I am often asked the following questions and this is what is on the minds of many students and entrepreneurs who have an idea but are still afraid to take the leap of faith.
1. HOW DO I STARTUP A BUSINESS?
On a technical side your future business will generate itself from either your interest, profession or personal experience.
On a general level starting a business isn't hard for those who make up their minds to start. It is the emotional preparedness that rules the paths the business takes.
If you start a business because you need to make money you would usually miss the points in the principles of sustaining yourself in the market, why? That's because you would likely be gaging your achievements on a physical level. Yes there is nothing wrong with having money but those who don't create the paths at start make it difficult for themselves.
Everything has risks, risk isn't a negative word, it means awareness of certain facts that exist within the environment you choose.
Evaluating the facts and then Measuring your self and business idea will produce the needed "SWOT ANALYSIS" that will help you to make the decision on HOW to go into it. So usually it is a process of exploration both in mind and matter.
Matter revolves around fact finding and the mind revolves around reproducing the facts that you find to give you WHAT you want. The word FACT projects it's self in relatively measurable terms and then you draw up the unmeasurable terms. If I say that what you see is what you get it implies that take what you can touch to prove what's behind your goal. Only things can be proven to exist, thoughts and words create the illusion of existing facts. Don't get me wrong thoughts are real but they also require substantiation "validity" a combo of facts and Actions to prove it works.
2. Making money shouldn't be the focus at the beginning stage of exploration as that limits vision and can misdirect the vision, mission and objectives that need to be taken.
"DREAM" Vision is "where do you want to be" on a personal and business level. Here the process for GAPing is required.
"REALITY" is Looking at where you are at present, which often people think is grey. Very few people like where they are at, everyone has aspirations.
StartUpSity's MISSION is to take you to where you want or wish to be and doing it with you. With Us you are never alone.
The mission revolves around setting plans in getting yourself from where you are to where you want to be. This is where the GAPing process and procedure applies itself "Mapping points to reach and what is needed."
Mission is a tactical approach to a situation which often depends on who is behind the wheel. Let me use an example "you know how to drive on a basic level, but you don't have a car, what do you do? Grumble that you don't have a car to get to where you want to or do you take a bus that gets you to your destination? Or would you walk if you don't have the fee or would you ask a friend for a ride?" in this example you can see that the Mission depends on the philosophy one has towards life and success.
Vision answers: What do you wish or want?
Mission answers: What do you need to get there?
Objectives: looking at what you have presently that can or gets you started. Here "GAPing" the analytics of strengths and weaknesses to see what threats or opportunities lay and projecting ahead.
HOW DO YOU MANAGE THE FUNDS GIVEN?
First look at what you can without spending physical cash but remember time is also money. They say who comes into business first always leads others, so an amount of pre planning is required. Planning revolves around gathering resources that you would need to get there and they are both intellectually based as well as in hard form "tools."
Don't be afraid of the illusion of loosing money because nothing is useless even if you may not be using it at present. Some would state that things get outdated, well to that I say "Updates exist for future wants not present needs."
The fear of loosing money stops the creative side much needed to sustain yourself on the long run. If some form of desire pushed you to explore at a moment go with the flow. Planning is also what is called foresight. Dream up a picture regardless of how ridiculous you may think it is for the outside world because people who are doing things are always ridiculed by anyone who they tell their visions to but you should also be objective ie that negative feedback speaks volumes. If the person you are speaking to at the time tells you that the idea wouldn't work yet shows you where it may not or will at a given time then you are getting a better advice than someone who tells you the business wouldn't work for personal reasons "they may not understand your perspective" so either explain further or leave them be.
HOW DO YOU MANAGE IT TO KEEP RUNNING?
To keep running you should keep seeing 3 steps ahead. Test things before you set a price, test to give and have knowledge. Don't restrict yourself to any angle of approach towards solving a problem. Business "creative" people are by nature are solution providers but be aware that the solution you may be providing could put another business person out of business but more often that isn't the case as those who are competing are indirectly partners as well. In example "I see no difference between the Banks and venture capitalists but it seems as though they are under the same name within the financial world. They compete in certain areas and they differ through the approaches they use.
HOW DO I APPROACH THIS VANTAGE TOUGHT? I have always looked for ways to simplify the margins/jargons that my colleagues use in bamboozling each other without a care for the effect it has on them in having no bridge to connect.
In the investment line of thought regardless of what services are being given out there we all need to understand the principle behind finance and what we know as loaning. On the average persons mind loan is represented as cash giving, however cash is in part a physical representation of skill or product (aren't you asking for a certificate used in paying for services and products that help your dreams?) , so when someone applies for a loan they are applying for help. If they hadn't outlined exactly what type of help they need what happens is the cash gets wasted and they fall into debt. The financier may not be interested in how you spend the money, all they maybe concerned with is how one pays back and when. Time they say is money because those who have no respect for time become debtors to it. In order not to be in debt one has to plan. This is why business people are asked to present a business plan to investors. There are effective ways for presenting yourself to investors.
