Starting a business can be really stressful and it also feels like there are a lot of things to be done all at the same time. Have in mind that with little planning, it is quite possible to manage expectations and take actions with a sense of purpose towards building your business right. Despite the challenges that small business owners face, it is okay to say that at the end the challenges and sacrifices were worth it because there is no success without a challenge or obstacle.
In todays article we will be discussing on the 10 things that an entrepreneur should know before starting up a business. With the help of these steps, be rest assured to start your business smoothly and also overcome obstacles when the need arises.
FOCUS ON THE CUSTOMER AND FULLY UNDERSTAND THE MARKET
There are companies who do not have the best products or service neither are they the first to market but because they have understood and put their focus on the customers and they have also taken time to understand market, their businesses are flourishing and doing well.
Like the saying goes, it is not always about working hard but also working smart. Also take out time to make researches on the the demographics of your potential customer base and understand their buying habits, it will help a lot on your entrepreneurial journey.
START SMALL AND GROW
One advice I love giving people is to self-fund your business idea and then you can go ahead to create a growth story which means you will have to sacrifice a lot of things just for your business to grow which might also cause you to break up your product/service offering into smaller pieces so you can fund the early stages and get some traction and experience.
DO YOUR RESEARCH
You want to make sure you understand the industry you’ll be involved in so you can dominate it, be the best and also get recommendations you never dreamt of having. The founder of British Business Energy, Ian Wright said and I quote “Even if you think your business idea is unique, you should be aware of competitors”. You might want to have a rethink if you are not offering a product or service better or cheaper than your competitors.
HAVE A STRONG MISSION
Standing out is not an easy feat to achieve and no magic formula of any sort guarantees results which i can tell you for sure. Also, knowing your business’s purpose helps in guiding these decisions made by you. Do you know that by recognizing your business’s strengths and purpose, you can make informed choices to expand your services? This will help in making your business grow and also make it have a strong foundation.
UNDERSTAND YOUR OWN STRENGTH , SKILLS, AND TIME AVAILABLE
When running your business, have in mind that you should know when you need to involve an accountant, lawyer, insurance agent, marketing specialist, web page designer, and any other professional that will help expand your business. This will start your management process as a business owner and also widen your knowledge in the business world.
LEARN FROM OTHERS
Launching and growing a business is difficult and can drain you mentally and emotionally. Do you know that 21% of companies fail by their first year, 28% fail by their second year, 48% by their fifth year, and 65% fail by their tenth year? You need to study the statistics, know where others failed and know where to improve so that you do not make the mistakes others made. That’s why it is so important to attend events of small business organizations of all sorts.
CHOOSE A SRTUCTURE
Business attorney Mason Cole of Cole Sadkin LLC once said “A key initial step to take when starting your business is choosing its legal structure” he also said and I quote “It will dictate the taxes, paperwork, liability of the owner(s) [and] other legal aspects, as well as whether or not the company can have employees,”. Also, one thing you must do an an entrepreneur is to acquire the proper local and state registration required to open your business.
MAP YOUR FINANCES
We all know that starting a business requires money that you likely won’t have right away, this is why you really need to seek out ways to acquire capital. Most entrepreneurs tend to start a business with a very limited amount of capital, which is a large hurdle.
Also, there are plenty of options that are available to a business owner and the first and most common place to seek capital for your business is with friends and family and if that’s not enough then apply for business loans through banks and small business associations.
GET A MENTOR
If you are finding it hard on getting a mentor who would put you through or give you advice on the type of business you are about to go into then you do not need to worry because you can find mentors on sites like LinkedIn, by attending a local small business meetup, or just asking around. However, you might be surprised at people in your circle who can offer useful or helpful advice based on their experiences or they can introduce you to people who are experienced in the area where you need help in your business.
WRITE A BUSINESS PLAN
Starting a business is very difficult and can be risky too, it can also be easy to spend all your time and resources at it. But before you start, figure out what type of business you want to have. Will it be a sole proprietorship, partnership, corporation, or LLC? Then put together your plan according to what you have decided. Also, having a written plan with your projected results and personal goals is the best way to stay on track to achieve goals you have set out for yourself and business.
As an entrepreneur, starting a business can be a lot of work. But if you do it the right way and set things on track, you can set yourself up for a successful and smooth entrepreneurial journey.