Innovation Cluster Admin, Autor em Innovation Cluster

2022.06.10

How do you manage work-life balance as a startup?

We have all heard the term ‘work-life balance’ – the goal of maintaining equal harmony between our professional and personal lives. However, when you first launch and grow a startup business, there is often lots to accomplish. In fact, you could easily fill up 24 hours a day with work. So how do you find that sweet spot where neither your business nor personal life suffers? This blog provides tips on how to manage work-life balance as a startup and why it is so important.

What is work-life balance and why is it so important?

As self-explanatory as ‘work-life balance’ may seem, it is hard for many entrepreneurs to achieve in reality. In the simplest of terms, having a good work-life balance is when a person equally prioritizes their career and personal/family life, with neither one consistently being put on the backburner.

Being a driven startup business owner can lead to fantastic things, but focusing too heavily on work can cause some negative effects such as:

Feeling burnt out and stressed.

Maintaining good mental health for entrepreneurs is so important, and often it is not prioritized.

Creating tension at home.

If you live with a partner or spouse, or have children, devoting minimal time to being at home and spending time together can lead to problems.

Dropping hobbies or interests.

When you are working hard to ensure your startup succeeds, things like hobbies or interests tend to easily fall to the wayside.

Having hobbies actually makes you more productive and energized for when you are focused on work, and keeping them in your life is just as important as working on the next partnership or product launch.

Distancing yourself from friends

Having a support system around you is really important, but if you stop putting effort into relationships, that support system you once had may begin to dwindle.

3 Tips on How to Improve Work-life Balance

Set strict work hours

As an entrepreneur, it is easy to go down a work rabbit hole. One more hour turns into four more hours, and before you know it it’s 1:00 a.m. Setting strict working hours will lead to many benefits, including making you happier and more creative.

Remember that those emails will always be there when you come back. Often taking a much-needed 5, 10, or 30-minute break will lead to a better response.

Setting strict working hours also means learning how to implement better time management skills, so the hours you do work are meaningful and productive.

Schedule time for loved ones

Balancing work life and home life is important. Making sure you schedule time with family and friends will allow you to not only maintain healthy relationships, but it will naturally make you feel a higher sense of work-life balance.

Remember to use this time to have FUN! When we take life too seriously, we forget to enjoy ourselves and our loved ones. By sharing time purposefully with others we reinvigorate our confidence and can feel recharged to work hard on that pending project.

Practice self-care

Every person finds relaxation in different ways. Common activities include exercising, reading, meditation, gardening, a hobby, or simply having quiet time alone. Prioritizing time for yourself may seem irrelevant when you have a million items on your to-do list, but in the end having time for yourself will prove to be beneficial at work and for your overall well-being.

Working more hours does not lead to greater success

Putting in long hours may seem like the logical thing to do when you are really busy, but this extra time and energy is not putting you any further ahead.

Stanford University economics professor, John Pencavel, conducted a study that found that productivity per hour heavily declines after a person works 50 hours a week. In fact, he found that those who work up to 70 hours are equally productive as those who work 55 hours.

How do you start implementing a work-life balance?

Overall, our message is simple: Do your best. We know juggling being an entrepreneur and perhaps also being a spouse or a parent can be very challenging, but making an effort to balance all areas of your life will not only make you a better entrepreneur, but it will make you happier.

It is always about progress rather than perfection. Don’t expect to find this balance right away if this is your first time trying to implement these tips. It is about consistency and exploring what works for you, what feels GOOD. Enjoy the journey of finding your balance. You will not regret it!

Joining a startup incubator is an effective way to see progress and organize your workload. Startup incubators mentor and guide you on how to best operate your business, prioritize goals, and manage the challenges that are unique to entrepreneurship.

For more information and tips on how to achieve a work-life balance, visit the Canadian Mental Health Association.

Money

2022.06.02

6 Tips For Startup Business Taxes in Canada

Millions of Canadians work as employees at organizations and are used to filing standard annual income taxes —a fairly straightforward process for most people. As a new startup business owner, there are now new things to consider, know, and keep track of.

We have provided 6 tips for startup business taxes to make this easy to navigate.

