Starting a business is most certainly not always smooth sailing. Here are 3 things you need to remember to reach entrepreneurial success.
Obstacles are around every corner on the road to success, but so are rewards. Success, fulfillment, and freedom are just as much aspects of starting a business as risk, uncertainty and instability.
Although the negative aspects of entrepreneurship cannot be completely avoided, or else everyone would have what it takes to be a small business owner, hard work and smart management can help ease the struggle that is inherent to any entrepreneurial venture.
There are a few ways to mitigate some of the negative aspects of starting a business to achieve success without taking on too much water.
Here are three musts for starting a business and expertly taking the plunge into entrepreneurial greatness.
1. Get Your Feet Wet First
Often, the traditional stereotype of entrepreneurship is not feasible. Most people do not have the spare capital to pay their bills and invest in a business.
Even if the would-be entrepreneur does have quite a large chunk of change stashed away before setting sail to success, they often do not have nearly enough or miscalculate the amount they will need until their business gains traction and gets to the break-even point.
In fact, many businesses never make it to break even, and it can be disastrous for the entrepreneur who put all of their eggs in a single business basket. Only 6.02 percent of the U.S. adult population operates their business as their main mode of employment.
If you want to permanently be a part of the successful 6 percent, set clear financial goals and assign accountability for results. Until then, working a day job to pay your bills until your business is making money is the safest bet.
2. Radio for Help
Although starting a business may seem likely a lonely venture, it doesn’t have to be. We all have friends, family members and professional contacts who we can turn to for advice or a sale.
Long gone are the days of successful cold calling. Consumers and other business owners no longer respond to door-to-door selling. In fact, 90 percent of decision-makers say they never respond to cold calls, and only 0.3 percent of cold call appointments result in a sale.
We live during a time where the referral is king, and the best place to start is with who you know. If you are having trouble finding clients or customers, reach out to people you know for help.
The U.S. Small Business Administration offers tools to help you put together a business plan, which you will want to show your potential investors. Take the time to be thorough; the first wave of success is very likely to follow.
3. Plan Your Course
Entrepreneurship is not for the faint of heart. That is why some companies are dedicated to helping aspiring entrepreneurs test the waters, learn how to use their contacts effectively and provide resources to plot their course to success.
Many entrepreneurs set out on a mission to grow their business with seemingly boundless excitement and energy. However, just as many entrepreneurs fail. The No. 1 reason most businesses fail is a lack of market need for their product.
Now, understanding the level of market need for your product or service seems like an obvious first step for any new business venture, but the issue can be a bit more complicated than it appears.
Planning and researching the market need for your business needs to involve more than just establishing the number of potential clients in your area. A smart entrepreneur will also look at the market saturation of competition, estimate the potential revenue that its intended clients produce, and more to properly plan their course.
Gumption is key when it comes to starting a business, especially if you’ve never done it before. But while it’s important to be fearless and decisive, it’s also by no means a misstep to seek help.
And just as being bold doesn’t necessarily mean going it alone, it also doesn’t mean making rash decisions.
Do your homework and ask plenty of questions before you embark on this life-changing journey and you will be much more likely to succeed. Best of luck!