startup business Archives - Angel Investors

09/19/202409/19/2024

Pros and Cons of Social Media Marketing for Business

In the last decade, social media grew exponentially from being a digital channel for interacting with others into a powerful digital marketing tool for businesses.

With over 3.5 billion daily active social media users, there’s really no limit to how far you can go with it. Just imagine how many of them can eventually become your customers!

But, as you jump on the bandwagon of Social Media Marketing (SMM), you have to properly plan and assess the impact and effectiveness of SMM for your brand. This is because, just like with most things, there are two sides to the coin of social media marketing.

If done efficiently, one side promises success, while the other side can be detrimental to your business. While on the one hand, there are businesses who owe a great percentage of their success to social media, there have also been brand disasters, thanks (but, no thanks) to social media. So, in this post, we’ll be discussing some of the Pros and Cons of Social Media Marketing to enable you make informed decisions that will set the pace for profitable digital marketing. Let’s Dive in!

The Pros of Social Media Marketing

Business owners and marketers are going gaga over social media these days. Well, you can’t really blame them. Social Media Marketing comes with a lot of perks, and let’s talk about some of these:

Low-Cost Strategy

Compared to other marketing tactics, social media is significantly low cost, and this makes it very appealing. The most popular social media platforms are available to join for free, and all interaction tools are also free.

However, to get the most out of social media, some businesses are investing full time in SMM strategies such as content generation, digital design, page setups, influencers, and maintenance. On average, all these cost between $4000 to $7000 monthly.

But do you know what? This is relatively more cost-effective than the average of 11.1% of revenues spent on traditional marketing. SMM gives you excellent ROI for less financial investment!

Larger Audiences

Do you want to gain traction in your industry? If Yes, then social media is a powerful tool to use in achieving this. And this is one of the main benefits SMM has over traditional marketing.

While traditional media marketing only caters to fixed audiences (TV viewers, magazine readers, etc.), SMM allows you to reach out to a global audience that is unlimited in reach and scope.

Social Media is an open marketplace. With SMM, you are reaching out to a market space filled with both your existing and potential buyers who need a little push from you to decide whether or not to buy from you.

No Demographic Restriction

What’s more, social media marketing is not restricted by demographics such as sex, social status, and age. Current statistics show that 90.4% of millennials, 77.5% Gen-Z, and 48.2 baby boomers are active social media users.

So, you can have a big market for the age group you are targeting for your products and services. It’s even more impressive that SMM can pass your targeted demographic market and pave new channels for leads generation and sales.

Go International

Before we move on to the next advantage, we should also mention that SMM helps businesses that are struggling to get into the international market.

Thanks to the vast worldwide reach of social media, it becomes effortless for you to reach new potentials outside your suburb, city, or country. Facebook, in particular, has over 89% monthly active users who live outside the US. The audience potential of SMM is huge!

Brand Loyalty

It’s one thing to have customers, and it’s another thing to have a group of returning customers who are fans of your brand. This should be your goal, and social media can help you achieve this.

How?

Well, with social media, you can demonstrate your personality to customers and also tell your brand story. It helps you interact with customers, build relationships, show them that you care, and boost your reputation. This will, in turn, foster long-term loyalty.

Reports from Social Media Today show that;

Almost 70% of consumers have used social media for customer service-related issues at least once
Customers spend 20% to 40% more with companies that respond through social media

Market place Insights

Another plus of listening and engaging with customers in online conversations is that it will help you find out more about their problems, preferences, needs, likes, and dislikes.

These insights are crucial to the success of any business. They give you information on areas to improve turnouts and get ahead of your competitors.

The Cons of Social Media Marketing

For all the advantages of social media, it is not 100% perfect. There are some cons to Marketing that can lead to undesirable impacts on your brand.

Time Consuming

If you’re already into SMM, then you’d agree how much time it consumes. According to industry reports, 64% of digital marketers spend a minimum of 6 hours on Social Media Marketing.