1. Know what expenses you can claim

When you are first getting your business off the ground, there are startup expenses you incur that are necessary for your business to operate. Many reasonable and legitimate expenses can be claimed as business startup tax deductions. Some of these items may include:

Equipment and Technology
Supplies
Business fees and licenses
Vehicle expenses
Legal and accounting fees
Insurance

2. Stay organized and TRACK EVERYTHING

One of the biggest tax tips we can provide to entrepreneurs is to always be organized. From every business expense to income earned, keep receipts and detailed records. The importance of keeping good records cannot be overstated enough for a few reasons:

It is required by law to keep all records. Be aware of your responsibilities and how long you must keep records for, which is generally for a period of six years from the end of the last tax year they relate to.
It will make your life a lot easier and less stressful when it comes time to file your taxes.
In the event you are audited by the Canada Revenue Agency, having clear and organized records will make this process much easier than if you cannot account for your business activities.

3. Be informed of all available tax credits

As a small business startup, tax credits can go a long way. Become familiar with all tax credits you are eligible for which may include:

Canada Caregiver Credit
Health Spending Account (HSA)
Disability Tax Credit
Canada Child Benefit

4. Balance your Dividend/Salary Mix

As a startup business, you can withdraw money from your company either as a dividend or salary. Paying yourself a healthy salary provides an opportunity to maximize your RRSP, but you may also want to take out part of your pay as a dividend to take advantage of a lower tax rate. Knowing how to balance the two can maximize your earnings, but you must be aware that every startup business owner’s circumstances are different. What may be a great decision for one person may not be as smart for another.

5. Consider Income Splitting

Many startup business owners choose to pay family members a salary, as any salary paid out will count as a business deduction. However, the salary must be reasonable in relation to the position your family holds at your company. For example, a typical entry-level position should not be earning a salary that is well over the average in your region.

6. Determine what is best for your budget

In the past you may have been an employee and taxes were deducted from every pay. This hopefully resulted in no large sum of taxes due at the end of the year. Now as a startup business owner, this does not happen. It is your job to determine what fits best within your startup budget. You may want to consider paying income taxes every month to avoid one large payment. This can be set up with the CRA and can be easier to manage throughout the year.

Where do you find help with startup business taxes?

From year to year, there can be changes to tax law and tax credits available to startups. To keep up-to-date, we recommend choosing a CPA firm that understands startups and can advise you on what is best for your business.

In addition to acquiring the services of a tax professional, having a startup mentor is a great way to learn from someone who has been where you are in your journey, or has expertise to advise you to make smart choices. A startup incubator has experienced mentors, fantastic programs, knowledge, and opportunities to help you plan for startup taxes and aid in your company’s overall growth and success.

Growth

2022.05.27

How to grow your startup business

Entrepreneurship is becoming more attractive and popular. In fact, two million Canadians launched startup businesses during the Covid-19 pandemic. But not all one-of-a-kind ideas turn into successful companies; they need to grow to stay alive, remain healthy, and meet customer needs. Determining how to grow your startup business can be a challenge, especially when a one-size-fits-all strategy does not exist.

Although every business’ journey is different, we have chosen our top 6 pieces of advice for startup entrepreneurs that should be taken into consideration when trying to grow a business.

6 Tips to Grow Your Startup Business

1. Identify a real market need

New inventions and technologies are fantastic, but even the most innovative idea or product will not succeed if there is no demand from consumers. Discovering what consumer needs are not being met, and then offering a solution to their problem, will put you on track to quickly grow sales.

2. Be the tortoise, not the hare

We have all seen headlines about startups that found overnight success. This is not your typical success story. Almost always, slow and steady wins the race. Some startups want to sprint right from the start and begin allocating funds across a variety of channels in hopes of landing big customer acquisitions. However, spreading your resources too thin will not attract quality leads. Slow down and begin strategically focusing on smaller, qualified audience segments by applying low-cost marketing strategies.

3. Quality before quantity

Startups need to make money quickly, but the quality of your product or service should not take a hit in order to do so. If you cut corners to save on costs, your customers will notice and your brand will lose credibility. In the beginning stages of your company, the quality of your product is what will attract customers to buy, become repeat customers, and recommend your product to others.

4. Remember your purpose

It is normal in the beginning to develop tunnel vision when you are focused on achieving growth. However, creating a successful business involves connecting all decisions you make back to the reason or purpose for launching your startup. Strong brands are able to connect with customers because they have never lost sight of who they are, their mission, or their reason for existing.

