When you’re starting a business, one of the first things you need to do is write a business plan. Your business plan is like a roadmap for your business, so you can lay out your goals and a concrete plan for how you’ll reach them.
Not only is a business plan essential for any business owner, but it’s also a requirement if you decide to apply for small business funding or find investors. After all, before a bank or individual hands over any money, they’ll want to be sure your company is on solid ground (so they can get their money back).
A business plan consists of several pieces, from an executive summary and market analysis to a financial plan and projections. The executive summary will be the first part of your business plan.
If wondering how to write an executive summary has kept you from completing your business plan, we’re here to help. In this guide, we’ll explain what an executive summary is and provide tips for writing your own so your business plan can start strong.
What is an executive summary?
An executive summary is a short, informative, and easy-to-read opening statement to your business plan. Even though it’s just one to two pages, the executive summary is incredibly important.
An executive summary tells the story of what your business does, why an investor might be interested in giving funds to your business, why their investment will be well-spent, and why you do what you do. An executive summary should be informative, but it should also capture a busy reader’s attention.
Why write an executive summary?
Anyone you’re sending your executive summary and business plan to is likely busy—very busy. An entire business plan is long, involved, and deals with a lot of numbers.
Someone busy wants to get an understanding of your business, and they want to do it quickly, which is to say not by diving into a complicated, 80-page business plan. That’s where your executive summary comes in.
An executive summary provides just the opportunity to hook someone’s interest, tell them about your business, and offer a clear selling point as to why they should consider investing in your business.
Your executive summary is your chance to sell your business to potential investors and show them your business is worth not only their money but also their time.
What to include in an executive summary
By its nature, an executive summary is short. You must be able to clearly communicate the idea of your business, what sets you apart, and how you plan to grow into a successful enterprise.
The subsequent sections of your business plan will go into more detail, but your executive summary should include the most critical pieces of your business plan—enough to stand on its own, as it’s often the only thing a prospective investor will read. Here’s what your executive summary should include—consider it an executive summary template from which you can model your own.
1. The hook
The first sentence and paragraph of your executive summary determine whether or not the entire executive summary gets read. That’s why the hook or introduction is so important.
In general, a hook is considered anything that will get a reader’s attention. While an executive summary is a formal business document, you do want your hook to make you stand out from the crowd—without wasting time.
Your hook can be sharing something creative about your company, an interesting fact, or just a very well-crafted description of your business. It’s crucial to craft your hook with the personality of your reader in mind. Give them something that will make your company stand out and be memorable among a sea of other business plans.
Grab their attention in the first paragraph, and you’re much more likely to get your executive summary read, which could lead to an investment.
2. Company description summary
Now that you’ve hooked your reader, it’s time to get into some general information about your business. If an investor is going to give you money, after all, they first need to understand what your company does or what product you sell and who is managing the company.
Your company description should include information about your business, such as when it was formed and where you’re located; your products or services; the founders or executive team, including names and specific roles; and any additional details about the management team or style.
3. Market analysis
Your market analysis in the executive summary is a brief description of what the market for your business looks like. You want to show that you have done your research and proven that there is a need for your specific product or services. Some questions you should answer:
Who are your competitors?
Is there a demand for your products or services?
What advantages do you have that make your business unique in comparison to others?
To reiterate, stick to the highlights of your market analysis in your executive summary. You’ll provide a complete analysis in a separate section of your business plan, but you should be able to communicate enough in the executive summary that a potential investor can gauge whether your business has potential.
4. Products and services
Now that you’ve established a need in the market, it’s time to show just how your business will fill it. This section of your executive summary is all about highlighting the product or service that your company offers. Talk about your current sales, the growth you’ve seen so far, and any other highlights that are a selling point for your company.
This is also a good time to identify what sets your business apart and gives you a competitive advantage. After all, it’s unlikely that your business is the first of its kind. Highlight what you do better than the competition and why potential customers will choose your product or service over the other options on the market.
5. Financial information and projections
In this section of your executive summary, you want to give the reader an overview of your current business financials. Again, you’ll go more in-depth into this section later in your business plan, so just provide some highlights. Include your current sales and profits (if you have any), as well as what funding you’re hoping to acquire and how this will affect your financials in the next few years.
