Dr David Bozward

Category: Blog

  • Developing a business process diagram for your startup

    Developing a business process diagram for your startup

    As a entrepreneur, you can have a lifestyle of freedom and flexibility not offered to an employee. However, being a owner of a small business also carries greater responsibility with many more tasks to juggle. This means you need to understand the tasks required by everyone around.

    Entrepreneur

    • Planning and Strategy – You are the principal strategist and planner.
    • Finance and Accounting – Depending on the business, some owners can bootstrap and start with a smaller budget, but either way you’ll also need to set up and maintain business bank accounts, payment processing, accounts payable and accounts receivable, and taxes.
    • Legal – From forming a limited liability company to creating legal contracts. You might need to write, review and sign legal contracts and sales agreements.
    • Marketing and Sales – No matter how good your product or service is, you need marketing and sales to drive business. Depending on the business, you could be doing print advertising, public relations, online marketing, networking, cold calling and managing commissioned salespeople.
    • Customer Service – In the beginning, most entrepreneurs are responsible for conducting all of the customer service duties. These include phone calls, email messages and follow-ups concerning product delivery and quality issues.
    • Human Resources – As a small business grows, so do its hiring needs to accommodate more orders and faster growth. The entrepreneur  needs to identify human resources needs, write job descriptions, screen and interview candidates, train, manage and pay employees.

    Customers

    Nurturing relationships with your customers is a crucial part of growing a startup business. In this age of ecommerce and technology innovation, caring for your customers has never been more important.

    The easiest way to get, keep and get your loyal customer to promote your business is to:

    Interact with your customers

    Here are some simple lessons:

    • Keeping your patience is key to giving your customer the time to air out their issue.
    • Do everything in your power to provide excellent service to your customers on an ongoing basis.
    • it’s important to truly listen
    • Treat a Customer Like a Valued Partner
    • Build Trust by alerting your customers to Large Scale Changes, Good or Bad
    • Being transparent in the digital age is a must.
    • No matter the circumstance, the customer is always right.

    Business operations

    This is the core of the business, it handles everything. If you can understand what this does and how it does it, to provide an excellent customer experience each time within budget, your business has the best opportunity for success. Don’t leave any stone unturned in making your operation understandable by ALL stakeholders in the business, staff, shareholders and most importantly your customers.

    business process diagram for your startup
    business process diagram for your startup

    Financial

    Financial planning and cash management is fundamental to a startup.  Perhaps the most challenging part of building a startup is forecasting revenue targets. You can take one of two approaches; a top down and bottom up approach.

    • The top down approach involves identifying comparable companies to yours that have grown to be successful and modeling your revenue growth curve similar to these companies.
    • The bottom up approach makes use of your market research to look at how many customers you can reach, the number you can persuade to work with you and how many you can capture as paying customers.

    The final step in your financial plan is to develop your cash flows. Revenue minus cost of goods provides positive cash and operating expenses and capital expenses (purchase of assets) use up cash. Every startup must have a good view on how much cash they will need to get through each phase of the business.

  • 5 places to run your startup business, on the cheap

    What places to run your startup business?

    When starting out, you only seem to have costs and they keep coming in. The five set of fees are:

    1. Office space
    2. Utilities
    3. Incorporating and legal fees
    4. Accounting costs for the first year in business
    5. Payroll for employees

    So one of the main costs is office space and if we can reduce that we can survive for longer and hopefully last until we start making more money than we spend.

    1. Run your startup business from home. This won’t work for every business, but if it will work for yours it can save you a pile of cash on utilities and rent.
    2. Coffee Shop’s are happy to have you and have good wifi. You also get to meet like minded people and can invite people for meetings in the coffee shop.
    3.  Look out for a business incubator which helps startups by providing them space, mentors and events. These are normally free for a set period.
    4. Spare desk in someone else’s office. A lot of businesses have space and if you can use one or two desks in return for some form of payment, even your manpower it will be cheaper and more flexible.
    5. Find a co-working space where you can rent space as-needed for much less than the cost of a traditional commercial office which is normally looking for 3-5 years.

    Just remember when looking for office space its “Location, location, location.” , which drives home just how important location is when choosing a space for your startup business.

  • Entrepreneurship as a career choice – Millennial Entrepreneurs

    Entrepreneurship as a career choice – Millennial Entrepreneurs

    The Millennials are making the career choice of being an entrepreneur.

    Promoting entrepreneurship as a viable career option and supporting self-employment on an higher educational campus has both community and economic relevance. The role of higher educational campuses to nurture and develop the entrepreneurial and innovative talent is foundation to creating the next generation within our community. The trend is for millennial University students to be empowered to come out of university with an understanding of entrepreneurship, with a view that these skills and knowledge allow them to make informed life choices.