5. Set your priorities (and follow them)

Let’s face it, as a startup business owner you always have a lot you want to accomplish. This is why defining a clear priority list will keep you on track with what matters most. After launching your business, your top priority is to drive growth and you do not want to get distracted by projects that will not directly aid in this goal. Creating a priority list also prevents you from getting overwhelmed so you can maintain good mental health while being a busy entrepreneur.

6. Build a team that supports your culture

One of the most effective ways to achieve growth is for every member of your team to be an ambassador of your brand and someone who enhances your business culture. Customer perception accounts for a whole lot, and they can easily detect when a brand is not authentic. If your messaging is happy-go-lucky but your company culture is not, this will seep through to consumers.

Startup incubators help grow your startup business

One of the most effective ways to grow your business is to join a startup incubator that offers support, knowledge, business expertise, skills training, workshops, networking opportunities, and mentorship. When you are unsure of what steps to take next, startup incubators provide guidance to help you make decisions that will be best for your business.

Innovation Cluster Peterborough and the Kawarthas have helped hundreds of startups launch, grow, and scale their businesses successfully. Learn more about its programs and apply at innovationcluster.ca.

Health for entrepreneurs

2022.05.19

Why is good mental health for entrepreneurs so important?

Being an entrepreneur has many advantages. It allows you to follow your passion, set your own schedule, and be your own boss. But any experienced entrepreneur will tell you that the road to success does not go without challenges or obstacles. Working through problems is a priority as a startup business owner, but mental health for entrepreneurs needs to be given the same level of importance.

Why is mental health important for entrepreneurs?

From a mental health survey of more than 300 entrepreneurs, 63% reported dealing with burnout and 59% dealing with anxiety – a far cry from the glamourized entrepreneurial lifestyle that populates our Instagram feeds.

Although being an entrepreneur can be an amazing lifestyle, in reality, it is common for individuals to have stressors over finances, the day-to-day, or keeping a work-life balance. To ensure these natural thoughts do not escalate into larger problems, knowing how to properly identify signs of poor mental health and its effects needs to be more openly discussed.

Common symptoms of poor mental health amongst entrepreneurs

Inability to focus

When you feel overwhelmed by the laundry list of projects you need to complete, it can be extremely difficult to focus on any of them. This can lead to feeling more stressed or overwhelmed because it is taking much longer to scratch tasks off your list.

Exhaustion

Regardless of how much sleep you are getting, chronically feeling mentally and physically exhausted is a sign you are headed for burnout. When you no longer have the energy to do the work you once loved, this is something to take note of.

Decreased performance

Due to exhaustion and an inability to focus, you begin to notice a decrease in the quality of your work. Creativity and innovation are best fueled by a clear mind, but when you have a lot on your mind and you are not well-rested, this can hinder bringing forth your best self.

Anxiety

Feeling anxious all the time is a sign that something needs to change. Experiencing a small dose of anxiety over an upcoming investor pitch or sales meeting is quite common, but this anxiety should not be a daily occurrence.

Lack of patience

If you tend to be a fairly patient person but find yourself becoming short with team members or others around you, this can begin to negatively affect relationships which can impact your business.

How can entrepreneurs manage their mental health?

Practice self-care

Rest, sleep, exercise, eat healthily, meditate, and disconnect.

Don’t keep emotions bottled

Chances are if you do, it will build to become worse. Talk to other entrepreneurs or trusted people to who you can vent and go for advice.

Slow down your pace

Entrepreneurs often have many jobs on the go. Sometimes the best way to lower stress and have better mental health is to take a breath and slow down.

Take up a hobby

When you are already super busy, adding another element to your life can seem impossible. However, taking time to focus on a passion unrelated to your business can bring more joy and balance to your life.

Set clear boundaries

We know that at times you would be able to fill 24 hours of your day with work. This is why it is healthy to set clear boundaries such as firm working hours, device-free time, and when you have set aside time for yourself or your family.

Join a startup incubator

Startup incubators help entrepreneurs work through all the steps to launch and grow a successful business. Having mentors to keep you focused and stay on the right track can alleviate a lot of stress and overall, improve your mental health.

Visit Innovation Cluster Peterborough and the Kawarthas to discover how they help entrepreneurs launch, grow, and scale their businesses in a welcoming, inclusive, and stress-free environment.

Startup Incubator

2022.05.12

Everything you need to know about having a startup mentor

When launching a startup, acquiring a lot of knowledge and skills is an ongoing process. Thanks to our technology-driven world, there are unlimited resources available at our fingertips. But as convenient and accessible as these online materials may be, they do not understand your business, are not able to give tailored advice, and the information may not always be accurate or trustworthy. Learning from a startup mentor – their lived experiences, industry expertise, and path to success – is arguably one of the most valuable ingredients that will set your business up for success.

