7 Tips To Know Before Starting Your Own Business
- Surround yourself with talented people. “Many heads are better than one” as they say. This saying remains true in business. Starting a company is a lot of work and so things will be done a lot more effectively if big jobs can be broken up into a few small jobs and then tackled by several highly-focused people. Remember that the best teams are not only talented but come from diverse professional backgrounds.
- Be prepared to work hard. Even with a talented and varied group around you it won’t be easy to establish a successful company. Be diligent and thorough in the work that you do. Being diligent is not all leg work, however. A lot of the most important work is the careful research that gives your company the competitive edge.
- Learn how to cut the excess baggage. Firing an employee or cutting bad clients is often an entrepreneur’s least favorite job but it can make the difference between a highly profitable year and a year full of headaches. Bad clients are clients that lead to painstakingly slow work that does not pay well.
- Always look for ways to keep costs low. The most basic principle of business is to get more money coming in than goes out. The less money that a business spends, the more that it can make. Spend some time to find the best deals. Furnish the office with used furniture. Find a way to pay vendors upfront because this will give you more leverage to negotiate a better deal.
- Plan for the worst, hope for the best. An important part of creating a company with a positive cash flow is to plan based upon the lowest projections for revenues and the highest projections for expenses. Not only will this take the stress off but it will usually result in surplus funds in case of an emergency or unexpected opportunity that requires some capital to get started.
- Focus on the consumer. Although there must be a focus on sales, no company will succeed if their product or service is not what the consumers want. A quality product will lead to return clients or customers and will also provide a forward-momentum for your company’s marketing department to work with. Part of a focus on the consumer includes a lot of market research. Don’t try to invent consumer needs that your company can fill. Focus on services or products that people already want and find a way to make it better or more efficient.
- Learn how to scale properly. Hiring too quickly will create unnecessary costs and increase an entrepreneur’s level of stress. Hiring too slowly, on the other hand, can freeze a business’s progress and cost you valuable opportunities. Think of each hire as a business expense and factor it into your projected expenses. If you can make sure that your company has a healthy cash flow before making a hire. When you do hire someone new, do it carefully. Make sure that the person will be a valuable asset to the team.
Hopefully this simple entrepreneur advice will help you avoid becoming one of the many failed business ventures that are so common. If you are willing to work hard and take calculated risk, you will eventually succeed, and achieve your ultimate goal: The American Dream.
About the Author: Robert Cordray is a freelance writer and expert in business and finances. He has received many accolades for his work in teaching and small business consulting.