One in two Houstonians say they have a great business idea — and two-thirds have gotten the ball rolling on making their idea a reality. Getty Images

If you're sitting on a game-changing business idea, you're not alone. According to data from Northwestern Mutual, over half of Houstonians surveyed said they they've got something up their sleeves for a startup — and a third of that group said their idea has the capability to change the industry.

Of the respondents who said they had a business idea, almost 60 percent have already taken first steps to making their idea a reality. But for those yet to take a plunge, the factors holding these aspiring entrepreneurs back were primarily financial. More than 60 percent said not having enough finances were what's stopped them from taking the next step, while over a third indicated that they weren't sure what their next step would be. About 30 percent identified the fear of failure as what's held them back.

Similarly, when asked what the biggest hurdle in starting a company for their business idea, almost half of those surveyed said financial support, followed by "making money" with 17 percent. Of course, that's what Carrie Neumann, director of Multicultural Market Strategy at Northwestern Mutual, expected. Enter: Northwestern Mutual's financial advising services.

"A personalized, holistic plan sets business owners on track to achieve their goals, and it also puts protections — for the business, the owner and current or future employees — in place for the expected and unexpected," says Neumann in a release.

"For entrepreneurs, a trusted financial adviser is not only a great resource for the many questions that come up when starting a business, but an adviser can also help plan for the longterm."

Northwestern Mutual conducted a survey in partnership with OnePoll with a sample of 8,000 individuals in the United States. Houston was one of the 12 major metros included in the survey — and the lone Texas city. The other cities included in the survey were Chicago; Cincinnati; Denver; Miami; New York; Los Angeles; Omaha, Nebraska; Raleigh, North Carolina; Richmond, Virginia; San Francisco, and Washington D.C.

Houston skewed a tad more ambitious than the other metros surveyed. Across the sample, 41 percent of survey respondents said they have an idea for a business compared to Houston's 51.4 percent. Miami, New York City, and Los Angeles all had a higher percentage of respondents that said they had a great business idea. Los Angeles had over 60 percent of its surveyed participants respond affirmatively to that question.

The city of Houston has its advantages for entrepreneurs. A recent study shows that salaries stretch further in Houston, with the Bayou City ranking as No. 7 nationally. The study conducted by BusinessStudent.com factored in average pay of common jobs and the cost of living.

Every penny counts when you're starting a company. Getty Images

4 financial concerns to keep in mind when launching a startup

Must be the money

You have been working on a new creative technology idea for months, an idea that will solve a problem or make a current process even better. Your innovative idea is ready for the next step, and you, in turn, are prepared to begin your tech startup. Building a company can be stressful and exhausting, but also exhilarating and rewarding. As you begin your product launch, keep these financial tips in mind when starting out.

Consider your funding
Determine how much funding you can use from your personal accounts to jumpstart your business. By investing some of your own money into your company, you show good faith in your business plan and product. This method is appealing to investors because it shows you have a long-term commitment to the company. Next, determine how much you will need from other sources and what those other sources should be. Potential options of funding in addition to traditional bank loans are venture capitalists, angel investors, government grants, and support from business incubators.

Determine your budget
An essential step of starting up is concluding how much funding you need to get started. Establishing a realistic budget is crucial. It can make the difference between having a successful business or joining the 50 percent of small businesses that fail in the first four years. The hiring of employees, leasing office space or lab space, purchasing office equipment, paying for insurance (health and liability) and providing yourself a salary are all items that need to be included in your budget.

Unanticipated extra costs occur from time to time, so overestimate your expenses. Underestimating expenses can sink your startup. Ensure your business is solvent by preparing your budget for more. Additionally, keep in mind different types of expenses, and budget accordingly. For example, you may have one-time costs and on-going costs or fixed costs and variable costs.

Cash flow
According to a U.S. Bank Study, 82 percent of businesses that fail do so because of cash flow problems. Managing your cash flow is crucial to success. Without positive cash flow, you are not able to pay your employees, rent, or taxes. Having profits does not necessarily mean you have positive cash flow. Keep ongoing cash flow work sheets to ensure you have the cash you need to continue on a successful path.

Managing for life
As mentioned earlier, make sure you pay yourself something. It does not have to be a big salary in the beginning, but you need to eat. Additionally, you need to save for emergencies. An old rule of thumb states that an emergency fund should consist of three to six months' worth of expenses. As a result, an emergency fund can make the months where business is slow, or between projects, more sustainable.