    Millennial Entrepreneurs

    Our Millennial Entrepreneurs understand how to start new businesses and take on the risk and rewards of being an founder.  Entrepreneurs are the dreamers who are fuelled by the desire to pioneer, lead, innovate and invent disruptive technologies and products. The tech savvy millennial wants to work the way then want, the hours they want make the opportunities they want.

    In the 1980s we saw a massive increase in self employed and now their children are following the footsteps or the desire of their parents and opted for a career that was decided by their elders. However, the opening up of the world economy during the 1990’s and the great advances in tech field has had far reaching impact on the way business was done world over.

    Millennial Entrepreneurs Motivation

    These momentous changes are opening up new business creation tools and unexplored business models for the young and ambitious who were not satisfied being put in a single career for their entire life. Young people are drawn towards entrepreneurship because:

    1. The desire to be their own boss and have better control
    2. The motivation to take risks in the changed global environment where unexplored new opportunities were present
    3. The ambition to develop and execute a plan right from the ground level
    4. The aim to do well financially and take their growth trajectory to unprecedented level

    New Venture Creation (NVC) Programmes are available to equip nascent entrepreneurs with the skills necessary to start a scalable business.  These university degrees have been developed by entrepreneurs to support Millennial Entrepreneurs on the entrepreneurial journey, and to develop the entrepreneur within  alongside an in-depth understanding of how to start and run a business.

    Students will be in a class with like-minded Millennial Entrepreneurs developing a strong network of entrepreneurs. Throughout the  degree, the focus will progressively move from entrepreneurial mindset, creativity, venture feasibility and marketing, to business operations, stakeholder communications, sales and growth strategies.

  • 6 ways to find a co-founder

    6 ways to find a co-founder

    Co-founders are normally people involved in the initial launch of startup companies. Anyone can be a co-founder, but frequently co-founders are entrepreneurs, engineers, hackers, funders, web developers, web designers and others involved in the ground level of a new  venture.   The first step in finding your co-founder is to map yours needs.  Make sure you are perfectly clear on what skillsets/resources will be the most important for the success of the startup, and best fill a hole in your own resume and desired management team.

      1. Friends from University – It worked for the guys at Facebook and Google, so just get out and meet other students.
      2. Former co-workers – If you’ve worked together as employees, you might be able to work together as co-founders. You have the history and know each others skill sets.
      3. People you meet over coffee – We see hot beds of startups co-locating themselves in coffee shops, just talk to the guy next to you.
      4. Former co-founders in another venture – There’s no better person to launch with than someone that has started a company before.
      5. Accelerators – Related to some of the other co-working suggestions, simply applying to a startup accelerator can lead to finding a co-founder.
      6. At meet-ups – Tech Meetups are great places to find co-founders and they are easy to find and also go to.
  • What skills do you need to be a successful Entrepreneur?

    What skills do you need to be a successful Entrepreneur?

    When starting a business, we all come at from different directions, at different ages, different backgrounds. There are so many skills required to run your own startup. Successful Entrepreneur skills, are the ones you’ll need to run everything from serving customers to preparing your accounts. Below are listed 13  core skills required in running a startup business and how you might develop your core skill set further. The successful Entrepreneur skills are:

    1. Opportunity Recognition – The recognition of new markets and opportunities, such as a new customers’ need is core to becoming a successful entrepreneur.
    2. Ideation – Ideation is the creative process of generating, developing, and communicating new ideas. Always write your ideas down in a book and come back to them when you can do something about it.
    3. Research & Analysis – This involves both qualitative and quantitative data collection and analysis. Understanding the customers, competitors and costs structure are important in making a startup work.
    4. Resources Identification – Working out the resource requirements then leads to determining what types of resources you will need to start-up and operate your startup.
    5. Risk Analysis – This process of defining and analysing the dangers to your startup business posed by potential natural and human-caused events.
    6. Tactical Planning – As a startup the horizon is low, so focus on this process of outlining business plans for the coming year. This differs from strategic planning as strategic planning encompasses longer-term goals that reflect the company’s direction and its purpose outlined in its mission statement.
    7. Operational Design – Operational design is the first level of strategy implementation and rests upon operational art. This cognitive approach uses your skill, knowledge, experience, creativity, and judgment to develop operations to organise and employ the resources available.
    8. Business Modelling – A business model is the map of how a startup generates revenue and makes a profit from its value proposition. From this a business plan and processes may be derived.
    9. Cash Flow – In the early days of a business maintaining a healthy cash level, liquidity ensure the business survives. Cash is king.
    10. Team Building – As a new business building a team is important, which requires various types of activities used to enhance social relations and define roles within team are developed and maintained.
    11. Branding – Branding is one of the most important aspects of any business, it develops you icon and a connection with your suppliers, customers and financial stakeholders.
    12. Marketing – The communications of you value proposition should generate leads which can be turned into sales.
    13. Negotiating & Selling – Getting the right prices from your suppliers and selling at the right price is fundamental for a startup to grow. These skills go hand in hand together.
  • 7 obstacles experienced by entrepreneurs

