[TEXT: Expert Advice Series: Growing and Thriving as an Entrepreneur]
Hi. My name is Samira Cook Gaines, and I am a founding partner of Global Empowerment Solutions. [TEXT: Samira Cook Gaines, Founding Partner, Global Empowerment Solutions]
It’s been an honor to travel the world educating organizations, entrepreneurs
and governments on economic empowerment, women’s issues and entrepreneurship.
Welcome to Smart Entrepreneurship: Next Steps in Expanding Your Enterprise. [TEXT: Smart Entrepreneurship, Next Steps in Expanding Your Enterprise]
This lesson is “Growing and Thriving as an Entrepreneur.” [TEXT: Growing and Thriving as an Entrepreneur]
In this lesson, we will discuss moving beyond the startup stage of business [TEXT: Key strategies for business beyond startup.]
and key strategies for developing as an entrepreneur. [TEXT: Planning for business growth.]
Once you’ve spent time working through the initial stages of business startup and development,
you’ll want to begin planning for business growth.
Business growth is about more than just increased revenues and profit.
It is preparing for new customers, new markets and bigger opportunities.
The first step in business growth is professionalizing and legitimizing your business.
You may have started your business through informal channels such as selling to friends and family,
vending in temporary spaces or even selling online.
However, at the growth stage you’ll want to focus on legitimizing or formalizing your business activities to prepare for growth.
Legitimizing your business means having the proper business license, correct tax identification, [TEXT: Businesses should be: Formal, Professional, Legitimate, Licensed, Insured, Registered]
business insurance and other government requirements to be considered a legitimate or “registered” business.
Once you’re registered, your business is eligible for bigger opportunities.
For example, you can now take on large customers because they’ll be willing to spend more money with you,
knowing that you have the proper protections and infrastructure in place.
This shows that you are established and not going to disappear overnight without delivering your product or service.
Formalizing your business is the first step in creating trust with new customers.
You will have an easier time expanding into new markets and attracting new businesses.
Legitimate businesses are considered a part of the formal economy, and they’re seen as an asset to communities and nations.
They are representative of stability and are accountable under the law, and can be held to fair and humane treatment of employees.
It is helpful at this stage of your business to identify a business mentor or coach.
A business mentor would be someone who is further along in their business journey
and they’ve already experienced much of what you are facing.
A mentor should be someone already familiar with your industry and processes.
They can give you guidance on registering your business or even obtaining permits and licensing that may be needed to operate.
Formalizing your business also opens the door for participation in government business support programs.
Many countries offer incentives for companies and individuals that contribute to their economic prosperity.
Small businesses are the first line of employment for neighborhoods and communities.
Good economic policies support entrepreneurship and business startup and growth. [TEXT: Good economic policies support entrepreneurship & business startup and growth.]
There are business-friendly policies that emphasize buying from local businesses and buying in small amounts.
This helps growing businesses with limited capacity provide products and services that governments need.
Procurement policies can really help expand growth opportunities for small businesses
and have a positive impact on the economy.
Other types of economic policies that support growing businesses
are financial regulations and protections for small businesses
that ensure a level playing field as new enterprises are created.
Programs and policies will likely be different depending on where you live.
So be sure to do your research.
As you grow your business, you may have a need to access capital through loans.
Small business and consumer protection policies that prohibit predatory lending and high-cost loans
are necessary for a healthy economy.
Predatory loans can eat into the profit and ultimately stagnate the growth of your business.
These types of protection policies mostly target formal businesses for benefit.
Once you’ve formalized your business, you should focus on three important aspects of business establishment and growth:
financing, failure and sustainability [TEXT: Financing, Failure, Sustainability]
You will likely need additional capital or financing to pursue bigger opportunities
and access new markets for business growth.
At the growth stage, there are a multitude of options that depend on your business goals and needs.
Small business loans are a common avenue for growing businesses.
At this stage, you have a track record for revenue, and a lender can easily determine
whether your business is able to pay back the loan with interest.
Another option for financing is investment funding.
These funds usually come from a firm or group of investors interested in businesses with strong evidence
that they’ll make a lot of money quickly and they have very high growth potential.