This is also where you can explain what funding, if any, you’ve received in the past. If you paid back your loan on time, this is an especially bright selling point for potential lenders.
6. Future plans
While asking for what funding you need is essential, you’ve also got to make clear what you’re going to use that funding for. If you’re asking for money, you want the person to know you have a plan to put those funds to good use.
Are you hoping to open another location, expand your product line, invest in your marketing efforts? This final section of your executive summary should detail where you want your business to go in the future, as well as drive home how funding can help you get there.
Tips for writing an executive summary
Even if you include each part of a good executive summary, you might not get noticed. What is written can be just as important as how it’s written. An executive summary has to strike a delicate balance between formal, personable, confident, and humble.
1. Be concise
An executive summary should include everything that’s in your business plan, just in a much shorter format. Writing a concise executive summary is no easy task and will require many revisions to get to the final draft. And while this is the first section of your executive summary, you’ll want to write it last, after you’ve put together all the other elements.
To choose your most important points and what should be included in the executive summary, go through your business plan, and pull out single-line bullet points. Go back through those bullet points and eliminate everything unnecessary to understanding your business.
Once you have your list of bullet points narrowed down, you can start writing your executive summary. Once it’s written, go back in and remove any unnecessary information. Remember, you should only be including the highlights—you have the rest of your business plan to go into more detail. The shorter and clearer your executive summary is, the more likely someone is to read it.
2. Use bullet points
One simple way to make your executive summary more readable is to use bullet points. If someone is reading quickly or skimming your executive summary, extra whitespace can make the content faster and easier to read.
Short paragraphs, short sentences, and bullet points all make an executive summary easier to skim—which is likely what the reader is doing. If important numbers and convincing stats jump out at the reader, they’re more likely to keep reading.
3. Speak to your audience
When writing your executive summary, be sure to think about who will be reading it; that’s who you’re speaking to. If you can personalize your executive summary to the personality and interests of the person who will read it, you’re more likely to capture their attention.
Personalizing might come in the form of a name in the salutation, sharing details in a specific way you know that person likes and the tone of your writing. An executive summary deals with business, so it will generally have a formal tone. But, different industries may be comfortable with some creativity of language or using shorthand to refer to certain ideas.
Know who you’re speaking to and use the right tone to speak to them. That might be formal and deferential, expert and clipped, informal and personable, or any other appropriate tone. This may also involve writing different versions of your executive summary for different audiences.
4. Play to your strengths
One of the best ways to catch the attention of your reader is to share why your business is unique. What makes your business unique is also what makes your business strong, which can capture a reader’s interest and show them why your business is worth investing in. Be sure to highlight these strengths from the start of your executive summary.
5. Get a test reader
Once you’ve written and edited your executive summary, you need a test reader. While someone in your industry or another business owner can be a great resource, you should also consider finding a test reader with limited knowledge of your business and industry. Your executive summary should be so clear that anyone can understand it, so having a variety of test readers can help identify any confusing language.
If you don’t have access to a test reader, consider using tools such as Hemingway App and Grammarly to ensure you’ve written something that’s easy to read and uses proper grammar.
How long should an executive summary be?
There’s no firm rule on how long an executive summary should be, as it depends on the length of your business plan and the depth of understanding needed by the reader to fully grasp your ask.
That being said, it should be as short and concise as you can get it. In general, an executive summary should be one to two pages in length.
You can fudge the length slightly by adjusting the margin and font size, but don’t forget readability is just as important as length. You want to leave plenty of white space and have a large enough font that the reader is comfortable while reading your executive summary. If your executive summary is hard to read, it’s less likely your reader will take the time to read your business plan.
What to avoid in an executive summary
While the rules for writing a stellar executive summary can be fuzzy, there are a few clear rules for what to avoid in your executive summary.
Your executive summary should avoid:
Focusing on investment. Instead, focus on getting the reader to be interested enough to continue and read your business plan or at least schedule a meeting with you.
Clichés, superlatives, and claims that aren’t backed up by fact. Your executive summary isn’t marketing material. It should be straightforward and clear.
Avoiding the executive summary no-nos is just as important as striking the right tone and getting in the necessary information for your reader.
