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Do’s and Dont’s on Starting Your Dream Startup Business

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It’s no secret that starting a startup business isn’t easy. There is a lot of planning that goes into creating and executing an effective business plan for your dream. However, if you have an idea and you’re passionate about making your dream of owning a startup come true, all of your hard work and dedication might just pay off!

To help you get your dream startup on the path to success, here is a list of do’s and dont’s to consider: 

Do: Create a Plan for Your Startup’s Brand and Target Audience

One of the most fundamental aspects of starting a startup is understanding and building the framework of your brand and your target audience. It is said that 14 percent of startups fail due to not regarding customers’ needs. Start by creating a baseline understanding of your audience by building personas on your ideal customer and what their interests and passions are. It will also be helpful to think about how you want your brand to look and what makes you different from other brands. Having this baseline understanding of your brand and audience will help you feel more confident in your idea and guide you to make better branding decisions based on your ideal consumer. This simple step is an integral part of creating a business plan and setting goals for your dream startup. 

Do: Start Researching Competitors and the Industry

You must begin researching your industry and the competitors in your market to help shape your brand. This will help you derive a better understanding of your goals, the industry you plan to be a part of and help you build an effective framework understanding. Consider what you like and don’t like about other brands, what you would do differently and how you can mimic what they do well. You can also use tools and resources like Facebook Ads to look at how your competitors are marketing themselves. Once you feel you have a good grip on the basics of your industry and the direction you want to take your brand, you can use this newfound information to write a successful business plan to show potential investors. 

Do: Start Financial Planning

Financial planning for a startup can be a challenge. Start researching investment and loan opportunities that can help move your startup in the right direction. If your goal is to get funding, you can use your research and branding brainstorm to create assets for funding opportunities.

You may not see a profit for a while. If you plan on using your own money to fund your dreams, make sure you resolve any unwanted debts first. You can also consider looking into business loans to fund your dreams or finding a second source of funding. There are many opportunities that can help you achieve your dreams and start on the right track, you just have to find them.

According to Freshbooks, 66 percent of small businesses will outsource services to other small businesses. With that in mind, it’s important that once you make purchases or financial decisions for your business, you keep track of your expenses so you can better estimate your ROI at the end of the year. If you need a quick and easy way to search for employer ID numbers to perform EIN validation, try EINsearch. This online tool makes it easy to search for other employer ID numbers with no hassle.  

Do: Start Building a Team

Finding the right employees can be one of the most challenging aspects of a startup. Since funding for startups is often limited, making the wrong hiring decision can cause a tragic misstep for your startup’s finances and future. During the interview process, try to see past their resume, think critically about your interviewing questions, and consider networking with colleagues to find the right employee for your business’s needs.  

Don’t: Quit Your Day Job Yet

It may seem tempting to drop everything and start working on your dreams right away. However, a solid foundation is essential to the success of your future dreams and livelihood. Before you quit your day job, try working on the logistics of your startup after work or on the weekends.  

Don’t: Set Unrealistic Expectations

It’s easy to get ahead of yourself when you get excited about your startup business. However, setting unattainable goals and unrealistic expectations can often lead to disappointment. Remember that thinking critically and logically about outcomes that majorly affect your business can help your business move and grow in the right direction. Use your business plan as a baseline for your mindset and make educated decisions based on what you already know. Consider reaching out to a business mentor or someone in your network to help set you up on the right path for success.  

Don’t: Be Afraid of Changes

When you first start your new business, there will be several unanswered questions in your business plan- and that’s okay! Don’t be afraid of the changes and the pivoting that you may face as you work to build your startup business. For example, pivoting to fit your audience’s needs is an integral part of a successful startup. These changes and pivots are helping you get closer to your goals. 

Remember: successful businesses don’t grow overnight. Taking the first step towards starting your startup is already doing more than most. When you finally take the first steps towards starting your startup business, be patient with yourself and get ready for the next big step towards the future of your dreams.

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How to Start a Niche Foam Party Business: Kid’s Party

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Foam parties have become popular and are great fun. If you didn’t know what a foam party is, it is a party or event where participants have fun dancing amidst foam created by a machine. The machine creates bubbles of foams that envelop the place, creating a fun environment at the party. If you are a business person, then a foam party business is a great idea.

You can get a foam machine and use it to throw foam parties and make money from it – relatively affordably.

photo credit: Roaring Foam

Can you make money through foam parties?

Yes, you can make money if you have a foam machine. Parties are common, and party-goers get bored with the usual stuff. A foam party is an innovative way of partying. It allows participants to let go, dancing in joy amidst the foam. This kind of party would be popular, and you can make money by offering a different experience to participants.

