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What's the one piece of advice you would give to an entrepreneur who is looking to start a company?
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I'll never forget the very first day of Heinz Marketing. It was just me, a laptop and a (pending) business license. I had a meeting with a new client in downtown Seattle in the morning, and a prospect in the afternoon. My mid-day office? The public library.
It was exciting. And terrifying. Still is. If you've started a business, you know what I mean.
I think sometimes about what I would have told myself then, based on what I know now. Which instincts I'd reinforce as sound, which lessons I wish I'd have learned earlier.
Here are my 10 recommendations when starting a business.
1. Build & print stuff later
My first business cards were freebies from VistaPrint.com. My first Web site was a $9.99/month GoDaddy.com "Website Tonight" template. I had those for at least eight months, until I had the revenue to create a brand and build more professional assets. My first clients, the people that knew me, didn't care about my business cards or Web site. They cared most about what I could do for them.
I still don't have a brochure. Or letterhead. Or anything else that businesses "need" (so they say), but that I've somehow managed to do without. I know other folks who have started businesses and spend thousands up-front on materials that mostly sit in their boxes gathering dust. Save your money, or better yet, spend it on things that build pipeline and preference among prospective customers.
2. Start building your network as early as possible
Three years before I started the business, I begin more actively networking. Every day. I started my monthly newsletter. Began working on my first book. That network (which continues to grow through daily activity) fueled my first two years worth of clients. I hate to think about where I'd be without that network when I started.
This might not help those who have already started a business, but for anyone anywhere with even the twinkling that you may someday want to do it, start building a network. Meet people. Follow up. Stay in touch. Automate as much of that as you can via newsletters, LinkedIn, Twitter, whatever you're comfortable with and your network is already using. Don't overthink the tactics, just get started and do it every day.
3. Obsess about delivering value daily
No matter what you're selling, this is the most important thing you'll do. It's about showing up. Treating their business as your own. Constantly thinking about their objectives and how to achieve them (including and beyond the scope of the product or service you're directly offering).
Value isn't defined by you, it's defined by the customer. Or the prospect who might still make a referral. Or the past customer who has a new project for you. The best entrepreneurs I know obsess about value and it permeates their organization.
4. Hire only when it hurts
You will always have more to do than what's currently on your plate. You will always feel stretched by the current book of business you have. You will always feel like another one or three people is more than justified.
But especially for a new business, hiring is expensive. It adds significantly to your costs, and there's a lot more soft costs in managing people than you might expect. No question, most businesses can't grow and scale without employees. But think thrice before pulling the trigger, and make sure you really need it.
(I'm running out of space in the allotted character limit, so I've posted the rest of the list here http://bit.ly/mN53WR )
Easy:
(1) get into a big and growing market. If you're starting out, it should be growing rapidly, otherwise you'll never gain share because incumbents will be fighting for every point and you'll have a tough time. Second, who's going to buy your company when you exit? (because you only make money when you exit). if you're in a random, fragmented market, you'll wake up one day wanting to sell your company and there won't be any buyers. That single market consideration could determine whether you'll be sipping a beer on a tropical beach one day, or chained to a company in an obscure market with no buyers.
(2) Do one thing, do it better than anyone else. Focus. Building a business requires FOCUS. (no pun intended with this website). There is no single success factor more important than focus. Ask any successful entrepreneur, athlete...anyone. You need to focus on 1 thing and do it better. Building a business isn't the decathlon; it's the sprint.
(3) Get "A" players. B players will drag you down and suck the life out of you. Don't even ask me about C players-- I still curse them daily, even 10 years after I fired them. Trust me now, or learn the hard way. Then one day you can write your own advice to a would-be entrepreneur and tell him the same: "Hire only A players. Trust me now, or learn the hard way". And he won't listen to you either, because he'll think (as we all have) that having a big team is better than having no team or a small team. And he'll learn the hard way. Hire A+ players, or don't hire at all. And PS-- don't fool yourself into thinking you're a good judge of people. (Ever see Dumb and Dumber: "I really shouldn't pick up hitch-hikers...but I'm gonna go with my gut on this one.") You're probably not great at judging people, because nobody really is. (Look at all of society's heros, including your own-- how many of them are really as perfect as you might have thought? None. So why should you trust your gut on an employee candidate you've met for 5 minutes?) You'll guess wrong a lot. Probably all the time, to be realistic. The guy you think is honest Abe will sell your secrets to the Communists. The guy you think hates your company will be the last one standing by you after all the other sycophants leave. I've seen it, I've learned it, I'm sharing it. Trust me now, or learn it the hard way.