What is a startup mentor?

A startup mentor is someone who provides guidance and advice as you navigate launching, operating, and growing your startup business. Commonly they are a seasoned and successful entrepreneur, have had years of relevant experience within your industry, or are an expert in a field crucial to your startup’s success.

Startup businesses can either form a relationship with one sole mentor, or due to the various types of mentors that exist they may acquire many with each serving a different purpose.

Types of Startup Mentors

Successful Entrepreneurs

Company founders who are mentored by successful entrepreneurs are more than 3x more likely to become top performers. Simply put, business mentors for startups who are successful entrepreneurs have been in your shoes in one way or another and have the first-hand experience to guide you through the different stages of your company’s growth.

Every successful entrepreneur has had some major wins along their journey, but it is often their failures where you will learn the biggest lessons. Their years of experience can provide you with insider tips, teach you critical skills, secure strategic partnerships, and provide networking opportunities that can lead to introductions with investors or key suppliers.

Industry Expert

Industry experts who become startup mentors have the ability to teach entrepreneurs crucial knowledge, existing regulations, the industry’s competitive landscape, and popular trends and preferences among customers.

Due to their years of experience and expertise, they have formed deep connections with important players that can lead to promising introductions, and they have an ability to sense where the industry is headed.

Field Expert

Field experts may or may not work within your startup’s given industry, but they have deep experience, knowledge, and skillsets in a particular area that is of great value to your business. Examples of this may be a sales executive, seasoned marketing professional, engineer, software developer, or technical expert to name a few.

Receiving mentorship from a professional in an area that is critical to your company’s success such as startup marketing is a huge benefit and can avoid having to navigate these areas on your own.

Roles of Startup Mentors

No matter what type of mentor you choose, there are various roles they can play in helping to launch, grow, and scale your business.

5 Major Roles of a Mentor in a Startup

Guide – Navigated by their experience, they ensure startups are headed in the right direction.
Brings Customer Perspective – Has knowledge of the current customer profile through research or expertise.
Investor Relations – Helps gain access to startup investors, secure funds, and can help as a liaison once they have come onboard.
Teacher – Business mentors for startups often have skills that require training to learn. Examples could be training on a particular software or technology or it could be communication skills that will help with things like networking, public speaking, or communicating effectively with your team.
Sounding Board – Innovative ideas are what have made some of the best companies successful, but not all ideas will be successful on the market. It is a huge benefit to have a mentor act as a sounding board to listen to all of your ideas and provide constructive feedback.

How do mentors help startups?

Approximately 70% of mentored businesses survive five years which is more than double the rate of non-mentored companies. The reason for this is simple: startup mentors provide many benefits that prepare them to succeed in today’s market but also protect them from making big mistakes that could significantly hinder their company’s growth.

5 Benefits of Startup Mentors

Develop new skills and training

When you are first starting your business, you most likely do not have a large amount of cash available in your startup budget to spend on training workshops and seminars. Mentors possess a wide range of skills that you can learn from.

You don’t face challenges alone

Every startup no matter how brilliant or funded is at some point going to face challenges. Quite often as a new business owner, you will come across issues you have never dealt with before.

Startup mentors have been where you are and have been up against a lot of adversity. They can provide invaluable advice and tips on how to navigate problems, and are there for support as you make your way through them.

Greater opportunities for growth

Learning from startup mentors provides you the opportunity to learn from the areas in which they have succeeded, and have had losses, and to learn how to make educated business decisions based on these experiences. In addition, mentors have the knowledge, skills, and connections to aid in your business’ overall growth.

Connections

Over many years as an entrepreneur, working in their industry, or refining their skill set, all startup mentors have formed connections with other professionals, investors, suppliers, and contractors and their introduction to these individuals can give you a foot in the door that you need.

Build Confidence

Launching and operating a startup business can be overwhelming and at times, nerve-racking. Having the guidance and support of an experienced mentor can boost your confidence as a business owner and provide reassurance that you are on the right path.

How to choose the right startup mentor for your business

Thus far we have outlined the types of mentors, the roles they play, and their benefits, but how to choose the right mentor for your business is equally important. Aside from the obvious factors including their business experience, industry knowledge, and skillset, often these “on paper” qualifications are not enough. Just like not every qualified candidate for a job position is going to be a good fit, neither are mentors.

