Starting a new business can be one of the most exciting ventures you pursue in life. The benefits of running your own enterprise include being your own boss and having the flexibility to schedule work around your family responsibilities. However, the perks of being a business owner comes with its own set of risks.
Statistics show that about half of new businesses stop operating within the first five years. While this is quite a sobering reality, it shouldn’t put you off pursuing your business dreams. If you are able to learn from the experiences of others who’ve pursued this path, there’s no reason why you shouldn’t be able to achieve your goals and become a success. Here are a few handy tips to help new business owners get off on the right footing.
Research is Important
Before you get going, do your research. Find out about your competition, marketing platforms and industry trends. Remember that things in the business world change constantly, so it is important to stay ahead of the trends. Furthermore, in this digital age having a strong social media presence is another key factor in a businesses success.
Establish a Business Plan Early
Regardless of how small your business may be, you need a business plan which includes a detailed financial report. The importance of proper financial management is essential in ensuring business survival in this highly competitive environment. Ensure you have a little financial cushioning to carry you through the slower months. If you don’t have a head for numbers, it is worth enlisting the services of an accountant to help you manage the financial aspects of your venture.
Make Connections
Remember that people like doing business with people they know, so get networking. Whether this means attending conferences, joining industry associations or signing up to online forums, meet as many people as you can because you never know where you’ll find your next customer or business partner. The more people you connect with, the more exposure you’ll get for your enterprise.
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Be Pragmatic
Things won’t always go to plan in the business world, so as an entrepreneur being a pragmatist is important. Remember your initial idea may not be as lucrative as you once thought, so be willing to change it as you go along. You’ll also need to be realistic and come to terms with the fact that you have your limitations so stay humble and make necessary changes to meet the needs of your market.
Diversity
Placing all your eggs in one basket is never a good idea. Regardless of the product you are offering it is important to explore other services that can be used to attract new clients and retain existing clientele. For instance, if you run a restaurant, expanding to provide a delivery service by introducing a kitchen management system could serve to broaden your target market.
Setting up a business requires a lot of hard work and dedication. You’ll need to mentally prepare yourself for the fact that there will be tough times ahead. However, if you believe you have what it takes to succeed, follow these useful tips to ensure you launch a resilient enterprise that stands a chance of thriving in this ever-changing world.
It requires resilience, patience, willingness to learn, and a proper understanding of technological advancements in the industry. Unfortunately, not many people are willing to make this sacrifice, so only a few manage to make it to the very top of the corporate finance ladder. You can use the following tips to your advantage and get a step up on your peers.
1. Get an MBA
Educational qualification is the first thing potential employers look at when recruiting new employees. Regardless of your talent and industry knowledge, competitors with papers will most likely get the nod ahead of you. A bachelor’s degree in finance coupled with a Master of Business Administration (MBA) or doctoral degree can level the playing field for you and allow you to showcase your aptitude. There are many affordable online MBA programs to consider if you already have a bachelor’s degree. Most of these programs have been tailored to suit busy people and will most certainly fit into your tight work or school schedule.
2. Grow your network
The idea of growing a network may seem drawn-out, draining, and time-consuming, with only a few people having the time and zeal to attend industry conferences or meet up with strangers for coffee. The good news is that building a professional network is a lot quicker these days, as you can do it almost entirely online. Renowned corporate finance experts and industry influencers are on LinkedIn and other social networking platforms waiting to connect with like-minded people. You just need to set up a professional profile yourself and request to connect with them. You might also want to join online communities where you can engage in forums and learn from potentially more experienced individuals.
Renowned corporate finance experts and industry influencers are on LinkedIn and other social networking platforms waiting to connect with like-minded people.
3. Use digital tools
The work of a finance expert is mostly analytical, and although traditional analysis techniques work just fine, you can take some workload off your shoulders by incorporating software into your operations. Common systems include financial planning and analysis tools, expense management tools, cash-flow and balance sheet management tools, CRM software, and revenue and profitability tools. Some systems offer several functions in one, so make sure to check online reviews before installing one on your work computer. Consider factors such as user interface, scalability, and reliability as well to ensure the software you choose is easy to use and will serve you for the longest time possible.
4. Hone your communication skills
Finance is a tough field that even people in related subjects may not understand. It deals with data and heavy jargon that needs to be broken down and interpreted before being given to a non-expert. This is where communication comes in. You need to know how to explain the patterns, trends, and forecasts in a simple and understandable manner. Good communication skills will also come in handy when handling projects in groups as miscommunications can lead to mistakes and undercut the power of teamwork.
