Posts in category: Business

What is the significance of customer feedback for startups, and what are the benefits of soliciting customer feedback? Startups can’t succeed without input from their customers. It’s a great way to see how consumers in the target market regard the company’s offerings. Foreseeing and responding to consumer concerns may help new businesses a great deal. It can also help you:

• Identify areas for improvement.
• Address any problems or concerns.
• Enhance the overall customer experience.

In particular, suggestions from buyers are crucial for developing useful novel products. Information about the target market’s tastes and demands may be gleaned using this method.

Why customer feedback is important for startups

Customer feedback holds immense significance for startups as it provides valuable insights into their customers’ needs and preferences. It helps startups identify the areas that require improvement and refine their products or services accordingly. By incorporating customer feedback, startups can enhance customer satisfaction levels, build brand loyalty, and gain a competitive edge in the market. Therefore, it is crucial for startups to actively seek and consider customer feedback to ensure their success and growth.

There are several obstacles that startups must overcome. Gaining in-depth knowledge of the customer experience is crucial to the development of any new business. Startups may learn a lot about their product or service and how consumers feel about it by soliciting and considering feedback.

Insightful judgments may be made with the use of customer feedback in the following areas:

• How to make what they sell better
• Innovate and implement cutting-edge features.
• Make things easier for your customers.

Startups may make the necessary adjustments after hearing from their customers about what might be better.

Startups may learn about client preferences and expectations through customer feedback. New businesses may learn what features are most important to potential buyers by listening to their consumers. You may utilize this data to fine-tune your products and services to better satisfy your clientele.

Why it’s crucial for a business to pay attention to what its customers have to say

It’s not uncommon for a company to go through hundreds of product samples before releasing its initial version to the public. However, they may still have suggestions for how you might enhance the quality of your products. Don’t take it personally. They’re only looking out for your best interests, along with their own. Let’s go through the benefits of paying attention to the opinions of your customers’ feedback:

1. Improvements in Brand Recognition

Customers may now share their feedback and impressions of products on various social media platforms. It’s essential for a company since it may influence the future of a brand-new product.

That consumers put less stock in marketing and professional opinions is not unexpected. The opinions of paying consumers in the here and now are now more valuable than ever. It helps people decide whether a product or service is something they want to invest in trying. By taking feedback from buyers into account, you may improve your product over time. This will lead to an increase in contact with new organic consumers.

As a result, it’s safe to accept that a strong brand reputation contributes to increased revenue.

2. Helps to collect genuine, high-quality feedback

Real-time feedback provided by clients is invaluable, especially in the early phases of a business. You will be able to obtain sufficient information on what areas need to be improved as a result of doing so. Therefore, you may modify and develop a superior product that your consumers would like.

You may get more in-depth responses from customers regarding your products by using a survey platform like Stars Testimonials, ProProfs Survey Maker, or Google Survey. However, when obtaining information, be careful to keep it confidential. The image below shows you a list of the top customer review tools to consider: 

Maintain regular communication with your followers and listen carefully to their opinions. Take their feedback into account in order to enhance your current product or service. The ultimate objective is to design a product that fills a need in the market.

3. Customer feedback for startups boosts competitiveness

You shouldn’t feel bad about incorporating feedback from customers into future iterations of your product. It’s the first step in establishing a relationship with your customers. Keep in mind that you are making products to meet their requirements. Therefore, it is in your best interest to hear what they have to say. Remember that if you don’t listen to your consumers, you’ll end up with an ineffective product.

You may get a leg up on the competition and into the market thanks to consumer feedback at your startup. To differentiate your items from the competition, you might poll your clientele on how you can improve them. You can win over more of your rival’s clients by addressing their pain points. You may increase your market share and stay ahead of the competition by including a variety of features and benefits in the items you sell.

It will not only help you get ahead of the competition but also give you an edge. This means you and your business may have a major impact on the industry as a whole. Your path to fulfillment will go farther with this.

4. This facilitates deeper relationships between startups and their first customers

When clients feel heard and respected, they are more likely to develop faith in your business. It’ll help you connect with your target demographic in a meaningful way. They’ll be more open to trying something new as a consequence. They will remain loyal despite occasional problems and will be more forgiving than average clients.

In addition, they will be important to your success by giving you detailed and helpful advice on how to build upon the areas of your startup’s early success. Therefore, familiarize yourself with your clientele and their comments as much as possible. You’ll be able to develop more substantial and lasting connections with them as a result.

5. Promotes word-of-mouth advertising 

When you show your consumers that you care about what they have to say, they will spread the word about your business. Your startup’s shareability will increase, exposing it to a wider audience and maybe leading to sales. Increasing your startup’s visibility in its early stages is crucial for reaching a larger audience.

In addition, having clients sing your praises can add credibility and reliability to your business. It will increase revenue and customer satisfaction by inspiring trust and confidence.

What are some effective methods that startups utilize to collect valuable customer feedback?

The key to eliciting a useful, unbiased opinion from customers is discovering the best technique to ask for feedback. Startups may improve the quality and quantity of consumer feedback they get by being transparent about their intentions. In addition, there are a few things that companies may do to better ask for user feedback.

1. State the purpose

To begin, entrepreneurs should make the point of the feedback request very clear. The stage of product development at which you find yourself influences how you define your objective. You would want to formulate any feedback requests as inquiries into a particular client opportunity before beginning any formal design work. This might be in the form of a problem that needs to be resolved or a task that must be completed.

In your explanation, you should mention that you are looking into the problem and seeking input from those who are dealing with it. Alternatively, you might ask for opinions on the product’s usefulness and worth if you want to know how people feel about a certain design or functional solution.

2. Provide clear instructions

New businesses need to make it easy for their clients to submit feedback. Advice could include things like lists of resources or checklists to help ensure everything is in order. To ease the burden on their clients, startups might also include a detailed manual or a video walkthrough.

New businesses should make it possible for customers to provide feedback via a variety of different methods. The convenience and accessibility of this method improve the possibility that consumers will submit feedback. Startups may encourage feedback in several ways, such as via online surveys, user reviews, and social media. To get even more specific input, they may host focus groups or user testing sessions.

3. Make the process as easy as possible

Making the feedback request procedure as easy as possible for the consumer is also important. Startups may boost the number of consumers that provide feedback and the quality of that input by making the process easy and accessible.

If the customer feedback procedure is simple and takes little time, more people will take part. In light of this, it is essential for startups to streamline the feedback process. But it’s crucial to give clients a chance to provide in-depth feedback if they want to. Open-ended survey questions are one strategy for achieving this goal. In addition to your current strategies, consider implementing data analysis techniques, conducting thorough follow-ups, and expressing genuine appreciation to further enhance your approach.

Wrapping up

Startups can’t become better at what they do and grow their client base without hearing from their customers. Feedback from customers is a great way to learn about the likes, dislikes, wants, and requirements of your target market. And this may help direct product development in a way that produces marketable, cutting-edge products.

Startups may utilize customer comments to determine where they can make changes, how those changes should be implemented, and which comments should be given the most priority. Customer feedback requests should be simple and quick to complete, and firms may incentivize consumers to take part by providing discounts or other perks.

Semi-structured interviews, questionnaires, focus groups, data analysis, and online reviews are all great ways for startups to get consumer input. Positive client experiences are the foundation for repeat business, referrals, and word-of-mouth marketing.

Fabulous! You’ve been thinking about launching a business because you have a great concept. First, you need to ask yourself “how to validate your startup idea” to find out if your business plan has any chance of succeeding. Making sure there is a market for your product is the first priority for every entrepreneur just starting out. Everything else—including your staff, the design, the price, and so on—is secondary to this.

You can’t make a saleable product without testing the waters in the market first. Stress, perhaps depression, and exhaustion will follow the waste of time, effort, and resources. It’s something that no business owner wants to experience. 

Let’s get down to business: here’s how to validate your startup idea before you launch. Before you raise or spend even one dollar, and especially before you bring on staff, you need to do this thorough analysis.

How to validate your startup idea: What is Startup Idea Validation?

It is of the utmost importance that whenever you come up with an idea, you check to see whether or not it is a good one. You might think of this as “idea validation.” There are a few ways to go about this, the most crucial of which is verifying the technical, operational, and economic feasibility of your concept.

First, you need to come up with a way to put your theory to the test. This might be as easy as polling potential customers to gauge interest in your product. It might also be something more involved, like making a prototype of the product. Following the conclusion of the deliberation, it is now time to carry out the actual testing. In other words, find out what others think of your proposal and act accordingly.

