Ten things you must know before becoming an entrepreneur
1.Cash Flow is your top priority
It can be quite fun getting caught up in the idea of starting your own business. Setting up an office, personalised stationary, business cards and even taking other people on board. However, without any cash flow there will be no business. It is an ongoing challenge
2.Don’t Hire – Partner or Sub Out Instead
Usually when you start a business you will not immediately need to hire employees. Employees create a fixed expense at a time when income can be decidedly incertain. A better route it to either partner with other entrepreneurs for certain services or sub out the work to independent contractors and freelancers. This will be extremely helpful in keeping expenses in check during the startup phase of your business.
3. Market Test Before You Make a Commitment
No matter how great you think your product is, how innovative and well thought out there is always the potential for it to fail for reasons you never imagined. You must be sure to market test any new product or service you are planning to roll out, you might be scared someone may appropriate you idea but unfortunately that is the risk you must run to avoid potentially fatal early missteps.
4. Be Prepared to Fail
One of the reasons so many people fear setting up their own business is due to the uncertainty it carries. You should be prepared for this uncertainty by making peace with the possibility this might fail and that is not the end of the world. Resilience to survive a failure or two will allow you to persevere and hopefully come out top in the long run.
5.Have plenty of Cash Reserves
Businesses don’t tend to have huge cash flows very early on and as such you should have sufficient cash reserves to pay your living expenses for upto six months, preferably a year. Best thing is to build up a reserve whilst still at your old job or even keep working on a part-time basis so there is at least some financial support outwith your new venture.
6. Network with Other Entrepreneurs
One of the best ways to become a successful entrepreneur is by becoming friends with other entrepreneurs. Starting a new business is not a great one to take alone, even if you are reading insightful and informative information off blogs. Quick advice, brainstorming and a sense of being in something together is really important in a path where sometimes you can feel you are along battling against the world.
7. Never Give up
Starting your own business is a long-term commitment. It will not always be easy and you should be prepared for some hard times ahead. Just remember the tough lessons you learn now may be what will give you an edge in the future.
For our last few tips we’ve looked into what some successful entrepreneurs who grew their start-ups into wildly successful businesses have to say….
8.Learn How to take Criticism – Elon Musk
“Take as much feedback from as many people as uou can about whatever idea you have…seek critical feedback. Ask them whats wrong” advises Musk.
You don’t always have to like the feedback you receive or even follow it, but if you are unable to even entertain it people will stop giving it and you can end up with a dearth of the necessary critical opinion to see problems you might have missed.
9.You already know what you love, find a way to make money from it – Richard Branson
Whilst admitting he never set out to build the empire Virgin has subsequently become Branson gives some sage advice about the business ideas you should follow. If you have a huge interest in books and are armed with an English degree but have heard SEO is a cash-cow it is unlikely you’ll succeed in that area. Find out what it is that motivates you to do well.
10. Your business will be like your baby, and like with a nanny find someone who will love the business almost as much as you – Steve Jobs
There will doubtless come a point when you will need to hire someone else in your business. Jobs gave sage advice about employing someone else in a senior position that above all he looks for someone who is “going to fall in love with Apple. Because, if they fall in love with Apple; everything else will take care of itself.” If you can find someone with the passion, enthusiasm and drive you have for your business then so much else will become inconsequential.
We hope you’ve enjoyed some of our tips for becoming a successful entrepreneur and look forward to seeing what visionary and successful businesses you grow in the future