And that’s not even the worse of it. The other 37% spend an average of 11 hours on SMM. Most business owners who want to get tangible results from their SMM efforts find this time-consuming.

Even more frustrating, if your time spent on SMM isn’t done correctly, it will lead to zero results or traffic that don’t convert into leads or sales.

Hard to Measure ROI

It is hard to define the ROI from social network marketing. A recent study indicates that 89% of digital marketers would want to know the exact ROI of their efforts on social network platforms.

Only 37% have a handle on defining the results of their SMM efforts; 35% say they aren’t sure they are correctly measuring ROI; 28% say they don’t know how to measure at all.

What’s more, it can take a long time – months, or even years before your SMM efforts start yielding sales and customer loyalty.

Loss of Control

The worldwide reach of social network means it attracts all kinds of users, including negative and malicious persons. Anything you post online is subject to comments and criticism. Providing a medium for people to publish damaging comments about your brand is literally the stuff of nightmares.

We should also mention that these negative people include scammers, spammers, trolls, hackers, and all other sorts who want to harm your online credibility.

Bottomline

From all the salient points we have discussed above, we can see that marketing really does deliver favorable results for your business.

In fact, consumers expect all brands to have a social network presence – as much as 63% of them. And 90% of social network users communicate with a brand using Facebook, Twitter, Instagram, LinkedIn, etc.

So, it is crucial for you to up your game and remain conscious of sticking to the best practices. This will allow you to get the most out of Social Media Marketing.

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08/07/202408/07/2024

Top Marketing Mistakes New Entrepreneurs Must Avoid

Starting a new business is an exciting journey filled with opportunities and challenges. One of the most critical areas where new entrepreneurs often stumble is marketing. Effective marketing is crucial for business growth, but common pitfalls can derail even the most promising startups. This article explores the most damaging marketing mistakes new entrepreneurs make and how to avoid them.

Lack of a Clear Marketing Strategy

One of the biggest mistakes new entrepreneurs make is diving into marketing without a clear strategy. A well-defined marketing plan is essential for guiding efforts and measuring success. Without it, businesses risk wasting resources on ineffective tactics.

Tip: Develop a comprehensive marketing plan outlining your target audience, key messages, channels, and metrics for success.

Ignoring Market Research

Market research is the backbone of any successful marketing strategy. New entrepreneurs often skip this step, leading to misguided campaigns that fail to resonate with their target audience.

Tip: Conduct thorough market research to understand your audience’s needs, preferences, and behaviors. This information will inform your marketing efforts and ensure they are targeted and effective.

Poor Understanding of Target Audience

A common mistake is assuming you know what your audience wants without proper validation. This can result in messaging that misses the mark and fails to engage potential customers.

Tip: Create detailed buyer personas based on real data and research. These personas will help tailor your messaging and ensure it aligns with your audience’s interests and pain points.

Overlooking the Importance of Branding

Branding goes beyond a logo or a catchy tagline. It’s about creating a consistent and memorable experience for your customers. Neglecting branding can lead to a disjointed identity that confuses potential customers.

Tip: Invest in professional branding that reflects your business values and resonates with your target audience. Consistency in visuals, tone, and messaging is key.

Underestimating the Power of Online Presence

In today’s digital age, an online presence is non-negotiable. Many new entrepreneurs underestimate the importance of a professional website and active social media profiles.

Tip: Build a user-friendly, optimized website and maintain an active presence on relevant social media platforms. Regularly update your content and engage with your audience to build trust and credibility.

Failing to Track and Analyze Results

Marketing is not a set-it-and-forget-it endeavor. Failing to track and analyze your marketing efforts can lead to missed opportunities for improvement and optimization.

Tip: Use analytics tools to monitor the performance of your marketing campaigns. Regularly review this data to identify what’s working and what’s not and adjust your strategies accordingly.

Overlooking Customer Feedback

Ignoring customer feedback is a significant misstep. Customers provide valuable insights into what’s working and what needs improvement.