What investors do is that they analyse and see for themselves what is of profit regardless of what those who submitted the plan see or present. There is what I as a person consider as ethical business practice and there is what one calls the practice. The good loaners are interested in making money not just now but over time. People going into debt is also a way of making money for some. Should the financial sector be worried about how much lack of knowledge the person who comes to them has? The financial sector has different arms of responsibilities and objectives. There are the banks, there is the government who is in charge of the economy growing and remaining dynamic and there are the investors who have have objectives to meet up to, so you can't be absent minded about their needs.
As they say givers never lack.
1. The physical cash givers job is to disburse money and they are also made to meet up to certain criterias both business wise and progress.
2. The government provides the infrastructure to sustain an economy in conjunction with its people, and sustaining an economy doesn't revolve around only building roads and services on a general scale i.e. health care and security. They also give aid and that aid isn't usually asked for a return in cash but the actual implementation of the projects that one took a loan/contract for.
3. Is the Angel investor. There are different types of investors apart from the 2 initially given above. To invest means to give, to take means to return back in cash or kind. Whereas the money lenders "banks and bankers" are expecting back cash. They may also be ready to negotiate as everyone regardless of what they do also have invested interests that aren't being met. Hence banks for instance would want to know what alternatives do they have in getting something for aiding you. Reason why banks will do so is because they know 2things; money is in part a representation of skill and the value of that money is nothing if they don't grow a base. For some countries to retain the value of their currency they need to have skilled people as well as principled people who are loyal and trustworthy. When these 2 does not exist then the value of the country and the money depreciates. For instance in the ancient days when wars used to happen it was because the value of the nations people needed to increase. If a gathering of people "country" was skilful and talented they were usually captured but good leaders always find ways to negotiate rather than shed blood. Bad leaders don't usually have anything to negotiate with so they use force. Greed and hunger are motivational factors that craftless rulers use to taking their people to war. A good leader educates and protects his people as well as makes the neighbours strong through mutually collaborative efforts. We have egomaniacs like hitler who made his people suffer the after effects of the war, using a powerful ideology by pointing fingers at those who were perceived to be the enemy. Stalin used hitler to achieve his aim at subduing his people. i ask a question "what?! a supposed leader didn't see for almost 3 years that his people were being slaughtered? There are loads of historical facts that can be brought to analyse the difference between good and bad leadership tactics as well as efficient and inefficient ways people take in raising their people up.
There are types of investors that also exist called "Angels" however they may not be strong in terms of cash but they have skills and knowledge to offer. To me these are the older generations whose technical and practical experiences help the young today to bring their dreams to reality. Reality can be subjective as there are many factors that separates or brings the understanding of how and what to do. If not for my grand mothers practical ways i wouldn't be level headed even if my youthful exuberance pups up occasionally for effect. I am not about to write my youth off, it has its energy. Skill isn't just the ability to do something "product design" but also the will for growth "service aproach." An Angel investor is either service or product wise skilled.
Those who understand the business of money making understand that the value return is what matters and this is where most startups fail to understand. What is of value to you isn't often of value to me, hence the disputes that happen during negotiations. Negotiation is in the exchange of skills and products to find a common ground to start with and then as one goes one finds other synergies. Dispute isn't a quarrel only, it is those legal areas where one is securing their position because we have greedy people who are either lazy or want it all, and in order to avoid an actual dispute people sign agreements on paper if the individuals within have no integrity. If people could be trusted would anyone need lawyers? If a people knew how to behave would anyone need politicians? So this is where the seed in my mind lay to understanding partnership issues that often arise.
Again I go to try and explain in simple terms the functions of those who consider themselves investors but before I do, I will need to touch on what kind of investments have been discovered to utilise and remember every business doesn't get the same type of investments. They differ because of the type and size and strategies needed for growth.
Someone who provides a business with capital and someone who buys a stock are both investors but their functions differ. In order as earlier explained for someone or a company to invest in something they have to see an opportunity for themselves too, and if the mindset or experiences differ at the time connecting is delayed to mitigate between them to bring understanding. Those who provide capital are usually short term investors, those who become share holders usually go for a longer term but may not want to be there on a long term but a business needs both however this needs to be tactfully outlined from the start. Everybody wants a relationships but how many are interested to be on the long run? There are those who do hit and run and there are those who want to be on a permanent basis. This depends on the objective within a proposed project or the company as in whole.