Getting feedback from potential buyers, expert mentors, and advisors is crucial at this stage. You may start working on implementing your plan if you notice that it inspires enthusiasm for your concept. Undoubtedly, if no one seems to be fascinated by your idea, that’s a red flag that you shouldn’t waste time on it. It is important to bear in mind that our target audience may not encompass everyone. It is imperative that our target audience is able to comprehend and appreciate our vision. Failure to do so would indicate a significant issue.

Questions to ask when you validate your startup idea

When trying to figure out whether or not an idea will work, it can be useful to consult a framework designed for this purpose. A solid validation framework will take into consideration the many various criteria that may be used to determine an idea’s potential success.

1. Marketability

The idea’s commercial viability is a crucial consideration. Is there a market for this service or product? Is there a need for this concept in the market? Before going on with any new endeavor, it is vital to have answers to these crucial questions. For this, you have a multitude of effective methods at your disposal, including surveys, interviews, focus group discussions, and online tools.

2. Technical Feasibility

The technical viability of the idea is another crucial element. Is there a possibility that it may be implemented? Do any current options exist that achieve the same goals as your proposed ones? These factors are crucial for determining the potential success of a concept.

3. Financial Feasibility

The idea’s financial viability is another factor to think about. Is there a practical means of funding its implementation? Is there anybody who could be interested in investing in the business and providing funds for it?

These are crucial issues to consider before implementing a plan of action. You will need to plan ahead for a financially sustainable strategy that supports lean service development. 

Talk to experts in the field

Startups may verify the viability of their ideas by discussing them with industry professionals. Specialists can provide insight into an idea’s viability and potential for improvement. Finally, entrepreneurs may benefit from consulting with experts because they can learn from the mistakes and triumphs of others who have gone before them.

Idea Validation Process

Unfortunately, there is no universal method for “validating your startup.” Many different approaches exist for this, so it all depends on the nature of your product. Considerations include things like where your ideal consumers live, whether or not they are willing to try your product, etc.

To validate a product, you must first determine its purpose and formulate a testable hypothesis about its value. You must then put that hypothesis to the test via a series of iterative experiments using prototypes and soft launches. That’s the procedure for testing your startup idea.

What started as a hobby may become a thriving enterprise with proper validation. Here are some guidelines for developing specific, attainable goals: Market research and the development of a compelling selling proposition are also important parts of this process.

The last stage is the product launch. Having confidence in the reliability of your product, however, is a major plus when going to market.

1. Identify the business concept you have and the goals you want to accomplish with it

It’s important to define your concept and your goals for it before beginning the validation process. Which problem are you hoping to resolve? In what way do you hope this will help you? What do you hope to contribute? Once you have a firm grasp of your concept, you can begin planning for its verification.

You need to be able to articulate the problem in a clear and concise manner in order to solve it. The objective is to simplify things until you can describe the issue in a single statement.

2. Do research on the business concept you’re considering

When you have a firm grasp of your concept, you can move on to the next step: research. Where exactly does your product fit in the marketplace? You can check whether your concept can really work by doing so. Check out the success of competitors who provide comparable products or services. Get in touch with members of your intended audience and listen to their thoughts.

You should gather as much information as possible.

3. How to validate your startup idea: Create a prototype

Making a prototype of your concept is the next logical step after doing research. You may put your concept to the test and learn what others think by doing this. Even if your prototype isn’t flawless, it should still be able to demonstrate your concept’s use in the real world.

Building a prototype of your product is a great way to gauge interest in the concept among potential customers. By letting prospective customers try out the finished product, you may obtain a good sense of its potential based on their reactions.

Create a minimum viable product

If you don’t have the resources to build a full prototype of your product, a minimum viable product (MVP) might serve as a decent stand-in.

Prototypes serve the purpose of evaluating the functionality of a theoretical solution. MVPs serve the purpose of assisting innovators in gauging the market demand for a conceptual solution by determining whether customers are willing to pay for it. Comprehending this crucial distinction can determine whether you allocate your innovation funds prudently or fail to hit the target altogether.

4. Test your prototype

The next step after making a prototype is to put it through its paces. This is vital since you need to guarantee the efficacy and widespread adoption of your proposal. Get input from prospective consumers by putting together a prototype. Pay attention to the criticisms they have and adapt the prototype appropriately.

Conduct surveys of potential buyers and record what they say

Startups may verify their ideas and concepts through surveys. New businesses may gauge consumer enthusiasm for their products and offerings by doing market research via customer surveys, competitor analysis, industry reports, etc. Startups may use surveys to gauge interest in their product or service and decide whether to pursue further development.

Determine whether there is a market for it

A concept may be validated by testing its market viability. Customers’ willingness to pay may be ascertained by asking them whether they would be willing to pay the price you suggest.

5. Launch your product or service

Launching a product or service is the next logical step after ensuring its viability via testing. This is the last phase of validating your startup idea. If your offering does well in the market, you may be certain that your concept has merit. If it doesn’t work, you’ll know it’s time to try something else.

The Outcome of the Validation Phase and Future Steps

You may go forward with your plan of action now that you know your concept is sound. Create a business strategy, make a prototype, or launch your product into the market. It’s important to monitor your development and make adjustments to your strategy as required. What matters most is that you keep moving forward.

Don’t give up hope if you’ve determined that your plan won’t work. This happens often while starting a business and is considered typical. Just take what you’ve learned and apply it to come up with the next big thing.

Wrapping up 

After learning a few methods for validating your startup idea, it’s time to consider the next steps. Establishing a timeframe and figuring out what materials you’ll need to complete the job are two of the most crucial first tasks.

It’s also important to consider early on how you’ll know whether your project has been successful. Validating a novel company idea or product might make this a difficult task.

To measure your progress and make modifications as and when necessary, it is crucial to establish certain metrics. Now that you know how to proceed, you can put your strategy into action. Here’s where we talk about goals and KPIs.

In this day and age, business ethics and social responsibility play a huge role in startups. How your business conducts itself is crucial. In fact, your ethics and social responsibility within your business can make or break it. So as a startup entrepreneur, you need to know about business ethics and social responsibility. We are here to guide you through this article.

What is “social responsibility” in business?

Before anything else, let’s clear up what social responsibility is. Simply put, social responsibility in the world of business ethics focuses on a company’s social, environmental, and economic obligations. The extent to which companies feel obligated to give back to the larger society Here, “larger society refers to those who are not directly associated with the business.

Why is social responsibility so important?

Nowadays, companies are encouraged to adopt socially responsible practices. Consumers have become more vocal about it, too. They demand that more companies act accordingly. Millennials, in particular, place a high value on the practice, even utilizing it as a determining factor when choosing a job. For others, the term has left a terrible taste in their mouths because many firms have exploited it merely as a PR ploy. One must bear in mind that social responsibility is not merely a public relations gimmick but rather embedded in a company’s core beliefs and daily activities.

Without a doubt, social responsibility must be implemented with caution. Nevertheless, when done properly, corporate ethics and social responsibility may help your company and, more significantly, your community. This begins with the starting stage.

Many founders make the mistake of believing that social responsibility is solely the domain of giant organizations. While such projects are undoubtedly possible, social responsibility does not have to be prohibitively expensive.

Regardless of the size of your firm, an ethical framework and socially responsible efforts should be woven into the fabric of your organization from the start.

Why should you be socially responsible?

Here are some of the main reasons why you need to be socially responsible:

1. To hire the best talents 

You already know that your employees and your team are a big part of your business. From the start, it is important to get the best talent on board. However, offering a competitive salary alone will not do it. Especially in this day and age, people want to know your company’s ethics and social responsibility status before joining. Especially millennials would consider these factors before deciding to work with you.

2. To survive in the market

When you’re first starting out, adopting ethical business practices and incorporating social responsibility are effective ways to market your brand.

On the other hand, selecting to hire ethically can be difficult to shake and can have a direct impact on your hiring and revenue funnel, and hence your company’s capacity to prosper. 

A company’s public messaging and past and present staff are publicly available information nowadays. An employee can locate it with just a short Google search. Company ethics are more crucial than ever before for this reason.

3. To surpass your competitors

If you are not the most socially responsible brand out there, that means some other company is. Would you let that happen? Competition is another factor that you have to consider when it comes to business ethics and social responsibility. Customers compare and contrast brands. And businesses that don’t adopt and invest in ethics end up losing appeal. 