Meanwhile, it is a good idea to separate your personal and business banking accounts. Doing so will allow you to stay more organized and help tracking and managing expenses easier. Additionally, separate accounts may be beneficial when paying taxes. Consult a tax professional for additional guidance on taxes. Finally, do not forget to save for your retirement. While it is important to focus on your new business, do not neglect to take care of your personal financial health.

With proper planning and continued financial monitoring, starting your own tech business can be done well and bring years of career satisfaction.

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Joseph Radzwill is senior vice president and a financial adviser with the wealth management division of Morgan Stanley in Houston.

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Houston doctors recognized among top creative leaders in business

winners

This week, Fast Company announced its 14th annual list of Most Creative People in Business — and two notable Houstonians made the cut.

Dr. Peter Hotez and his fellow dean of the National School of Tropical Medicine at Baylor College of Medicine, Dr. Maria Elena Bottazzi, were named among the list for “open sourcing a COVID-19 Vaccine for the rest of the world.” The list, which recognizes individuals making a cultural impact via bold achievements in their field, is made up of influential leaders in business.

Hotez and Bottazzi are also co-directors for the Texas Children's Hospital's Center for Vaccine Development -one of the most cutting-edge vaccine development centers in the world. For the past two decades it has acquired an international reputation as a non-profit Product Development Partnership (PDP), advancing vaccines for poverty-related neglected tropical diseases (NTDs) and emerging infectious diseases of pandemic importance. One of their most notable achievements is the development of a vaccine technology leading to CORBEVAX, a traditional, recombinant protein-based COVID-19 vaccine.

"It's an honor to be recognized not only for our team's scientific efforts to develop and test low cost-effective vaccines for global health, but also for innovation in sustainable financing that goes beyond the traditional pharma business model," says Hotez in a statement.

The technology was created and engineered by Texas Children's Center for Vaccine Development specifically to combat the worldwide problem of vaccine access and availability. Biological E Limited (BE) developed, produced and tested CORBEVAX in India where over 60 million children have been vaccinated so far.

Earlier this year, the doctors were nominated for the 2022 Nobel Peace Prize for their research and vaccine development of the vaccine. Its low cost, ease of production and distribution, safety, and acceptance make it well suited for addressing global vaccine inequity.

"We appreciate the recognition of our efforts to begin the long road to 'decolonize' the vaccine development ecosystem and make it more equitable. We hope that CORBEVAX becomes one of a pipeline of new vaccines developed against many neglected and emerging infections that adversely affect global public health," says Bottazzi in the news release from Texas Children's.

Fast Company editors and writers research candidates for the list throughout the year, scouting every business sector, including technology, medicine, engineering, marketing, entertainment, design, and social good. You can see the complete list here

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Samsung sets sights on nearly $200 billion expansion in Texas

chipping in

As it builds a $17 billion chipmaking factory in Taylor, tech giant Samsung is eyeing a long-term strategy in the Texas area that could lead to a potential investment of close to $200 billion.

Samsung’s plans, first reported by the Austin Business Journal, call for an additional $192.1 billion investment in the Austin area over several decades that would create at least 10,000 new jobs at 11 new chipmaking plants. These facilities would be at the new Taylor site and the company’s existing site in Northeast Austin.

The first of the 11 new plants wouldn’t be completed until 2034, according to the Business Journal.

“Samsung has a history already in the Austin market as an employer of choice, providing high wages, great benefits, and a great working environment. All of this will be on steroids in the not-too-distant future, creating a historic boost to the already booming Austin economy,” John Boyd Jr., a corporate site selection consultant, tells CultureMap.

Samsung’s preliminary plans were revealed in filings with the State of Texas seeking possible financial incentives for the more than $190 billion expansion. The South Korean conglomerate says the filings are part of the company’s long-range planning for U.S. chipmaking facilities.

Given that Samsung’s 11 new plants would be decades in the making, there’s no certainty at this point that any part of the potential $192.1 billion expansion will ever be built.

Last November, Samsung announced it would build a $17 billion chipmaking factory in Taylor to complete its semiconductor operations in Northeast Austin. Construction is underway, with completion set for 2024. Boyd proclaimed last year that the Taylor project will trigger an “economic tsunami” in the quiet Williamson County suburb.

The Taylor facility, which is expected to employ more than 2,000 people, ranks among the largest foreign economic development projects in U.S. history. The impact of a nearly $200 billion cluster of 11 new chipmaking plants would far eclipse the Taylor project.

The Taylor factory will produce advanced chips that power mobile and 5G capabilities, high-performance computing, and artificial intelligence.

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This article originally ran on CultureMap.