Many start-up entrepreneurs are worried by the question: what you need to know before launching your business? What in any case can not be overlooked? What are the keys to success? What actions will lead to failure?
We can not guarantee that we will give universal answers to all these questions, because every business is individual. What works in one case may not be effective in similar, but other circumstances. But we are ready to cite some general tips that will help to avoid common and often erroneous mistakes. So, what should a novice entrepreneur know when starting a business?
1. Your life will never be the same
Yes, it sounds a little pathetic, but seriously – get ready for big changes. With the usual regime you can say goodbye, at least for a while. Especially acute you will feel the difference if you change the status of an employee to an entrepreneur. The schedule from 8 to 5 with two days off per week will now seem to you a great gift, since your own project will require you to have much more effort, time, and energy. But the return from your business is much greater – after all, as a result, you will have a favorite business that can bring very serious profits and priceless freedom.
2. Risk is your constant companion
In business, be it an online store, an offline store, a cafe, etc., nothing can be foreseen for sure. By investing in any idea, even if you have a competent business plan (we’ll talk about it later), you risk losing everything. And if the start is successful, the first clients will appear, it does not mean that the risk has passed. Each transaction, each new partner, each new consignment for resale is a risk. And so it will always be. But this is a normal part of business development, and from the successful overcoming of the next “obstacle course” you will receive great satisfaction. So get ready for an exciting trip, which certainly will not be boring!
3. Business financing. What should I do if there is no money?
Any business assumes the availability of a budget, starting capital. Ideally, your personal funds should be involved. But if they are not, then look around: government programs, investors, partners, bank loans.
4. Be sure to analyze supply-demand
The more information you collect about what is happening in the market, the easier it will be for you to make decisions in the future. You should know everything about the capabilities of your competitors, the needs and interests of customers. This information will help you not only avoid many mistakes, but also draw up a detailed business plan.
5. Development of a business
Many beginning entrepreneurs underestimate this document. Like, everything in my head keeps well, we will cope. This approach is erroneous. Business plan is an important tool for business planning. It is also necessary for attracting investors, lending, obtaining international grants, presenting the project to potential partners, etc. And even if all of the above is not included in your plans, a business plan will be needed for internal use. It should record all costs for risk assessment.
Image credit: ZahariM