Journey of a Business Startup

 

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Starting a business is a rewarding and challenging experience. It allows you to be very creative in the way you operate your business and the way you deliver value to your clients. Starting a business also allows you to take control of your life and determine how you will make your living. It does come with challenges, however.

Locating a Space for the Business

In starting my business I came across a number of hurdles I had to overcome. For starters, I had to search for the right location. Embarking on that process meant that I had to look at more than 100 locations in a number of cities to find the right place. I was looking for the area that had the right visibility, rent costs and potential customer income; all very hard criteria to match up. Yet it was work that had to be done as the cornerstone for building the business.

What is the Business Brand Identity?

Another challenge I had to overcome was brand name recognition. Now starting off I was working with a franchise company that had a number of brands under its direction. In starting out I had every intention of working with one of those brands. I did everything in the process up until actually sending the franchise fee to enter into the franchise as a franchisee.

Then one day the parent company decided to just simply discontinue the franchise I was considering. That was never in my business plans. Frankly I had never really thought about it and never even heard about something like that happening in the franchise world. Clearly I needed to do more research in that area.

So I had a decision to make: do something else or create my own brand name. That’s when I had a good conversation with a dear friend of mine. She had never believed in the overall franchise model in the first place, so she immediately said, “Go and do it with your own brand name.” That’s what I did.

Financing Challenges of a Business Startup

Still another hurdle was financing. After the mortgage meltdown, credit received from any bank is tough to get under the best of circumstances. For a startup business it’s just not going to happen. The banks have no cash flow history to go by so they are very hesitant to lend. They may make expectations if there is collateral to get if the business should go under. But those opportunities are few and far between. They want good credit, good cash flow and good collateral. Again, three things that a startup by its very nature doesn’t have.

So out came the credit cards, retirement savings and backup from family members. That’s when the feasibility of a marketing plan comes into stark focus. An owner will examine it a million times to see if there are any holes in it and look to plug them the best way they think. But it’ll never be 100% until the doors open.

These are just some of the challenges that a business startup will confront. Through these examples, you can see that starting a business is a series of challenging experiences which the owner or owners will need to overcome. Some of those obstacles will be obvious and anticipated, while others will be completely unforeseen. The best that a business owner can do is plan for both.

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Parents Should Have Life Insurance

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Once a person becomes a parent, there is no reason for them to go without having some sort of life insurance policy in place. Improving the life of a child is a parent’s primary responsibility. With a policy, a parent can continue their legacy even if for some reason they are no longer around.

Insurance Can Be Budget Friendly

Many parents may think they can’t afford a life policy. However, there are a number of options that do make it affordable for almost any budget. There are pros and cons with each choice, but having something basic in place is much better than not having anything at all. Especially since a child’s future depends on it.

Whether it’s simply keeping a roof over their head or paying for their potential college education, parents want to make sure the future needs of their children are taken care of. Again, it’s their primary responsibility.

So what types of policies are available to a parent?

Term Life Insurance

For starters, a term policy can be set up so that it cost nothing more than a Whopper meal sandwich from Burger King for the month. This makes it much more budget friendly then a cell phone, Netflix or cable TV. Common creature comforts parents find themselves spending money on each month. Under tough financial constraints, a term policy is a great alternative.

One of the downsides to a term policy however, is the fact that it only covers a parent for a certain period of time. That’s the term.

So for instance, if a parent buys a 10 year term policy and something happens to them 11 years after they bought the policy, then their children won’t get any money. The same holds true for a 20 and 30 year term policy. The insurance in essence expires and would no longer pay benefits to the children.

Also, unlike a number of other insurance policies (namely permanent policies) it would not accumulate any cash value. Cash value that could be used for any number of plans or emergencies that may come up in the future.

Permanent Life Insurance

Term insurance can be converted into a permanent life insurance policy. Permanent life insurance policies can also be bought on their own. They are called permanent policies because they are just that, permanent. Meaning, as long as the parent pays the monthly premium, they will have insurance for the rest of their life. Something not available with term life insurance policies.

There are a number of options to choose from when it comes to a permanent policy. They fall under the following categories; universal life insurance, variable universal life insurance and whole life insurance. Each selection has benefits many parents find attractive.

Like I said before, one of the more attractive benefits of a permanent policy has to do with the fact that it accumulates a cash value along with being a pure life insurance policy. Any parent that owns a policy like this has the best of both worlds. An available cash value and life insurance.

The main shortcoming with permanent insurance is the monthly cost. Typically it’s going to be more expensive on a month to month basis than term insurance. Once more, not attractive to some budget weary parents.

Buy Insurance When You’re Young

Buying life insurance at an early age is like giving a gift to your future self. The younger you are, the less expensive the payments every month. And the payment in most cases stays the same throughout the life of the policy. Imagine if you could pay the same amount for gas at the pump that people paid 20 years ago. That’s the idea.

And if budgets aren’t constrained, it makes sense to purchase life insurance even if someone doesn’t have any children. Why should they wait until they’re older and it becomes more expensive? Also, why should they wait to develop a medical condition that might prevent them from getting any insurance at all?

So if you’re a parent, make sure you somehow work life insurance into your budget. And yes, you may need to stretch yourself a little thin. In addition, you may never use it. But you can rest assured, that if you ever do need it, it will help secure the future needs of your child.

 

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