    7 obstacles experienced by entrepreneurs

    As an entrepreneur we have lots of do, but sometimes we just do it wrong, we let obstacles get in our way. So what are the typical obstacles we entrepreneurs have to deal with:

    1. Perfectionism – For entrepreneurs, practice doesn’t make perfect; action does. You simply cannot wait until you are 100 percent ready before you take action. Think MVP.
    2. Procrastination –  Sometimes its easier to delay the decision, the action or even dealing with the problem, so each day “Eat the Frog” and take action of the real issues within your business.
    3. Fear – Entrepreneurs’ resolve is tested from the very first step of starting a business. In fact, one entrepreneur compared starting a business to jumping off a cliff and assembling your parachute on the way down.
    4. Worry – As an entrepreneur, worry comes with the territory. In fact, over a third of entrepreneurs told Gallup they worried a lot about yesterday. While worry is a quotidian experience, it is not productive. You have to make peace with the things that concern you, and not let them stop you from taking action and pursuing your dreams.
    5. Financing – Experienced entrepreneurs don’t have it easy when it comes to funding a new business, but they do have a few advantages over newcomers. They might have a pool of capital from a business they previously sold or a steady stream of revenue they can use to fund a new business’s cash flow.
    6. Team building – This is especially hard if you’ve never run or managed a team before, but even if you have management experience, picking the right team for a startup is stressful and difficult. It’s not enough to find candidates who fill certain roles — you also need to consider their cost to the business, their culture fit and how they’ll work as part of your overall team. Such considerations are exceptionally hard when you’re under the pressure of filling those positions as soon as possible.
    7. Decision-making – Believe it or not, this is probably the most stressful challenge on this list. New entrepreneurs are forced to make hundreds of decisions a day, from big, company-impacting decisions, to tiny, hour-affecting ones. Decision fatigue is a real phenomenon, and most new entrepreneurs will experience it if they aren’t prepared for the new level of stress.
  • 5 Sources of funding to start a business

    5 Sources of funding to start a business

    If you are looking to fund your startup and not sure where to start? Here is a quick guide to five potential sources of funding for your small business. I have tried to put them in order with the best way first:

      1. Bootstrapping: Many billionaire entrepreneurs find a way to grow without external financing so that financiers don’t control their destinies or grab a disproportionate slice of the business.
      2. Customers: Advance payments from customers can give you the cash you need, at a relatively low cost, to keep your business growing. Advances also demonstrate a level of commitment by the customer to your operation.
      3. Friends and family members:  If you’re lucky, friends and family members might be the most lenient investors of the bunch. They don’t tend to make you pledge your house, and they might even agree to sell their interest in your company back to you for a nominal return.
      4. Startup Loans: Start Up Loans is a government-funded scheme that fund your startup and mentors entrepreneurs. They have a series of delivery partners  who will help you develop a business plan.
      5. Bank loans:  Banks are like the supermarket of debt financing. They provide short-, mid- or long-term financing, and they finance all asset needs, including working capital, equipment and real estate. However, they typically are not the first place to look for funds for your startup.

    When taking loans to fund your startup from friends and family, banks or another you must, have a written agreement covering every last detail regarding the loan. This includes the loan amount, the repayment period, the amount of each repayment instalment, the interest rate if any, consequences of non-repayment etc.  If in doubt get a lawyer to help you.

  • 12 months of successful entrepreneurship in 2017

    12 months of successful entrepreneurship in 2017

    Each year I sit down and make a set of new years resolutions and this year I wanted to try something new. So this year I thought I would make a series of statements which I could live by, to make my life more successful. So the following 12 statements are aimed to make our lives more entrepreneurial this coming year.

    1. Self believe in yourself.

    As Henry Ford famously said, “Whether you think you can, or think you can’t, you’re right.” You HAVE to Believe that you can succeed, and this believe will help find ways through different obstacles.

    2. Have and communicate the vision.

    The difference between a manager and a entrepreneur is the vision they have for the business, an entrepreneur is someone who has a vision for something and a desire to create it. This vision needs to be clear at all times.