Executive summary examples
Sometimes the best way to learn is to see how other people are doing it. The U.S. Small Business Administration has multiple business plan examples; you can flip to the executive summary to help you write your own executive summary. For more inspiration, here is an example from Harvard Business School:
Executive summary template
After all the information we threw your way, you’re probably itching to get started. If you’re ready to apply what you just learned, download our free business plan template. Our template will not only make it easier to write your executive summary; it will also guide you in writing the rest of your business plan.
The bottom line
While an executive summary is short, it’s challenging to write. Your executive summary condenses your entire introduction, business description, business plan, market analysis, financial projections, and ask into one to two pages. Condensing information down to its most essential form takes time and many drafts. When you’re putting together your business plan’s executive summary, be sure to give yourself plenty of time to write it and to seek the help of friends or colleagues for editing it to perfection.
However, some tools make crafting a business plan, including your executive summary, a simpler process. A business plan template is a great place to start, and business plan software can especially help with the design of your business plan. After all, a well-written executive summary can make all the difference in obtaining funding for your business, so you’ll want all the help you can get.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
How to start selling online, full guide for beginners
Is selling online over-saturated? No way! It’s still very doable to make money from anywhere with a laptop. You just need to learn how to sell online and have the dedication to make it work.
This guide will give you proven methods to sell products and services online with insights from people making money using digital platforms. Plus, we’re sharing tips for building your own website and the secrets to selling with social media.
How to start selling online
Before jumping in and making your first sale, you need to know what you’re selling and who to. Through market research, you will find the answers.
Do market research
Once you’ve brainstormed the products or services that you’d like to sell online, you’ll need to see if there’s a market for those products. To do this, there are market research tools online that you can use.
Market research involves gathering information about your target market, competitors and industry trends. The goal is to determine whether or not your ideas are likely to make money and, if they are, how you can reach an audience interested in buying from you.
Market research includes:
- Competitor analysis to see what others are doing and what works for them. You need to look at where you fit within the market, what makes you stand out and what you can offer that competitors don’t.
- Analyzing online forums where your audience hangs out to build a picture of who your audience is and what they need so that you can target them better.
- Look for trends to discover products people are looking for now.
Top tip: When it comes to identifying trends, you can use Google Trends, which is a free tool. Search the product or service you’re considering selling and see how interested people are.
For example, a search for ‘buy selfie stick’ shows that searches for this product peaked in 2018 and have steadily declined in search volume; probably not the product for you right now.
Searches for air fryers, on the other hand, increased in 2020 and have remained relatively stable ever since.
Choose a niche and product
If you’re starting your online selling venture from scratch, it’s best to start with a niche product or service.
Niching allows you to build out an audience looking to solve a specific problem. You will get to know your buyer deeply, and only then can you provide them with all the reasons why your chosen product or service helps them.
Top tip: it will help if you genuinely like and believe in what you’re selling, especially if you’re going to sell on social media (more on that later).
Choose a platform or create an online store
The key to choosing a platform – or platforms – is not to spread yourself too thinly. If you’ve done your market research thoroughly enough, you will already have an idea of where your audience is hanging out online.
Top tip: consider your time. You are better off covering fewer platforms well than covering many badly. You can always scale later.
Market and sell
Once you’ve covered the above, it’s time to jump into your marketing plan. You’ll need a marketing plan that considers the buyer funnel. Think about the content you need to create to persuade prospective customers to buy from you. You will also want to build trust as part of your marketing strategy.
Top tip: sites like Reddit and Quora are free and provide insight into your audiences, their problems, their issues with competitors and so much more. The same applies to Google’s People Also Ask.
Sticking with the idea of selling air fryers, a quick search of the word ‘air fryers’ returns commonly asked questions about pros and cons.
Popular platforms where you can sell products online
Now that you’ve got your marketing plan started, it’s time to choose a platform for selling online.
Sell on your own online store
You can’t sell online without a digital store or platform. While you can sell on social media (more on this later), an owned channel like a website can become an asset over time.
Here’s some guidance on setting up your own platform.
Choose a domain
Check your desired domain name is available and buy online. Your domain name should be the same as your business name. It should be memorable, easy to spell, and relevant.