It all comes down to characteristics.

Characteristics of a strong mentor

Has good chemistry with you

Sometimes how or if you bond with a person is the deciding factor. If your relationship seems forced, you will not feel comfortable approaching them regularly with concerns.

Makes themselves available

A good startup mentor should not be difficult to connect with. Depending on the needs of your business and what stage you are in, scheduling regular meetings or phone calls would be the best scenario. This way, you can bring any items you want to discuss with your mentor to your regularly scheduled meetings rather than emailing or calling every time you need their advice or input.

A good listener

Receiving advice, being told stories, and learning new skills is fantastic, but sometimes you need someone who will actively listen to you and provide their thoughts.

Positive attitude

Encouragement and keeping a positive attitude go a long way. As experienced and knowledgeable as a mentor may be, if they are always negative and shutting down your ideas this will not benefit you or your startup.

Honesty

Being “too nice” also exists, and this is not good either. There is a tactful way mentors can tell you your idea is not strong or there are issues with your business plan. If you are about to make a poor decision or your idea poses some serious red flags, you want a mentor who is not afraid to constructively point out problems.

How to find a startup mentor for your business

Networking events

Attending local events, tradeshows, conferences, and workshops geared toward the business community or your specific industry is a fantastic way to find mentors for startups. Have a casual yet polished business pitch ready so you can convey the essence of your business clearly to many people.

Online business platforms

There are great digital platforms that present opportunities to not only connect with mentors in your local region but across the world. Platforms like LinkedIn and Twitter are used heavily by business professionals and are great places to begin building connections.

Startup Incubators

Startup incubators offer mentorship, programming, workshops, and networking opportunities that heavily increase the success rate of their clients. In fact, using a startup incubator increases a company’s survival rate to 87%.

Innovation Cluster Peterborough and the Kawarthas, a startup incubator that supports technology and innovation-driven companies, is located between Toronto and Ottawa and is led by Innovation Specialists who are seasoned entrepreneurs that are passionate about being a tech startup mentor. To learn more and apply, visit www.innovationcluster.ca.

Money

2022.05.05

How to find investors for your startup business

Launching a startup business is a significant accomplishment. It takes lots of drive, commitment, and courage to transition your innovative idea into a legitimate business. But it is no secret that even the most passionate and brilliant entrepreneurs will face greater challenges if their businesses do not have proper financial support. Exploring how to find investors for your startup business, and more precisely, attracting ones that will have the expertise to take your company to the next level, is critical in your startup’s early stages to set yourself up for long-term success.

Where to find investors for your startup business

There are different types of investors for startups, each with its own set of perks. It is important when looking for investors for your startup business to recognize what stage your startup is currently in, how much funding you require, and if your company is what a particular investor will be looking to invest in.

Here we will look at three types of equity financing — receiving funding in exchange for a share of your company.

Family and Friends

This avenue can be really attractive as the conditions of investment are typically more lenient and advantageous. There are many things to consider when approaching family and friends, but two of the most important are deciding whether your agreement will be a loan or an investment, and ensuring the terms of your agreement are clear.

For example, will they expect interest paid on the loan? If it is an investment, what percentage of future profits will they receive? Your terms must be clear and in writing so there is no confusion or problems down the road.

Angel Investors

Angel investors are people with significant disposable funds who seek promising investment opportunities. Typically, investment in your startup is exchanged for equity in your business. The difference between angel investors for startups and venture capitalists is they usually are not only interested in generating a return on their investment but are also invested in your company’s long-term future.

Angel investors not only can provide funding, but offer years of industry expertise that can be of equal value when working to grow and scale your business. Well-established angel networks like the Peterborough Region Angel Network located in Peterborough, Ontario, invest in promising startup businesses and care about helping companies achieve success.

Venture Capitalists

Venture capitalists are investors who provide businesses capital in exchange for benefits such as company equity, a seat on your board of directors, or a percentage of future profits. Venture capitalists can either be individuals or large firms and they gravitate toward startups with above-average growth potential.

How to get investors for your startup

With an overview of where to begin looking for investment opportunities, you may be wondering how to attract investors for startups and get them to invest.

The answer is networking.