Creating a niche market

When you want to make money from a business, you will find that there are many others with the same idea. You need to do something different so you can succeed. This is where finding a niche market helps. A niche market is a specific category to which you can cater. Kids Foam Party is such a niche market. While there are many businesses catering to foam parties in general, foam parties for kids is a niche idea. This is a business idea that can help you succeed and make money.

Planning your business

Now that you have found your niche, it is important to plan your business before you get started. The first thing is to be clear with what you are offering. You are offering a foam party, which is an event where there is a dance floor filled with suds. When this party is offered for kids, they will enjoy it the most. They would not only dance but play in the foam and have a great time in general.

Taking proper safety precautions like setting the depth of the foam and insisting on face coverings ensure there are no problems.

What do you need?

It is obvious that you need a foam machine if you plan to run foam parties. A foam machine is not too expensive. However, you need not buy one immediately. Since you are starting off with a new business, you can get a foam machine for rent. This is a cheaper option allowing you to rent a machine and use it whenever you need it. This will allow you to do a pilot run of your party business.

If the response is good and you start getting many events, then you can consider buying your own foam machine. This would work out better for you.

Kid having fun in foam
photo credit: Roaring Foam

Planning and executing foam parties for kids

With these basic concepts in mind, it is time you start planning your parties. Since you have chosen the niche of foam parties for kids, you need to explore different options. You can have foam parties to celebrate birthdays. There can even be parties for no reason but just to allow kids to have fun. Explore different themes for foam parties and plan the events.

Here are a few considerations to keep in mind while planning and executing foam parties for kids:

  • You need to find a venue to host the foam party. The ideal location is outdoors, so the foam does not create a mess inside. When the weather does not permit, you need to find indoor venues with a fairly big hall to organize the event.
  • Apart from the machine, you need the foam solution to create foam. You need to have sufficient foam machine solution to last the entire party.
  • Safety is a very important issue in foam parties. This is all the more important when you are dealing with kids. You need to have a clear plan for ensuring safety in your foam party. Communicate the plan with your clients so they are assured of the safety arrangements.
  • If you are doing the party indoors, you need a tarp to cover the floor and walls. It is important to cover up all the electric and other outlets to avoid them being damaged.
  • Placing plastic furniture is better since it won’t get damaged due to bubbles.
  • Safety arrangements for the kids are very important. Wearing shoes is a must. You can insist on goggles or face coverings to prevent allergies from the suds. You need to take adequate precautions to prevent kids from skidding and falling during the party. There is always a risk of accidents at a foam party, and you need to do everything to prevent it.
  • Preferably, get a waiver from guests to protect against liabilities.

With all this planning, you are now ready to execute foam parties and make neat profits from them.

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What open source-based startups can learn from Confluent’s success story

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It’s common these days to launch an enterprise startup based on an open source project, often where one the founders was deeply involved in creating it. The beauty of this approach is that if the project begins to gain traction, you have the top of the sales funnel ready and waiting with potential customers when you move to commercialize your business.

In the past, this often meant providing help desk-style services for companies who appreciated what the open source software could do but wanted to have the so-called “throat to choke” if something went wrong. Another way that these companies have made money has been creating an on-prem version with certain enterprise features, particularly around scale or security, the kind of thing that large operations need as table stakes before using a particular product. Today, customers typically can install on-prem or in their cloud of choice.

“A key aspect of these kinds of technology-developer data products is they have to have a combination of bottom-up adoption and top-down SaaS, and you actually have to get both of those things working well to succeed.” Jay Kreps

In recent years, the model has shifted to building a SaaS product, where the startup builds a solution that handles all the back-end management and creates something that most companies can adopt without all of the fuss associated with installing yourself or trying to figure out how to use the raw open source.

One company that has flirted with these monetization approaches is Confluent, the streaming data company built on top of the open source Apache Kafka project. The founding team had helped build Kafka inside LinkedIn to move massive amounts of user data in real time. They open sourced the tool in 2011, and CEO and co-founder Jay Kreps helped launch the company in 2014.

It’s worth noting that Confluent raised $450 million as a private company with a final private valuation in April of $4.5 billion before going public in June. Today, it has a market cap of over $22 billion, not bad for less than six months as a public company.

Last month at TC Sessions: SaaS, I spoke to Kreps about how he built his open source business and the steps he took along the way to monetize his ideas. There’s certainly a lot of takeaways for open source-based startups launching today.

Going upmarket

Kreps said that when they launched the company in 2014, there were a bunch of enterprise-size companies already using the open source product, and they needed to figure out how to take the interest they had been seeing in Kafka and convert that into something that the fledgling startup could begin to make money on.

