Optimizing every available business resource is a key element in owning and operating a nanny agency. Starting a small business, or choosing to expand upon an existing one, is a very big decision. If you’re starting from the ground up, you’ll need to get your finances in order, create a cash flow projection and draft a business plan.
An agency that has been in business for awhile will require more time and energy as it develops more complex sales and marketing initiatives. All of these efforts will require creative thinking, a network of support and just a little bit of risk- remember: no guts, no glory!
Here are five innovative ways to become a better small business owner:
1. Don’t Overlook Opportunity
Even the most seasoned veteran can have trouble going outside of their comfort zone. But opportunity is sometimes cloaked with anxiety and doubt, and it’s important not to walk away from a potential business boon out of fear. When a new venture is put in front of you, evaluate it from every angle. What does your business stand to gain? How do you as a business owner benefit? If the opportunity doesn’t work out, what are the financial ramifications? Answering these questions honestly will better prepare you to make a rational decision based on fact and not emotion.
2. Focus On Your Financials
If you’re planning to finance your nanny agency with a business loan, your personal credit history is going to be subject to review. It takes about two years to clean up credit scores; pay your bills before they’re due, pay down balances on revolving credit and you’ll see a vast improvement.
The U.S. Small Business Association offers 4 tips to securing a small business loan, which is approximately $130,000 – $140,000:
- Have a strong, detailed business plan
- For a small loan, try a small bank: because they are less profitable and require the same amount of paperwork, large banks make it that much more difficult to secure a small business loan
- Inquire at alternative institutions like community banks and credit unions. A government lending program is also offered to small businesses through the SBA
- Bring all of the requested information with you; many loan applications are denied because of insufficient documentation
3. Form An Advisory Board
A priceless resource for your business is an advisory board made up of industry executives, former colleagues and even valued customers, who bring a wealth of information about who your client is and what their needs are. It’s a mutually beneficial relationship: being on your advisory board positions them as an industry thought leader and contributes to the betterment of the industry as a whole. In return, you’ll have access to new trends, get a better understanding of the problems in your industry, and gain credibility for your company. It’s a win-win situation.
4. Ask For Help
SCORE, a non-profit group of business professionals that help successful small businesses across America offers free tools, templates, worksheets and resources. Get paired up with a mentor, attend chapter meetings in your area, and take advantage of the local workshops and webinars for small business owners.
5. Believe In Yourself…But Be Realistic
Businesses don’t become profitable overnight, and the decision to throw in the towel is as much financial as it is emotional. Your mentor at SCORE will be able to be objective, but it’s imperative to ask yourself the hard questions. Is your personal life suffering because of the business? Are similar agencies in your area struggling or could it be an internal problem? You never want to throw good money after bad; one of the best decisions you can make as a business owner is knowing when to push forward and when cut your loses.
If you want more information about building a successful nanny agency?