5. Go freelance
There is nothing wrong with working in an organisation as an employee, but if you feel you are being restricted by your job description or simply aspire to set up your own financial consulting firm, then going independent might prove to be more rewarding. Some of the benefits of freelance financial consulting include schedule flexibility, control of workload, exposure, freedom of choosing clients, and better pay. It also allows you time to enroll in higher-education programs and take other career enhancement steps.
6. Earn your promotion
Promotions are not given; they are earned, and to merit promotion, you must be willing to do more than you are charged with. Start by doing what the company wants and expects from you before deciding on where else you can be helpful. Expose yourself to more company activities within and outside your department to bolster your knowledge and skills and become more valuable to your company. Pay attention to senior executives and people who have been promoted recently and take note of their standout personal traits. Check if there are things you can learn from them and try to emulate.
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Endnote
The road to the top is long and arduous. You will bump into all sorts of obstacles and be forced to stay up to date with market trends and technologies. However, with a well-thought-out strategy, the journey should have fewer hurdles. The above tips are a great place to start for any corporate finance professional whose career is still in its infancy. You might want to consult a career expert if you want to make a big move, such as leaving your job for a freelance career or switching careers to corporate finance.
So, how can you stand out from your competitors? The answer is simple: an MBA. A Master of Business Administration will help ensure that a graduate enjoys a successful career in finance and will virtually guarantee increased earning potential. Additionally, this specialised degree will offer a wide array of career options and train the financier in the pertinent subject matter.
Once you receive your MBA, doors to new career opportunities will swing open in rapid succession. Those entertaining a career in finance should remember that this sector offers unparalleled job security, room for growth, and a desirable work-life balance.
However, to fully capitalise on these benefits and avoid stagnation in your professional growth, financiers must consider pursuing an MBA. Are you wondering where to get started? Consider a college net price calculator to help you total out-of-pocket expenses required for your top-choice university.
If you’ve accrued student debt from your undergraduate degree, you may be wondering: isn’t the MBA cost astronomical? You will indeed incur further college fees by pursuing an MBA. However, given that an MBA gives you access to a better pay package, you will recover the additional expenses within a short period.
Still doubtful that an MBA is worth the incurred student debt? Data shows that MBA holders in finance earn an annual median salary of $129,000. This figure is approximately $30,000 more than those financiers holding a bachelor's degree only. This disparity could even be more widespread, depending on the position.
Why you should consider an MBA for your finance career
Most professionals want to earn an MBA for some of the following reasons:
- They want to relive their college days
- Their employer offers MBA tuition reimbursement
- For an added sense of achievement
While the above reasons are permissible, you can derive other incredible benefits from venturing down the MBA path.
A Master of Business Administration will help ensure that a graduate enjoys a successful career in finance and will virtually guarantee increased earning potential.
Expanded career opportunities
An MBA in finance introduces you to a world of vast opportunities. This degree will grant you access to nearly every level of public and private companies. To put this degree’s usefulness into perspective, CEOs of S&P 500 companies hold more MBAs than all other undergraduate degrees combined.
Therefore, many professionals pursue MBAs to gain promotions that they wouldn’t qualify for with an undergraduate degree alone. An MBA prepares financiers in the following positions:
As you can see, an MBA in finance gives you a head start in one of the most versatile careers. If your career goals point towards executive positions, an advanced degree is non-negotiable.
Business skills
An MBA in finance gifts you with invaluable finance management skills that prepare you for business management in the real world. An MBA hands you skills that help you navigate personal and business finances, ensuring success in both realms.
Examples of marketable business skills include delegation, time management, networking, negotiation, customer service, organisation, leadership, and decision-making skills.
Despite popular misconceptions, these skills aren’t exclusively demonstrated by managers and business owners. Remember, companies value employees that think like business owners and factor the big picture into their everyday tasks.
An MBA in finance gifts you with invaluable finance management skills that prepare you for business management in the real world.
Networking
Networking is a direct channel to optimal career growth. However, the harsh reality is that it's challenging to meet business professionals in your current job position who can connect you with new opportunities. However, when studying for an MBA, you get to connect with like-minded individuals with similar career ambitions. Should you succeed in nurturing long-lasting bonds that can last for a lifetime, these fellow graduates can refer you to high-paying position openings.
Though you can still network and develop lifelong connections during your undergraduate career, it often limits you to the student level. With an MBA, you interact with people from different professions with diverse business experience.
Better pay
While increased earning potential is an obvious advantage of earning an MBA, it’s essential to understand the reasoning behind these increased opportunities for pay raises. Finance is a critical function in many organisations. As a result, employers generously compensate financiers for their skill sets.
Better yet, with an MBA, you are likely to earn as follows, depending on the position you hold.