Create your store
Create an online store using GoDaddy’s Website Builder and set up shop within a day. You can add products, take payments and sell online from anywhere in the world.
Add payment processing
You need to integrate your online store with a payment gateway to accept payments. The gateway you choose comes down to personal preferences, terms and conditions and transaction fees.
PayPal is free to integrate but may charge a higher rate per sale, but if you want to test your ecommerce store before committing to a gateway like Stripe, PayPal can be a good start.
Inventory management is crucial for any ecommerce business, especially if you receive orders online. If you have physical products, your inventory must match what’s available online; otherwise, your risk selling more products than you have in stock, resulting in disappointed customers.
If you’re selling online and offline, stock inventory can get more complicated as you must regularly update your online inventory. Larger businesses have inventory management systems for this, but as a start-up, you can sometimes manage inventory updates with good administration.
Choose a shipping provider
Shipping can get rather complex, especially if you’re planning on handling international orders. You need to think about shipping costs and how you will manage them. Some businesses choose to absorb shipping so there’s no obvious cost to the buyer. Of course, if you do this, shipping costs should be factored into your product price.
Shipping calculations vary, but here are some options.
- Flat-rate shipping is as it sounds. The business charges the same shipping cost for all packages, regardless of weight or distance. Flat-rate shipping should be carefully monitored. With a flat rate, your business expects to profit on some purchases and lose on others, especially if you’re shipping internationally. Flat-rate will only work if the profits and losses are approximately balanced.
- Actual cost is a calculation where the business calculates the exact shipping cost for each package and charges this to the customer. This is usually done automatically at checkout using a shipping calculator. The calculation will take into account location, weight, size and more.
You can incentivize a purchase with free shipping, and you can also offer more expensive shopping options for faster delivery.
Top tip: Test your shopping experience before you start. You must ensure your prospective customers have a seamless experience from finding you to buying. That means no broken checkout.
Sell on Marketplaces
Marketplaces like Amazon, Etsy, eBay and Craigslist offer excellent opportunities to reach a broad audience and sell your products. Service-based businesses can try Freelancer, Upwork, Toptal and more.
You can sell on many of these marketplaces and your website. You can try the marketplaces and see how they perform.
Naturally, each marketplace will take a percentage of the sale, so you’ll need to factor that in.
Any ecommerce brand should at least try out Amazon. It is a search engine for products, and some of your buyers will go to Amazon before Google.
- Amazon is one of the largest ecommerce marketplaces.
- It’s simple to set up a seller account and list your products.
- Users may use Amazon as a search engine rather than Google, so you’re reaching a new audience.
- Amazon has over two million sellers, so you need good product photography to stand out.
- For users to find you on Amazon, you need to know a little about Amazon SEO.
Etsy is a popular marketplace for crafts, handmade and vintage products. But Etsy is also an excellent marketplace for digital products like guides, ebooks and more.
- If your product is crafty, handmade or vintage, you can know that users are heading to Etsy to find it.
- It’s cheap to start selling.
- It is a busy marketplace with lots of sellers.
- You don’t have the same control over your Etsy store as you do your store.
- Customers often expect personalization on Etsy.
eBay is one of the oldest ecommerce marketplaces. By now, most of us have probably sold (or tried to sell) something on eBay.
- It’s familiar.
- You may already have an account with some reviews to build trust.
- eBay’s UX isn’t as friendly as some alternatives.
Craigslist is a classified advertisements website that allows you to sell products locally.
- There are no fees
- You can sell locally, which helps with shipping fees if you want to keep your business geographically small.
- Local sales only can be limiting once you have the desire to grow.
Sell on social media
Once the products or services are available to buy, your first task is to drive traffic to the site. Here are some tips for promoting and selling your products digitally.
Social media is a great place to build an audience and, importantly, a brand. Through social media, you get to know your audience, and they get to know you; social media is personal.
TikTok is a platform credited for its generous algorithm providing accounts with excellent reach. As one of the fastest-growing platforms with over 1 billion users, your audience is likely hanging out there.
Mia Steele is a TikTok creator who began monetizing content in April 2022. She reports great success on the platform.
Steele says, “In less than six weeks of posting on TikTok and diving into User Generated Content (UGC), I began monetizing my content. I managed to replace my income by creating content and ads for brands.