Tip: Actively seek and listen to customer feedback. Use this information to refine your products, services, and marketing strategies.

Avoiding these common marketing mistakes can set new entrepreneurs on the path to success. By developing a clear strategy, understanding your audience, investing in branding, establishing an online presence, tracking results, and valuing customer feedback, you can build a strong foundation for your business’s growth. Remember, effective marketing is not just about promoting your product but about creating meaningful connections with your customers.

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

08/01/202408/01/2024

Strategies to Prevent Post-Merger Identity Crisis

Mergers and acquisitions can be a transformative strategy for growth, yet they often come with significant challenges, particularly around maintaining a cohesive corporate identity. An identity crisis post-merger can hinder integration, disrupt employee morale, and confuse customers. Here’s how to avoid post-merger identity crisis and ensure a seamless transition.

Understand the Importance of Identity Integration

A merger brings together different cultures, values, and operational styles. Recognizing the importance of identity integration is the first step to avoiding a crisis. It’s essential to address these differences early and develop a cohesive strategy that combines the best elements from each entity.

Conduct Thorough Cultural Assessments

Before merging, conduct a comprehensive cultural assessment of both companies. Understand the core values, mission statements, and cultural nuances. This assessment will guide the integration strategy, helping to bridge gaps and align the merged entity’s identity.

Develop a Unified Vision and Mission

A clear, unified vision and mission statement are crucial. This unified vision should resonate with employees from both companies and provide a common goal. It will serve as a foundation for building a cohesive identity.

Communicate Transparently and Frequently

Effective communication is vital during mergers. Transparent and frequent updates help manage expectations and reduce uncertainties. Ensure that communication channels are open and accessible, allowing employees to voice concerns and ask questions.

Engage Leadership Teams

Leadership plays a pivotal role in driving identity integration. Engage leaders from both organizations to champion the new identity. Their commitment and example will encourage employees to embrace the changes.

Involve Employees in the Process

Involving employees in the integration process fosters a sense of ownership and eases the transition. Create task forces or committees that include employees from both companies to work on integration initiatives. Their insights and participation can help align the new identity with the workforce.

Rebrand Thoughtfully

Rebranding is often necessary post-merger. Ensure that the new brand reflects the unified identity and resonates with both internal and external stakeholders. This process should be carefully planned and executed to avoid confusion and maintain brand equity.

Monitor and Adjust

Post-merger integration is an ongoing process. Regularly monitor the progress and be ready to adjust strategies as needed. Solicit feedback from employees and customers to identify areas for improvement and ensure that the new identity is effectively integrated.

By focusing on these strategies, companies can avoid a post-merger identity crisis, fostering a unified, strong corporate culture that supports long-term success.

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

12/19/202206/22/2023

What Sets a Small Business Apart from a Large Business?

Small Business

In the business world, the size of an enterprise often plays a significant role in its operations and overall perception. Small businesses and large businesses each have their own unique characteristics and face distinct challenges. While large businesses are often associated with scale and resources, small businesses possess their own set of advantages that make them stand out in the market. In this article, we will explore the factors that set small businesses apart from their larger counterparts, highlighting the strengths and opportunities that come with being small.

Personalized Customer Experience:

Small businesses have the advantage of providing a more personalized customer experience. With fewer customers to serve, small business owners and employees can develop closer relationships with their clientele. They can offer a higher level of attention, tailor products or services to meet individual needs, and respond more effectively to customer feedback. This personalized touch fosters loyalty, enhances the overall customer experience, and creates a strong foundation for long-term success.Flexibility and Agility:

Flexibility and Agility:

One of the key advantages small businesses possess is their ability to adapt quickly to changing market conditions. Without the burden of bureaucratic processes and complex hierarchies, small businesses can make decisions swiftly, implement changes efficiently, and capitalize on emerging opportunities. The lack of extensive layers of management enables them to be agile and responsive, ensuring that they can pivot their strategies to meet evolving customer demands and industry trends.