Finally, and most importantly: Don't start a company to make money. Don't start it to have "freedom" (you'll lose freedom). Don't start it for glamour and status-- nobody cares about entrepreneurs...until they're rich and famous. Given a chance to get a business card from 1 of 2 people at a cocktail party-- you the entrepreneur, or the corporate VP at Fortune 500 company-- they'll take the VP card instead of yours 9 times out of ten. They might secretly admire entrepreneurs (because we're the only people who get out there and create things)...but they go to bed at night and say "thank god I'm not that guy, worrying about payroll every two weeks, dealing with all the pressures. Putting out fires. I'll take my 9 to 5". It's like being a Navy SEAL. People admire SEALS, but they wouldn't want to be a SEAL. So don't do it for status.
Do it because you love the challenge of building something; serving others (clients); solving people's problems every day (entrepreneurs solve problems!); and making the world a better place because there are endless opportunities to improve things. As an entrepreneur, I constantly look around and think of 100 ideas to improve something. Every day, I walk down the street and just observe things: I'm like a kid in a candy store, imagining all the companies I could start, all the products I could create to make things better. I suspect most entrepreneurs are the same. If you think like that, then you probably have what it takes and you should go for it.
To piggyback on all the great advice, I would add:
1) You must be passionate about what you want to do/be/have or you'll quit before you even get there.
2) Set goals, short term and long term, both personal and professional. Otherwise, you leave it up to luck, fate or an accident.
3) Find yourself a niche and stick with it.
4) Don't stop before the miracle.
Good luck.
Ok so there isn't one simple answer but here's a few one line answers
One of my clients lives in Vancouver and is struggling with his business. He decided to take a respite and take a month off to his native El Salvador to get energized. Ouch I thought that was my job!
On Video Skype we figured a few of life’s truisms in relation to business. BTW Skype is terrible when it’s raining in Vancouver and your client is sitting on a luxurious patio in 90 degrees while sipping a margarita and has to tell his girlfriend to cover up.
Anyway the thoughts on what makes a business successful looks like this:
- Do what you love
- Provide a service to others
- Look for opportunities everywhere
- Don’t be afraid of risk, it’s inevitable
- Have a Business Plan and execute it
- Learn from your mistakes
- Get help, others may have gone through the same stuff you have
- If your passion can’t make money find a new passion
- Be patient and stick to it
- For heaven’s sake have a balanced business/personal life
A colleague overheard me tell an entrepreneur that no matter what- have fun! She thought that was very kewl and thinking about it have fun work will come easier.
A lot of good advice here but Kenneth hit the nail on the head when he said, "Bottom line is you need a business plan which requires full research". The old saying, "If you fail to plan, you plan to fail!", is oh so true.
Picture this - I had an accounting firm and over the first five years I had worked with 620 small businesses but at the end of five years only had 135 active monthly clients.
Now it was rare for me to lose a client to the competition and even rarer because of a lack of service. So where did these businesses go? Out of business unfortunately. Only 1 of the 620 businesses had a well written out business plan.
The numbers for brick and mortar and non-ecommerce businesses are something like this:
70% of start ups fail in their first year
and of those 3 out of 10 survivors
only 10% of those make it past 5 years!
It is sad but look around your neighborhood and pick out a couple of locations and see how few businesses have actually survived.
(In fact I bet very very few CEO's here have a written business plan.)
And just buying a template and filling it out or trying to hire someone to do it for you will not work. To write a good business plan you have to live it breathe it sleep it smell it eat it for months. No shortcuts here - a killer business plan is very labor intensive. Outside of demographics and strategies, you must project your revenue and expenses for evey month of the 1st year and quarterly for the 2nd year.
And when you feel you have thought about eveything and know for sure how much cash it will take to set up and operate - add a minimum of 50% because thats just the way it is.
All of the answers are excellent but there is one area that is often overlooked yet can derail any start-up in completely as well as eating up your capital for no good reason.
That area is compliance with laws and regulations. A business permit was mentioned but do you need state, county and/or local permits? Is your type of business legal in a selected location? Do you need professional licenses or permits or health department inspections? Do you need a sales tax license? Is your signage legal? Can you have a home based based business and if so what types are permitted? Homeowner covenants may prevent it or limit it severely. Is your signage legal? Are any employees legal to work in the US? Do you have the required state and federal posters displayed?
Ignoring any legalities or not being aware of them can cost you your business or at least a shutdown for some length of time. It can be fined or face other costly changes.
Although I am a professional business plan writer, this is not a subject normally addressed in plans but it is vital to the success of your business. Research this yourself or consult a local business attorney to make sure that you are in compliance.
Only one - make sure you have 8 months to a year's worth of salary saved before you start as a back up plan. Especially if you are the breadwinner.
Cashflow is a killer!!
My business is almost 2 years old now, and cashflow is by FAR the biggest challenge I have to cope with.
