Using your Resources for a Start Up

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You may find yourself sitting on a sum of money without knowing what to do with it. Maybe you don’t need it. Maybe you want to invest it in something and watch it grow. What better way to do that then to consider investing in a small business, right? Maybe it’s a small local business, so you can feel like you’re giving back to your community. And hey, if they turn out to be the next Apple, who’s complaining? Or maybe you want to start up a business of your own.

Before you invest your start up resources in a small business, consider looking at its LaunchScore! Small business entrepreneurs have limited start up resources to work with, so it is very important that they research opportunities before they jump in. Failure to engage in market research may lead to entry into saturated markets, markets with insufficient demand, or markets that experience destructive price competition.

1Some entrepreneurs jump into small businesses without doing their homework, either because they lack the funds to hire market researchers are they may lack the skills and know-how to do it themselves. LaunchScore offers a solution in the middle, by scoring business opportunities using a big data algorithm.

This is your money. You worked hard for it. Don’t waste it on something that isn’t going to give you any return. If you are going the route of starting your own business, you probably aren’t going to be running a charity. You want to see a profit and you want to ensure that the money you invested is going to work hard and pay you back at least two-fold. Resources don’t only mean money. They mean the sweat, blood and tears that will inevitably go into bringing this business to life.

Being adventurous is one thing but you also need to be smart. If you need to, talk to a financial advisor. They can look over your potential investment and advise you as to whether or not it’s worth it. Using LaunchScore validate the worth of your venture is a good option.

2There are many things to consider when starting a small business. You need to consider your location, your market, your product/service, your target audience, your brand. The list goes on and on. You need to do your research and determine if this venture is going to be beneficial. If you want to provide a service that is already out there, you need to make sure that your service has something new to offer, aside from coupons. Businesses that begin and offer discounts right out of the gate rarely turn a profit and can sink very quickly.

You also need to have passion. Many small businesses are born from a desire to provide something great to the world.  Even if it’s a product or service that already exists, most people take the venture into the small business world because they truly believe that they can do it better. While there are some who start a business simply because they feel they can turn a profit it still takes hard work and sacrifice to get off the ground.  You have to believe in yourself and your product or service. You’ve got to make the public believe in it too. Getting your name out there is generally the hardest part and it can take the longest time. By being prepared to start small and slowly grow you will most likely find the patience reassuring.

Don’t rush and don’t make rash decisions.

Check out your LaunchScore at LaunchScore.com!

http://LaunchScore.com

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André is a Professor of Entrepreneurship at Michigan Tech. At LaunchScore, he is responsible for driving the mission, vision, and goals of the company. He is interested in how firms and entrepreneurs create value through innovation. He has published articles on innovation and entrepreneurship in leading management journals including: Journal of Management, Long Range Planning, Journal of Business Research, and Journal of Engineering Management.