4. Increased customer loyalty

Businesses and customers alike may use social responsibility as a springboard to improve their own communities, both near and far. Organizations that launch a CSR program that meshes with their core beliefs can expect an uptick in consumer loyalty and repeat business.

Studies reveal that 87 percent of customers are more inclined to support a firm financially if the business supports a cause they care about. In addition, if they learned that a corporation supported an issue contrary to their convictions, 76% said they would stop buying the company’s products.

How do you prioritize social responsibility?

Before you begin planning how your firm will incorporate social responsibility into its fundamental beliefs, you must first learn how to prioritize it. Even entrepreneurs with the necessary resources may find it difficult to prioritize social responsibility.

Addressing these questions can help you determine which social concerns to invest in and whether you should pursue CSR efforts in the first place.

• How does your company affect its important stakeholders?
• What are your primary business competencies?
• Are there any unmet needs in the neighborhood where your company operates?
• How can your CSR initiatives set you apart from the competition?
  What resources do you have at your disposal to implement these initiatives?

Answering the above questions is essential when incorporating social responsibility. Only then should you consider how your company can give back. 

How do you give back as a startup?

1. See where you can make internal changes

You need to find ways to implement flexible hours, catered lunches, or other non-traditional perks for your employees.

2. Find ways to better your community.

See if you can take steps—big or small—to help your community on a small scale. You can talk to the community directly and see what you can do to make a change for the better.

3. Ask for help

It’s not always easy for a start-up business to do a lot with a tight budget. In such situations, you can reach out to a local venue and request that they donate their space, or a local restaurant can contribute food for a charitable event you host.

4. Make sure your supply chain is sustainable

Ethical products are not limited to just your services. Make sure to incorporate ethical choices in everything from sourcing materials to the manufacturing process. 

5. Get the board of directors on your side

Communicate with your board of directors about your social responsibility and ethical values. Explain clearly how giving back benefits the company in the long term.

6. Motivate your employees to be a part of it

Give your employees a voice by involving them in the decision-making process, and choose a cause that everyone can get behind.

What not to do when incorporating social responsibility

Successful corporate social responsibility may be a differentiating factor for your firm and an indicator of its integrity as a company. Unfortunately, many firms have abused social responsibilities and ethical practices for their own gain, and while there are still great effects, they are not necessarily genuine. 

We’ll say that once again, if you are not genuine about social projects, don’t participate in them. Consider incorporating social responsibility activities into your basic values as a means of avoiding this ethical conundrum. Core principles will always be the north star that leads your startup.

Let’s now discuss a few “don’ts” when developing a socially responsible business plan.
Don’t misuse your socially responsible values.

Sure, most companies don’t set out to be irresponsible. However, they end up doing so eventually. Don’t be that company that establishes social responsibility to gain moral credit and divert attention away from irresponsible behavior later on.

1. Don’t use company initiatives to hide or avoid controversy

It is never easy when a company ends up in controversy. It can be difficult to recover from it and come back. You have to be strategic and smart here. However, we’ll tell you one thing you should not do if you end up in hot water. That is, never try to deflect attention to your socially responsible programs to downplay the bad press. If you do, you will end up making the situation even worse if you try to brush things under the rug by bringing up your socially responsible work.

Charitable endeavors are irrelevant to your primary business focus or ethical standards.
Instead of donating money to an unrelated group, choose a nonprofit that your firm believes in or a community project that resonates with your basic beliefs.

2. Don’t rely on socially responsible behavior solely for marketing

When you’re just starting, social responsibility can help you establish your brand. However, you should remember not to take up your socially responsible projects and activities solely for marketing or good press. People will pick it up. And the outcome will not be nice for your company. 

Your efforts will backfire on your company. Instead, you can incorporate long-term practices that you know you can continue. That would do much better for your brand than short-term socially responsible behavior solely done for marketing purposes.

3. Don’t be sketchy about social responsibility practices

It is never smart to make social responsibility decisions behind closed doors. It then excludes most of your team from the decision-making process. In turn, they would end up with people wondering whether there was more to your intentions. They wouldn’t fully buy the ideas you present. Instead, they would be questioning if there are any strings attached to these projects and if donations are genuinely going where you say they are. 

You can easily avoid these situations by simply involving your employees in the projects. That way, they feel like they have a voice, and you can be open and honest about your efforts with the public.

Wrapping up

The morals of a business and its approach to social responsibility are more essential now than they were 20 or 30 years ago. So as a startup, you need to know about and incorporate social responsibility and ethical practices. Engaging in socially responsible and ethical activities can help you survive in the market, appeal to customers, get talented recruits onboard, and improve the community in general. 

It is important that your practices be long-term and not just for short-term advantage. Workers not only place greater emphasis on their employers’ values, but if you want your startup to remain competitive and capable of attracting top talent, you have to commit early to defining and promoting your company’s ethical behavior.

Are you planning on pitching investors? We know that this is very important for you as an entrepreneur. You know your startup deserves funding from investors. The best way to convince investors that your startup is worth a shot is through a successful pitch. We know that every startup story is different. But there are some common basics that each pitch deck needs to include. And there are certain basic don’ts too. So here are the do’s and don’ts of pitching to help you win over the investors.

Do’s of pitching your startup

1. Tell a story 

Tell a story that will captivate the audience. Include an interesting personal story to pique the interest of the investors or ask a question that everyone is thinking about. Your story should communicate the importance of what you do, why you do it, and why anyone should care. They will be interested in learning more.

2. Know your target audience

Investigate your target audience for a good pitch. Make the most of it by conducting research on the investors to whom you are pitching and adapting your strategy accordingly.

3. Keep it simple

Make sure to keep your pitch simple, short, and absolutely to the point. Giving too much unnecessary information is never a good idea. You may end up confusing and overwhelming the audience. Concentrate on the relationship between problem and solution, competitive advantage, and team.

4. Have data to back up your claims

Everything you say must be backed up by numbers or data. Add testimonials, research data, surveys, statistics, or anything else that will help you prove the product’s viability.

5. Do demonstrate your competence

As a CEO, you must demonstrate that you have the necessary experience, industry knowledge, business skills, and technical know-how to turn the idea into a success story.

6. Do brag about your team

Investors are interested in both the idea and the people who put it together. Highlight your team’s strengths and present a well-balanced educational and professional mix.

7. Do have a plan

Talk about your upcoming goals and when you plan to achieve them. Provide a timeframe with milestones and a clear vision of the future of your company. Plus, have a clear answer ready for when they ask how you’ll spend the capital you’re looking to raise.

8. Have a big picture in mind

It is critical to have a bold mission for where you want to take your startup, especially if you want to secure venture capital, and most first-time entrepreneurs tend to think too small.

9. Conduct your research

Make sure you’ve done your homework before presenting your pitch. This includes researching the investors you intend to present to and ensuring that they are a good fit for your company. 

Do some research on the industry you’re pitching in, as well as any competitors you may have. This will assist you in developing a more informed and compelling pitch.

10. Be enthusiastic

It is critical to be confident in your delivery when pitching your startup. Investors want to see that you believe in your pitch and are enthusiastic about it. Make certain that your voice remains steady and that your words are clear and concise. You want to sound like you know what you’re talking about and are enthusiastic about your company.

11. Concentrate on the advantages

Focus on the benefits of investing in your startup rather than the features when crafting your pitch. Investors want to know how much money they can expect to make if they invest in your company. Include any potential revenue streams, cost savings, and other benefits that investing in your business can provide.

12. Be ready to think on your feet

Be prepared to be flexible with the questions and requests of investors when presenting your pitch. They may require more information or clarification on specific aspects of your business plan. 

Prepare to answer their questions and provide any additional information they require. Additionally, try to be open to feedback and suggestions from investors, as this can help you refine and improve your pitch.

Don’ts of pitching your startup

1. Don’t spend less time on the obvious problems

Save time by not explaining a problem that is immediately apparent or understandable. Instead, specifically state the need before introducing the solution, which is the most crucial component of the pitch.

2. Don’t fully rely on the slides

Many people believe that the presentation’s most crucial component is the set of slides they use to pitch their startup. This isn’t always the case, though. Slides should not be used as the main source of information for your pitch, even though they can help give it structure and specificity. Instead, you ought to use them to strengthen your arguments and supplement what you say.

3. Don’t overlook rival businesses

The more you understand your market, the better. It will be easier to explain why your service, product, or idea is superior if you make a clear distinction from your rivals.