Local and Community Focus:

Small businesses often have deep roots within their local communities. They play an essential role in contributing to the local economy, creating jobs, and fostering community development. Small business owners have a vested interest in the success of their neighborhoods, supporting local causes, participating in community events, and building strong ties with residents. This community focus not only enhances their reputation but also helps them to establish a loyal customer base that values their commitment to the local area.

Niche Expertise and Specialization:

Small businesses frequently find success by specializing in niche markets or specific product lines. By focusing on a particular area, they can develop specialized knowledge and expertise, allowing them to deliver unique and high-quality products or services. This specialization enables small businesses to differentiate themselves from larger competitors, attract a dedicated customer base, and create a strong brand identity.

Entrepreneurial Spirit and Innovation:

Small business owners are often driven by a strong entrepreneurial spirit, which fuels innovation and creativity. They are more inclined to take risks, experiment with new ideas, and implement novel approaches to problem-solving. Small businesses can be hotbeds of innovation, as they have the flexibility to adopt new technologies, explore unconventional strategies, and challenge the status quo. This entrepreneurial mindset helps them to seize opportunities, disrupt established markets, and carve out their own niche.

Conclusion:

While large businesses may have the advantage of scale and resources, small businesses possess unique qualities that set them apart in the market. Their ability to provide a personalized customer experience, adapt quickly to changing circumstances, foster local community ties, specialize in niche areas, and embody an entrepreneurial spirit gives them a competitive edge. Small businesses play a vital role in the economy, driving innovation, and offering a diverse range of products and services. As consumers, let us appreciate and support the small businesses that bring creativity, passion, and a personal touch to our communities.

Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

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08/15/201908/16/2019

Does the Business Credit Card Affect Personal Credit Scores?

If you are trying to keep your startup finances separate from personal finances, you might be disappointed. It is because the effects of your business credit card often show up on your personal credit score. Even if your business faces hardship or goes through any rough patch, it might affect your personal credit score.

That is to say, eliminating your all personal liabilities with your business credit cards is not possible as they need personal guarantees. However, if you‘re a startup, you can use a credit card that does not report your account activity to credit bureau to limit the risk. It may be one of the safest ways as some business credit cards don’t report to consumer credit bureaus but commercial credit bureaus. Also, there are credit cards that do not report a customer’s monthly payments.

But these are limited options. No matter how helpful your business credit card has been in building credit for your business, it does affect personal credit scores or credit history.

Luckily, there are some ways entrepreneurs use to minimize the risk factors related to their business credit cards and help personal credit scores instead of hurting them. Before exploring those ways, let us take a look at how business credit cards can affect your personal credit scores.

Effects of Business Credit Cards on Personal Credit

Typically, the following are the ways that can affect your credit score if you apply for or use a business credit card.

1. Credit Inquiry on Applying for Credit Card

It is important to know that when a business owner applies for business credit cards, the card issuer considers both his/her personal credit card history and business track record. This may include investigating or checking personal credit, which may affect credit by dropping a few points in the scores.

This is one of the reasons many business credit card bureaus require a personal guarantee on applying. That means if a business defaults on its payments, a business owner can be held liable to pay all the debts.

Click here to find and compare credit cards to find the best one for you.

2. Utilization of Ongoing Credit

Most of the banks and finance institutes report all account activities to the consumer credit bureau (Experian, Equifax, TransUnion) that includes the ratio of credit utilization of a customer. The credit balances are divided by the total amount of credit limits a user has. That means if you obtain the high balance on a business credit card, it can negatively impact your personal credit card scores.

According to credit experts, it is better to keep your credit card utilization below 30 percent. It makes your business credit cards easy to handle as they come with a high credit limit as compared to a consumer credit card. Plus, if you are planning to make a big investment in the business, it is better to apply for a loan than using your business credit card for it.

3. Reporting Delinquency

As mentioned earlier, some credit card issuers do not report monthly account activities of their customer to the consumer credit bureau. However, they may report your account if you don’t make your payments consistently. Late payments are reported if they are delayed more than 30 days. If becomes a pattern, the negative marks do not only affect your personal credit card scores but also stay up on report for seven years.

