How to Get Small Business Loan in Nigeria Without Collateral

Startup business loans aren’t a specific type of loan; rather, they are any type of loan used to open a new business. You might need this money to help develop a product or service, hire employees, lease space or equipment, and buy inventory. Startup loans can also include funding for businesses that have opened their doors but are still in the earliest stages.

Startup loans generally don’t require business credit or high revenue—lenders know they’re lending money to support a new idea. However, your personal credit and experience in the industry can affect your eligibility and loan terms. You can also use different types of financing to support your business. Here are nine common options.

What credit score is needed for a startup business loan?

The credit score you need for a startup business loan can depend on the type of loan and the lender, but having a personal credit score that’s at least in the high 600s (the maximum is 850) can be helpful. However, some types of financing, such as crowdfunding, don’t require good credit.

How to get a startup business loan

• Create a business plan.
• Evaluate your personal credit.
• Compare different types of financing.
• Apply for financing.

You may want or need multiple rounds of funding to get your idea off the ground, and the specifics will depend on the options you choose. However, the basic steps start with preparing your pitch, reviewing your qualifications, and seeing what you can qualify for at the time.

Create a business plan. Lenders want to see that you’ve thought through the challenges and opportunities that will come with your new business. Include any relevant information about your experience running a business or working in the industry.

Evaluate your personal credit. Your personal credit may be a factor in whether you qualify for financing and the rates and terms you receive. Many free apps and financial accounts let you check your credit scores for free. See where you stand and what you can do to improve your credit score.

Compare different types of financing. Consider how much money you need, when you need it, and how much you can afford to repay as you review the options and home in on your top choices.

Apply for financing. Review the eligibility and application requirements and apply with several lenders or organizations. Compare the offers you receive to determine which will be the best fit for your business idea.

Online business loans are often term loans, which means you receive the entire loan amount when you accept the loan offer and then make regular payments over a predefined term until the loan is repaid.

Online lenders may also have easier qualifications and a faster application process than traditional lenders, and they might use modern techniques (such as connecting to and analyzing your bank account) to determine who qualifies.

One of the strongest barrier startups face is in providing collateral for a loan. This is because startups, most times, do not have existing assets, which disqualifies them from the majority of commercial loans.

No Collateral Required
The Smart Business Loan is structured to provide access to loans of up to N20m without collateral.

Flexible Repayment
The repayment plan can be structured to suit your business and flexible for up to 2 years.

Convenience
Easy access to the loan through our digital application forms and automated repayment process.

Top-up is available
If you need additional financing during your loan tenor, we can offer you a top up after 12 months if regular repayments are made.

The Nigeria bureau of statistics has stated that these MSMEs and SMEs contribute to over 50% of the country’s GDP employing about 80% of the country’s workforce. Despite this, MSMEs and SMEs still struggle to access adequate credit, with only about 5% of these businesses having access to funding and credit.

These statistics are probably not so far-fetched as you may know a few yourself that haven’t been able to get credit. For this reason, many business owners have had to squeeze themselves dry to get started. They used their savings, borrowed money from family and friends, and even sold properties just to get some capital. Truth be told, finding credit can seem like looking for a needle in a haystack, but it doesn’t have to be.

In this post, we’ll teach you how to get a small business loan in Nigeria, so your small business can expand and truly reach its potential. If you are new to the business world, we will also talk about ways to obtain a loan for startup business in Nigeria.

Ways to procure loans for small businesses in NigeriaAccess to small business loans, especially business loans without collateral is not as common as most would think, but there are still a few safe and secure ways to get loans. We’ve outlined the main ones below.

Loan Apps

This is the fastest and most common way of getting a loan for start-up businesses in Nigeria. Loan apps usually take about 5 – 10 minutes to decide on your loan package and if you should be given a loan. Loan amounts range from ₦250,000- ₦10,000,000. Majority of the time, these apps don’t require collateral & offer collateral free loans for business. They only use your credit score to determine if you are likely to pay back.

Pros of loan apps

• They are fast. 
• They give substantial amounts of money
• No collateral needed
• No need to go to a branch. 
• You only have to download an app.

Cons of loan apps

• They often have only one physical branch
• You may not get the amount you want. 
• The app decides the amount it can trust you with.

Even though loan apps give some of the best small business loans, you still need to do your due diligence. Do not download just any app on the app store instead, check out this list we’ve compiled on the top loan apps in Nigeria and pick a loan app partner based on your needs.

SBA loans

The US Small Business Administration (SBA) doesn’t offer most SBA loans directly, but it partially guarantees loans offered through participating lenders. You can apply for different types of SBA loans depending on your business and how you plan to use the funds. Although the application and approval process can be lengthy, the guarantee can also make it easier to get a substantial loan on favorable terms, even if you don’t have great credit.The SBA 7(a) loan program is one of the most popular programs and offers up to $5 million in funding. In 2021, about 17% of SBA 7(a) loans went to startups.

The SBA 504 loan program could be a good option if you’re buying real estate or equipment, but only 10% of those loans went to startups.

The Community Advantage loan program is for businesses in underserved markets, and 45% of these loans went to startups in 2021.

The SBA microloan program offers up to $50,000 to start or expand a business, although the SBA doesn’t say what share of those went to startups.

The SBA also has a lender matching tool you can use to find participating lenders and compare loan offers based on your specific needs.

Banks

Before loan apps, banks were the number one place small business owners who wanted to grow their businesses go to get loans. Although they are trustworthy, loans from banks usually come with high-interest rates and a request for collateral. This often discourages startups from getting loans. However, start-ups can request business loans from banks, if the owners have a good track record and can provide sufficient collateral.

Pros of banks

• Trustworthy 
• You may get more loans as you build credit with them.

Cons of banks

• High-interest rates
• Lots of documentation and need for collateral
• Long processing time

Government loan schemes

The Nigerian government has established a few bodies to help MSMEs and SMEs. Examples of these bodies are the Bank of Industry (BOI), Bank of Agriculture (BOA), Development Bank of Nigeria (DBN), Nigerian Export-Import Bank (NEXIM), and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

They were established to give grants, and low-interest loans to MSMEs and SMEs in Nigeria. Here are their pros and cons.

Pros of Government loan schemes

They offer grants or low-interest loans
They focus on MSMEs and SMEs
They sometimes offer collateral-free loans for business

Cons of Government loan schemes

Competition is high, so they are difficult to get

Crowdfunding

Online crowdfunding platforms can help you organize a campaign and raise money from strangers and people you know. There are four common types of crowdfunding: debt, equity, donation, and rewards.