Depending on your economic environment, you may need to be more creative about funding your business.
Search for online crowdfunding platforms that are available in your country.
You will need to tell a compelling story and be able to explain the profit, revenue and return on the investor funding.
Other options for creative funding are business plan and business pitch competitions.
Again, you’ll need to tell a compelling story of your business
and be able to convince competition judges that your business is worth the investment.
Lastly, loans from friends and family can also help get your business much-needed short-term funding.
Be sure to sign an agreement with a repayment schedule for your friends and family as you would any another investor.
Financing is seen as a sign that your business is successful and people are willing to invest in it.
However, a large part of success is failure.
I believe you always learn more in your failures than you will in your successes.
Therefore, the concept of failing fast and often should be a part of your business growth strategy.
There will be setbacks.
Think of the marketplace as a laboratory.
Scientists undergo hundreds — even thousands — of trials to find cures.
They literally go into the lab for years just to fail.
In their failing is knowledge and understanding that makes their final experiment as close to perfect as possible.
You are doing something similar when you’re growing a business.
You want to figure out what works well and what doesn’t [TEXT: Figure out what works well and what doesn’t as soon as possible.]
as soon as possible so that you can focus on the things that work well
and not waste additional precious time and valuable resources on things that aren’t beneficial to your business.
So remember to fail fast and fail often!
Create processes in your business to test and gain your additional knowledge about new products, services and processes
that make your business stronger and better prepared for bigger opportunities.
Great testing processes include things like [TEXT: Testing includes]
customers’ feedback systems through online surveys, [TEXT: Customer feedback]
[TEXT: In-person question & answers, Data review] in-person question and answers, and data review of your revenue and sales history.
This insight will also give you a better idea of when to pivot or redirect your business strategy.
You are writing your own entrepreneur story, so don’t be afraid to edit if you have to.
You can also learn from what others have done in similar situations.
There is no shortage of testimonials on how businesses large and small have both succeeded and failed.
These are great ways to build on the valuable insight you gain from failing.
A favorite quote of mine by Nelson Mandela says, “I either win or I learn.”
So remember to continue winning and learning on your entrepreneur journey.
Finally, let’s discuss creating sustainability in your growing business.
Sustainability means your business is resilient and can withstand changes over time.
You can create a sustainable business through establishing healthy economic, social and environmental systems.
There are several best practices in sustainability. [TEXT: Sustainability means your business is resilient and can withstand changes.]
They include stakeholder engagement, environmental consciousness [TEXT: Stakeholder engagement, Environmental consciousness]
and routine social impact assessment. [TEXT: Social impact assessment]
Stakeholder engagement is about receiving feedback and input from existing and potential customers,
partners, collaborators, employees, service providers and even government officials.
These are all very important relationships that require intentional management and engagement.
Understanding stakeholder positions and criticisms helps to make your business more collaborative
and therefore more likely to have support in times of challenge and crisis.
Your stakeholder engagement should include a look at stakeholders at the local, national and international level.
Environmental consciousness is about making sure your business has limited adverse effects on the environment.
Business practices such as recycling or paperless office policies, commuter support programs,
and even utilizing local sources for company supplies to reduce carbon emissions
all serve as ways to minimize environmental impact and increase sustainability.
Lastly, a regular review of your social impact helps you to understand the effect your business is having on the society around it.
Businesses that have social impact goals are more likely to retain great employees
and have committed customers and business partners.
A positive impact on society often equates to positive cash flow in your business.
Ultimately, being a successful entrepreneur means making smart choices.
Understand the rules and regulations you’re required to follow. [TEXT: Understand the rules and regulations]
Gain the expertise necessary to run your business. [TEXT: Gain expertise]
Have a realistic plan for growing your company. [TEXT: Have a plan for growth]
And make a positive impact on your community [TEXT: Make a positive impact]
by providing employment opportunities and economic growth. [TEXT: Provide employment opportunities]
[TEXT: Expert Advice Series: Growing and Thriving as an Entrepreneur] After you’ve completed all of the lessons in this course, you can test your knowledge and earn a certificate.
[TEXT: Produced by the U.S. Department of State]