    3 Take the risk.

    We never know the outcome of our endeavours unless we actually try it. Jeff Bezos said it helped to know that he wouldn’t regret failure, but he would regret not trying.

    4. Deliver more than expected.

    Google’s Larry Page encourages entrepreneurs to deliver more than customers expect. It’s a the only way to get noticed in your industry and build a loyal customer following and turn them into advocates.

    5. Make it happen.

    The world is full of great ideas, but success only comes through action. Walt Disney once said that the easiest way to get started is to quit talking and start doing. That’s true for your success as well.

    6. Manage energy, not time.

    Your have limited amount of energy, so  limit what you can do with your time, so manage it wisely.

    7. Hire character.

    As you build your new venture team, hire based on their character and your common values. You can always train someone on skills, but you can’t make someone’s values fit your company after the fact.

    8. Learn from YOUR mistakes.

    Many entrepreneurs point to mistakes as being their best teacher. When you learn from your mistakes, you move closer to success — even though you initially failed.

    9. Spend with discretion.

    When you spend money on your business, be careful to spend it wisely. It’s easy to spend too much on things which provide little return and run out of finances too soon.

    10. Find good people.

    Who you’re with is who you become. Reid Hoffman, co-founder of LinkedIn, noted that the fastest way to change yourself is to hang out with people who are already the way you want to be.

    11. Accept it takes time.

    No one succeeds immediately, and everyone was once a beginner. As Steve Jobs wisely noted, “if you look closely, most overnight successes took a long time.” Don’t be afraid to invest time in your company.

    12.  Make friends with successful entrepreneurs

    There are so many trick of the trade, so the easiest way to learn is by talking to those who have done it and understanding the little things which is needed to make you successful.

     

  • Student Led Incubators

    Student Led Incubators

    There is always a real need to get student involved in Enterprise and Entrepreneurship within the university. They have a real need for enterprise skills and developing it into an Entrepreneurial career or a full blown Entrepreneur.

    So on a recent visit to the the Tianjin Urban Construction Management Vocational Technology College, we had the opportunity to visit their incubator.

    This college is looking at developing Energy Entrepreneurship, developing new businesses which address saving energy or using it in a more effective way, especially within China.

    IMG_7685

    So the real surprise was the cafe within the business incubator was run by Students for Students and business owners. We had the chance to meet the three owners of the business and provide some advice and support. The development of this student led cafe provides a real insight into both the management of the college and also the students within it.

    The management have placed trust in the students to start, run and make a success of the cafe. This has resulted in:

    1, Trusting students is such an important part of Entrepreneurship and we sometime forget to place this on students.

    2, The students have taken a opportunity to run the cafe, something which every student on campus will have an opinion about. I know many students wouldn’t do this as their peers would look down on them or have something to say. The risks and rewards associated with this is a great lesson, but the greatest one is that these students have the largest network on campus.

    3, Having a go, should always provide winners, as experience of entrepreneurship will ensure students leave with more skills that we educators could ever teach them.

    IMG_7688

    The cafe was the centre of the business incubator and so made it student led, the cafe was the heart of the space, just as it should be.

    So when we arrange, we were saw a great space being used by other students and it was the centre of campus live. So good luck.

     

  • Setting Objectives when Starting up a Business

    Setting Objectives when Starting up a Business

    When Setting Objectives when Starting up a Business you should always use SMART objectives -the most well known method for setting objectives. S.M.A.R.T refers to the acronym that describes the key characteristics of meaningful objectives, which are:

    Specific

    • WHAT am I going to do?
    • WHY is this important for me to do?
    • WHO is going to do what? Who else need to be involved?
    • WHEN do I want this to be completed?
    • HOW am I going to do this?

    Measureable

    • How do I know when I have done it?
    • Can these measurements be obtained?
    • What are the numbers, quantity, comparisons?

    Achievable

    • Can we get it done in the proposed timeframe?
    • Do I understand the limitations and constraints?
    • Can we do this with the resources we have?
    • Has anyone else done this successfully?
    • Is this possible?

    Realistic

    • Do you have the resources available to achieve this objective?
    • Do I need to revisit priorities in my life to make this happen?
    • Is it possible to achieve this objective?

    Time-Bound

    • When will this objective be accomplished?
    • Is there a stated deadline? (a defined time line)

    Setting Goals Summary

    Remember what gets measured gets done, so write your goals down, share them constantly with those who can help, are part of the goal and your team. Keep refining your goals to ensure achievable. If necessary, split goals down into achievable tasks.