Avoid getting too technical or including too many numbers that the audience might find boring or unrelated. Instead, be brief and direct and make a connection between your data and statistics and the benefits your business idea provides.

4. Don’t oversell it

It might be premature to present it as a game-changer. The likelihood of success increases as the pitch becomes more realistic. Overstating the advantages of your product could give the impression that it is a pipe dream.

5. Don’t be afraid to ask for money

Use reasonable amounts that correspond to your startup’s requirements. If you don’t absolutely need it, don’t ask for a really large number. Don’t ask for too little either, as this could be taken as a lack of understanding of your industry and market. Additionally, if you raise less money, you might run out of funds too quickly and have to start fundraising again soon.

6. Don’t forget about important risks

Identify the main risks that your company will experience. A clear strategy for handling the risks that have been identified upfront gives the impression that you are ready to face the challenges ahead.

7. Don’t give into your nerves

It’s quite natural to feel nervous about pitching your idea to investors. You may feel as if you don’t have all the answers. However, it’s important to not lose your nerve. Remember that it’s ok that you don’t have all the answers because starting a business is a long experience. 

Only by experiencing it can you come up with some solutions. For everything else, you can always consult advisors.

8. Don’t forget to follow up

Following up after your presentation is one of the most crucial components of pitching a startup. Investors might have further inquiries or require more details regarding specific sections of your business plan. 

After your presentation, make sure to get in touch with them to follow up and address any queries or requests for clarification. This will demonstrate to them your commitment to the success of your startup and your seriousness about it.

Wrapping up

There you have it! Through this post, you got to learn the do’s and don’ts of pitching. Now you are fully ready to pitch your startup to investors. Make sure to include the dos and eliminate the don’ts. As an entrepreneur, this is a chance you have to take to grow your business. With the tips you learned today, you will be able to impress yourself and the investors.

As a foreign startup founder, you would want to learn how foreign businesses can raise capital in the United States. Taking the steps we mention in this post will make it possible. Through this post, we’ll be discussing all about raising US funds as an international startup. So, without further ado, let’s get to it.

Raising US funds as an international startup—a question to oneself

Before anything, you have to have a clear answer to one important question. That is, “Why do I want to raise money from American investors?” In general, international founders mention they want to raise funds because of one or more of the following three factors:

1. Access to capital

It is still true that Silicon Valley has more investors willing to invest at higher valuations than any other place in the world, despite recent changes in access to capital in some markets like China and Southeast Asia. Because they want to connect with those investors, many founders travel to the United States.

2. Help grow your company

The collective expertise of Silicon Valley on how to create a world-class technology company is another important resource to have access to. You can advance more quickly by talking to experts who have done it before, learning from them, and enlisting their support through investments.

3. Unicorn aspirations

For anyone who doesn’t know, Unicorn is a term popularized in the venture capital industry that’s used to describe a technological startup with a $1 billion market value. There are more opportunities abroad as mobile usage has increased elsewhere. Online sales of goods and services are rapidly growing. The global opportunity has been made clear by businesses like Alibaba, JD, Didi, and Gojek, and there is growing interest in discovering and funding potential unicorns abroad. As more investors look for returns in global technology markets, there has never been a better time to enlist the support of American investors and entrepreneurs for your international startup.

Raising US Funding as an International Startup – Step-By-Step

First Step: Establish a legal structure in the United States

Some investors require international companies to sell to a company based in the United States. What exactly is a flip? It is the process of forming a Delaware C corporation and exchanging shares with your foreign entity. You effectively have a US entity that can be invested in by investors in the US and around the world, avoiding additional complexities such as international tax reporting requirements.

If you decide to flip, think about the tax repercussions, which entity owns the intellectual property, and how you structure business contracts between the entities. Obtain appropriate legal counsel to assist you in addressing your concerns.

Another thing to think about is starting early. The complexity of flipping increases with the size of your organization and headcount. Doing it as soon as possible can save you money and time in the long run.

Second Step: Achieve your targets

Everyone wants to know what the hack is for raising money, but the real hack is to build something that has a product-market fit and is actually growing well.

Instead of attempting to figure out the fundraising hack, spend 95% of your time talking to customers. Establish what they desire, how to produce it, how to deliver it to them, and how to get their feedback. If you do this, you should be able to iterate on something that grows very well. That is how product-market fit is achieved. By talking to your customers and iterating, you can achieve success. That is what you should devote the majority of your time to.

Ascertain that you have identified a sizable total addressable market (TAM).

It is more difficult to build a large business without this, and raising capital will be more difficult. This is especially important for international founders to demonstrate to US-centric investors. As a result, when pitching your startup, you must present the broadest vision possible. This can include aggregating an entire region or focusing on verticals that investors anticipate will be lucrative, such as transportation or food delivery.

Third Step: Develop a good narrative

Storytelling usually includes three parts, such as:

• Things work in a certain way.
• Something takes place.
• Things work differently from then on.

What does this have to do with fundraising? Well, you can incorporate this too. You should always structure your narrative and conversations with investors around these three acts.

Tell them about the market: where it is, what the problem is, and why it is so large.

Highlight the tipping point: Perhaps everyone now has a cell phone. Perhaps everyone now has a credit card. Perhaps people now buy things online.

Show a new way: how your product solves this problem, how much traction you have, and how you plan to reshape the world.

It is necessary to have a polished narrative that leads listeners through a story arc. Experiment with different narratives until you find one that truly speaks to you. with people other than investors, such as fellow entrepreneurs and industry professionals. When they get excited about it, you know the narrative is working.

4th Step: Determine the round’s terms

The pre-revenue valuation is based more on potential than results. “How do we determine our valuation?” people frequently inquire. The answer is that it is entirely fictitious. Early-stage company valuation is linked to potential. It’s completely unrelated to revenue. Early-stage companies should stop worrying about calculating valuation based on revenue and instead focus on figuring out how to pitch a big story.

How much money do you raise? You’ll need enough money to last you 18 to 24 months. That’s long enough to set some compelling goals and build a healthy buffer. There is a wealth of information available on raising funds, so do your homework. Although many businesses believe that their valuation must be determined by certain financial metrics, this is not always how it works.

5th Step: Get in front of the right investors

Choose the investors to whom you want to pitch. By focusing on the investors who are most likely to be interested, you can save both your time and the time of potential investors. If you run a biotech business, you want to raise capital from investors in the field. Find people who are receptive to the idea of investing in foreign companies if you run an international business. Make research. On CrunchBase or AngelList (now WellFound), look at what people have invested in and decide specifically who you want to talk to.

You should include a brief, succinct summary of why you’re a compelling investment in your introduction. In seven to eight sentences, go through each of those three narrative arcs.

6th Step: Go into meetings prepared

Be ready for the meetings once you have the introductions.

1. Steer clear of assuming

You must be able to describe your company and industry to someone of average intelligence without providing any background information. Make it brief and uncomplicated. Describe your pitch to them without using any industry abbreviations. Don’t give your audience a reason to leave the discussion. Your task is to maintain their interest. You achieve this by guiding them through a potent narrative while keeping things straightforward.

2. Be familiar with the meeting

You need to plan for the meeting by doing your research on the types of investors. Note that usually angel investors are okay with writing a check immediately after the meeting. On the other hand, venture investors will most likely request that you follow their process. Later on, they would advance you to a meeting with several partners, then perhaps with other partners, and finally perhaps to a meeting with all partners.

3. Be sincere

Being genuine is a potent way to establish a connection. Be truthful when describing the positive aspects of your company. Instead of making up an answer, you could be honest about the things you don’t know. However, it’s better if you truly understand the metrics and numbers, so make an effort to become well-versed in them. It also demonstrates that you’re more likely to manage your company more effectively.

4. Recognize your USP

What is your company’s unique point? How do you excel? Include your USP (unique selling point) by weaving it into the narrative. Make sure you hit on the most appealing aspect of your company by understanding it.

7th Step: Seal the Deal

Let’s say you had a great conversation. They were engaged. They asked you questions. What’s next? Give the process strict deadlines to advance the conversation. Inquire about their interest or the next steps.

Setting a deadline for your fundraising can help add some pressure. But don’t fall into the trap of doing it with no leverage. It’s appropriate to say something like, “I’ll be speaking with investors over the course of the next two weeks with the intention of closing the seed round.” Silicon Valley was built on the belief that businesspeople and investors would keep their promises. Stick to the terms you’ve agreed to, even if it was just over email or a handshake; even if the next day you learn you can get a better deal, you need to do it for your reputation.