“As my TikTok following grew, I even sold my own digital products to my audience.”
Steele’s top tip for a successful social media account is, ‘Devote time to cultivate and nurture your own audience, so you can capitalize on the traffic to sell your own products.’
TikTok also has TikTok Shop that you can access once you have 1,000 followers. TikTok Shop allows you to take a commission from items promoted and sold within your videos.
Facebook and Instagram
Like TikTok, you can grow an audience on Facebook and follow the path of selling digital products. Facebook and Instagram also have Shop functionality to sell products directly on the platform.
Facebook and Instagram benefit from the ability to post from Instagram to Facebook automatically, which will save you time.
Pinterest allows you to create a shoppable feed to list your products and sell them directly on the platform. You can also use Pinterest to drive traffic to your online store or blog.
Pinterest marketer Kayla Ihrig says, “The best way to make money on Pinterest is by making pins that lead to your services or products. Unlike other platforms where you need to constantly share valuable information to market your product or service, on Pinterest, users are searching for it and just want to be able to find it. Creators need to create images or videos (called pins) that display what they offer and then optimize them for search. Then, when a user searches for a solution to their problem, they find your content and go back to your website.”
Ihrig’s pin, pictured below, is the perfect example of a pin that leads a user to her service-based site.
Selling on social media opens a window of opportunity for entrepreneurs. You can sell your own products and services or explore affiliate and email marketing, which you can advertise in tandem with your platform.
With a combination of your website and social media, you could sell products online without actually owning or stocking a single item. Ideal for the entrepreneur craving ultimate freedom.
With affiliate marketing, you take a percentage of sales made via your channels using trackable affiliate URLs.
Mia Steele drives traffic from her social media following of 20,000 to her website. She started with a domain name from GoDaddy and started her journey into affiliate marketing. Steele says, “Within just seven months, I had joined more than 15 affiliate programs, built an email list of over 3000 subscribers, and earned over $90,000 in commissions by promoting products on TikTok and through my blog.”
The key, Steele says, is “Building your email list from day one. I underestimated the power of an email list until I ventured into affiliate marketing, and I regretted not starting earlier. Having a compelling free lead magnet and consistently producing high-quality content to drive traffic to your offers will be the key to your success.”
Email marketing is a cost-effective way to reach your target audience and promote your products. Done well, every email you send can make money. At least, this is the case for the team at Siligrams.
Arlene Battishill, Chief Marketing Officer, says, “Our email marketing is killing it with an average 55% open rate. Every email makes money. A recent email marketing campaign – a series of 10 daily emails – had an average 63% open rate because the campaign was nothing but stories and bad jokes and had absolutely nothing to do with our product!”
The secret to Battishill’s campaigns is consistency and humor; not every email is a sales plea that likely contributes to the sales success. Siligrams choose to humor and engage their audience instead of going for a hard sell. Remember, people buy from people.
Top tip: you can create and send stylish emails in bulk using GoDaddy’s marketing suite.
Trust the process when selling online
If it were easy, everyone would do it. Although the online selling path is simple, it requires dedication. Commit to your product, trust the process and be consistent.
As a budding entrepreneur, you have a lot to explore, and a platform that works for one business may not work for another, so be bold and experiment.
Sell online FAQ
Finally, we’re answering some of the most asked questions when it comes to selling online.
How do I sell online for the first time?
Your first online sale is the result of small steps made consistently. Follow the steps in this guide, from idea generation and market research to marketing and set-up, and you will make your first sale.
What are the most profitable items to sell online?
The most profitable items to sell online vary based on trends, but some items stand the test of time. These items include SaaS products via affiliate marketing since you earn recurring revenue.
For physical products, you can explore items in the following categories:
- fashion accessories
- beauty products
- home decor
- health and wellness
Naturally, these categories are also some of the most competitive, and you should consider the challenges. For example, electronics can go wrong, resulting in customer service issues and refund requests. Health and wellness is challenging to build authority in, especially if you’re relying on a new, owned website to sell from.
How can I sell products online legally?
The legal requirements for selling online can vary, and you must research to ensure you comply fully with laws and regulations. You must consider registering your business, correctly paying your taxes, and customer privacy and security. Advertising online also requires you to adhere to rules and regulations, from product information to the types of images and ad copy.
