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Starting A Business in A Challenging Economic Climate, Part 2 (Limiting Risk)

Starting A Business in A Challenging Economic Climate, Part 2 (Limiting Risk)

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    In Part 1 of this series, I talked about why now is a good time to start a business. But without Part 2, Limiting Your Risk, you may be setting yourself up for problems. Now is a great time to start a business, but part of starting a business in this kind of economy is playing it smart.

    How You Can Limit Your Risk:

    When you start a business in challenging economic times, you’ll want to limit your risk as much as possible. There are several ways to go about this, but here are my top recommendations:

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    Get it right at the beginning. A lot of budding business owners skip crucial steps on their way to a business launch. I can’t tell you how many clients have come to me, a year or two into their businesses, without having set up their companies with the Secretary of State, the IRS, or having met with an attorney to help them set up their operating agreements. These are things that could get you in a lot of trouble if you don’t do them the right way.

    There are other steps that won’t necessarily get you into trouble, but may cause some headaches if you don’t get them right. Branding is an excellent example of one of the most-missed (and most misunderstood) steps in entrepreneurialism. It’s also one of the things that can make or break your company.  Choose a generic business name like “ABC Consulting” or create a brand that doesn’t intrigue your target market and you’ll start your business heading down the wrong path.

    Choose an industry that’s hot or one that’s a “need.” Generally, you want to go with the industry you know best, but at the same time, you can’t ignore what most business experts define as the wave of the new future. Currently, the hottest trends are green businesses, health care, natural beauty, discount retail and luxury, credit and debt management, and technology. If you can find a way to spin what you already know into one of these hot business areas, you’ll take advantage of the coming upsurge in these industries.

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    On the other hand, I also believe in going after the “needs” of your consumers. For example, I once worked with a guy who was a chimney sweep in the winter (something people need) and a custom SUV builder in the summer (a luxury people want). His winter need-based business was one that provided enough income for the whole year, just in case his want-based business waned in the summer.

    Start with a low-risk business model. When I work with a client to design a new business, we typically use what I call a “leap-frogging” or “dovetailing” approach. This is where you start your business using a low-risk business model and build from there, using the income from the first model to fund expansion and growth into more complex business models. This approach almost always allows my clients to start their own businesses without seeking any type of funding from lending institutions, venture capitalists, or other investors.

    Plan ahead. If you lose your job, there isn’t much you can do about that. And in this economy, you’d have to work a part-time job in addition to your regular full-time job to save up enough for the six to twelve months of living expenses I generally recommend when clients want to start a business they can work full-time from the beginning. But if you can keep your job and start your business part-time, you’ll reduce your risk substantially. This allows you to maintain a steady income while you’re building your business, and eventually, you can make the transition to being self-employed, full-time.

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    Market research can save you a lot of time and heartache. Before you head into any business startup, you want to know your market inside out. More than that, you want to know your target market. There are lots of ways to do the research. You can do your own research (called “primary research”) or you can use information compiled by others (“secondary research”). Both have their pros and cons, but the questions you want to answer are:

    • Who is my target market?
    • What do they want?
    • Can I deliver it to them?
    • If I deliver what they want, will they buy it?

    Leverage free and inexpensive marketing methods to build your business. A lot of new entrepreneurs develop complicated, expensive marketing campaigns before realizing how many ways there are to get the word out about their businesses without spending a fortune. And with the power of the Internet literally at our fingertips, it’s easier now than ever to build awareness for your brand. However, that doesn’t mean you should go out and build a giant Twitter following. There are so many online options, but all of them may not be appropriate for your target market.

    Get the right help. Before you launch a company, you want to find professionals who can help you start on the right foot. There are countless people out there calling themselves “consultants” and you have to be careful who you choose. The ideal business consultant for you is someone who understands a lot of different business models, especially the low-risk ones, and who can help you figure out the model that suits you best. You want someone you find personable, someone who knows what they’re doing, and someone you can trust.

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    In addition, make sure they don’t make promises that are too good to be true. A lot of business “experts” I’ve seen lately offer what amounts to “get rich quick schemes,” while others offer such vague information that you’re compelled to keep buying more books and products to get to the “real” information….which never actually comes. Instead of wasting your time on these folks, find someone genuine, real, and honest, who may not promise you the sun, moon and stars super-fast, but who can help you build a solid, stable income with real growth potential.  Work one-on-one with them to develop a sound business model and a strong brand with a viable marketing strategy that you can easily implement. A good business consultant will know how to work with whatever budget you have and tailor solutions to your needs. Plus, they should have an army of other professionals who can also work within your budget, but still offer high quality work.

    Build your team. Speaking of other professionals, you will need your own little army. In addition to a business consultant, you’ll also want an accountant, an attorney, a graphic designer and a web designer, and you may also want a virtual assistant and some other consultants, most of whom your business consultant probably has access to.

    Starting a business in an uncertain economy can feel risky, and it certainly has stopped a lot of people from moving forward with great ideas. But if you look at history and remember that some of the most solid businesses today were started in just such an economy, mitigate your risk factors and hire the right professionals from the start, you’ll give yourself a fantastic leg up on your competition, and set yourself up for success.

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    Last Updated on March 31, 2020

    How to Use Visual Learning to Work More Effectively

    How to Use Visual Learning to Work More Effectively

    Knowledge is essential to become successful in life, your career and your business. Without learning new concepts and becoming proficient in our craft, we cannot excel in our chosen careers or archive knowledge to pass down to the next generation.

    But content comes in various forms, and because how we learn influences how much we know, we need to talk about learning styles. This article will focus on how to utilize visual learning to boost your career or business.