Networking helps your startup business grow, and by attending industry events and forming connections you will gain knowledge about the best investment opportunities. Even if you do not network directly with investors, meeting other business owners and leaders opens up doors to get an introduction with an investor they may have in their network.

An effective way to increase your networking and connect with investors is through a startup incubator. Startup incubators host events and workshops, are closely connected with angel networks and offer knowledge and tips on how to successfully give a business pitch and secure investor funding.

Innovation Cluster Peterborough and the Kawarthas offers year-round networking and mentorship that helps startups find and attract investors.

To learn more, visit https://www.innovationcluster.ca/.

Startup Visa

2022.04.28

What you should know about the Start-Up Visa Program in Canada

Canada is one of the most desirable countries for immigrant entrepreneurs to grow their early-stage companies. Statistics show that first and second-generation entrepreneurs make up almost 35 percent of all start-ups in the country. Canada’s wide embrace of cultural diversity and business innovation undoubtedly aids in the nation’s global popularity, but it is the Start-Up Visa Program in Canada that is really making international entrepreneurs flock to the hockey-loving nation.

What is the Start-Up Visa Program in Canada?

Canada’s Start-Up Visa Program for immigrant entrepreneurs offers Canadian permanent residence, targeting people who have the skills and potential to build businesses in Canada that are innovative, can create jobs for Canadians, and can compete on a global scale.

The Start-Up Visa Program (“SUV”) connects candidates with a designated organization such as a business incubator, who helps establish their business in Canada. Initially, entrepreneurs can come to Canada on a work permit supported by their designated organization before qualifying for permanent residence once their business is in full operation.

What requirements are needed to enter Canada’s start-up Visa Program?

Basic eligibility requirements for the Start-Up Visa in Canada include having a:

Qualifying Business for Canada
Commitment Certificate and Letter of Support from a Designated Organization
Sufficient and Available Funds
Proficiency in English or French

What businesses qualify for the Start-Up Visa Program in Canada?

At the time of commitment from a designated organization:

An SUV candidate must hold 10% or more of the voting rights attached to all shares of the corporation (up to 5 people can apply as owners)
An SUV candidate and the designated organization jointly hold more than 50% of the total voting rights attached to all shares of the corporation outstanding at that time

How do I get a Commitment Certificate and Letter of Support for the SUV Program?

Every designated organization in the SUV program has different requirements on how start-ups gain its support and in turn, receive a commitment certificate and letter of support needed for their SUV application. You will need to correspond directly with the organization to pitch that your business is worth supporting. This may be an in-person meeting, a formal proposal, or an application for their business incubation program.

How much money is required for the start-up Visa Program in Canada?

SUV applications require proof of sufficient and available funds to support yourself and any dependents after you arrive in Canada.

Fund requirements vary based on the size of your family. In addition to SUV’s requirements, you should prepare financially and calculate how much money you will need to live in your Canadian region.

What language skills do I need for the Start-Up Visa Program?

Proficiency in English, French, or both languages is required. A language test must be taken from an approved agency and your results must be submitted with your SUV application. You must meet the minimum level of the Canadian Language Benchmark (CLB) 5 in either English or French in four areas: speaking, reading, listening, and writing.

How do I start the process of entering the Start-Up Visa Program in Canada?

An SUV-designated business incubator program not only helps meet SUV requirements, but you will gain invaluable knowledge that will prepare you for business in Canada. Learn about accepted business culture, common business practices, and government regulations. You may also be given networking opportunities so you can form connections before arriving in Canada.

Located between Toronto and Ottawa, Innovation Cluster Peterborough and the Kawarthas is one of few rural business incubators in Canada designated to offer a Start-Up Visa Program and has supported more than 40 companies owned by immigrant entrepreneurs since 2021. Start the conversation by asking questions and learning how you can begin your journey to Canada.

Money

2022.04.21

How to Create a Startup Budget

Successful entrepreneurs know all too well that every dollar counts in the early stages of their business. However, only 54 percent of small businesses in the U.S. had a budget in 2021. Having a detailed and organized budget helps you be strategic with your spending and stay on track to achieve your goals. Here we will teach you how to create a startup budget that will allow your business to grow and succeed.

What steps should you follow when creating a startup budget?

According to an October 2020 survey conducted by Shopify, startup business owners spend an average of $40,000 in their first year. However, this amount varies significantly as every startup has different needs.

Budgeting for a small business startup can be overwhelming, but following these steps on how to do a startup budget for a small business can alleviate a lot of your stress.

