Biz Guru Agony Aunt

We provide a regular Agony Aunt service for people that have questions on setting up or developing their business.  If you have any business questions please send them to sales@bizguru.us

Here is a sample of our answers:

Question: I'm a 23 year old male and I would like to start a business, but I don't know what industry to go into. My interests are in politics and law but I am not interested in becoming a lawyer. Any advice? -Doug M., Detroit, USA

Answer: This is a tough one because you cannot provide legal advice without being a lawyer – politics is not such a problem although a person experienced in life generally has a greater chance of success.  I think that you really need to plan your life a little.  Sit down with a pen and paper and make three lists:

1. Where I want to be with my professional life in 3 years time?
2. What are my strengths and weaknesses and my future opportunities?
3. What kind of areas or people do I think that I can provide advice or support to? 

If you take your time doing this and do it honestly, it will give you a good idea of what your potential is and the best areas that you can target.  If you decide where you want to be in 3 years, you can then work back to the current day, using your strengths and opportunities. You are at the beginning of your career so plan, innovate and improve.

Question: I'm in the process of launching a business and I'm having a major problem when it comes to financing. The difficulty is that even with a great idea and a great team of people, venture capital companies are hesitant to put any money into a company that is not already making millions. What can I do? -Lindsay S. Florida, USA

Answer: Venture capitalists understand risk very well.  When reviewing your business plan – you do have a business plan don’t you? They are asking three questions:

1. How risky is this business for me to invest in?

2. What is in this for me – e.g. how much can I earn for investing in this business?

3. When can I profitably cash out of this business and move onto another?

Answer these 3 questions in your business plan by showing that you have mitigated and minimized your risks by undertaking extensive research.  Show what the return for the investor is likely to be – and please make it believable.  Show them how they can leave your company with a smile on their face and a good return for risking their money in believing you.

Question: What can a larger small business do to break through that plateau phase that most of us hit? We're at the point of about $1.5 million in annual sales but I feel like it's time to grow larger. Should we be pouring lots of money in to marketing? Or should we up production? Or something else? -George L., Vancouver, Canada 

Answers: First of all congratulations on establishing your business.  This is really a situation where we would have liked to sit down with you and discuss your specific business. Without knowing your business or market it is difficult to make specific suggestions but really you should be looking at the following options:

1. Expand into other geographic areas.  Do you have customers that are regularly coming to you from a specific area – if so look at placing an outlet there?

2. Expand your product range.  Are you regularly asked for something you don’t do? Do some of your customers make do with what you can provide them with?  Do you see and opening for another service or product?  If you research and plan how to meet these needs?

3. Become more efficient.  Have you become a little lazy in your processes and procedures?  Is what you are doing fine when you are small, but a little cumbersome now? Small changes and improvements can sometimes pay big benefits – ask your staff who are close to the methods what they suggest.

4. Review your prices and profits. Are they in line with your peers and competitors?

5. Improve your marketing. Is there something you want to tell people about your business or products?  Are you reachable via your website, email and free phone? 

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