Simple answer = Research. Though not so simply done. Research the market for which your company is based. Is there a need? (Are there enough viable customers). What are the costs? (inventory, rent, supplies, advertising, workers, etc)... Bottom line is you need a business plan which requires full research to determine if your business has a chance in today's economy.
Numbers, number, numbers! Many of us business owners either get caught up in details or spend an entire day chasing our tail. My best advice is to keep a notebook in front of you with your daily numbers. How many contacts will you call today? How many emails will you send for marketing? How many doors will you knock on? And the list goes on. One cannot expect to become successful if they don't have the discipline to stay on track. Your numbers are a good foundation to build on and track the success of your written business plan. Train your entire staff with this habit and you will see an increase in production. Hold you and them accountable for their daily numbers as well.
Tally the numbers each week and you will see your true number to success ratio.
What a great thread! I love all this advice!
As someone who spends most of her time helping clients understand customers (or why there aren't customers), the note that really resonated with me was from @MattHeinz "Value isn't defined by you, it's defined by the customer. Or the prospect who might still make a referral. Or the past customer who has a new project for you. The best entrepreneurs I know obsess about value and it permeates their organization."
It's a major error to go out there saying " we only need 1% of the market" or words to that effect. This kind of thinking happens a lot to people who have invented something, or have a new technology. The customer value proposition is the only thing that matters, ultimately, for bringing in revenue. You can fix the rest, but if no-one wants what you are selling, you are done.
Most successful entrepreneurs seem to retool their go-to-market strategy pretty frequently in the early years, and I think you need to be prepared to do that. You find out more about what the competitions' strengths are (and who your actual competitors are, not always who you think!), and how to position against them. You start to figure out where you can offer exceptional value through some aspect of your business, and focus more of your efforts in that area.
In the early days, you will save yourself a lot of grief if you listen very carefully to what every prospect tells you.
*** MARKETING ***
Having said all this, I have observed for many years that effective marketing can beat better product (when the better product has poor marketing). Remember that marketing is not just advertising, it includes pricing, promotion, distribution, packaging, and product/service.
It's a good idea to look at the marketing messages that the most successful in your industry / category are sending out. Try to understand the look and feel, the brand personality. Ask yourself who their target market is, and what the appeal of the brand / service / product is. See if you can figure out the basis of competition, and which organization is appealing to which market segment. Then see how your own stuff measures up. Who are you talking to, and what are you offering?
It's shocking to me how many businesses create websites that are all about the business (they should be about your customers), and have a lot of marketing blather instead of telling people how you will help. In language they can connect with.
Ultimately, you need to be a "headache remedy" or a "vitamin" in this world -- be a solution to some pain or problem, or help businesses grow or help people get to a better place in their lives.
If you are trying to figure out what area to launch a new business in, look for current sources of pain. Here's a couple that are proving to be very fruitful for others right now: * overweight -- weight loss help
* overload of information such as e-mail -- a wide variety of software, add-ons, and even services like concierges
* aging population -- new forms of retirement living, services that help older people downsize and move, health-care advocacy services, adventure travel suited for aging bodies
All of the rest of a business is crucial, but if you don't have customers, you have nothing.
Rule Number One: Figure out how to clearly and relevantly DIFFERENTIATE your product/service from the competition and alternatives. (Very, very few companies do this.)
Rule Number Two: Get that message out to your target audience, consistently, impactfully, repeatedly, as often as you can. (Very, very few companies do this.)
Do both of the above well and you're pretty much guaranteed to be in the top 1%.
Al Shultz
http://www.alshultz.com/
3 things:
1. 9-5 does not exist anymore.
2. Don't get hung up on titles because your job description includes so many roles you won't know which one to give yourself.
3. Expect to never get paid on time and to have to fight, both metaphorically and sometimes literally, for every dollar you make. You will start feeling almost like a loan shark with the number of times you have to start asking people for money for work you have already completed.
When I started consulting, I was talking to my brother-in-law when I explained how I had to go after clients to get paid on some invoices totalling a few thousand bucks. He just laughed at me and gave me his breakdown of that month's outstanding AR (his two-man consultancy is far more established and more successful than my one man operation) for a number that was far, far bigger than my piddly little set of problems.
Hello Brielle,
It is tough to drill it down to a single piece of advice, but mine would be to stay flexible. As you launch and run your business things will change and your success or failure might depend on your ability to "roll with the punches". As change happens (it always does) you will find great benefit in having a ring of close advisers who you can lean on for suggestions.
What type of company are you looking to start? Good luck to you, it is the best time to be launching a company!
Dont quit your salaried job (if you have one, keep it) until your business demands your time. You will have to fight the urge to quit and be independent as long as you can.
That's my 1 advice for you.
Starting a business involves many inter-related steps and processes. Some of these include taking the time to choose a business name and location for the business. Research the business carefully and develop a carefully thought out business plan. It is also helpful to have some experience or transferable skills from a prior employment you can utilize in the new line of business.