With equity you’re raising money in exchange for a portion of your business, while with a loan or bond you’re taking on debt that must be repaid with interest. Donor crowdfunding, like GoFundMe campaigns, isn’t often used by startups because you have little or nothing to offer in return. But you could consider a rewards-based campaign and offer donors one of your business’s products or services in exchange for their contributions.

Online apps for small business loans

Loan apps in Nigeria are known for their speed when it comes to loan approval and disbursal. They don’t require you to go to a place or present numerous documents. All you need to do is download the app, sign up and request a loan.

This is especially good for small businesses that need money to sort out business emergencies or for businesses just starting out with no social proof and no collateral.

Here is a list of the top loan apps that give loans without collateral:

FairMoney MFB: FairMoney’s main appeal is that it is a full-fledged digital bank that gives loans of up to ₦3,000,000. This means you can sign up to get a loan on the FairMoney app in under 5 minutes and increase your chances of getting a higher amount by banking with FairMoney and enjoying other benefits. 

Here is a detailed review of FairMoney. Check out more details about FairMoney loans here.

Branch: Branch prides itself on offering quick collateral-free loans. They have over 10 million downloads and their loans require no documentation. 

Kuda: They offer loans called “overdrafts”. They can only be given to people who have been using Kuda for a while. The overdrafts typically accumulate a 0.3% interest daily.

RenMoney: They offer loans to both individuals and start-up businesses in Nigeria. Their loan offer is currently maxed out at ₦6,000,000Carbon: Carbon typically helps customers buy commodities and allows payback in instalments at a later date. The repayment period is usually 3-6 months.

These apps have made it possible for the average credit-worthy Nigerian to start and grow business/businesses in Nigeria.

The 10 Most Dangerous Jobs in the World | BLUNTADVENTURE

Dangerous jobs are those that carry a higher risk of injury or death compared to other occupations. Workers in these jobs often work with hazardous materials or equipment, in dangerous environments or in situations where accidents are more likely to occur.

The importance of knowing the most dangerous jobs is to identify the risks involved in particular occupations and take measures to prevent or mitigate those risks.

In 2021, there were 5,190 fatal work injuries recorded in the US alone, according to the U.S. Bureau of Labor Statistics (BLS). It was an 8.9 percent increase from the previous year, which recorded 4,764 fatalities. Out of the total fatal injuries in all sectors, 1,253 were due to roadway incidents, 850 were caused by slips, trips, and falls, and 481 were from homicides. In addition, there were 2.6 million non-fatal injury cases in private industries in 2021 alone.

On-the-job deaths have been rising in recent years, rising from 4,821 in 2014 to 5,250 deaths in 2018, an increase of 9% over the 5-year period. However, the rate of deaths adjusted for employment has only risen approximately 2.2% over the same period, as an improving economy has led to additional employment. In 2018, the average fatality rate among all jobs was 3.4 per 100,000 workers.

In this article, we'll explore the top 10 most dangerous professions in the world, the common hazards faced by workers, the fatal injury rate, most common causes of injury or death, plus safety tips to help mitigate the risks.

1. Aircraft Pilots and Flight Engineers

Aircraft pilots and flight engineers are considered to have one of the most dangerous professions. They are responsible for the safe operation of aircraft. They are responsible for flying and navigating airplanes, helicopters, and other aircraft. They must be able to interpret flight data, weather reports, and air traffic control instructions to make decisions during flight. They also perform pre-flight checks and ensure that all safety protocols are followed.

Pilots and flight engineers are exposed to various hazards and risks, including:

• High altitude and low oxygen levels
• Turbulence and severe weather conditions
• Mechanical failure of aircraft parts
• Fatigue and stress from long hours of flying
• Exposure to radiation during flight
• Exposure to hazardous chemicals and gases in the aircraft cabin
• Risk of collision with other aircraft
• Terrorism and hijacking threats

Most common causes of injury or death: The most common causes of injury and death for aircraft pilots and flight engineers include aircraft crashes, in-flight medical emergencies, exposure to hazardous chemicals and gases, collision with other aircraft, pilot error, mechanical failure of aircraft parts, weather-related incidents, and terrorism and hijacking.

2. Roofers

Fatal injury rate: 41 per 100,000 workers
Total deaths (2018): 96
Salary: $42,100
Most common fatal accidents: Falls, slips, trips

Roofers are responsible for installing, repairing, and replacing roofs on homes and buildings. Their work involves taking roofing materials such as shingles, metal, or other materials onto roofs and securing them. Roofers generally must use ladders or other equipment to climb on top of buildings. The most common cause of fatal work injury for roofers is falling off roofs or ladders.

Most common causes of injury or death: The most common causes of injury and death for roofers include falls from heights, electrocution from overhead power lines, heat exhaustion and dehydration, musculoskeletal injuries from repetitive motions and heavy lifting, exposure to hazardous chemicals and materials, eye injuries from flying debris and dust, and burns from hot tar and other roofing materials.

3. Iron and Steel Workers

BLS Category: Structural iron and steel workers
Fatal injury rate: 29 per 100,000 workers
Total deaths (2018): 15
Salary: $53,650
Most common fatal accidents: Falls, slips, trips

Ironworkers are responsible for installing iron and steel on buildings, bridges, and roads. Their work often consists of climbing up on large structures, unloading iron and steel, and signaling to crane operators. They also use equipment to cut, bend, and weld iron and steel. Steel and iron are some of the primary reinforcing materials for large scale buildings.

Falls are the most common fatal occupational accident for structural iron and steel workers.

Iron and steel workers face a range of hazards and risks on the job, including falls from heights, electrocution, being struck by falling objects, and exposure to hazardous chemicals. They may also be at risk of developing musculoskeletal disorders from performing repetitive motions or working in awkward positions.

Most common causes of injury or death: The most common causes of injury and death among iron and steel workers include falls from heights, being struck by falling objects, and being caught in or between equipment or machinery.

4. Truck Drivers

Truck drivers, along with driver or sales workers, are responsible for transporting goods across long distances, often across state lines or even across the country. They operate commercial trucks, which may include tractor-trailers, tankers, or flatbeds. Truck drivers must have a valid commercial driver's license (CDL) and comply with Federal Motor Carrier Safety Administration (FMCSA) regulations, including limits on driving hours and weight restrictions.

