With the freedom, independence, and profits you can gain as an entrepreneur, it makes sense why people want to be their own boss. But with the challenges that abound, from startup costs to business permits and licenses, it’s easy to get discouraged, especially for those who aren’t genuinely committed to being an entrepreneur. But for those willing to take the abuse, the stressful 60-hour work weeks, and the sleepless nights while anxiously waiting for emails or calls from investors and business partners, here’s seven tips to know when learning what you can about the art of entrepreneurship:
Also known as corporate jargon, business terminology is important for effectively communicating with other entrepreneurs, prospective business partners, and other industry people. Learn technical terms, like accounts payable, cash flow, capital assets, and depreciation, and common industry expressions, like buy-in and swim lane.
Businesses need cash to keep operating, so it makes sense to know how much runway you have before you eventually need a cash infusion from a third-party, such as an angel investor or bank. And even before you start looking at your financing options, make sure your personal finances are straightened out. It’s unwise to borrow money or exhaust all your savings for your business if you have outstanding credit card or mortgage payments.
Most people check the web before they make any purchases in store or online. A huge part of learning how to start and run a business is establishing good rapport with your target audience. Avoid any news reports and reviews that can blemish your brand name. Scandals of mismanagement, product recalls, and bad customer service can weigh your brand down. For example, a company like skincare brand Nu Skin, which has leveraged Nu Skin company reviews to improve and help foster a trustworthy brand and drive sales and growth for the company.
Spearheading a business venture takes more than just courage; it requires a leader. Successful entrepreneurs aren’t just good at coming up with product ideas or business models that churn out profits year after year. They also know how to lead people and how to utilize their strengths to grow the company. Take courses that improve your leadership skills by instilling self-awareness, confidence, and assertiveness.
A business isn’t a business until it sells something. With the hundreds of businesses out there all pitching the same stuff, it’s difficult to separate yourself from the rest. Take the time to finalize your product/service offering. Figure out what your product is missing, what utility it has to the public, what price point you can charge for it, and what strengths it has compared to similar products on the market.
Most modern businesses start with just one or two people and then they blossom into 10- or 20-people operations after a few months. This is a good way to scale your business without putting your cash flow under too much strain. Hiring people you don’t need right off the bat can cost you money that you can’t really afford. Prioritize hiring technical people who will handle key business operations including product design, marketing, and customer support.
There’s really no one right path to starting a company. As successful entrepreneurs can attest to, starting and building companies can be messy and chaotic. Even if you go in with the most planning and preparation, there’s simply too many variables that can change. If you put off starting a company until you’ve actually perfected every piece of the puzzle, you’ll likely not start anything concrete at all.
Starting a company isn’t rocket science, but it’s no cakewalk either. Lay down the foundation for your business right by following the tips above. By starting the right way, it’ll be easier to scale your business.
by: Mikkie Mills