- Finance manager: $126,000
- Financial analyst: $57,000
- Chief Finance Officer: $313,541
- Account manager: $102,982
- Corporate controllers: $95,000
- Management consultant: $86,000
Note that with a management consultant salary, yearly pay will depend on the consultancy and the nature of the organisation. When projecting your earning potential, the above figures could be 25% less if you only have a bachelor's degree.
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How do I gain admission to an MBA program?
Typically, admission to MBA in finance is comparable to the admission process of other MBA programs. While there could be some variations here and there, below are the general requirements for an MBA admission.
- A bachelor’s degree from an accredited university
- A GPA above the specific requirement of the program (often a 3.0 or 3.25 GPA)
- Glowing references from past employers, mentors, advisors, etc.
- A GMAT score above the recommended level
- Completed FAFSA forms for the purposing of accessing federal loans
Having fulfilled the above, you can submit online or physical applications just like the undergraduate programs.
Final word
The world revolves around the financial sector. From our morning coffee to the late-night TV commercials we watch, finance departments have a say in it. You could say that finance is one of the disciplines that run the world. With this in mind, finance professionals should recognise that they’re immersed in a career with limitless possibilities. To enlarge this sea of opportunities, an MBA will come in handy. Don’t stunt your growth. Strive for greatness, and shatter your self-constructed ceiling of opportunity.
The infamous year 2016 is now behind us and we all have a fresh start moving into the new year - one which could perhaps be one of the most unpredictable since the market crash in 2008. Low confidence and an anxious approach to ambition could stunt the growth of startups, so here are my key resolutions that small enterprises should adopt if they want to thrive in 2017.
- Smarter marketing, not larger
It’s good business sense to always look after the pennies, but with unknown economic territories ahead of us, it’s important for start-ups to tighten up the side of the business where thousands could be wasted when hundreds could take you further = marketing. Social media and SEO will be the most cost-effective ways to drive brand awareness, so invest in consultants and training sessions to help you cover the basics that will ensure your business is heard in a world full of competitors. What’s most important for you to take note of in these workshops is the efficiency of micro-targeting – put spend purely into targeting where your audience digests content and news. Don’t look to reach large numbers, look to reach relevant numbers.
- Inspiration comes from the workplace
It might sound simple, it might sound unimportant - but neither is true. Your working environment plays a huge role on your energy, motivation and inspiration – three characteristics you’ll need in bundles to take a start-up off the ground. Walk into offices up and down the country and they can be flooded with unnecessary paper, overcrowded desks, folders upon folders and general mess. Take action and declutter your office by taking more of your work online – with the rise of cloud-based services such as Google Docs, sharing working documents has never been easier. What’s more, the cloud has been utilised across industries, and some services even allow you to take your accounting spreadsheets and numbers purely within the cloud. This takes me nicely onto…
- Re-evaluate your business tools
The beginning of the year is an opportune time to calculate all tools your business subscribes to, and analyse what’s working and what’s not. It could be that you’re paying for three different tools that can all be done by one, this will drive costs way down. For instance, Xero is a tool that allows you to take control of payroll, pay bills, send invoices, creating POs and more – it’s time to research what tools out there will optimise your business.
- 2017 will be the year of networking
Business owners will need to keep their finger on the pulse of trends that result from Article 50 being triggered. You can make predictions based on what you’ve read online and how your business has been performing, but to get a deeper understand and grasp on where trends will head, you will need to discuss the industry with your peers. Like Open Data, everyone will benefit from each other’s learnings and can adapt accordingly. SMBs are the backbone of the UK economy, and a united effort to thrive this year will help us prosper as we leave Europe.
- Prioritise your employees’ happiness
Hard workers are hard to come by. You’ll remember sitting in your office interviewing countless candidates who simply weren’t right for your company, so use that experience to treasure what you have now. Research what the larger organisations are doing and you’ll see a host of perk packages, health schemes and away days. While this is great and a real morale booster, employees really respond to one-on-one time with their boss. Simply showing your appreciation of their work and reassurance of their career path will give them the confidence to work for you, and the ambition to achieve for you.
- Protect yourself against security threats
Hackers and cyberattacks are becoming more sophisticated by the day, and the threat of a data breach is more likely than ever before. It’s vital that businesses of all sizes who use online and financial services ensure they have strong security practices. Using the most up to date virus protection and firewalls is a given, but extra layers of security such as multi-factor authentication (requiring a username and password as well as a piece of information that only the user knows) can help your accounts from being compromised by phishing and malware.
Authored by Gary Turner, UK Managing Director and co-founder of Xero.
(Source: Xero)