5 Steps to Building a Startup Budget:

1. Choose a budgeting tool that works best for your business

Budgets do not need to be fancy, but they need to meet the needs of your company as it grows and evolves. Microsoft Excel or Google Sheets may be sufficient right now, but you may want to consider using a startup budget template or startup budgeting software.

2. Set a budgeting goal

Set a realistic budget goal to keep you on track and quickly separate your essential expenses from wish list items.

3. Categorize and tally your expenses

Separate your fixed costs and variable costs.

Fixed costs include more finite expenses such as rent/mortgage, payroll, and insurance. Variable costs have some ‘wiggle room’ and include things such as materials, marketing, transportation, and travel.

Now calculate your total. Remember that some costs may be one-time expenses and others may be recurring either monthly, quarterly, or annually.

4. Calculate your total revenue

As a startup, you may not have past sales to help forecast your revenue. For this reason, you should consider forming two sets of projections: One you hope for and the other more realistic. Potential sources of funding may include product or service sales, loans, savings, or investment income.

5. Compare your expenses and revenue

Have a detailed look at your expenses and compare them with your revenue. If your budget is far off from the goal you set in step # 2, decide which variable expenses you may not need at this point in time. These items can always be reintroduced as your revenue increases.

Startup costs to consider

Every startup business is different and therefore no budget will look the same. However, there are some common startup business costs that every entrepreneur should be aware of.

8 Budget Items to Consider

Office or Workspace: Rent/mortgage, furniture, office supplies, utilities, internet etc.
Equipment: Technology/Machinery
Incorporation Fees
Low-Cost Marketing
Website: Development & Maintenance
Payroll & Consulting Fees
Taxes
Emergency fund

If you are not confident with budgeting, the good news is you don’t have to navigate it alone. A full-service startup incubator can help you build and manage a budget that sets you up for success.

Contact Innovation Cluster Peterborough and the Kawarthas to get started!

Networking

2022.04.14

How does networking help your business grow?

Forced ice breakers, repetitive elevator pitches, and stiff meet-and-greets. These networking stereotypes lead many entrepreneurs to skip business socials, conferences, and other events out of fear of feeling awkward, uncomfortable, or out of their element. However, networking with the right approach can be extremely effective and enjoyable, and can eventually become second nature when you do it regularly. So how does networking help your business? Quite simply, it can be the instrumental tool that accelerates your company’s overall growth and success.

Why is networking important for your business?

You’ve heard the saying, “It’s not what you know. It’s who you know.” As a business owner, you may be shaking your head thinking about the amount of knowledge and skills you have had to acquire.

However, there is some merit to this statement.

Who you know is sometimes the ticket to landing a meeting with a promising client, investor, or receiving a much-needed favour at the eleventh hour. Every person you meet also has their own network, which opens up even greater possibilities for becoming introduced or connected to the right people.

Networking is necessary for effective entrepreneurship as it presents opportunities you might not be able to access on your own and it is also an inexpensive and organic way to promote your business.

Types of Business Networking

How to secure your business network begins with understanding the types of business networking opportunities that are available. Networking can come in many forms, but we have compiled a list of popular networking opportunities that can help you begin to expand your connections.

Conferences and Events

Various organizations hold seminars, lectures, luncheons and more that are advertised. Search your local region for upcoming events.

Industry Associations

Many industry associations operate networking groups that can help you meet influential people in your sector.

Online Networking

Social networking on platforms such as Facebook or LinkedIn, or attending online webinars can be a great way to make connections with people you would otherwise never meet.

Social Events

Networking at social events can set an informal atmosphere that lets you build relationships in a relaxed, yet effective way.

5 Tips to Achieve Effective Networking

Understanding what business networking is and its benefits is just as important as having the right approach so your networking efforts are effective. Here are 5 tips to achieve effective networking:

Seek the right people.

Surround yourself with people who will enrich your network. Research who the best people are to network with for your business.

Be proactive.

Generating conversation for some people can be nerve-racking. A great way to begin networking is by having open-ended questions ready that you can ask people in an informal manner.

Have a solid pitch polished and ready.

People you meet will ask about your business. Having a seamless 30-second pitch that is clear, well-explained, and sounds natural goes a long way.

Stay connected.

Once relationships have been established, making an effort to foster these relationships goes a long way. Using online platforms and social media is a great way to maintain relationships.

Participate in business networking hosted by a startup incubator.