A delinquent account is, without a doubt, an important thing to consider when it comes to improving payment history or personal credit card scores. Poor account scores or default account affects your ability to apply for loan affordable. Plus, late payments can trigger an APR penalty that can go up to 29.99 percent with some business cards.

Business Credit Card Issuer Policies that impact Personal Credit Scores

Although all credit card issuers have different policies pertaining to credit card activities, they might report the business information to credit bureaus on the same issues. It is always worth checking the policies.

Barclays: may report in case of inconsistent payment record
American Express: if your account doesn’t have good standing, it may report
Capital One: report all account activities
Citi: doesn’t report account activity
Bank of America: reports delinquent account
S.Bank: doesn’t report account activity
Chase: reports when an account is delinquent more than 50 days
Well Fargo: doesn’t report account activity

How to Use Your Business Credit Cards to Build Personal Credit

If you are concerned or apprehensive about the impact of a business credit card on your personal credit scores, there are ways you can use to minimize the effects.

All you need is to practice poor credit behaviors with both your consumer and business accounts.

Here are some of them:

Make Payments on Time

Your payment history plays a major role when it comes to building credit score or improving credit history. It is important to pay at least half of your monthly payment on time, if you want to solidify your credit scores. Paying off the full balance each month is extremely helpful in avoiding interest entirely.

Keep Credit Balance Relatively Low

Keeping a low credit balance is always a good move as your credit utilization has a great impact on your credit scores. You can achieve it by making fewer payments through your credit cards or keeping the credit low. In case your credit use spikes up in any month, you can manage the score by paying down the balance to help your utilization ratio come back to normal.

Use your Credit Card Wisely

There is no denying that business credit cards are a good option to make payments for your operating expenses. But if you want to finance equipment or inventory, paying with a business credit card is harder.

What is more, it may increase interest rate with any business loan you take. That is why it is important to consider all your options first before you choose to make payments with your business credit cards.

Final Thoughts

In a nutshell, getting a small business credit card is a good idea for making payments, it is essential that you understand how it affects your personal credit score.

Access our network of Angel Investors, Venture Capital or get instantly matched with a Lender, or get a business plan by visiting us Funded.com

06/05/201706/28/2017

Four ways to secure the nod of angel investors

Securing an investment from an angel investor is considered as one of the most difficult aspects of establishing a business startup. For many, this is even harder than coming up with a good idea for a successful business venture.

Fortunately, there are numerous angel investors out there who can provide financial support to business startups that have potential to make it big in the market. But for entrepreneurs, the common problem is not finding them. Rather, they have a hard time securing the nod of these angel investors. Here are some ways to improve an entrepreneur’s pitch in order to be able to secure investments from angel investors:

Know the audience

A business pitch should vary depending on the character of the potential angel investor. Entrepreneurs should not rely heavily on a “standard pitch” and develop something that could connect more to the possible partners. A pitch should vary depending on various factors such as age, gender, background, and knowledge on the specific market, among others.

Be in charge

Business owners must show to their potential angel investors that they are the ones in charge of the startup. One can get the trust – and later on the deal – by showing that he or she can effectively manage the business to make it successful. In order to do this, business owners must show their expertise on the market as well as exude confidence that the venture will succeed.

Entrepreneurs, however, are cautioned not to show too much confidence on the business. After all, potential angel investors prefer realistic figures over imaginary ones.

Present relevant information

During presentation of business pitches, a number of business owners often start by presenting too much information as regards the market and the business operations itself. Most of the time, this approach is seen as a move that often ends the potential deal. Rather than presenting too much information, entrepreneurs must stick to basic data that will inform angel investors about the market and keep them interested.

Among these data include the current status of the market, as well as the basic figures concerning the business such as the capital and potential revenue in a matter of years.