“There have been different paths for different companies in this space, and I think it’s actually very dependent on the type of product [as to] what makes sense. For us, one of the things we understood early on was that we would have to be wherever our customers had data,” Kreps said.

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5 Hobbies That Make Money and How To Get Started

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Money-making hobbies range from walking dogs to blogging to creating and selling homemade goods.

Read about these profitable hobbies, as well as what you can expect to make.

1. Driving

Enjoy cruising around town? Give others a ride and make money by becoming an Uber or Lyft driver. Uber drivers make an estimated $5 to $20 an hour, and Lyft drivers earn about $5 to $25 an hour, according to SideHusl.com, a review site for money-making platforms. Note that earnings depend in part on when, where and how often you drive.

To become an Uber or Lyft driver, you must be the minimum age to drive in your area. You must also meet specific requirements related to your driver’s license, insurance and vehicle. Learn about these exact requirements in our guide to becoming an Uber or Lyft driver.

If you enjoy driving but don’t want people in your car, look into becoming a full-service Instacart shopper, which involves shopping for and delivering groceries. Uber Eats and Amazon Flex also offer opportunities to deliver food and other products to homes. Each of these gigs has its own set of requirements, though, so do your research before signing up.

2. Caring for dogs

If your favorite hobbies involve belly rubs, smooches and long walks in the neighborhood, try Wag or Rover. These apps enable you to walk, dog-sit or board pups overnight for money.

Rover and Wag work in similar ways. They both require you to be at least 18 years old, pass a background check and meet other requirements. For both, you create a profile, set your own rates, and use the app to choose which gigs to take. (See our Rover vs. Wag comparison for more specific sign-up and payment information, as well as how the apps vary in the services they allow.)

On both apps, the amount you earn depends on what you charge, how much you receive in tips, and which types of services you provide. As you would guess, boarding typically pays more than walking a dog, for example. But both companies take a bite from your earnings. Rover charges a 20% service fee per booking, and Wag takes 40%.

3. Blogging

If you have a blog that gets decent traffic, try making money from it. Blogging for money can take a few forms. One way is to host ads on your blog through a service like Google AdSense, which is free. Here’s the gist, according to Google: If your website is approved, then you choose where on it you would like ads to appear. Then advertisers bid to place ads where you designated, with the winner’s ads appearing in that spot. (People make money on YouTube through the same service.)

You earn some money when a reader clicks on one of these ads — but determining exactly how much you’ll make is tricky. Explore our guide to Google AdSense to learn more about it.

You could also try writing sponsored content, meaning companies pay you to write about their products. Or, become an affiliate through the Amazon Associates program. That involves linking to an Amazon product from your content and earning a commission when one of your readers clicks through and buys that item. Learn more about how to make money on Amazon through your blog.

4. Posting to social media

Love posting to social media and building a following? On Instagram and TikTok, many users earn money through sponsored photos and videos. Say you regularly post about your at-home exercise regimen. You may agree to post about a retailer’s resistance bands or sweatpants in exchange for cash or free products. (Sponsorships and affiliate marketing are also ways to make money from podcasts, in case that’s one of your hobbies.)

Sponsors may reach out to you to set up this kind of arrangement; you could contact them; or, in some cases, you may consider working through a third-party agency.

The type of content you post, as well as your number of followers and their engagement, will likely impact sponsorship opportunities. Learn more about how to make money on Instagram or on TikTok.

5. Selling your wares

There’s a marketplace for just about everything. So if you’re skilled in a hobby, consider trying to profit from it. For example, if you create jewelry or have an eye for thrifting quality clothes, try selling those items at a local flea market or yard sale, or on a neighborhood website such as Nextdoor or Facebook Marketplace.

Or look into an online market that could attract a wider range of buyers. Consider Etsy for crafts or Poshmark if you want to sell clothes online.

These websites charge fees that will cut into your profits. This guide to selling stuff online will help you think through the math and determine if your hobby can become a viable business.

What to consider before making money from your hobbies

Before taking any of the routes listed above, keep in mind that this work will likely affect your taxes. See our guide to self-employment taxes, which includes expenses you can deduct, and how to avoid penalties.

And as you aim to profit from your hobbies, consider whether you will continue to enjoy them through this new business lens. Let’s say knitting helps you relax. Will it continue to do so if you’re pricing, promoting and shipping your homemade wares through an online marketplace? And that blogging hobby: Will writing still be fun or cathartic if you’re occasionally throwing in a sponsored post?

It may be hard to answer these questions until you give the money-making approach a shot. But it’s worth reflecting on the potential trade-offs as you think about turning your hobby into a job.

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