Wrapping up

There you go! Now you know all about raising US funding as an international startup. It may seem difficult to raise funds as a foreign startup. However, by following this guide and taking the steps we discussed, you would be able to raise US funding for your startup. You will also benefit from reading our post: How to Set Up a Startup Business in the US.

Effective marketing is difficult to get right. Between creative demands, budget limits, and channel decisions, marketers have a lot to juggle when developing their marketing strategy. Through this post, we’ll be discussing something all you startup entrepreneurs need to know, which is B2B marketing. We’ll walk you through B2B marketing strategies that startups can use. And all the strategies we present to you are budget-friendly. So you don’t need a lot of money to incorporate them into your startup business. You must be curious to learn about these strategies and more. So let’s get into the post.

What is B2B marketing?

Let’s start with the basics and discuss what B2B marketing is. If your startup creates a product or service specifically for another company, you are running a B2B, a.k.a. business-to-business, company.

B2B marketing aims at converting other businesses into your consumers. This goal is obtained by familiarizing those businesses with your brand name and the value of your product or service.

The difference between B2B and B2C marketing

B2B marketing and B2C marketing sound very similar, right? It’s quite easy to confuse the two types of marketing. B2B and B2C marketing are two types of marketing that are also completely different from each other. They differ in strategies and applications, as well as in their audiences and the way they communicate with them.

On one hand, B2B marketing focuses on the needs, interests, and challenges of individuals who are making purchases on behalf of, or for, their business (rather than for themselves). So in this case, the organization is the customer.

On the other hand, B2C marketing focuses on the needs, interests, and challenges of individual consumers who are making purchases on behalf of or for themselves. In this case, therefore, the individual is the customer.

B2B Marketing Strategies for Startup Success

1. Research and understand your customers’ businesses

Keep in mind that buyers expect you to find out if their business needs your products. So it’s important to get this right. To succeed, you will need to do your research. Both online and offline research will help you with this. What’s important is to dive deep and figure out your target companies well. It may sound like a lot of work and not the most important strategy. However, trust us when we say this is crucial. The time and effort you put into studying your target businesses will come in handy. It will come with advantages like saving you wads of money. Plus, the work you put in will help you make more money too. So it’s surely worth it to do your research.

So what should you look for in your research about the companies? Well, it’s a must to look into the uniqueness of your clients’ buying personas. For instance, find out the answers to these questions:

• Will they be using your product or service exclusively as their business’s driving force or will they use it to obtain traction from end users?
• What is the vision of their business?
• Who are their final consumers?
• What is the preferred transaction method of your target companies? Is it the online method or a face-to-face meeting?
• What are their opinions about similar products, and how will your products stand out as per their assessment?

Keep in mind that it is not just the entities that you should look into. It is also crucial to learn about the people behind these brands, which will help you close a deal with them.

2. Study Your Competitors

To compete well, you need to know your competitors. You must know everything that you possibly can about your competition in the B2B market. A lot of companies have a digital presence. You can do a quick check on them by simply checking out the customer reviews, ratings, and feedback on these competing brands. See if there are any complaints or criticism and take steps to avoid those mistakes in your business.

Studying your competitors helps you know what you have that they don’t, and vice versa. So when the time comes to present your pitch to a potential purchaser, you can clearly say what makes you better than your competitors!

3. Come up with your own unique selling point

A benefit of studying your competitors is being able to create your USP (unique selling point). Basically, USP is the x-factor or feature that helps you stand out amongst your competitors. It is crucial to create a USP to win over the market. Here are the steps you can take to create your USP:

• Survey your customers and find out what special features of your products they like.
• Create a list of your top features and rank them according to customer preference.
• Highlight the top 3 special features to compare with your main 3 competitors.
• Write down the features that are being evaluated higher than those of your rivals.

Your USP can be created with the details you collected from the above by focusing on factors such as features, impact, target audience, and needs.

4. Make use of blog posts

As a startup business, you need to put in a lot of effort and hard work, even more than a regular business. It’s important to take steps to stand out in the market amongst a lot of competitors. And if you are just starting out, this competition can be tougher. You might be thinking to yourself, “How can my business, which is just starting out, compete with brands that have been around for years?’ 

It may be overwhelming. However, remember that all those brands started from scratch too. So if you put in the work and take the right steps, you too can conquer the market. As an initial step, it’s important to improve your visibility to stand out in the market. In this case, digital tools come in handy.

You can make your brand visible in the digital world by creating your own website and maintaining a blog. Some people say that people are not into blogs anymore. However, this is not true at all. Blogs are still around and have incredible value. The articles in your blog will not only improve your visibility in the social spheres, but they will also help you establish your subject matter expertise in the domain where your product or service belongs.

Plus, a well-read blog is a great tool that can help you with marketing as it will generate leads cost-effectively.

5. Use social media

Social media can help your startup grow beyond your imagination. As a B2B business, you have many online avenues in social media to explore. Take a look at the following examples:

LinkedIn

You can create a LinkedIn profile and use it to promote your product launches and share other domain-specific ideas. Plus, the platform also enables you to strengthen bonds with key connections. You get the chance to connect with the decision-makers of your target company in a professional setting.

Twitter

Creating a Twitter account helps you get noticed. It increases your chances of getting on your target companies’ radar. All you have to do is choose the right hashtags and reach out to relevant people. You will see how this platform is an awesome B2B marketing strategy.

Facebook

Facebook is an easy way for customers to ask for support from your company. This platform helps you communicate and create solutions to customer problems on time. This is also an excellent platform when it comes to generating more traffic for your website or blog.

Instagram

Instagram is another great method to try. Since this platform allows you to showcase user-generated content, it’s cost-effective. Instagram is also a platform that you can use to present the lighter, more fun side of your brand.

6. Don’t forget about your existing customers

As a startup business, you are constantly trying to grow. You are in the process of building your brand, coming up with great products, and creating a loyal customer base. But, while doing so, you cannot forget the existing dedicated customers you have. Although you may only have a few, if any at all, at this stage, you have to keep them with you as your business grows. 

You may not realize this now, but your loyal customers can help you a lot with marketing. In fact, a loyal clientele is the best marketing you can have. For this to work, you have to keep your customers loyal to your brand. Here, you can take steps such as building a loyalty program that rewards them for different types of promotions, like introducing a new customer to the business. For instance, you can reward your customer with a discount for introducing a new customer to your brand. As you can imagine, this will encourage them to continue promoting your brand to enjoy a discounted price.

B2B marketing for startups: wrapping up

There you go! Now you know all about B2B marketing for startups. We presented you with some of the best B2B marketing strategies. Incorporating the right marketing strategies can make a huge difference. It will help with your brand awareness and promise you a loyal clientele. The strategies we discussed today can be applied to any startup business, as they are budget-friendly. If you apply these marketing strategies to your startup, you will surely be able to grow at a much faster rate.

Through this post, we’ll take you through what you need to know about inbound marketing strategy for startups. We’ll discuss what inbound marketing is, the benefits of inbound marketing to your startup, and most importantly, the most effective inbound marketing strategies you can apply to help your startup grow! So do you want to know all about inbound marketing strategies for startups? Scroll through to learn all about it.

What is inbound marketing?

Before we begin, let’s define inbound marketing. Inbound marketing is essentially a strategic approach that entails creating valuable content to attract target customers and prospects and develop long-term relationships with them.

Your audience is looking for solutions to their problems, and it is up to you to tailor your content as a solution at each stage of the buying cycle. This content could be blog posts, e-books, webinars, social media posts, slideshare, videos, and so on.

Inbound marketing is all about being creative, connecting with your audience’s problems, and helping to solve them.

Inbound marketing strategy for startups: why is it necessary for them?

You may ask, “Why is inbound marketing necessary for your startup?” Isn’t traditional advertising enough? Well, the two types of advertising campaigns come with their own pros and cons. With content marketing, it can take a minute to see significant results. On the other hand, many startups tend to want quick, tangible results to grow their business rapidly. It might be something you would want for your business too.

However, there are some key benefits of inbound marketing for startups, so it is best for them to start investing in it as soon as possible.

The Stages of Inbound Marketing

By understanding the stages of inbound marketing, you can improve your website copy and land the right customers faster. The four stages are: attract, convert, close, and delight.