Truck drivers face a range of hazards and risks on the job, including:

• Fatigue and sleep deprivation: Long hours on the road can lead to fatigue, which can impair driving ability and increase the risk of accidents.
• Accidents: Truck drivers are at risk of accidents due to a range of factors, including poor road conditions, weather, and other drivers on the road.
• Repetitive motion injuries: The physical demands of driving for long periods can lead to repetitive motion injuries, such as back pain and carpal tunnel syndrome.
• Exposure to hazardous materials: Drivers of tanker trucks or other vehicles carrying hazardous materials are at risk of exposure to toxic chemicals or gases.
• Mental health issues: Isolation, long periods away from home, and high levels of stress can contribute to mental health issues such as depression and anxiety.

Most Common Causes of Injury or Death:

• Accidents: Traffic accidents are a leading cause of injury and death for truck drivers.
• Overexertion: The physical demands of loading and unloading cargo, as well as the long hours spent driving, can lead to overexertion injuries.
• Repetitive motion injuries: As mentioned earlier, driving for long periods can lead to repetitive motion injuries such as back pain.
• Exposure to hazardous materials: Drivers of tanker trucks or other vehicles carrying hazardous materials are at risk of exposure to toxic chemicals or gases.
• Assaults: Truck drivers may be at risk of assaults or robberies while on the job, particularly if they are carrying valuable cargo.

5. Garbage/Waste Collectors

It may be hard to believe, but garbage or waste collectors have one of the most dangerous jobs. They are responsible for collecting, transporting, and disposing of waste materials from residential, commercial, and industrial areas. They typically operate garbage trucks or other specialized vehicles to pick up and transport waste to designated disposal sites.

Garbage/waste collectors face a range of hazards and risks on the job, including exposure to hazardous materials, being struck by passing vehicles, lifting and carrying heavy loads, and musculoskeletal injuries from repetitive motions.

Most common causes of injury or death: The most common causes of injury and death among garbage/waste collectors include being struck by vehicles, falls from trucks or other equipment, and musculoskeletal injuries from heavy lifting.

5 Safety tips for Garbage/Waste Collectors:

1. Wear appropriate personal protective equipment (PPE), such as gloves, boots, and reflective vests, to protect yourself from hazardous materials and other hazards.
2. Follow all safety procedures and protocols established by your employer, including proper use and maintenance of garbage trucks and other equipment.
3. Keep your work area clean and free of clutter to prevent slips, trips, and falls.
4. Stay alert and aware of your surroundings, especially when working in residential or high-traffic areas.
5. Practice safe lifting techniques and use mechanical aids, such as dollies and lift gates, to reduce the risk of musculoskeletal injuries from heavy lifting.

6. Construction helpers

Construction workers provide physical labor for construction tasks at building sites. These workers are responsible for tasks such as unloading building materials, building scaffolding, digging trenches, and operating other construction machinery. They may also spend time cleaning construction sites either in preparation for or after the completion of construction. The most common cause of death for construction workers is falls.

BLS Category: Helpers, construction trades
Fatal injury rate: 18 per 100,000 workers
Total deaths (2018): 11
Salary: $31,830
Most common fatal accidents: Falls, slips, trips

Construction helpers are construction workers who assist trade workers in the course of construction. These workers can include building equipment contractors, building finishing contractors, foundation and exterior contractors, and others. The most common cause of death for these workers are falls and trips on construction sites.

Construction workers face a range of hazards and risks on the job, including falls, electrocution, and being struck by falling objects.

Most Common Causes of Injury or death:

• Falls: Falls from heights, such as from scaffolding or ladders, are a leading cause of injury and death for construction workers.
• Electrocution: Exposure to live electrical wires or power lines can result in electrocution.
• Struck-by accidents: Workers may be hit by falling objects or struck by vehicles or heavy equipment on the construction site.
• Caught-in or between accidents: Workers may become caught in machinery or between objects, such as in a trench collapse.
• Exposure to hazardous materials: Exposure to hazardous materials such as asbestos, lead, or silica dust can lead to respiratory problems or other health issues.

7. Miners

It is no surprise that miners have one of the most dangerous jobs; they work in underground or surface mines, extracting minerals such as coal, metals, and other resources. The job may involve operating heavy machinery, drilling, blasting, and transporting materials to the surface.

Miners face a range of hazards and risks on the job, including:

• Respiratory hazards: Miners may be exposed to harmful dusts, gases, and fumes, which can lead to respiratory problems.
• Falls: Working at heights or on uneven terrain can pose a risk of falls.
• Entanglement hazards: Workers may become entangled in machinery or other equipment.
• Explosions and fires: Explosives and flammable materials are used in mining operations, which can lead to explosions and fires.
• Noise exposure: Mining equipment can generate high levels of noise, which can lead to hearing loss.

8. Farmers and Agricultural Workers

Farmers and agricultural workers face a range of hazards and risks on the job, including exposure to hazardous chemicals, animal attacks, machinery accidents, and working in extreme weather conditions. They may also be at risk of developing respiratory and skin diseases from prolonged exposure to pesticides and other chemicals.

Most common causes of injury or death: The most common causes of injury and death among farmers and agricultural workers include tractor overturns, falls from heights, being struck by farm machinery, and being attacked by livestock.

BLS Category: Miscellaneous agricultural workers
Fatal injury rate: 20 per 100,000 workers
Total deaths (2018): 157
Salary: $25,840
Most common fatal accidents: Transportation incidents

Agricultural workers are responsible for tending crops and livestock. They may be tasked with planting, harvesting, and watering crops, along with maintaining irrigation systems and ditches. These workers can also use farm tools or equipment, as well as apply pesticides and fertilizers. For agricultural workers who work with livestock, they may be responsible for feeding animals and keeping animal living areas clean. Transportation incidents are the most common fatal accidents for agricultural workers, which can occur while these workers are moving between or to and from worksites

9. Garbage/Waste Collectors

Also known as garbage collectors, refuse and recyclable material collectors collect our trash and recycling. Generally, these workers will drive a truck through neighborhoods and empty garbage bins and dumpsters into the trucks. Many bins are loaded by hand while some trucks have mechanical lifters. They then drive the trucks to a landfill or waste transfer station where the waste is unloaded from the truck.

It may be hard to believe, but garbage or waste collectors have one of the most dangerous jobs. They are responsible for collecting, transporting, and disposing of waste materials from residential, commercial, and industrial areas. They typically operate garbage trucks or other specialized vehicles to pick up and transport waste to designated disposal sites.

Garbage/waste collectors face a range of hazards and risks on the job, including exposure to hazardous materials, being struck by passing vehicles, lifting and carrying heavy loads, and musculoskeletal injuries from repetitive motions.

Most common causes of injury or death: The most common causes of injury and death among garbage/waste collectors include being struck by vehicles, falls from trucks or other equipment, and musculoskeletal injuries from heavy lifting.

