You will have a higher chance to succeed with these tips when you start your first business.
Table of Contents
1. Have at the back of your mind that not everyone can own a small business.
Do not rush when you want to start your own business; give yourself time to think if you are compatible or fit to run a business of your own. Some people are happy and financially okay being an employee.
2. Put your finances in place.
Ensure your finances are in order before you dive into the entrepreneurial fray.
3. Choose your niche.
Go through your interests, skills, and employment history so you can choose a business that will suit you. You will increase your chances of success when you choose a niche you have passion for. Take note, most entrepreneurs or small business owners are successful in businesses that are barely innovative or unique.
4. Make sure you have a business plan that will benefit you.
You will benefit greatly when you have a business plan. Make sure you have answers to tough questions before you take any action.
5. Shun the idea that you need investors and bankers at the beginning.
Most small-business start-ups you see out there are self-financed. Before you look for finance from external sources, ensure you evaluate your savings, sellable assets, and investments. You can also reach out to family members and friends before seeking financial assistance from investors and banks.
6. Know the hat that fits you best.
You might have acquired different skills during the early years of your business. Make sure you gain relevant knowledge and experience that will enable you to oversee every aspect of your business and also discover the type of task that requires outsourcing or hiring an employee to handle.
7. Know that nothing occurs until you make a sale.
Do you know how many good products exist that failed to reach the right customer? One of the factors that drive business is sales. You need a brilliant marketing plan or strategy that will provide information on how to package, price, distribute, promote and sell your products or services.
8. Give your customers listening ears.
Make sure you create time for your customers no matter how busy you may be, especially when your business is just starting. If you don’t understand what your customers want, their expectations or perspectives, then making the right business decisions will be difficult.
9. Find solutions to problems your customers are facing.
Offering solutions that will solve a problem is the best way of satisfying your customers, and not just selling your products or services. Make sure you know the difference between them and market your product or service accordingly.
10. Remember that you can lose quality within moments and regaining it will take a longer time.
Quality is a continuous journey and not just a destination. Once you have strayed from the path of quality, your journey may be sidetracked forever.
11. Profitability should come before rewards.
Be careful of small business with high-priced consultants, hefty salaries, too expensive decorations. Profitability is paramount in small business. The first thing to do to understand profitability is to measure your flow of cash and understand key financial ratios in your business.
12. Hire professionals.
You need to bring together a team of professionals and experienced employees if you want to create a business that will grow. Your game-breakers (people holding key positions) should comprise of superstars. The CEO/President (yourself), the sales manager, the production manager, the marketing manager, the accountant, the art director, the office manager, and others, are key positions that require professionals and experienced individuals as they will determine if your business will succeed or fail.
13. Don’t take action alone. No man is an island.
You can gain resources from mentors, trade associations, and small-business peers that can reduce some of the stress, errors, and trials that may occur when you start and run your business.
14. Keep in mind that vendors are also partners.
Just as having the right customer is relevant, so is having a good vendor. Ensure you give your vendors proper treatments like if they are your customers and see how your partnership will grow.
15. Utilize benefits.
Having a retirement savings plan is the most valuable long-term benefits you can give yourself as well as your employees. Also, discover ways to offer insurance and other things that will benefit you and your employees and decrease your tax bill simultaneously.
16. Be mindful of all regulatory issues related to small businesses.
Local, state, and federal government agencies usually demand an array of registrations, permits, and licenses. Keep to them or suffer the consequences, which may include closing your business.
17. Be familiar with tax laws.
Dedicate your time, effort and resources to understand tax issues affecting small business. Doing this can save you from trouble and also cut down your tax bill legally if you are knowledgeable about tax laws governing small businesses.
18. Keep your focus on the people.
Anything that happens to a small business occurs at the hands of the people who work for it.
19 .Cheap, Fast, or Good – select any two.
Business owners who attempt to be everything to the market are likely to face serious trouble. Direct your focus to what you know how to do best.
20. Be passionate about learning.
Just as your business grows and changes, you need to learn how to grow and evolve alongside your business – especially as you transit into a manager. A trait you will find in any individual running a successful business is their passion for learning.