Stage 1: Attract

The first stage of inbound marketing is attraction. This stage is dedicated to finding and attracting the target audience. At this stage, you have to figure out the answers to these questions:

• How can I get people to find your website?
• Am I adding a lot of related keywords to the blog posts?
• Am I using targeted hashtags?

You need to answer these questions and make adjustments accordingly. That way, you can rank higher in Google searches and gain more visibility on your target audience’s social media feed.

Stage 2: Convert

When we talk about marketing, we often think about user conversion. After all, the ultimate goal of marketing is to find new users and “convert” them. This is mainly done by providing something in exchange for their contact details.

Stage 3: Close

Nurture your leads or prospects until they are ready to buy your product or service. This usually happens through mail or newsletters, as well as other channels such as social media marketing and even content marketing. One of the many ways to get to the final stage is through automation. For example, automatic emails that remind users about abandoned shopping carts can encourage a busy customer to return to your site and complete the purchase.

Stage 4: Delight

This is the last stage, and at this point, you can take steps to remind existing customers about your business. This step can help you build a loyal customer base and keep your startup going. You can take steps such as sending a thank-you note or personalizing follow-up emails. letters, discount offers, etc.

Inbound marketing strategy for startups: benefits 

1. It’s cost-effective

One of the main challenges for any startup is limited capital, which often results in a limited marketing budget. On the other hand, mass external marketing such as advertising has become not only expensive but also highly ineffective in today’s digital marketing era.

This is where inbound marketing can be an affordable solution. As discussed, the basics of inbound marketing are content marketing and SEO, and both can be very affordable and even completely free if you do it all yourself.

Startups with limited marketing budgets can grow quickly by investing in inbound marketing.

2. Helps build credibility for your startup

One of the biggest challenges of starting a startup is that no one knows you, so it is naturally harder for startups to attract new leads and customers. Inbound marketing is all about consistently publishing high-quality, relevant content, and content is now the best way for us to build credibility as a leader and industry experts.

Marketing the right way can be a great way for startups to use social proof and get people to buy from them.

3. Produces sustainable results

Inbound marketing aims mainly at creating long-term relationships with consumers.

For example, when a blog post lands on the first page of a Google SERP, it can drive organic traffic for months or even years, even after it stops publishing. Compare that to traditional advertising, where you don’t feel any impact when you stop running the ad. Again, this will come down to the cost-effectiveness and ROI of your marketing process. When you can deliver relevant, high-quality content to your potential audience, the rest becomes easier.

4. It can attract the right traffic and prospects

While the main part of inbound marketing is building awareness, there is another important benefit: it is designed to attract the right traffic and leads that are right for your business.

Targeting is a key advantage of inbound marketing over traditional marketing channels, and by ensuring you get highly relevant and qualified leads, we can also improve the cost-effectiveness and ROI of your inbound marketing campaigns.

5. Enables effective communication

In today’s social media world, inbound marketing isn’t just about getting your content found by your audience. At the same time, we can listen to their conversations on social networks.

Inbound marketing strategy for startups: best strategies

1. Use video

Unless you have been living under a rock for a decade, you know for sure that we are in the video age.

Because it is engaging, it has become the focal point for almost all social platforms. And, when done correctly, video has the potential to attract and convert more customers in less time.

Starting with video is not as difficult or expensive as you might think. You can now create an entire video series with your iPhone. But before you point and shoot, make sure your story is correct.

2. Blogs are still in

We mentioned that video is the most popular medium. But that doesn’t mean every other medium is dead. Well, at least not yet. Sure, video is the most popular now. But still, blogging and written content are widely sought after and valuable. To get the eyes your content requires, however, you must create great content. Your content needs to be able to grasp the audience.

3. Build attractive, downloadable offers

Free downloads have been shown to generate leads that convert into sales in inbound marketing.

Make sure to create an appealing, downloadable piece of content that your audience actually wants. In this case, knowing who your ideal customer(s) is or are and what they want is incredibly important.

4. Social media

Social media is a tool that you cannot forget. It provides one of the easiest and most affordable ways to reach your ideal customers. However, to ensure that you can get results, you need to have a strategy for converting followers into leads. By using social media to increase your brand’s awareness, you can attract more ideal customers and generate more leads and sales. 

5. Email marketing

Some think that email marketing is dead. However, that is definitely not true. Email is still one of the best and most effective tools for generating leads and converting them into sales. According to Litmus research, brands using email marketing can generate a 38-1 ROI. However, for the email to work during your startup, you need to have a well-thought-out plan. You need to know how to funnel leads from the top to the bottom of the funnel. The digital marketer offers a complete program called “New Email Tracking Machine.” It’s about email. Using email to convert more leads into paying customers

6. Use influencers to promote your content

Influencer marketing is booming! So how do you position your startup business to be more successful with the help of influencers? You are going to need to find the right influencers. While some influencers charge for promoted content, not all will. The key is to find influencers who have access to an audience full of your ideal customers. When you do, start creating content to share and tag them. But be strategic. You will need to give them a great reason to pay attention to your mentions and tags.

Wrapping up

There you go! We discussed all inbound marketing strategies for startups. You got the chance to learn the basics about inbound marketing, the stages of inbound marketing, and why your startup needs inbound marketing. Also, we presented the best inbound marketing strategies you can apply to your startup business. Through inbound marketing, you will be able to effectively increase visitors, leads, and buyers.

“Launching a startup is an easy task,” said no one ever. The struggle is surely an inevitable part of every startup’s journey. As a startup business owner, you would surely agree with that statement. One of the major challenges you may have to tackle is cash flow management. And if you manage it right, that’s going to be great news for your startup business. But if you fail at it, the business will go downhill before you know it. Major issues can come up if you manage your cash poorly, which we will be discussing in this post. We will also let you know ways to avoid such damage by applying the best strategies for startup cash flow management. To learn it all and more about cash flow management, keep scrolling.

Defining Startup Cash Flow Management

Before we proceed, let’s define exactly what cash flow management is. Cash flow management is the process startup entrepreneurs use to keep track of the cash coming into their business and the money flowing out and optimize it. Optimizing here refers to ensuring the number of funds coming in is greater than the amount going out. 

Basically, you have to make sure that you make more money than you spend. Cash flow management for startups means carefully monitoring your fund levels so you can plan your startup’s growth.

Why Should You Know About Cash Flow Management?

Cash flow is one of the most important aspects of your business. Cash flow management is the process of monitoring the cash coming into a business, and the money flowing out and taking steps to ensure that the amount of money you have is more than the amount you spend. Proper cash flow management will ensure that your business makes a profit.

Without proper cash flow management, your startup will run into financial trouble before you know it.

Even startups with innovative and fantastic ideas will fall flat if they fail to tackle cash flow challenges properly. This could be because the challenges were unexpected or underestimated. Your business needs to be prepared to prevent such potential issues. If you weren’t, then it’s too late when you finally realize you don’t have enough money to pay the rent or that investment cash has dried up without the customer base needed to support the business.

You have to identify the potential issues to prevent them. We will be discussing them as we go on. Then we will also let you know how to prevent them by applying the best cash flow management strategies. Applying the right strategies will ensure there is enough cash surplus to settle your monthly payments and let you know if and when a shortfall is imminent.

Common cash flow problems faced by startups

As a startup entrepreneur, knowing about these problems related to cash flow can help you navigate through the obstacles a lot more smoothly. So, let’s learn about the potential cash flow challenges that startups may face:

1. Investor money is limited

It’s always exciting when you initially get the funds from investors. However, you need not get carried away by this. If you do, then you will get a false sense of achievement and end up losing sight of your long-term goals. As an entrepreneur, keep in mind that investor money comes with strings attached. They will want a say in the company in return. Plus, the investment cash is not going to last.

2. Unrealistic future growth expectations

We know that your business idea means a lot to you. Of course, you would think it’s the best idea ever. And sure, your idea must have so much potential. However, you have to keep in mind that no matter how good the idea is, unless the customers want it, it won’t work. You have to know that whatever you are creating is for the customers. And it needs to be liked, wanted, and approved by customers. 

You have to know for sure if your idea has the potential to be on the market, survive, and bring you profit. It’s important to conduct in-depth market research to gain a realistic point of view. This will help you stay on track with your timelines for the growth of the business.

3. Messy supplier relations

Remember that you can’t expect suppliers to provide small startups with a credit account. Sure, it happens sometimes. However, this is very rare. In most cases, suppliers will need up-front payments at the start. Or else they at least require a significant portion of the outstanding amount. So suppose you are relying on a credit system. Keep in mind that this can hamper your cash flow. In the worst-case scenario, it could cause your startup to fail.