10. Fishing Workers

Fishing workers are responsible for harvesting fish and other marine life from the ocean or freshwater bodies. They work in a variety of settings, including commercial fishing vessels, fish farms, and processing plants.

Fishing workers face a range of hazards and risks on the job, including drowning, falls overboard, entanglement in fishing gear, exposure to hazardous weather conditions, and musculoskeletal injuries from repetitive motions.

Most common causes of injury or death: The most common causes of injury and death among fishing workers include drowning, being struck by fishing gear or equipment, and falls overboard.

Wrapping Up...

Information on the most common fatal accidents was drawn from the Census of Fatal Occupational Injuries, and salary data came from the Occupational Employment Statistics Survey.

In conclusion, while the jobs on this list are among the most dangerous, appropriate steps can be taken to reduce the risk of accidents and fatalities. It is important that employers prioritize safety and take the right measures to protect their workers.

Top Five Benefit Or Important of E-Commerce To Businesses Owners

Ecommerce has always been the way of the future, but it is more so now than ever. The outer world has become a place of ambiguity, caution, and social distance, highlighting the many benefits of e-commerce for both companies and customers.

Since its inception, global ecommerce has been increasing year after year. People prefer shopping online to shopping in a physical store because it is more convenient and simple. Amazon and Flipkart are examples of how ecommerce is transforming and disrupting the industry. Consider the following major benefits of ecommerce and start selling online.

If you have ever purchased anything online via your computer or mobile phone, you have reaped the benefit of the convince that e-commerce offers customers. According to InvestoWords, e-commerce is defined as the buying and selling of products over the internet. It is an easier and quicker way of making purchases online without the hassles of visiting a physical store or office. It also help save you the stress of going to store to the main store in a far distance away from your house.

Here is how it e-commerce works: A customer makes an order on your online store and pays using credit or debit card or opts for a pay on delivery option. On the other end, the payment reflects in the bank account of the seller. E-commerce payment options can easily be integrated into your website. So, you may need to discuss with your web designer or bank manager on options for collecting payments online. This is important.

In more developed countries, e-commerce has paved the way for seamless and smooth business transactions outside the physical office location, in Nigeria, however, it still a growing trend, although it is becoming widely accepted at a fast rate. The major reason e-commerce is developing slowly in this part of the world is because we still grapple with the issue of trust and less access to internet connection.

Business owners running online stores face the problem of building credibility and encouraging customers to trust that they are genuine especially with the prevalence of scammers online. However, with a comprehensive marketing plan in place to boost your business presence and commitment to delivering superior value at all times, a business owner can enjoy the great benefits of running an online store anywhere in the world .

If you are yet to be convinced about the benefits of e-commerce to your business, especially if the business is more products than service-based, here are reasons you should consider running an online store that will guarantee you your investment:

More Customers: An e-commerce allows case of payment no matter where you are, your business can thrive in the digital space thereby attracting more online customers. Many business owners have directed traffic through their social media pages like Facebook, Instagram and Twitter to their online store, thus increasing their customer-base and increase their sales.

To enjoy this benefit more, take advantage of digital marketing and advertising to grow your customer base. With a great landing page, customers can be directed to your online store with just a click of a button where they can make instant purchase.

More Sales: With more customers attracted to your online store, your business is bound to enjoy more sales and profits. This is where you want to take this benefit a notch further by retaining old customers and gaining new referrals. Try offering incentive to new or old customers such as periodic discounts or a free item for every new customer that is referred to your online store. Also ensure that your online customer service is functional so that complaints and queries are treated immediately. There is nothing as frustrating and damaging to your brand as having poor customer service online.

Wider Reach: E-commerce is not bound by location. Hence, purchases can be made anywhere in the world. This is especially beneficial to business owners with exportable products or e-goods, including. E-books and other documents, as e-commerce allow anyone, no matter where they are, to make payments while allowing the business owner to cash easily. is it that easy! Yes of course.

Reduced overhead costs: Running an e-commerce store is a lot more cost-effective than running a physical store. You don’t have to rent commercial real estate — instead, you can pay an affordable fee for web hosting. You don’t have to invest in security for your commercial property, plus you don’t have to worry about paying rent for a warehouse or hiring employees. With an e-commerce store, typical costs include your domain name, your web hosting, and the cost of building your website, as well as your inventory. That being said, most e-commerce websites spend some money on marketing as well.

No need for a physical storefront: There are so many difficult aspects to running a physical storefront and using e-commerce means you don’t have to face most of those obstacles. Renting a commercial property can be expensive, especially if you’re in a big city. You also have to pay for electricity, water, and internet to ensure your space is up to code and can handle your business. There’s also security to consider; if you want your physical storefront to be secure, you’ll need to invest in cameras and other surveillance equipment. With an e-commerce store, you can simply build your website and start selling your products online without worrying about setting up a physical storefront and spending as much money.

Flexible Work Hours: If you’ve heard the term ‘make money while sleep’, this is obtainable when you take your store online. Unlike physical locations that are open particular hours of the day, your online store can be open 24 hours a day, seven days a week. No matter the time, whether you are online or offline or your business is closed for the day, or you are away, customers can place their orders and you can act on them when you open business the next day. That is the good thing about e-commerce business. Note though that the quicker you act on orders the more satisfied your customers will be.

Faster Buying Process: Previously, a customer had to schedule his shopping trip in advance, even though he desired to purchase a single item. This will include rearranging his schedule and making the purchase at the store. Another vital advantage of ecommerce is that it expedites the purchasing process.
A trip to the outlet that is approximately two to three hours away from your home is no longer required. Simply sit back in the comfort of your own home or workplace, conduct a product search, and complete the order.

Additionally, online stores are open 24 hours a day, seven days a week, allowing you to shop at your leisure. By providing many options, ecommerce enables the consumer to purchase a specific product without wasting time conveniently. Additionally, you save travel time by having the product shipped to the destination of your choosing.

Product Catalogue: Customers are looking for a detailed overview of the items they wish to purchase, which is a critical aspect of ecommerce. An e-commerce platform provides its customers with a product catalogue that includes data sheets that detail all of the company’s products and services.

The characteristics, utility, and specifications are comprehensive. Even the colours of certain items, such as cell phones, are defined so that you can make your selection based on personal preference. Customers can learn about the ingredients in edible items and gather additional knowledge that is not available in retail stores.

With expertise at their fingertips, customers can more easily purchase the products they want. Additionally, online websites provide reviews and consumer feedback that inform consumers about a product’s marketability. The portal provides warranty information and other product-related terms and conditions that may prove helpful to a customer.

