10 Things You Should Know Before You Venture into a new business!
During my 10 years as an entrepreneur I have learned, both through my own trial and error experiences, as well as coaching others to build a successful business, that starting a business is an emotional rollercoaster and not just a walk in the park as some pretend it is. Nevertheless once you have your business up and running, being your own boss and living life on your own terms generates abundant satisfaction and an amazing feeling of accomplishment.
Let´s start with the bad news first: most businesses fail !!! Do you still have the courage to read on?
Told you it was not going to be all happiness and sunshine. Statistics, depending of course on the source where you get the information from, generally speak about 50% of the new business ventures close the same year, and nearly 80% close within the their five first years.
Unfortunately these are realistic numbers, and meaning that only two out of ten sit out the ride, and can call themselves a successful business owner 5 years later. It takes passion, patience, persistence and perseverance to succeed as an entrepreneur.
I will share with you 10 tips before you start your business.
1. You are your real business
Every entrepreneur has to be a salesperson. If you don´t hear the Cha-Ching sound daily, the probability is you won´t be in business for a very long time. Your job is to sell. If you don´t know how to attract customers and close sale, you will struggle in any kind of business.
Let me explain this. If you own a bakery, your baked goods are not your business. If you own a barbershop, cutting hair is not your business. Of course you need a product and good service, but above all you need to market yourself as a brand. People buy from people.
2. Failing to plan is planning to fail
Big advice, don´t start a new venture without and a decent business and marketing plan. This is one of the biggest killers! Many “entrepreneurs” don´t spend time, or some even find it unnecessary, to do their initial homework before starting their business. My opinion is better be safe than sorry!
Golden tip: collect information and develop a game plan, don´t just jump in. Analyze competition, forecast earnings and expenses, estimate start-up costs, research your industry or target market, basically get as much information as you can before you start. If you plan your business well you will save a lot of money and time during the ride to success.
3. Start part time to begin
If you are taking your first baby steps in the shark invested world of entrepreneurship, my advice is to keep your job ( if you have one ) at least during the first year of your start-up. Having a job that will pay your bills keeps the financial pressure away whilst you work on your dreams. This will also give you the time to see if this is really something for you, to learn the tricks of the trade, and to see if your business idea has the potential to make it. Should things not work out, you will also have a safety net to turn back to.
4. Be careful when choosing a business partner
If you get a business partner, make sure you get along, make sure you have equal responsibilities, and in case things go wrong, that you have developed an “opt-out” plan before you even get started. Compare your combined venture as a marriage, because your business partner will be equally important in your life as your spouse or your husband. Like in most married couples, document everything in writing so each person knows their rights and their responsibilities. A good business partner can make things easier for you, but a bad business partner can ruin your life, so be careful and make sure you find the right person.
5. Be prepared to earn nothing
Don´t expect to make profit the first two years. I´ll explain you why. A new business is like a newborn baby which needs to be nurtured at the beginning. Reinvest every penny you earn in your business, meaning you need to be a student of your business. Learn everything you can about your business and your industry. To be always on top of the game attend workshops, go to events, subscribe to journals, read daily, study sales, study marketing. If needed find yourself a coach or a mentor, do whatever is necessary. Start learning and never stop. Trust me, this will either make or break your business.
6. Be prepared to work 80 to 100 hours per week
Get rid of your 9 to 5, and 40 hours a week mindset. You are an entrepreneur now, so be ready, especially in the beginning of your business, to put in the effort and the hours. Not every entrepreneur wants to do this, but most will need to. Sure there are tools available to work smart and not hard, or even outsource some of your duties (if you have the money), but for most of us if you are not willing to put in the initial 80 – 100 hours a week, you might be in for an unpleasant surprise.
7. Learn which activities make you money
Put a red dot next to this point as it is very important in order to scale up your business to the next level. A major mistake that entrepreneurs are making is spending too much time on activities that DO NOT make them money. It´s actually straight forward no BS: no income means your business will fail. Your core tasks are to sell, attract new customers and keep them happy. Once you have the budget available every other activity can and should be delegated, outsourced or done during none-productive hours. The sooner you realize that sales and marketing are your top priorities, the sooner the likelihood of your success.
8. Choose a good location
If you run a traditional business that needs a building than choosing a good location is important, unless you work a very specific niche where people don´t mind to go out of the way. But if this is not the case than spending some extra money on a better location is worth the investment. Even if you have a good product or service a bad location can affect your business.
For online businesses choosing a good location means choosing well your image. Your online presentation as an entrepreneur is your business card, whether it is a website, a blog or social media, it is of vital importance. Putting your business in front of people online is he first impression you create, so it better be a good one, because you mostly only have one chance to impress what could be a future customer of yours.
9. Make sure there is a demand for your product or service
I wanted to include this one because it matters more for an offline business rather than online. If your entrepreneurial journey is online than this would not affect you that much, because we are talking of billions of people online nowadays, so your market is a lot bigger. For a brick and mortar business, or local entrepreneur, this is something you should investigate before starting your business. Who are my clients, where will I sell my goods or offer my service.
10. Pick a business you enjoy.
Last tip but maybe the most important one. Pick a business you enjoy! Honestly, when you are doing something you are passionate about, it converts better. It is important that you enjoy your business and are not only in it for the money. Starting a business just to chase the money isn´t a good idea, especially if you are not going to enjoy the day to day work. Since you are going to spend so much time doing it, my advice is to start with something that gives you fulfillment.
On a final note please remember that owning a business is not for everyone. Many new entrepreneurs quickly find out that owning a business of their own is not what they thought it would be. And that is perfectly okay. The long hours, the uncertainty, financial challenges, risk of failure, stress and countless other things are not for everyone.
For some people, just having a 40 hours per week job and a steady pay check are a much better deal. For the more ambitious ones and freedom fighters working for a boss is out of question. It just depends upon the person really, and there is nothing wrong with neither of them.
I hope you got some value out of this new blog post.
If you would like to know more about the exact systems I use to generate more leads and more sales EVERY DAY, whilst conducting a fit and healthy lifestyle just drop me a message on my Facebook.
Looking forward to share ideas with you & hope to see you back soon,
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