4. Inadequate price tag

Another common reason for cash flow issues that startups face is charging way less for their products. A lot of newbie startups make this mistake because they haven’t done thorough market research. Plus, due to their lack of experience, they wouldn’t understand the expenses of running the company.

If you don’t charge enough for your products or services, you will not be able to make a profit, which can get you in huge financial trouble.

Measuring Cash Flow in Your Startup Business

We mentioned how cash flow is such a crucial aspect of your startup. Failure to properly manage cash flow will harm your business immensely. It is important to measure the cash flow of your business to get an idea of where it is financially.

Methods to measure cash flow in your business

You can use several methods to measure cash flow in a startup business. Let’s take a look at a few:

1. Use the cash flow statement

Most startups use cash flow statements as a method to measure cash flow. Basically, cash flow statements are financial documents that indicate the cash inflows and outflows of a business during a given time period. The cash flow statement tracks where funds come from and go out of your business. You will need to highlight a few elements in your cash flow statement, which are:

Operating activities: This includes everyday business operations.

Financing activities: This includes the purchase of long-term assets by the issuing company. For example, buying shares in certain companies or issuing bonds and debentures

Investing activities: This refers to purchasing or selling assets to increase income or turn assets into different assets.

Your cash flow statement of operating, financing, and investing activities will determine the overall climate of your business. Especially, you will be able to measure if the business is in a good place or not. It also gives you details regarding your startup’s sources and uses of funds, the changes in its cash balance, and its general financial condition.

2. Use net operating cash flow

You can also opt for net operating cash flow. This method breaks down all of the cash coming in and going out of the business. Not only that, but it also adjusts for factors such as amortization and depreciation.

3. Use the free cash flow

Another method to measure the cash flow of a startup business is the free cash flow method. This method only takes into account the remaining funds in your business after every expense has been paid.

You can choose a method from those listed above to measure the cash flow of your startup. Once you choose the preferred method you want to use, you have to start tracking it. How can you do this? Well, the most convenient way to track it is by using a system that automatically tracks your cash flow. You can choose a software program that works for you.

4. Perform Cash Flow Analysis

Suppose you have started tracking the cash flow. The next step is to perform a cash flow analysis. Check if you notice any patterns or trends in your cash flow. By tracking your cash flow and analyzing it, you get an idea of how you manage cash.

You can use the information to make better decisions about cash flow management. This can help you get a sense of what you are doing right with cash flow management and what you should do differently to avoid financial trouble down the road.

Scroll through to find out the best strategies to be used for better startup cash flow management.

Best Cash Flow Management Tips for Startups

We discussed the cash flow management challenges of startups. As we mentioned earlier, it is important to be aware of these potential challenges as a startup entrepreneur. Now that you are aware of the most common startup cash flow management problems, you surely want to know what you can do to prevent such issues from happening to your business. Also, if you have noticed issues with your cash flow management through the data from your cash flow analysis, you would want to know strategies to make better changes and avoid financial trouble in the future.

Let’s take a look at some of the best strategies you can use to ensure your startup makes more than it spends.

1. Focus on Building a Loyal Clientele

Customers can really make or break your business. Earning the trust of your customers can immensely help your business to consistently succeed. So what can you do to build a trustworthy clientele? For instance, check if your company’s policies are customer-friendly. If you don’t think they are up to the mark, work on them to be more customer-friendly. Be sure to start this as early as possible so that you can get your customer relations off to a good start. 

Your policies should make sure the customers can have the best experience. You should be able to earn their trust, thereby ensuring long-term customer loyalty. Before you know it, the customers will help massively with the growth of your business. Of course, this process will take some time until you can finally see the results. But as you learn more about your customers, the better you will be able to create what they want. A tip to get to know your clients better is to communicate with them as much as possible. This can be easily done thanks to social media. 

You can ask for their feedback, read their comments and suggestions regularly, respond to their comments, conduct small surveys to check their likes and dislikes, etc.

2. Keep Track of Your Spending

As a business owner, your main goal is to make a profit and be successful. However, you cannot expect this to happen overnight when it usually happens over time. Especially during the early stages, you are less likely to make much profit. You would most likely have to depend on the raised capital during the initial stages. So it’s important to be extra cautious about cash flow and spending during this time. You have to ensure that your expenses are as low as possible to maximize profits. Be sure to create a detailed budget and commit to it.

Always keep a close eye on your expenses. It would be best if you did this regularly. That way, you have a better chance of noticing potential issues sooner.

You can keep track of your spending manually by using a spreadsheet. However, as you can imagine, it can take so much of your time. Plus, there is a chance of making mistakes when you handle the data manually. If you are interested in a more convenient method, you can opt for good-quality spending control software. This way, there is not going to be any human error. Plus, it’s time-saving.

3. Get help with managing money

Money management is something that, in theory, sounds simple. However, in reality, a lot of things can go wrong. Startup entrepreneurs sometimes take years until they get a sense of properly managing money. However, some may never be properly able to manage money effectively. Plus, money management takes so much more of your time and effort than you would imagine. This means you will not have enough time for marketing and growing your business.

That is why it would be best to get some expert help managing your money. But if you are just starting out, hiring staff can take a toll on your resources. Instead of hiring full-time staff, you can bring professionals onto your team on an as-needed basis.

4. Make sure you get paid

You must ensure that you get paid on time. To handle this matter, you will need to start with your payment policies. This is necessary to deal with any clients who try to take advantage. Make sure your late payment policies are in place. Don’t hold back from being proactive in chasing up any late payments. Make sure the clients know they will hear from you as soon as the invoice is overdue. That way, they will most likely make sure to settle your payment.

Take it to the next level by offering discounts for early payments. T Sure, this strategy might have an impact on your profit margin. However, on the flip side, this will help manage cash flow. Think about it: this policy will incentivize your customers to settle their payments earlier than billing cycles usually require. Also, try to utilize this strategy with your suppliers too. You can request early payment discounts.

5. Automate Your Cash Collection

To manage your money flow better, you need to make sure to be on time. Here we are specifically referring to settling payments and getting paid on time. We mentioned earlier how important it is to stay on top of receivables. However, it will take so much time out of your busy schedule to keep track of payment due dates and look through late payments. 

Can you imagine having to run a business while trying to keep track of your suppliers’ invoices? You can’t afford to waste time on this because you have enough on your plate as a startup business owner. So what can you do? Well, the best solution is to automate the flow of money via a cashless payment system. Using technology for automating cash flow management comes with advantages such as:

It saves time

For instance, it’s going to save you valuable time. provides significant advantages. With this method, you don’t have to manually enter expenses into a paper-based system.

Gives you the ability to monitor the cash flow at any time

Opting for technology for automating cash flow management gives you the chance to access and check up on cash flow whenever you want. Either at home or abroad, you can easily monitor the cash flow.

6. Use inventory management strategies

Does your startup sell physical products? If you do, then this strategy is going to be useful for you.

Here, you need to focus on the rate at which certain stocked items or components are going out and optimize the amount of inventory you keep on hand. If item A is moving twice as fast as item B, then you should dedicate twice as much shelf space to item A.

It would be much more convenient if you had an inventory management system to which you paid close attention. With this strategy, you will be able to minimize the need for huge storage locations. It will help you handle cash flow more effectively since you don’t need to pay for inventory you don’t actually need to keep on hand.

7. Be Smart About Hiring

As a startup business, you have to be careful about hiring staff. It’s too risky to go all out and hire a lot of employees in the beginning. At the same time, you have to start as early as possible to get staff to fill the most important roles in your company. But you definitely need a team from the beginning to help you run the business smoothly. You wouldn’t need a lot of employees in the beginning. But the crew you’re recruiting, although small, needs to be highly capable and skilled. 

Your company can benefit from a small, highly skilled staff rather than a large, mediocre staff. Plus, the hiring process costs quite a lot. So make sure not to waste that money on the wrong people.

By following these tips, you can better manage your startup’s cash flow.

Startup Cash Flow Management: Wrapping up

There you have it! We discussed all aspects of startup cash flow management in this post. As we mentioned, cash flow is a crucial aspect of a business. Especially as a startup business, properly handling your cash flow from the start can help you succeed and achieve your financial goals. Managing the funds properly is all about making sure that you have a higher cash inflow than cash outflow. We hope what you learned today will help you manage your cash flow better.

