5 Startup Tips for Entrepreneurs
Your first few years in business will likely feel like on-the-job training as you face a host of unexpected events. That being said, having the basics covered from the beginning will help you navigate the often turbulent waters every entrepreneur faces. Here are some tips to help make the sailing a little smoother.
Startup Tip 1: Don’t Let Excuses Stand in Your Way
You can likely come up with countless reasons not to start your own business. What if the economy tanks? What if demand for my product or service suddenly drops? What if I don’t have the knowledge and skills needed to make a go of it? The list goes on and on.
Remember that every other successful business owner wrestled with these same questions at one time. Starting your own business involves risk. But every question you have has an answer, so don’t let them keep you from pursuing your dream.
Startup Tip 2: Focus on the Customer
Every successful startup achieves success by identifying a need and coming up with a better way to satisfy it. A lot of entrepreneurs fail because they complicate the simple solution without considering whether their prospective customers have a need the extra bells and whistles.
Once you’ve established your core business, you can always expand on it. Over time, your customers will let you know what additional products or services would be of value to them and they’ll look to you to provide them. The key here is to always be asking for feedback from existing and prospective customers.
Startup Tip 3: Consider Every Cost
Knowing the full financial cost of starting your business is essential. Do your homework and try to come up with an exact figure for everything – rent, supplies, labor, marketing, etc. – and then multiply that number by four. Don’t forget that you’ll be depending on the business to generate your personal income, so be sure to include that in the final tabulation.
Once you come up with a final number, create a budget that you can realistically stick to. In the beginning, you may have to take out a small business loan or borrow from friends or family. Once you have an established client base, you’ll have other financing options including lines of credit and invoice factoring.
Startup Tip 4: Be Patient and Prepared
Imagine you’ve quit your old 9 to 5 job, launched your startup and have no clients. Now imagine that you still haven’t landed any clients after three months. It’s a scary thought but it happens. That’s why you need to have a solid “Plan B” to get you through the lean, early months or even years. This could include taking a part-time position to generate money or dipping into your personal savings.
Plan B can vary from person to person depending on their particular situation, but every entrepreneur needs to have one, and winning the lottery doesn’t count.
Startup Tip 5: Keep it Legal
Of all the startup tips, this may be the most important. Failure to pay attention to mundane things like legal issues can have dire consequences. As a business owner, you may face myriad legal requirements including tax HR and liabilities.
Do your due diligence with respect to all local, state and federal laws. Depending on the size and type of business you’re starting, these may be easy to understand and comply with. Or they may be complex and odious. If the latter is the case, be sure to seek the advice of a qualified attorney. The money you pay might be a drop in the bucket compared to the fines you can face for operating a business that’s out of compliance with all the rules and regulations.
I hope you found this article helpful. To learn more about how accounts receivable factoring helps improve cash flow for startup businesses, call American Receivable at 1-800-297-6652.