No Physical Store: E-commerce allows the small business owner to skip the process of purchasing a physical location, thereby saving costs for rent. You can work out your inventory from your living room as long as you deliver goods to your customers on time. All you need to work out is delivery logistic.

Many clothing and jewellery stores have taken advantage of this especially in Lagos. These stores charge a token for delivery and as soon as you pay. They have their delivery person send purchased goods at a particular day of the week which saves costs as well.

Whatever works work for your online store, ensure that you never give customers reason to mistrust you as a bad reputation can be damaging to your brand and bottom line.

In conclusion, e-commerce has come to stay and with the bank policies that have been rolled out recently, it is inevitable that more businesses will automatically embrace e-commerce in the next one year or two. Businesses that decide to start now to build an online reputation for their brands stand to enjoy the benefits listed above. Most importantly, build credibility for your online business by taking advantage of your social media pages to promote your online store.

What do you think of this? Leave a comment below let's us know your thought about the benefits of e-commerce to business owners. And if you have any contribution feel free to use the Create Link Bottom Below. Thank you for your time reading my post.

5 Steps Every Entrepreneur Must Take When Starting Business

It’s important to state from the outset that there is no magic bullet that can transform you into a rich and successful entrepreneur overnight. However, for those prepared to work hard to succeed, there is an almost formulaic blend of entrepreneurial skills that can help set successful businessmen and women apart from the rest. To help you out, we have prepared a list of 5 important steps that every young entrepreneur must take before starting a venture.

Building a sustainable venture is a decision an entrepreneur has to make alone, experts say. According to them, no one was born with all the business potential, but the ability to develop required traits is a step in the right direction.

They say starting a business is a move to achieve financial freedom therefore, entrepreneurs should let go of everything that entangles them to the past and take that bold step to be independent.

Successful business people say entrepreneurs need not to wait until they have a huge capital base because many great businesses today actually started from their homes with little capital. They advise business owners to start small and grow the venture gradually.

According to them, there may be doubts that may limit the ability to develop the right skills and business ideas that you wish to pursue. In spite of this, there are examples of successful people who overcome their doubts; therefore, there is nothing stopping you from doing the same, they say.

According to Robert Baron, entrepreneurs are people who take action by engaging in vigorous and persistent efforts to convert their ideas and visions into profitable operating companies. Therefore, they have highlight the traits that entrepreneurs need to possess in order to start successfully run their businesses.

Know your market

Rushing your brand to get into a market can have drastic effects on business. Lack of knowledge of the market is one of the most common reasons why some young entrepreneurs fail. Before launching your business, detailed market research is necessary, which will help you find your target audience, pricing strategy and know competitors.

The better you understand your market and product, the less are the chances of a failure. You also have to look out for competitors and have a USP ( unique selling point)

Have a business focus: Experts say focus is the key to building a successful venture. Successful business managers have testified to the effectiveness of focusing in business. A business consultant, Mr. Akinola Oyediran, says being able to focus implies that the entrepreneur direct all business operations towards achieving set goals, either long-term or short-term. He says it could also involve defining a product type or a service delivery that is unique thereby creating a niche for the business in the market.

He advise entrepreneurs to build good and lasting relationship, and do everything in their power to help clients get the results they promised.

Be confident: In order to attract clients and investors into business, experts says business managers need to know the worth of their businesses. They say their ability to communicate this convincingly to prospects will lead to massive influx of different business proposals.

However, Oyediran advise that when other businesses start to show interest in partnering, entrepreneurs have to be careful in taking decision so as not to lose focus of their primary objectives. On the other hand, he says taking up the opportunities investors has to offer is a means of diversifying and expanding the venture into other horizons.

He says people who have confidence are able to put in extra efforts to develop their venture. On the other hand, he says people without confidence shy away from marketing opportunities and their venture may remain dormant as a result.

Oyediran says, ‘’Do away with your inadequacies and rather focus on your strengths and make them better. You need to constantly remind yourself of the good qualities you possess.

Learn from the best

Even the very best entrepreneurs of our time worked with other experts in their industry before going it alone. Finding a suitable mentor is a great way to learn more about your sector as a whole and, more importantly, the various facets of running your very own business. Your mentor may even have made mistakes in business themselves, but equally that makes them the perfect person to learn from, giving you the chance to understand where they went wrong.

Stay hungry and ambitious

Running a successful business is not an ego trip for successful entrepreneurs. It’s their desire to grow and provide a better product or service for their customers that keeps them hungry and ambitious. The moment that an entrepreneur stops wanting to learn new things is the moment that complacency sets in, allowing others to overtake you and leave you behind. Which leads us nicely into…

Be known as an expert: Business advisors say being known as an expert is another style of prospecting for new business, however, it is in the reverse. They say instead of finding new and qualified people to sell to, these people will seek you out for your expertise, the more the selling and referral opportunities.

In consultancy, which involves solving problems for other businesses, Oyediran says experts have to be developed. He says, ‘’ Businesses can only consult with you if only they are convinced that you have more accurate information and can render assistance, therefore professionalism is important.

Build your character: According to experts, having the right character and personality will make entrepreneurs rise quickly in the midst of competition and challenges. They say the drive to succeed is important because you need to encourage yourself to do more when faced with obstacles, and this will propel you forward with time from being a start-up to a well-established business owner.

According to them, when successful entrepreneurs identify an opportunity, they pursue it with vigour, they are immersed in the business day-in day-out, risking both capital and time; they are driven to succeed and are probably more afraid of failure than anything else.

Therefore, to achieve success quickly, they advise that people should have passion for the business they intend to venture into.

According to them, a powerful sense of passion and interest in the work will drive excellent performance. In addition, they say being resilient will enable them to overcome challenges and bounce back when faced with setbacks, because entrepreneurship is associated with ups and downs.

Moreover, when people talk about successful people, they forget that they had failed in so many things before; therefore, they advise entrepreneurs to keep working at what they are doing.

Show competence: To be effective, professional competence is vital. Oyediran says incompetence can be factor in losing many opportunities, because clients need to trust your proficiency. As a business owner, he says you need to prove yourself as being capable of executing a business deals. He says the starting point to attain high patronage is to develop competence.

To achieve this, he advise start-ups to determine what aspects of their job are most important and then make the decision to become very good in those areas.

He says, ‘’Get training in those areas where you feel you are less competence. You must be perceived as being very competent ta what you do. That perception alone will bring you to the attention of more people faster than you can imagine. It does not mean that you have to know everything that relates to your business; rather, know what to do and how to do get it done.

Trust your gut instinct, not just your spreadsheet!

