Starting a business can be a daunting task for new entrepreneurs, especially when you are not familiar with the fundamental principles of running a business. Here are some tips for new entrepreneurs to consider before embarking on their business journey:
- Be extremely careful who you partner with and definitely hire your own attorney to make sure you’re protected in any partnership. A good attorney can help you draft an agreement that will protect your interests and prevent future disputes.
- Learn accounting and bookkeeping. You don’t need to have a degree, but at least learn the fundamentals and guiding principles. Coursera provides a lot of great online content to do this at your own pace. Bookkeeping must be top priority. It will not get done later. It will not wait for the weekend. It will never ever get done unless you hire someone who does it full time, for a living. It will offend you how much it costs. It is crucially essential to have bookkeeping on autopilot by a third party. Spend the money. From the very beginning. Focus on growing the business, hire out the bookkeeping and you will have more growth than you thought possible.
- To have a monetization plan and not just build a passion project. Passion is great, but you need to have a clear plan on how you will make money from your business.
- Sales are everything. Everything. You can’t build a business without a product…. But you can’t make money unless someone buys your product. Marketing and sales are where you really grow. Marketing and sales are where your business actually becomes a business.
- Define your goal early. Pivot or stop if the path takes you somewhere you can’t handle. Do not make yourself a 9-5, leave room to grow beyond it.
- Start with the biggest personal warchest you can. It’s important to have enough funds to sustain yourself and the business through the initial phase of your venture. Bootstrapping doesn’t have to be awful, but you need to be prepared for the sacrifices that come with it.
- Don’t buy stuff just because other businesses buy stuff. Be discriminating as you decide what else to buy. Come up with a list of things you know you need before making any purchases.
- Don’t associate your business name to a specific market, region, or product that will limit your future growth.
- Cashflow is king! Be mindful of how much money you are spending and where you are spending it.
- It’s way easier to get a purchase order for 1000 widgets than to manufacture 1000 widgets and then try to market / sell them one at a time.
- Asking for help is not a sign of weakness.
- Read all the small print in Agreements.
- Understand the model of scale and HOW you are going to grow it. Have a marketing, branding and growth plan.
- Set boundaries and demand them respected at all costs from day 1 on.
- Take risks, but only ones you can afford losing.
- Location and brand expenses should be a high priority. Location isn’t something to skimp on or try saving money with in most cases.
- Make your next step well prepared to support the following. Always have a growth goal, try to prepare for that well ahead of time.
- Network and build relationships. Your success as an entrepreneur depends on more than just what you know and what you can do. It also depends on who you know and who can support you along the way. Attend networking events, join online communities, and reach out to mentors and advisors who can offer guidance and connections.
- Embrace failure and learn from it. No matter how careful you are or how much you plan, there will be times when things don’t go as expected. It’s important to view these setbacks as opportunities to learn and grow, rather than as reasons to give up. Look for the lessons in every failure and use them to make better decisions in the future.
Starting a business can be a rewarding experience, but it requires careful planning and execution. By keeping these tips in mind, you can increase your chances of success and achieve your goals as an entrepreneur.