What is the easiest platform to sell online?
Ease of use is a priority for any platform that allows you to sell online. You can set up an eBay, Etsy or Amazon store within a day. The platforms are already geared to helping people like you sell.
If you want to own your platform, which is not a good idea, website builders help you set up shop as quickly and efficiently as possible.
Guide to Starting a Transportation Business: Key Steps and Strategies
Did you know that the transportation industry relies heavily on the trucking sector for 72.5% of its freight transportation? That’s a lot of goods being moved around the world on the back of trucks!
And guess what? The future looks even brighter for this industry. Experts predict the global transportation industry will experience a compound annual growth rate (CAGR) of 38.5% until 2027.
With such promising statistics, it’s no wonder that starting a transportation business can be a smart decision. Whether you dream of running a taxi service, delivering packages to people’s doorsteps, or even managing a logistics company, the opportunities are endless.
Whatever business option you may select, in this article, we’ll walk you through the key steps and strategies to help you kick-start your transportation business. So, let’s begin!
Conduct Market Research
Before diving into the transportation business, it’s crucial to conduct market research to understand the demand, competition, and potential opportunities in your target market. It’ll help you make informed decisions and tailor your services to meet customer needs effectively. Let’s explore this step further by asking three important questions:
1. Who are your potential customers?
To identify your potential customers, consider demographics such as age, gender, location, and income levels.
For example, if you plan to start a rideshare service in a college town, your target customers might be students looking for affordable transportation options.
2. What is the level of demand for transportation services in your area?
Assess the existing transportation options in your area and determine if there’s a demand gap.
For instance, if you discover that there’s a high demand for medical transport services for the elderly population, you could explore starting a specialized medical transportation business.
3. Who are your competitors, and what sets you apart?
Learn about the leading service providers in your area and how they operate their business. Analyze their strengths and weaknesses and determine what unique value you can bring to the table.
For instance, if you’re starting a courier service, you could differentiate yourself by offering faster delivery times or specialized handling for fragile items.
This way, you can gain valuable insights into your target market, understand customer preferences, and develop a competitive edge.
Create a Business Plan
Needless to say, every successful business starts with a well-crafted business plan. It serves as a roadmap, outlining goals, strategies, and financial projections. Ultimately, it helps one stay focused, secure funding, and make informed decisions.
So, to kick-start your business, you must take time and create a robust business plan. Make sure to include details such as your target market, competitive analysis, marketing strategies, operational procedures, and financial forecasts.
Also, be realistic and thorough in your projections, such as considering expenses like vehicle acquisition, maintenance, fuel, insurance, and marketing costs. Agree or not, it will come in quite handy when pitching the investors.
Obtain the Necessary Permits and Licenses
It doesn’t matter what industry you are a part of; complying with legal requirements is a must for the smooth functioning of the business. So, contact your local government or transportation authority to understand the permits and licenses necessary for your specific transportation service.
This may include commercial driver’s licenses, vehicle permits, insurance coverage, and business registrations. You must meet all these legal obligations before launching your business.
It will not only help avoid any legal issues down the road but will also demonstrate your commitment to operating a legitimate and compliant transportation business. It also builds trust with your customers, who expect an honest and reliable transportation service.
Acquire Vehicles and Equipment
The backbone of your transportation business will be the vehicles and equipment you’ll use. Not only do you need reliable vehicles to transport passengers or cargo, but you also need to ensure that they are well-maintained to avoid service disruptions.
According to professionals at Auto Glass Zone, one crucial aspect of vehicle maintenance is taking care of the glass components, such as windshields and windows. It’s because these provide visibility and safety for both drivers and passengers.
But, continuous exposure to road conditions and weather elements can damage chips, cracks, or other glass. That’s why it is essential to promptly repair or replace any damaged glass to maintain the safety and integrity of your acquired vehicles.
In addition to this, consider factors such as fuel efficiency, maintenance costs, and cargo capacity when acquiring vehicles and equipment for your business. Continuing the example above, if you’re providing courier service, you may also need equipment like hand trucks, dollies, or refrigeration units.