Sometimes entrepreneurs can be found guilty of being wedded to their spreadsheets and the data. However, in the real world of business it’s never quite as black and white as that! In some cases, your gut instinct and heart are still your very best guide for decision-making. Ultimately, no-one knows as much about your business as you do!

Evaluate your progress thus far, and adjust your business plan. Determine where you are in contrast to where you thought you'd be, and think about what expectations you had that were wrong. Revisit your business plan and adjust it to reflect your current situation and understandings.

Every business is unique, so yours may not perfectly adhere to the formula. Use these steps as a loose guideline for the course of your business' development, and thrust yourself into the process as much as you can.

You may always hear that startups require a lot of hard work and ambition. While this might be true, one should know when to relax. Often young entrepreneurs ignore the health factors and overwork. It is a dangerous long-term approach as it can cause specific health issues. Therefore, it is crucial to set time to relax and work limited hours.

Fund Your Business — 7 Ways to Finance Your Small Business

In entrepreneurship, the old adage “you must spend money to make money” often rings true.

Once you’ve developed an innovative business idea, identified a market need, and created a value proposition, you need to acquire funding to get your company up and running.

There are several sources to consider when looking for start-up financing. But first you need to consider how much money you need and when you will need it.

The financial needs of a business will vary according to the type and size of the business. For example, processing businesses are usually capital intensive, requiring large amounts of capital. Retail businesses usually require less capital.

Debt and equity are the two major sources of financing. Government grants to finance certain aspects of a business may be an option. Also, incentives may be available to locate in certain communities or encourage activities in particular industries.

Before deciding how to finance your business, determine how much money you anticipate needing for startup costs and regular expenses. Whether you run a brick-and-mortar or online business, consider the following when taking stock of expenses:

• Licenses and permits
• Trademarks, copyrights, or patents for your brand and products
• Business insurance
• Legal or accounting assistance
• Rent and utilities (for brick-and-mortar businesses)
• Equipment required for production
• Website platforms
• Marketing materials (both print and digital)
• Shipping supplies
• Subscriptions to content management systems and sales or marketing platforms
• Market research

As your business scales, you may need to expand your expense list to include:

• Employee salaries
• Rent and utilities for office space
• Travel expenses
• Conferences, conventions, and networking events

These lists aren’t exhaustive—every business’s needs are different—but they provide a starting point for you to brainstorm all possible expenses for your startup. When your list is complete, calculate your total estimated startup cost. This number is the amount of funding you’ll need to invest when starting your company.

Before raising capital, it’s also wise to familiarize yourself with how to read and create a balance sheet, income statement, and statement of cash flows. Financial literacy is a critical skill for entrepreneurs, and being aware of these financial statements will ensure you’re taking the necessary steps to become a responsible business owner.

1. Venture capital

The first thing to keep in mind is that this funding source is not necessarily for all entrepreneurs. Right from the start, you should be aware that venture capitalists are looking for technology-driven businesses and companies with high-growth potential in sectors such as information technology, communications, and biotechnology.

Venture capitalists take an equity position in the company to help it carry out a promising but higher risk project. This involves giving up some ownership or equity in your business to an external party. Venture capitalists also expect a healthy return on their investment, often generated when the business starts selling shares to the public. Be sure to look for investors who bring relevant experience and knowledge to your business.

Venture capital firms are usually focused on creating an investment portfolio of businesses with high-growth potential resulting in high rates of returns. These businesses are often high-risk investments. They may look for annual returns of 25-30% on their overall investment portfolio.

Because these are usually high-risk business investments, they want investments with expected returns of 50% or more. Assuming that some business investments will return 50% or more while others will fail, it is hoped that the overall portfolio will return 25-30%.

More specifically, many venture capitalists subscribe to the 2-6-2 rule of thumb. This means that typically two investments will yield high returns, six will yield moderate returns (or just return their original investment), and two will fail.

2. Government Grants

Federal and state governments often have financial assistance in the form of grants or tax credits for start-up or expanding businesses.

Equity Offerings

In this situation, the business sells stock directly to the public. Depending on the circumstances, equity offerings can raise substantial amounts of funds. The structure of the offering can take many forms and requires careful oversight by the company’s legal representative.

Initial Public Offerings

Initial Public Offerings (IPOs) are used when companies have profitable operations, management stability, and strong demand for their products or services. This generally doesn’t happen until companies have been in business for several years. To get to this point, they usually will raise funds privately one or more times.

Warrants

Warrants are a special type of instrument used for long-term financing. They are useful for start-up companies to encourage investment by minimizing downside risk while providing upside potential. For example, warrants can be issued to management in a start-up company as part of the reimbursement package.

A warrant is a security that grants the owner of the warrant the right to buy stock in the issuing company at a pre-determined (exercise) price at a future date (before a specified expiration date). Its value is the relationship of the market price of the stock to the purchase price (warrant price) of the stock. If the market price of the stock rises above the warrant price, the holder can exercise the warrant. This involves purchasing the stock at the warrant price. So, in this situation, the warrant provides the opportunity to purchase the stock at a price below current market price.

If the current market price of the stock is below the warrant price, the warrant is worthless because exercising the warrant would be the same as buying the stock at a price higher than the current market price. So, the warrant is left to expire. Generally warrants contain a specific date at which they expire if not exercised by that date.

3. Self-Funding/ Personal investment

When borrowing, you invest some of your own money—either in the form of cash or collateral on your assets. This proves to your banker that you have a long-term commitment to your project.

If your projected expenses add up to a manageable amount, you may be able to fund the business yourself. This can involve taking money from your personal savings account, dipping into your retirement funds, using credit cards and paying back the debt, or asking for donations from friends and family.

Self-funding comes with the risk of long-term debt or losing personal savings and, potentially, money from loved ones. However, it’s a financing option that allows you to retain full ownership over your business, which is often seen as a downside of raising venture capital from investors.

4. Crowdfunding

If you believe your business can garner a fan base, crowdfunding could be a good option. Crowdfunding platforms, such as Kickstarter, Indiegogo, and Patreon enable entrepreneurs to pitch their products and request financial backing.

If people are intrigued and support your product, they can donate to your company in exchange for a free item, discount code, or acknowledgment once your business is up and running. For this reason, crowdfunding is typically a good fit for business-to-consumer startup companies with physical products, although there are exceptions. Each platform has its own terms and conditions, which you should read before selecting one.

In return for investing in your business, supporters will receive equity, albeit with less liquidity than what do would get with public stocks. There are also more relaxed rules governing crowdfunding than IPOs.

There are various forms of crowdfunding, including: 

Equity crowdfunding, where, in exchange for their money, investors receive shares in a company or the right to a portion of revenues or profits from a specific product.