Be practical

Finally, business owners must keep it practical when presenting before potential angel investors. While it is necessary to inform them of the business operations, going through every single detail of the business is not an appropriate content for a pitch. Instead, entrepreneurs should just highlight the said information and ask the potential partners if they want to know more about this.

More detailed information and useful advice can be found at Funded.com. If you need to access our network of angel investors or a business plan for start-up funding visit Funded.com

04/15/201406/28/2017

Dealing with investors: What to do before and after close?

Private equity investors are considered as one of the most important people for those who want start or expand their respective businesses. After all, the amount capital that they provide and the way these are handled are among the factors that make or break a startup.

Unfortunately, a number of entrepreneurs think that dealing with private equity investors are limited to the period when the company or business is raising funds. Some believe that once the funding round has closed, the money will fall any time regardless of how they transact with the partners that signed a deal with them.

The reality is far from this misconception. Instead of forgetting about the investors who pledged to provide funds for the business once the money had been transferred, entrepreneurs must keep in mind the significance of giving importance to these people. After all, entrepreneurs would not want the investors pulling out the money in a middle of a crucial project.

Here are some tips on how entrepreneurs should deal with investors before and after the close of the funding round:

Before the close:

Once of the most crucial things that the entrepreneur must do during the funding round is to find the appropriate investor for the company. This would depend on the type of business that he or she is into. There are investors who prefer medical-related companies, while others want information technology startups, among others.

Regardless of the type of business, entrepreneurs must find a private equity investor, or those who understand the risks of investing in the nature of the business. This would mean that the investor is willing to let go of his or her money for seven years, and put it in a rather risky and illiquid asset.

To counter the risks, the entrepreneur must explain to the potential investor the positive side of the investment – for instance the high rate of return for the successful ones.

Perhaps the most important advice for the entrepreneur is to find an investor who shares the vision of the company. This is highly relevant as it would help in the growth of the business.

After the close

Once the agreement between the entrepreneur and the investor has been signed, the former must continue to look after the latter. This is necessary as it increases the possibility of future contributions from the said investor.

“Taking care” of the private equity investor does not take much. The business owner just has to provide regular updates – whether monthly or quarterly – to keep the investor on the loop. Likewise, requests must be kept reasonable and thoroughly explained. This will surely get the business owner on the good books of the investors.

Dealing with partners, especially private equity investors, is not an easy task. However, doing this the right way will ensure the continuous flow of support for the business.

More detailed information and useful advice can be found at Funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.Funded.com

04/15/201306/28/2017

Available Corporate Venture Funds for Business Startups

In recent years, the number of available venture capital funds for business startups that are coming from traditional sources has started to go down. Fortunately, there is a viable alternative – corporate venture funds.

It can be noted that a several multinational corporations have started to allot some of their funds for business startups. Latest data show that roughly around 900 corporate venture funds are currently available for new businesses. Last year, around 16 percent of companies have acquired corporate venture capital, a number that is expected to increase this year.

Corporate venture funds have been available for more than two decades now. But recently, corporations have started to embrace this trend even if it would disrupt the status quo. The reason, they can’t afford not to anything about it.

Several companies have recently declared bankruptcy or have started to vanish because it failed to recognize the changing landscape of the market. For instance, rental company Blockbuster would still be a major player if it recognized startups such as Netflix. This is similar to the case of Kodak. If only it recognized newbies Shutterfly and Instagram, it might have averted declaring bankruptcy.

Fortunately for some companies, they still have time to catch up with the situation. Nielsen, for instance, has already allotted money to fund small investments. Dell is doing the same, maintaining that it will continue investing in startups even with plans for it to be taken private.

Corporate venture capital allows public company to focus on the long term. For instance, American Express Ventures will participate in merger of e-commerce and payments industries. It is also looking for new technologies that could be utilized for the next decade.

If you are an owner of a business startup who is in need of capital, then it is a good idea to look for venture funds from corporations. Securing one would be a good thing, especially since big companies could assure a successful future for your business startup.