Build a Strong Network
Apparently, networking plays a vital role in the transportation industry. It involves establishing relationships with suppliers, clients, and other businesses in related industries. It opens doors to collaboration, referrals, and valuable partnerships.
For example, connecting with a local delivery service can lead to partnership opportunities where you can combine forces to provide comprehensive logistics solutions. Additionally, maintaining a strong online presence through a professional website and social media platforms allows you to showcase your services, attract customers, and engage with your audience.
Even so, keep in mind that networking is a two-way street. So, be proactive in reaching out, be a reliable and helpful partner, and nurture your connections.
Focus on Customer Service
Last but not least, when running a successful transportation business, one of the most critical aspects is providing excellent customer service.
Why is customer service so crucial? Well, imagine you’re a passenger in a taxi or waiting for a package delivery. How would you feel if the driver or delivery person was rude, unhelpful, or unresponsive? It would certainly leave a negative impression and make you think twice about using that service again, right?
Focusing on customer service can set your business apart from the competition and build a loyal customer base. So, train your staff and promptly address customer inquiries and concerns. You can also consider implementing technology solutions like GPS tracking systems or mobile apps to improve efficiency and communication with your customers.
Starting a business requires dedication, perseverance, and adaptability. So, stay informed about industry trends, continuously evaluate and improve your operations, and be open to learning from your experiences.
With the right strategies and a passion for providing reliable transportation services, you can navigate the road to success in the transportation industry.
Want to Start a Business in France? Four Key Tips for American Entrepreneurs
For many Americans, the prospect of France is a romantic one, with hugely popular films and TV series like Amelie, Chocolat and Emily in Paris cementing France’s reputation for glamour, charm and indulgence. But while the appeal of France’s lifestyle and culture is undeniable, the country also offers something that’s less well known – a swath of business opportunities ready to be seized by internationally-minded American entrepreneurs.
With an estimated 4,500 American companies already operating in France, it’s clear that the country is an attractive prospect to American business people, and there is the potential for great success in La République française. However, if you want to start a business in France (or expand there) as a US citizen, it always pays to know as much as possible beforehand in order to plan thoroughly, avoid common pitfalls and give your business the best chance of thriving.
As the third-largest economy in Europe (and seventh in the world), there is a long list of reasons why France is so appealing to business people, some of which include:
- France is a vibrant and diverse nation that boasts a skilled workforce, a large consumer population and access to the world’s largest trading bloc through its membership of the European Union.
- It is also welcoming and business-friendly, with the French government offering financial incentives to both new and established businesses and investing heavily in research and development.
- France has a strategically useful location buttressed by a highly developed transport infrastructure, greatly contributing to ease of travel and transit both within and outside of the country. London, for example, can be reached in under 2 and a half hours by Eurostar from Paris.
- France isn’t only large in terms of its economy – by surface area, France is the largest country in Europe and is made up of thirteen regions that all represent unique opportunities for entrepreneurs. It also borders eight countries and has a Channel, Atlantic and Mediterranean coast.
- An international centre of business, the Paris region enjoys global status as a major business hub, and is the number one region in Europe for hosting the world’s top 500 corporate headquarters.
Five Tips For Starting Your Business in France
One: Be prepared to navigate bureaucracy
For foreign company founders from outside the EU, the EEA or Switzerland, there are predictably some i’s to dot and t’s to cross when setting up a company in France, and the process can take some time. That being said, however, France is welcoming enough to entrepreneurs that you may find there are fewer hoops to jump through than you first expect, and there are many resources you can access to ease the process.
Anyone can establish a business in France by taking steps such as registering a business address and opening a bank account in the country, but if you would like to move to France to embark on your new venture you should apply for a long-stay visa known as the “Entrepreneur/Self-Employed” (VLS-TS) temporary residence permit.
Eligibility is determined via factors such as your ability to provide evidence that you will be engaging in an economically viable activity during your stay, and when it has been approved, the visa authorises residence for 12 months. During this time, you are allowed to live in France and engage in the commercial activity that you have outlined in your application.
This will involve a trip to the French consulate, of which there are ten across major cities in the USA. Once established, you will have to register your French business according to the correct category of your enterprise. It is also important to bear in mind that France has particular regulations across various business sectors and employment practices, and that corporate banks in France require minimum capital investments.
