Starting a business can be exciting and at the same time challenging. If you are considering transitioning from being an employee to BYOB (being your own boss), know that owning your own business is definitely not always sunshine and rainbows. Instead of focusing your mind, strength, and energy on every ideal scenario of having a business, think of these three concepts to help you develop a realistic plan.
Having Money is Not Enough
It is a fact that having more money or a higher capitalization can give your business a good advantage as you start. You can invest in an expensive location that assures foot traffic. You can hire the best people to be creative. You can buy quality materials for your products.
However, as important as money is for your business, it’s not enough to define your success. Some entrepreneurs focused on having a lot of capital early in on their business but were unable to come up with a smart business model that could sustain their cash flow. In the end, it drained their capital because of the lack of sound business systems. Having adequate money and developing a good system can bring your business a long way! In fact, it’s really the only way.
So, don’t settle for just having a handful of nice ideas and enough money that you saved for years to achieve your dream business. Instead, start opening yourself to developing your business strategy and systems. If you have experience working for a company, try to ask yourself, how does each “department” work? What are the key organizational structures that make up the company? How do they sell their products? You can break these down and simplify when you go back to your drawing board.
Create a Business Plan
Starting a business is a very serious thing. You don’t want to make an impulsive decision and regret it at the end, especially after investing a bunch of money. Instead, you want to be smart with your decisions and ensure that you have done your homework in coming up with a venture. To do this, creating a business plan should be at the top of your list. Sound complicated? It doesn’t have to be.
Don’t be too intimidated. For starters, it’s simply creating a list of how you see your business running – and making sure it will succeed. Anticipate the things that might hinder your business, and write them down. Answer questions like “how will you fund your business: bank loan, financing, or credit line?”
For your product, how will you sell it? What are the steps to maximize social media? What would you use to leverage your product? How will you distribute it? All these things can be included in your business plan. It’s up to you if you want to simplify it or make it more complex.
When things get really complex as you grow your business, it’s a good indicator that you are experiencing growth. Don’t get overwhelmed by it. Instead, start looking for people or organizations that can help you maximize the full potential of your business. The business plan is your road map to keep you on the right path.
Invest in YOU
A lot of people engaging in business separate themselves from the business. They neglect factors like their living costs, food and other personal expenses. Mortgages, rent, and health insurance are things that don’t pay for themselves. Include these as you project your financial responsibilities. Minimize or cut off unnecessary expenses and maintain the essentials without sacrificing your needs. Simplifying your expenses as much as possible means your business will better be able to handle challenges that arise.
Part of investing in yourself is your continuous education and learning to be sure that your business will have sustainable growth and avoid going under. Running a business can be exhausting, and most likely will be at times.
Surround yourself with stories of companies in the same industry and try to learn from their strategies. Learn about possible business setbacks and struggles so you can foresee the outcomes of what may be lacking in your operations or planning. Be aggressive about learning!
Allot a budget for consulting. In this way, you are able to learn about others’ experiences and possibly avoid big losses for yourself. Be smart about this and look for trusted consultants who truly care for the growth and stability of your venture. Like me. 🙂
Conclusion
There is a balance between excitement and facing the reality of starting your own business. Keep fighting so the drive is there to push forward and be ready whenever there is a difficult situation that tells you to quit.
Remember that proper planning and preparation can give you better chances of succeeding. In situations like these, you need to be courageous and at the same time rational in making decisions. Considering these tips, I want to congratulate you in advance for taking the leap in starting your own business. Cheers!
References:
https://www.entrepreneur.com/article/277991