Startup incubators often host free or low-cost networking opportunities that attract the local business community, investors, and other entrepreneurs. It is a fantastic way to meet the right people and stay connected within your local community.

Marketing

2022.04.07

3 Low-Cost Marketing Strategies for Startups

As a startup business owner, you are well aware that marketing is essential to increase brand awareness and drive sales, but creating and implementing effective marketing strategies requires time and money. With zero or little cash to spare marketing can seem impossible, but there are low-cost marketing strategies for startups that can effectively begin growing your business.

Why are low-cost marketing strategies for startups vital for success?

Even if your business has the potential to be the next Apple or Amazon, your startup will never grow if no one knows it exists.

Prioritizing marketing strategy differentiates brands from their competition, from early-stage companies to the most influential global brands.

Hiring a dedicated marketing professional or acquiring marketing services from an agency does not exactly fit within an early-stage startup’s budget. Although this should be a future goal, your business cannot afford to wait for this to be possible.

We have identified the top 3 best marketing strategies for startups to follow while working with an average startup marketing budget.

Identify your target customer to drive marketing strategies.

Because marketing and advertising costs for a startup business have to remain minimal, you want to make sure every project, initiative, and marketing campaign is highly targeted.

The most effective approach for sales and marketing for startups is to determine your startup target market so you can make an educated decision on what marketing strategy is the best fit for your business. We recommend to only focus on your top Ideal Customer Profile (ICP).

Beginning by choosing one clearly defined ICP rather than going after multiple at once allows you to allocate 100 percent of your focus on your most significant target. Doing this increases your chance of driving revenue early on, which makes your marketing efforts more effective. Examples of low-cost strategies that become more effective when using a well-defined ICP are Inside Sales and Account-Based Marketing.

Inside Sales sells a company’s products or services via phone, email, or other online channels, typically from an office-based environment.

By following an Inside Sales strategy using a clearly defined ICP, your startup can primarily benefit from low costs (you only need access to a phone and internet connection) and the high potential for sales growth if appropriately executed.

Account-Based Marketing (ABM) is a B2B strategy that targets select accounts with higher growth opportunities and turns them into customers through tailored marketing and sales activities.

By following an ABM strategy focusing on your identified ICP, your startup will generate revenue more quickly than if you spread your resources across several accounts. Gaining startup marketing metrics is sometimes challenging in the early stages, and ABM is a way to see ROI. Revenue earned from ABM can be used to reach other accounts that require more complex marketing strategies, such as digital marketing.

Insides Sales and ABM are solid strategies for many startups to follow, but they are not going to work for every early-stage company. How to determine what the best strategies are to effectively target your ICP can involve many variables, and you may want to consider asking for guidance from an experienced business professional or a startup incubator.

Grow faster with collaborations and co-marketing.

Launching the best startup marketing campaigns on a limited budget can be done when collaborating with other businesses. Co-marketing, the sharing of audiences and resources between two complementary brands, opens up tremendous opportunities to hit marketing objectives for startups and experience overall growth.

Co-marketing helps by:

Generating more creative marketing ideas for startups
Producing more premium content such as guest blogs
Reaching a larger audience to attract more leads
Offering a cost-effective alternative to solo marketing

Focus on SEO to build brand awareness.

You may have heard of Search Engine Optimization or SEO, but it can be daunting how to do SEO and see its results when you have little money to work with.

Websites constantly compete to earn top positions when content is searched for online, but it is difficult for a startup to be in the running with a limited budget.

We recommend choosing keywords that:

Speak to customers that are at the bottom of the marketing funnel. In other words, they are ready to buy. Later in your marketing journey, you can expand to target leads near the top of the funnel by creating valued content.
Don’t have a high number of searches every month so you are not competing with the content Goliaths of the internet.

One of the best digital marketing tools for startups that is free is Google Trends, which can help with your SEO strategy.

How to set your startup business up for long-term success

If ‘how to market my startup’ was one of your most pressing thoughts before reading this blog, following our top 3 low-cost marketing strategies for startups will provide you with a starting point to begin your marketing journey.

Following low-budget marketing strategies is not meant to be sustainable for a long time but rather provide a jumping-off point to achieve larger goals.

Every startup is different with varying marketing needs especially as it grows and evolves. Finding a mentor, coach, or startup incubator program that can provide advice, support, and expertise is a great way to keep learning new knowledge and skills to set your startup up for long-term success.