So the mantra is… you need to know, like and trust someone before you will do business with them.I know that, I get that and I believe in that, but it comes with a somewhat frustrating dose of reality – getting to that position takes time and time means money.  So how do you as a new business speed up this process without losing your authenticity, being pushy or being desperate. This is a dilemma that I have seen many new businesses face, mine included and it is a real problem.   You see your mortgage provider won’t wait while people get to know you, the bank won’t lend you money while you wait for people to like you and your supplier won’t wait for people to trust you.  So what can you do? Simply put, you need a plan as you have options at this stage and you need to know which is best for you.  I am going to outline 3 of the most common options that I have seen work for business’ I have worked with but please know other options exist and it’s worth knowing which one you are going to choose before you get started.

Option 1 – stay employed…

Many people start their business alongside their main employment.  Yes it’s hard work holding down two jobs, especially if you have a family too but it is possible.  If you go for this option make sure you speak to the people in your life who have a vested interest in the project – most likely this will be your partner – you need them on board to support you when you’re working rather than spending time with them! Be creative too, think about the time you spend on unimportant tasks such as watching the TV or cleaning the house.  Cut out the crap and delegate where you can. Plus if you are lucky and have a great relationship with your employer, figure out how you can work with them to reduce your hours as the business picks up. Pro:   You will have the money to pay the bills while you build your business. Con: You won’t have the flexibility to do everything you want to when you want to do it

Option 2 – get investment…

OK so the banks may not love lending anymore but for the right business they will invest.  The same can be said for business angels who actively seek investment in small business’, often bringing with them years of experience to support you. That said the most common forms of investment comes from family and friends.  Speak to people who already know, like & trust you because just maybe that might be enough to secure their backing and money. Pro: You can work full time on your new business from day 1 Con: Borrowing money costs money – make sure you know how much & when it needs repaying

Option 3 – bootstrap…

This is about starting small, focusing on one thing, getting income from it as soon as possible and then reinvesting that money to continue moving forward.  In this scenario you will most likely need some form of income or savings to pay the bills for a time but with the focus on getting traction on one thing quickly before building your empire, the ‘know, like & trust’ part will come quicker.  I would also suggest connecting with people you already know at this point rather than trying to make lots of new contacts as again this speeds up the process. Bootstrapping can often be the best answer for people who have been made redundant, especially if you have had some money as part of your leaving package.  This is investing in yourself. Pro: You use the skills & contacts you already have and build your business organically Con: It can take time & be frustrating as you may not be able to do everything you want to on day 1 Regardless of which option you choose, make sure you do your homework first,  you will need a business plan that includes some financial plans. They don’t need to be lengthy but you do need something. More on this next time! If you would like more information on coaching, creating a budget, business planning or managing your books once you get started email NEM@nickypeters.com or book a FREE one hour consultation with Nicky