    The Importance of Knowing Your Learning Style

    Knowing your learning style enables you to process new information to the best of your ability. Not only does it reduce your learning curve, you’re able to communicate these same concepts to others effectively.

    But it all starts when you’re able to first identify the best way you learn.

    As a college student, I soon figured out that taking online courses without visual aids or having an instructor in front of me led to poor retention of concepts.

    Sure, I got good grades and performed excellently in my online exams. However. I discovered that I couldn’t maintain this performance level because I forgot 80 percent of the course content by the end of the semester.

    There are several types of learning styles known to mankind. To give an idea of how visual learning stacks up against other learning styles, here’s a brief mention of some of the different types of learning styles we have.

    The four most popular types of learning styles are:

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    • Visual learning style (what this article talks about).
    • Aural or auditory learning style (learning by listening to information presented).
    • Verbal or linguistic learning style (learning that involves speech and writing).
    • Tactile learning style (learning by touching and doing)

    But for the purposes of this article, we will be focusing on using visual learning to boost your career or business.

    How to Know If You’re a Visual Learner?

    When it comes to boosting your career, business (or education), a visual learner is one who would most definitely choose shapes, images, symbols, or reading over auditory messages.

    I’m talking about preferring to read an actual map when navigating to a new place over listening to verbal directions. I’m talking about discovering that you actually have trouble remembering what your manager said at the meeting because there were no graphs or illustrations to support the points raised.

    Most people who struggle with learning probably aren’t leveraging their best learning styles. The earlier you identify how your learning style can boost your success, the less struggle you will encounter with processing new information throughout your career.

    However, visual learning in particular CAN 10x your career or business whether it is your preferred learning style or not. And here’s why:

    Several studies have arrived at the conclusion that the brain retains more information with the help of visual aids. In other words, images are directly processed by our long-term memory which helps us store information for longer periods of time.[1]

    While some lessons can be performed orally, several concepts can only make sense if you have an image with an explanation of sequences (i.e learning about the human DNA).

    Visual learning does use a different part of the brain and visual cues are processed by the part of the brain known as the occipital lobe.

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    By engaging more parts of the brain during learning, you’re able to have a fuller understanding of concepts and facilitate better interaction with your immediate environment.

    How to Use Visual Learning for Success

    Here’re 4 ways to use visual learning to boost your career or business:

    1. Bring back the to-do list. Then add shapes and colors to boost productivity.

    We live in an age where computers have taken over virtually every aspect of productivity and most human functions. But written lists are making a comeback, and with an endless number of important tasks to complete, having a to-do list of tasks in order of importance can improve your productivity.

    While coming up with a list is initially challenging, adding colors and shapes to written lists that you personally write and manage gives you an extra layer of assurance and boosts aids recall so that you actually get stuff done.

    I have tried this technique in my work as a registered nurse and discovered that adding shapes and colors to to-do lists helps me delegate tasks, recognize where more work is needed, and makes it easy to cross off completed tasks at the end of the day.

    2. Add graphs, charts and symbols to your reports.

    Yes, it seems like more work cut out for you. However, graphs enable you monitor the heartbeat of your business.

    Graphs and charts help you trend your finances, budget, and pretty much any data overtime. With the help of free and premium software available on the market, it has become easier to take plain data and in a matter of seconds, have relevant information displayed in different shapes and images.

    As an entrepreneur, you can make predictions and allocate funds wisely when you’re able to see whether your efforts are rewarded. You can use colors and charts to delegate actions to members of your team and track performance at the same time.

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    And when broken down into monthly, quarterly, bi-annual or annual goals, graphs and charts communicate what ordinary text cannot.

    3. Effectively brainstorm with mind-mapping.

    Mind-mapping is not new but I don’t think it’s been talked about as often as we do to-do lists.

    With mind mapping, you’re organizing information accurately and drawing relationships between concepts and pieces from a whole.

    Think of a mind map as a tree with several branches. For example, the tree can symbolize healthcare while each branch stands for nursing, medicine, laboratory science, and so on. When you look at nursing, you can further branch out into types of nursing; pediatric, women’s health, critical care, and so on.

    It’s an interesting relationship; the more ideas you’re able to come up with for your chosen subject, the deeper you get and the stronger the association.

    Mind maps really show you relationships between subjects and topics, and simplifies processes that might seem complicated at first glance. In a way, it is like a graphical representation of facts presented in a simple, visual format.

    Mind mapping isn’t only limited to career professionals; business owners can benefit from mind mapping by organizing their online learning activities and breaking down complex tasks into simple actions so that you can accurately measure productivity.

    4. Add video streaming to meetings.

    What if you could double the productivity of your team members by video streaming your meetings or adding flash animation to your presentation at the same time?

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    When you offer video as an alternative method of processing information to colleagues, there is a greater chance of retaining information because we recreate these stories into images in our minds.

    For organizations that hold virtual meetings, it can also be an effective way to enhance performance during if people can see their colleagues in addition to flash animation or whatever form of video is provided during the meeting.

    Is Visual Learning Better Than Other Learning Styles?

    No, that is not the point. The goal here is to supplement your existing dominant learning style with visual learning so that you can experience a significant boost in how you process and use everyday information.

    You might discover that understanding scientific concepts are much easier after incorporating visual learning or that you’re able to understand your organization’s value when projected on a visual screen with charts and graphs.

    The overall goal is to always be learning and to continue to leverage visual learning style in your career and business.

    More About Learning Styles

    Featured photo credit: Unsplash via unsplash.com

    Reference

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