

    Example:

    Education

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    • Bachelor of Education, University of Western Ontario
    • Bachelor of Theater Studies with Honors, University of British Columbia

    5. Other Activities or Interests

    When you took an inventory of your transferable skills, what experiences were relevant to your new career path (that may not fit in the other resume sections?).

    Example:

    Other Activities

    • Mentor, Pathways to Education
    • Volunteer lead for coordinating all community festival vendors

    Bonus Tips

    Remember these core resume tips to help you effectively showcase your transferable skills:

    • CAR (Context Action Result) method. Remember that each bullet on your resume needs to state the situation, the action you took and the result of your experience.
    • Font. Use modern Sans Serif fonts like Tahoma, Verdana, or Arial.
    • White space. Ensure that there is enough white space on your resume by adjusting your margins to a minimum of 1.5 cm. Your resume should be no more than two pages long.
    • Tailor your resume for each job posting. Pay attention to the language and key words used on the job posting and adjust your resume accordingly. Make the application process easy on yourself by creating your own resume template. Highlight sections that you need to tailor for each job application.
    • Get someone else to review your resume. Ideally you’d want to have someone with industry or hiring experience to provide you with insights to hone your resume. However, you also want to have someone proofread your resume for grammar and spelling errors.

    The Bottom Line

    It’s essential that you know why you want to change careers. Setting this foundation not only helps you with your resume, but can also help you to change your cover letter, adjust your LinkedIn profile, network during your job search, and during interviews.

    Ensure that all the content on your resume is relevant for the specific job you’re applying to.

    Remember to focus on the job posting and your transferable skills. You have a wealth of experience to draw from – don’t discount any of it! It’s time to showcase and brand yourself in the direction you’re moving towards!

    More Resources to Help You Change Career Swiftly

    Featured photo credit: Parker Byrd via unsplash.com

    Reference

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