You can measure your cash flow management and check if you are going in the right direction with handling your finances. Use this information to make necessary changes and avoid financial trouble in the future. The strategies we talked about in this article, such as getting a handle on your expenses, staying on top of invoices, building a loyal customer base, implementing payment policies from the beginning, and developing automated payment solutions, can help you improve your cash flow management.

Do you run a business? If you do, then you have to know what we are about to tell you in this article on how social media impacts business. As a business owner, you must want the best for your company. Wouldn’t you want your business to grow as much as possible? Naturally, you would want that. Plus, it must be your dream to have a large and loyal customer base. And of course, you would like to sell the most products and services too. These are all that business wonders want. It’s your wish list, and to make it all a reality, you need the best tools. One of the major tools you can use is social media. In this post, we’ll walk you through how social media impacts businesses.

What is Social Media Marketing?

Before anything, let’s discuss what social media marketing is. As someone who runs a business, you have to realize that social media is an excellent marketing tool. You get the chance to increase your visibility, increase your audience’s engagement with your brand, and get other benefits by being on social media.

Suppose you decide to include social media platforms in your marketing strategy. If you do, you’ll be pleasantly surprised by the increase in lead generation, audience engagement, and sales of your products.

This broad category covers any marketing efforts that are accessible on mobile devices, tablets, PCs, and, obviously, the internet.

Social media marketing helps you make connections with your potential customers and clients. However, this comes with a set of tactics and strategies.

Why do businesses need social media marketing?

Before even thinking about using social media, it’s crucial to understand why businesses need social media. The simple answer is that it helps you to achieve your goals as a business. Social media helps to connect with customers and promote a company’s products or services. Social media marketing is a cost-effective way to connect with your current and potential customers.

If your brand has a business account on a social media platform like Facebook or Twitter, you are already halfway there. Having an account and followers is a step ahead, and it’s also free. Even without having to do paid advertisements, you can still interact with your followers and customers, thereby creating brand awareness.

But that’s not all. Having a good social media marketing strategy also allows you to showcase your brand’s unique nature. Brands also expect brand awareness and virality through their social media presence. This, of course, helps in building a loyal customer following.

As you know, having customers is great. But having loyal customers is a dream come true for a business.

How Social Media Impacts Your Business

You surely need to get on social media. Trust us: It is going to help immensely with the growth of your business. Still not fully convinced? Let’s discuss the benefits your company can get from social media marketing. You’ll see how social media impacts businesses. Scroll through to find out.

1. Helps with your brand awareness

Suppose you are on a social media platform. Did you know that the average person has about eight different social media accounts? And what if your business brand is on some of these platforms? Yes, that means your brand will appear a lot on a person’s digital platform. And, the more your brand message appears, the more likely a user of a social media platform will become a potential client. This explains the well-known Rule of Seven. For those of you who are not familiar with the term, it refers to how prospects see a brand’s message seven times before deciding to buy the product.

Do you get how social media can be an excellent medium to gain views and brand awareness?

So if you haven’t already, get on social media platforms. You can create accounts on various platforms like Facebook, Twitter, Instagram, and LinkedIn. You will need a sufficient number of followers too. Gaining followers on social media platforms can be easy. Your employees, friends, and followers can share and like your content to maximize your visibility in the digital world. You don’t even have to pay for advertising to get good results.

2. Helps to gain loyal customers

We know that as a business owner, you want your customers to have complete faith in your brand. How awesome would it be to reach a state where customers choose your brand over your competitors out of sheer trust? This is what brand loyalty is about. Brand loyalty is built when a company manages to create an honest relationship with its consumers. If your business reaches this stage, you can expect customers to have complete faith in your brand and to buy your products without any persuasion.

Social media can help you reach this stage. You can use social media platforms to interact with your customers, thereby forming a bond. It lets you connect directly with your customers. You don’t have to rely on retailers or wholesalers. It prevents any miscommunication or confusion because this is direct communication between the brand and the consumer.

Back in the day, brand-customer interaction was limited to a yearly event hosted by the company to launch its new products. Otherwise, you cannot expect to directly interact with your customers. However, thanks to the rise of social media, businesses get the chance to communicate with their customers more often. And it is convenient because it’s quick. Customers can connect with their favorite brands via social media platforms such as Facebook, Twitter, and Instagram. This helps with building a loyal clientele.

3. Save a ton on marketing and promotional costs

Social media marketing can save a lot of money on brand promotion. This is a great advantage, especially if you are running a small business with a small budget. So how exactly does it save you money? Well, social media marketing is all about reaching out to the target audience. This is called targeted marketing and advertising. 

Suppose your target audience is youth. In that case, you can easily reach out to that specific target clientele and create maximum brand awareness among them at a lower cost. Plus, it minimizes its operating costs and increases the profit margin of the business.

4. Helps you reach a bigger audience

As we said earlier, you have the chance to connect directly with your customers through social media. However, it doesn’t have to stop there. You can even reach a larger audience. As you know, social media is used by millions across the world. So other than connecting with your already established clientele, you can run campaigns to attract customers from different parts of the world. This is incredibly helpful if you want to grow your business and go international. 

The best part is that you can achieve this goal without spending much. It is such a cost-effective digital marketing technique. So why not take full advantage of it to reach the goals of your business?

5. Creates competition

As you know, a lot of brands are on social media platforms. They use the medium to promote their brand. We are certain that your competitors are on social media platforms too. Surely, with their social media campaign, they must be doing their best to sell their products. 

So you would naturally want to do your best and outshine them. This basically works like a marathon, where everyone tries their best to win the race. The competitiveness in the social media marketing industry will motivate you to up your game every time. Ultimately, it encourages brands to be creative, more engaged with customers, and provide the best quality products and services.

6. Helps with spreading the word

Social media can help spread the word about your business and products. And the best part is that this is much faster and more effective too. Your business can leverage word of mouth to increase sales and form a special bond with new customers. Keep in mind that most people tend to read reviews and look up ratings online before deciding to buy a product. They really want to hear what the people who used the products have to say about their 

7. Helps you get direct customer feedback

As a business, you should always be listening to your customers. They would have a lot to say if you listened. And because you are creating products for them, you need to listen to their feedback. Thanks to social media, you can get instant feedback from your customers and product users. They would tell you instantly what they like, dislike, and what needs improvement and change. This information is crucial to your business. It can help you know exactly what you have done right and what needs to be changed. And you can use the feedback to create your next product. 

With this strategy, you will be able to create what your audience wants to buy. Plus, it will help strengthen the bond between your brand and the customers too. When they notice that you have used their criticism to improve your product, they will feel like they were heard.

That is why you have to make sure to respond to posts, comments, and suggestions from your customers. Take it as an opportunity to build your brand’s image and reputation while simultaneously creating a loyal customer base.

8. Helps to increase referrals

As we discussed earlier, social media makes it easy to spread the word about your brand. It comes in handy because a lot of people tend to purchase products based on social media referrals. As a business, you can take this chase and make it more beneficial for you. What you can do is increase referrals. So how can you do that? Well, the best way to achieve this goal is by coming up with awesome products and providing great service that makes any customer a guaranteed fan of your brand. Then, you can leverage social media by running various contests. For example, you can run a giveaway contest. 

Make the rules simple to enter the giveaway. You can ask users to like and comment on the post to gain a chance to win. For the prizes, you can include some of the best-selling products from your brand. With simple contests like this, you can generate enthusiasm among users, and you will also be able to gain a lot of likes and comments on your posts.

What should you do?

Now that you know all the ways social media impacts business, let’s discuss where to go from there. The first step you can take is to join social media if you haven’t already. You can create accounts on the most popular platforms like Facebook, Instagram, Twitter, and LinkedIn. Once you do that, you have to update and post content regularly. We recommend following a posting schedule. For example, you can post several times per week. But if you have a launch scheduled anytime soon, make sure to post related content more often. 

Whenever you post content, you can try a combination of live videos, pre-recorded videos, and written posts. Also, make sure to respond to your users’ comments under your posts as much as possible.

Wrapping Up

So there you have it! Now you know how social media impacts business. As you now know, social media impacts businesses immensely. You can expect tons of benefits through social media, some of which include strengthening the connection you have with your customers, reaching out to potential new customers, and building brand awareness. 

All of it can help you create a positive brand image and ultimately sell more products. A carefully designed social media campaign can boost the growth of your business. Is boosting sales and income a goal of yours? Learn how to expand your startup’s audience by reading our post on marketing tactics.