Debt crowdfunding, where investors lend their money to a company at relatively high interest rates, thus mitigating their overall lending risk by spreading a large amount of money in small increments across a large number of loans.

Donation/rewards-based crowdfunding, where a company sets a fundraising target and asks for donations—in exchange for some kind of token or receipt of the eventual product or service to be developed.

5. Lease

A lease is a method of obtaining the use of assets for the business without using debt or equity financing. It is a legal agreement between two parties that specifies the terms and conditions for the rental use of a tangible resource, such as a building or equipment. Lease payments are often due annually. The agreement is usually between the company and a leasing or financing organization and not directly between the company and the organization providing the assets. When the lease ends, the asset is returned to the owner, the lease is renewed, or the asset is purchased.

A lease may have an advantage because it does not tie up funds from purchasing an asset. It is often compared to purchasing an asset with debt financing where the debt repayment is spread over a period of years. However, lease payments often come at the beginning of the year where debt payments come at the end of the year. So, the business may have more time to generate funds for debt payments, although a down payment is usually required at the beginning of the loan period.

6. Loans

Loans are the most commonly used source of funding for small and medium sized businesses. Consider the fact that all lenders offer different advantages, whether it’s personalized service or customized repayment. It's a good idea to shop around and find the lender that meets your specific needs.

Applying for a small business loan is another way to secure necessary startup funds. Before applying to banks and credit unions, prepare a business plan, value proposition, expense report, and financial projections for the next five years. Most banks or credit unions will ask to see some combination of these documents when considering your application.

Be sure to weigh the pros and cons of every bank loan offer you receive. Which gives you the lowest interest rate? What are the terms and conditions?

7. Business Incubators

Business incubators (or "accelerators") generally focus on the high-tech sector by providing support for new businesses in various stages of development. However, there are also local economic development incubators, which are focused on areas such as job creation, revitalization and hosting and sharing services.

Commonly, incubators will invite future businesses and other fledgling companies to share their premises, as well as their administrative, logistical, and technical resources. For example, an incubator might share the use of its laboratories so that a new business can develop and test its products more cheaply before beginning production.

Generally, the incubation phase can last up to two years. Once the product is ready, the business usually leaves the incubator’s premises to enter its industrial production phase and is on its own.

Businesses that receive this kind of support often operate within state-of-the-art sectors such as biotechnology, information technology, multimedia, or industrial technology. Businesses that were supported by an incubator have a better success rate over five years.

Angel Investors

Angel investors are individuals and businesses that are interested in helping small businesses survive and grow. So their objective may be more than just focusing on economic returns. Although angel investors often have somewhat of a mission focus, they are still interested in profitability and security for their investment. So they may still make many of the same demands as a venture capitalist.

Angel investors may be interested in the economic development of a specific geographic area in which they are located. Angel investors may focus on earlier stage financing and smaller financing amounts than venture capitalists.

Keep in mind that no two businesses are the same—only you know the ins and outs of your company’s needs. By weighing the risks and rewards of each funding option, along with your personal finances, predicted startup costs, and business expenses, you can select the best option for financing your business.

12 Tips for Running or Growing a Successful Business

When you first launch your business, your main goal is to establish your brand and start growing. Unfortunately, this doesn’t happen overnight. Growth is an ongoing process that requires hard work, patience and dedication. There’s no special step or secret way to surpass other businesses in the industry or achieve immediate success.

Running a successful business takes passion, dedication, and strategy. The passion and dedication can only come from within you. The strategy, however, can be learned. Once you obtain the necessary permits and licenses, get incorporated and offer a legitimate product or service, you’re a business owner — on paper, at least. But keeping a successful business up and running is a different story.

You’ll run into roadblocks that can threaten business viability if you overlook critical administrative tasks like bookkeeping or maintaining relationships with high-quality suppliers. In fact, the top reasons for new business failure include a lack of marketing strategy, having no plan for how to scale the business to meet growing demand, or offering a poorly conceived product or service with a too-small total addressable market (TAM).

According to stats published in 2019 by the Small Business Administration (SBA), about 20% of startups fail in the first year, while half go under within five years. There are, however, proven ways to reach growth milestones that can catapult a business to success.

With that in mind, Here are some tips and tricks for keeping the lights on so you can avoid being just another statistic:

1. Hire the right people.

Before you can even think about your company’s growth trajectory, you need to have a solid staff to help you achieve your goals.

Your goals are essentially your definition of business success. There are various approaches you can take to defining them. In the context of business success, however, the SMART system is probably the most appropriate. These initial goals are just to get you started. As you start getting close to achieving them, you’ll set yourself new ones.

“Hiring the absolute best people you can is a surefire way to ensure fast growth,” said Christian Lanng, CEO and co-founder of business software provider Tradeshift. “It’s all about having the right team.”

When you have hardworking employees who are dedicated to your company’s success, your business will be better equipped for continued growth. In addition, delegating tasks to focus on important work will free up your time and energy, allowing you to perform at your best and cultivate a collaborative work culture.

2. Stay organized.

Proper documentation, time management, and automating repeatable tasks can mean the difference between boom and bust. 

Keep accurate records of business finances: Record every transaction (customer billings and vendor payments) into the proper account at least once weekly and keep an eye on the bottom line. Keep copies of all invoices, cash receipts and cash payments for bookkeeping and tax purposes. 

Set (and keep) deadlines: Stay on top of administrative tasks using project management software — this lets you set deadlines, assign tasks to employees and upload documentation to a central repository.

 
Plan ahead: Plan your social media campaigns in advance using social media scheduling software. Use email marketing automation to follow up with new leads. Use Slack, Zoom and Microsoft Teams for quick communication with your team. If something can be explained in an email, you don’t need to have a meeting about it.

3. Create a written plan

Your why is your starting point and your goals are your first milestones. Your business plan sets out the path you believe will take you from your starting point to those milestones. Write down your plan in as much detail as you can, then conduct a thorough SWOT analysis on it. Ideally, ask someone you trust for an independent second opinion.

If you identify weaknesses and threats in your plan, then try to address them before you even start your business. If you can’t, then start addressing them as soon as you possibly can afterward.

In particular, make it a priority to deal with anything which may limit your ability to make and receive payments. For example, if you’re setting yourself up as a limited company, apply for a business bank account as soon as your incorporation is confirmed. Likewise, if you’re planning on using a payment processor get your account(s) set up as quickly as you can. You’ll probably have to go through some kind of verification process before you can actively use the account(s), and you may need time to familiarize yourself with the system.