Two: Start learning the language
With a population that has originated in every corner of the globe, multilingualism is not unusual in the USA – one in five US adults speak a language other than English at home, (of which Spanish is the most common). But while the USA has no official language, it’s fair to say that English is the de-facto, and most particularly in the business world.
It is also the case that English is the most widely understood language in the EU, and a significant proportion of Europeans speak English as their second language (with an impressive 25% able to hold a conversation in two additional languages to their mother tongue). What’s more, 39% of French people report they are able to speak English, and many ex-pats move to the country without being able to speak French.
Despite this, it would be wrong to assume that you can easily default to English and thrive while running a business in France. The population of France primarily speaks French in both personal and professional contexts, and the French people have considerable language pride.
English might be widely spoken in business circles, but demonstrating your willingness to learn and use French phrases of greeting will be greatly appreciated, and you should bear in mind that proficiency in English is not a given. Over time, many ex-pats discover that shaping up their French language skills is key to taking advantage of everything the country has to offer.
You should also account for the fact that French is the only accepted language for official documents and contracts, and as 61% of French people don’t speak English, you will need a plan for smoothing over language incompatibilities in your business operations.
Three: Consider your new audience
In many important ways, France is not vastly different from the US, but it is still important not to underestimate cultural differences when setting up or expanding a business here. While certainly smaller than the US, it’s also important to remember that France is far from small by European standards, and like the differences between US states, there is significant regional variability across the country.
Whether it’s something simple such as the greater prevalence of smoking amongst French adults (around 33% versus 12% in the US) and the lack of a widespread tipping culture, or more complex subtleties in language, politics and history, there are many things that may be surprising about France as an American. This is why we would suggest seeking the advice of those who know the country well in many points of your business to understand how it may land with a French customer base.
There are also differences in laws and regulations which may affect your business, so it’s always worth doing thorough research as you draw up your French business plan to identify and account for factors which may not apply in the USA.
Four: Understand France’s working culture
American working culture is rather set apart from its European friends, with US citizens generally working longer hours, having less vacation time, and eating lunch (if they don’t skip it) at their desks. It also isn’t unusual for people to take calls and answer emails outside of work hours, and employers tend to have more flexibility when it comes to hiring and firing.
The French, on the other hand, tend to have a more leisurely pace of life which is facilitated by both government-mandated workers’ protections and the expectations of their working population at every point of the pay scale. This may take some adjustment when running a business and is something you’ll need to plan around – but the upside is, if you have chosen to live in France, you’ll get to enjoy this slower pace of life too!
Some things to take into account regarding French working culture are:
- The French will take their lunch break away from their desk, so unless you organise a specific lunch trip, this is a bad time for calls, meetings and emails (if you need an immediate response).
- They don’t only have significantly more holiday entitlement than Americans usually enjoy, they actually take it (whereas the average US employee who receives paid vacation only actually takes 54% of the allotted time each year.) This is usually most evident in July and August, when business slows down considerably, and as many employees will book more time off around public holidays, it pays to plan around these times of year.
- Since 2017, managers and employees of companies with more than 50 staff have not been required to answer emails outside working hours, and employees in smaller companies are likely to follow suit.
- French corporate operations are, for the most part, very hierarchical. When doing business with another company, take the time to understand the chain of command to ensure you are talking to the right people in order to get results.
- Hiring in France is an expensive proposition. Employers must account for high individual taxes when determining employee wages and the slate of employment benefits they are expected to provide. While these costs are high, however, people doing business in France tend to be repaid with a skilled and secure workforce.
- Networking is often key to success in the French business world, with personal recommendations often meaning more than accolades and titles. Forging business relationships in France can be more difficult than in America (although the collaborative nature of American business may give you a ready-made advantage), but they tend to last for a long time, making them well worth the effort.
There is a world of opportunity to be discovered by American entrepreneurs who take the plunge and start a business in France, and with proper research, a comprehensive business plan, and that famous American work ethic, success à la française can be well within your grasp.
This post was written by Katya Puyraud, a company formation expert at EuroStart Entreprises, who help entrepreneurs start a business in France and take the headache out of opening a company abroad.
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