What do investors want vs what they need? This depends on the value set that the individuals at the helm of affairs pursue as Visioneries or the projects Objectives. In all of these the common factors are the leadership qualities that people possess as well as the mission that are outlined on their profiles.
These Vision and Missions and Objectives can be a tricky thing as the factors of peoples mindset can compromise a company to sustain themselves in the market because of
1. Unstable environments infra-structurally as well as
2. Changing trends among a number of other factors. How many people have you met that know and pursue what they want? This is hard to achieve for them because they are chasing the physical representation of money rather than building skills and products that gets them the cash. When I say that to know where, how and when is what leads you to identify the "what" a lot of people don't understand. Startups or big Companies that are greedy for immediate gain often miss the point in outlining and pursuing their objectives.
Please do ask me questions if certain aspects need to be clarified or expansiated.
Going back to understanding the core meaning to what Finance and Financing means and loaning from my perspective. I make calculated mistakes in order to protect the rights of those who are within the industries i speak about. In giving out aid are we really helping startups efficiently and effectively? Or are we helping ourselves alone? Finance and Financing is a process and procedure based environment. What types of investments apply to where and at what time? Every thing has a lifecycle and so this is relevant knowledge for debate depending on who and what projects or companies are involved. Startups and Sme's as well as the Big guys.
STOCK: if a startup is asking for an equity loan what does it imply in relation to the effort it takes to pay back for cash injection? Stock is a share of a company. What value can a startup provide to the board/shareholders?
On a startup level when one isn't yet sure of what returns they would gain the stock represents first skill and information. A startup that has a board of directors isn't considered a startup but a small business which can vary in degrees. A startup to have the status of a small business must have a minimum of 3 skilled persons on board, however this also has a twist. The twist is: 1 person can own a company and manage 20-50 people, that's if the individual has cash as well as a skill or talent. But he or she may struggle in managing the operations by not having management skills or adequately trained staff, so usually in this situation they solicit for help from freelancers or consultants i.e. admin, accounting, legal on a basic level or technical services such as designers for looks to create a presentation of image or ........which varies based on the vision and mission or objectives of the entrepreneurs.
As an Entrepreneur your focus should be on first developing an operations crew and then outsource help on freelance basis, which often is efficient cash wise but can be a mess when needing urgent help so an individual who is alone either pays for outside help or does learn how to do these things on his or her own. In my view to remain independent ie meaning saving where one can the single employer has to learn how to manage the payroll "compensation needs" as well as writing their own letters. if they don't want to then pay the price. How ever the individual may not mind looking under managed, that's a personal prerogative of the person so long as they don't moan about being overworked or under managed. Usually family comes in as help if they aren't headless, but if the person is an orphan they usually can ask friends and if there are no friends then do it alone which sometimes can be of a greater benefit as that develops character much needed on the long run, as sooner or later the recognition does come in. So as a lone startup keep your head up. You Rock.
On a level where a startup has skilful members who are willing they usually share responsibilities on operations and management. There may not be enough to rent an office but you need to be good at the operations while clerical issues in management can be sorted out in time, however the hurdles you may go through will be in the partnering "relationship management" side. Remember that energy or ambition levels differ from person to person so communication skills "negotiating between" your "strengths and weaknesses" is vital. Partners differ; some are tech skills based and some are management skills based and some are finance based, all these 3 angles are important but your focus should always be directed towards the efficiency of your operations or project. Being creative is what in simple terms tactics mean and the manner of ones mindset towards people and things makes the difference. I have often had to mediate in squabbles between partners because the focus has been redirected from the operations or projects towards persons within. Instead of saying to your partner "you are not doing the job", say "I am having a difficulty in this area." This creates a collaborative platform as blame pushing isn't a method for solving technical or creative issues.
So a stock represents what I could call "What's at stake?" "Where is the focus?", "How and when do we get there?" these are the questions that need to be addressed with either the board or the shareholders and this depends on the size of the company or operations.
DEBT SECURITIES.
I see 2 words here. Debt is represented in a negative way as the opposite of it is CREDIT - credit means a way of implementation. "what methods CAN one use not to get in debt? Is it by increasing credit?" I say "to find gold or treasures one must dig deep either within oneself or outside of oneself."