4. Reduce your risks.

Risk is an inevitable part of starting and growing a business. It’s impossible to control everything, but there are many ways to limit internal and external threats to your company and its growth. One important resource to help you accomplish this is your business insurance provider.

“Small businesses need to manage their growth to avert disruptions that can bring business to a grinding halt,” said Mike DeHetre, senior vice president of underwriting and insurance at Preferred Mutual. For example, “the theft of employee data, customer records, and product designs can destroy a small business, generating significant costs and eroding customer confidence and loyalty,” he said. “Not every business owner’s policy covers data breaches or other cyber losses. Small businesses should be prepared by seeking insurance products that help them recover, including those that cover the cost of remediation and lawsuits.”

As your small business grows, you may add space or equipment, create new products or services, or increase your operating and distribution footprint. Therefore, DeHetre recommended reviewing your policy periodically to ensure you have the right coverage.

“It’s easy to forget this step amid rapid expansion, but you don’t want to find out that you’ve outgrown your coverage just when you need it the most,” he said.

5. Protect your intellectual property.

Intellectual property consists of the intangible assets — trademarks, copyrights and patents — that differentiate your ecommerce business from any other. 

For a small business, this means protecting things like designs, business ideas and trade secrets. If a competitor tries to copy your product, they can erode your market share and damage your reputation. If you decide to register a trademark or apply for a patent, it’s best to seek an attorney’s help to make sense of the legalese and avoid making minor mistakes (eg: omissions in descriptions or drawings, missing deadlines) that can result in your request being denied. 

6. Invest in yourself.

In the early stages of your business, you’ll likely see a very lean profit margin (or no profit at all), so any money you make should go directly to helping your business grow.

“A startup’s ability to invest in itself [helps] accelerate growth,” Lanng said. “In those early years, it’s critical to make sure that you’re redirecting any revenues back into the company. It’s vital to invest early and heavily in order to grow quickly.”

While it might be tempting to pocket all of your profits, it’s better to invest in your business’s growth so you can reap bigger benefits later. Determine which parts of your business need more attention. For example, do you need to hire more workers, expand your marketing efforts, or secure additional funding? When you find a crucial area that needs improvement, give that area your financial support.

7. Always think ahead.

While agility is an important quality for a startup, you can’t fly by the seat of your pants when you’re running a business. Planning your next step — in anticipation of all possible scenarios — is the best way to stay grounded and secure as your business evolves.

Thinking ahead is broad advice, but it can be as simple as reviewing all ongoing contracts, like comparing rates with the best credit card processors and seeing if you can negotiate a better deal.

8. Boost your customer service.

In most industries — especially retail — businesses compete on the customer experience rather than the product. Make it easy for your customers to get in touch with a real human on social media, messaging apps, email or even by phone.

Remember, a small business should be accessible. There is no excuse to present like a faceless corporation. If orders take time to fill or you’re creating a custom item, keep your customers informed of the process and manage their expectations accordingly.

If customers do complain, use active listening to understand their pain points, investigate the root cause and offer a resolution that matters to them.

Another great method of growing your business is to focus on providing superior customer service. When you exceed customers’ expectations, they are likely to tell their friends, family and followers about your business.

When you go the extra mile, such as by offering discounts if a customer has a poor experience or following up to ensure a client was satisfied with your product or service, you establish a reputation for great customer service. [Make sure you have the best business phone system for your customer service team.]

9. Deliver unforgettable experiences.

Great customer service increases the lifetime value of your customers and helps attract and retain new customers. In fact, 86% of consumers say a good customer experience can turn them from one-time buyers to loyal customers.

Also, manage people’s expectations. You’re a small business with limited resources and scalability. You probably can’t offer 24/7 customer support or a two-day turnaround on a custom item. What you can do, however, is resolve issues expediently, deliver a consistently great product and provide personalized support.

 
10. Practice corporate social responsibility.

Consumers want to buy from businesses that are passionate about causes that help make the world a better place. Whether you donate to cancer research or support a nonprofit such as a homeless shelter, look for ways to contribute meaningfully to the causes you support, and share that with your customers.

You could publicly express your support to underserved communities, donate to various organizations, offer your time to fundraisers, and provide sustainable products to help the environment. There are many ways to be socially responsible as a business; find a few that work for you.

11. Research your competitors.

Although it might not elicit immediate growth, researching your competitors is one of the most important first steps in launching your business. Ask yourself who your competitors are, what they’re doing (that you’re not doing) that works for them, and how you can differentiate your business from theirs. The answers to these questions will help you form a more productive business strategy that defines the areas of your business that require more attention.

How to measure business growth

There are a few factors to examine to gauge your business’s growth. Depending on your goals, you may prefer one factor over another, but analyzing them in context with one another can give you the clearest picture of how well your business is scaling.

Revenue: Revenue is a go-to metric in establishing business growth; after all, it’s the amount of money your company is bringing in. Revenue growth over time can be good, as it generally means you’re making more sales or higher-value sales. However, it’s important to balance revenue with expenses, because making more often means spending more.

Profit: A more important indicator than revenue is profit, which is what your company has netted over the course of a given period. When it comes to profit, a positive growth rate is great, but it doesn’t always tell the whole story. If your profit margin is healthy, even a flat profitability year over year might not be bad. But for new businesses, quick profitability growth should be a key focus.

Market share: Market share describes how dominant your business is in its space compared with competitors. For new companies breaking into an industry, growing market share rapidly is a major concern. Without gaining a significant foothold against your competitors, it will be hard to drive sales to grow revenue.

Customer acquisition: One of the best ways to grow market share is by focusing on lead generation and sales volume. By getting your brand in front of potential customers and then converting them to make a sale, you can grow your company’s market share and revenue at the same time.

Customer retention: Acquiring new customers helps you gain market share only if you retain those customers, so focusing on customer retention and improving this metric over time is also key to monitoring the growth of your business.

Team size: Growing your team is a significant expense, but the size of your team also represents how much you can do. Balancing a team that can meet operational needs with the payroll budget is a key challenge for every entrepreneur, so monitoring the growth of your team over time is particularly important.

Successful small businesses are run by passionate entrepreneurs who also possess strong business acumen. To maximize your chances of success, keep accurate records of all transactions, cut costs wherever possible (without sacrificing product quality) and focus on providing an outstanding customer experience. Successful businesses offer products and services that ease a pain point, solve a problem or serve a passion. 

One of the most helpful things a business owner can do is write a business plan. This document lets you define the scope of your business needs, startup costs and the target market.

In this way, would-be entrepreneurs can evaluate the viability of their business idea without sinking time and money into starting a business that will not succeed.