CREDIT to me means reaching out to other areas or within oneself to find hidden treasures, which implies first do what you can and then what you need would be just a whisper away. I know I sometimes speak in codes but for those who are willing they will always find a way to understand what i am saying. Knowledge isn't found by just sitting and waiting for someone to bring it to you, you must find a way to connect and exchange. This is what prevents startups or small companies from growing because everyone seeks their own comfort zones. Comfort is an illusion as far as I am concerned. Life is dynamic and stagnation is dangerous. The term business means to be busy and if a business isn't busy it dies. Life cycle shows that things and people transition from one state into another. A business also needs to transform but the question is from what to what or from where to where? This says that looks and locations "trends" is what drives the outward appearance of transformation. If you watch the films TRANSFORMERS you will see that a car that is sleek turns into a weapon. Bumble Bee was parked at a car pon but no one noticed what's within. We as entrepreneurs and business people need to realise that what glitters isn't often gold but the master behind made a rough diamond into a ring. So what I am saying with this is looking good as a company doesn't often mean there is an opportunity same it is with strong relationships. A plumber can become an engineer if there is an opportunity, so dig deep and see 3 steps ahead and then do what it takes. There are guardian angels around waiting to transform that diamond in the rough, personally its boring to wait for an invitation, I like to mine for treasures within myself and others and giving recognition.
REAL ESTATE is a method of financing. I am asking myself how relevant is it today to have a location when the Internet has provided and opened opportunities to be at home and raise your kids and at the same time making an income. BlackBerry, or IPhone or Nokia has an app called What'sapp and other tools on hand that allows a consultant to do their jobs on the go. Consultants are explorers, navigators of things and environments, thanks to the tech guys for being resilient in inventing ways to bridging the communications issues one has in becoming efficient and effective. I look at myself being a mum and a business owner and tech and telecom has allowed me to reach out to the youth and young who need my skills and knowledge and information and I can afford to give it free in many instances as it doesn't cost that much to say "what are you doing and how can I help you?" It has allowed me to help the mothers by helping their kids understand what business is like from the managerial perspective and plan with them where and when to execute our mutually beneficial and collaborate plans, so for me REAL ESTATE INVESTMENT represents the tech world in part.
So now you can see through my words how this form of estate investment replaced the hard tools that enable me to operate. It isn't that I don't need a building it means that I supplemented and transformed the conventional understanding of Real Estate needs with technology and communications tools to leverage my opportunities for growth until the time is right to have it all, of course my clients need to see a physical representation of my location but I also have the disabled as well as the able who can't at crucial to them moments reach out due to distance. So what tools are you as a startup using to leverage between your needs to get to the wants? That is really up to you and the tools that are made available in terms of skill and resources both software and hardware. There are strategists and tacticians and there are also strategic and tactical tools that you need to grow without accumulating scary debts.
CURRENCY & COMMODITY.
Currency is a commodity however it also has another angle.
Skills and Tools and the price it takes in pursuit of your happiness. What does it take to get there? Who is available to get there together? That's my current and what I create to accommodate those who are willing and can. Creativity is my currency and it accommodates all so long as there are no attitudes. As a coach both in my personal life as well as business which includes friends and family I have had to learn how to negotiate without rubbing anyone off their value. I use a quote to lead me when I am implementing "what people or an environment wants is different from what it takes to get the job done. In Africa I take up the nature of a bulldozer, even my avatar represents a Russian, Nigerian with a green face. To get Africa to rise as well as galvanising the world of economics to become dynamic I have taken a stand on how I operate "different leadership hats". I shakeup the foundations that can no longer handle growth to see where the cracks are. Many may not agree to my tactics at first however the knowledge and experience that I have discovered allowed me and my crew to be of service.
Leaders are not often liked and I don't mind, I enjoy the thug of war on the battle field called life and surviving. If you want to grow you have to shake up the earth that you stand on which seems no longer able to support individuals like me as well as societies. It is said "if you don't piss someone off you are probably doing something wrong." Am I triggering the senseless sensibilities of certain industries that benefit from ignorance? Well I can only say to them "at some point you will get to a point where the limits you set will limit you." Governments who then thrived are now in trouble socially and economically so who really fooled who?"
In the practice of sustaining growth within economies it is dangerous to keep doing the same thing over and over and expecting change" penny wise is pound foolish. The educational sectors today are outdated not necessarily in terms of tech but the minds that are in those institutions have become stagnant or faithless towards the youth. Education used to be about informing and instructing. The aspect of instruction has seazed to exist. People don't study other environments, more interested in oneself but if it is said ones ability to survive depends on not just knowledge of self but others how can one say one is enlightened? Some are afraid to reveal their knowledge because they want to keep making the margins, how about when someone in return is also speculating on your ignorance? For me that's scary. Todays kids are tomorrows leaders and God help those today who think that power doesn't go round. Givers never lack they say as the rewards come from heaven.
On the side of the financial industry currency represents chain reaction. If one industry is suffering the others in time will feel the effect as well as those within an industry seldom see that solutions are not always gotten from within but from without. A billion dollar arm man "cricket players do become baseball stars with a bit of training" and the uniqueness that develops from blending both is what gives that cutting edge in returns through innovative products and skills much needed in the world for countries to consider themselves leaders.
We can all disagree to agree however the results of our practices one can not hide from it.