Choosing a distinctive business name prevents confusion and helps your customers identify your business among many others out there. I always recommend to small business clients that they select a name that, at least in part, clearly describes the product or service the plan to provide. It is also very important that an individual contemplating to start a business take the time to put down his/her business ideas on paper in the form of a business plan. Every business whether big or small can benefit from the development of a carefully written business plan. The failure to create a business plan with income projections is a serious flaw in anyone’s desire to start up a business. Development of a business plan help one to think through the venture and ensure that he/she has considered all the options and anticipated any potential difficulties. It is equally important to carefully research the area to locate the business by asking some very specific questions such as: Is the site located near potential customers? Where is the competition? Are there potential employees nearby? What is the business climate in the area? Is the area growing or declining? Are there zoning regulations or signage restrictions that will affect your business?
Finally, having some type of transferable skills that you can bring into the business from a prior employment or self-employment experience is helpful. Prior self-employment experience can help you cope with joggling many business tasks in such as way that you don’t feel overburdened.
After you calculate all of your start up expenses and time you think it is going to take to launch your new business, increase your estimate of your start up costs by 50% and increase your launch time by at least 60-days.
Another thing I would also consider is how much time you will personally be committing to your new venture. Be prepared to spend at least 12-14 hours a day 7 days a week for the first year, at least.
If the above does not scare you away, then you just might be ready to start a new business.
Just one?? I think I'd go with: you don't have to know everything. If you get analysis paralysis because you want to go into running a business with all the knowledge you need, you'll never launch. Learn as you grow.
Hi Brielle,
Only one advice: cash flow. Take care of your cash flow it is a blod of your business. When it is gone your business is lost.
Regards, Daniel
(1) Be absolutely certain that your spouse (if you have one) is truly on-board with your new venture -- not just wanting to please you or being agreeable, but ready to encourage through the difficult or busy times and celebrate success with you. Success in business that results in failure in marriage is failure all the way around.
(2) Don't go into it unless you have plenty of liquid savings or alternate income to live on for a while.
(3) Spend ample time developing a well-researched strategy and a goal-driven plan to accomplish that strategy. Do NOT do this alone - your passion and biases will blur your vision. You really do need an objective 3rd party to coach you through this. Even though I do this for a living (and my intention isn't self-promotion here), I hired someone else to do this with me and others like me have hired me. There's no substitute. There are many talented entrepreneurial strategic planning facilitators and coaches out there.
(4) Tension in things we don't care much for become stress, but tension in things we do care about become passion. Understand the tensions that drive you into the specific entrepreneurial pursuits your are embarking upon. All successful entrepreneurs are resolving some sort of tension(s) that is important to them.
Sorry, couldn't limit it to just one, but these four or quite intertwined.
jb
If your business will be selling services (vs. products), be wary of tying up too much of your success with large accounts. One of my first successful ventures grew like crazy for years (it was a PC servicing business that expanded operations to include subcontractors in three states), but I had too many eggs in one basket: too much of my business was coming through a single contract clearing house. The press from that source kept me from putting in the time necessary to broaden my client base. When I lost my contracts with that clearing house, there wasn't enough other business to keep the business strong. I spent the next six months trying to stay afloat, but eventually had to fold.
Those big contracts are tempting. However, if you plan to rely on a single customer for the majority of your cash flow, you're better off being an emlpoyee. Make sure your customer base is broad enough that even the loss of your biggest customer won't be a nail in your coffin.
First and foremost: is there current demand and a very large market for your product/service?
Without current demand, you will have to pay to educate your market. Very tough. Very expensive.
Do not confuse a need with demand. Demand means people will grab it from your hand and leave $100 bill in its place.
Starting with an idea is proven to be the kiss of death. Start with a big UNMET demand.
All the other comments above are very helpful, unless you violate these points, in which case you will be reorganizing the deck chairs on the Titanic.
You asked for one, here it is: Every effort doesn't produce a hit, and every hit doesn't produce a home run. But every home run is the result of both an effort and a hit.
The following have greatly attributed to my success over the 11 years that I've been trailblazing.
1) Find out if you are the personality type to be an entrepreneur.
2) Find a compatible partner to assist, one man armies can only do so much.
3) Constantly read relevant books to refine your skill and increase your knowledge.
4) Partner with everyone that isn't in your core product/service focus.
5) Utilize the lastest technology to cut and control costs.
6) Master time management and balance relationships, or you'll lose them.
7) Set firm dates to ship out your product or service and don't be late. (IMPORTANT!!)
8) Contract out your weaknesses.
9) Learn to listen very well to your customers.
10) Never ever give up, re-adjust, but don't give up.
11) Stop being perfect, you'll never ship.
12) Learn to be a Tribal Leader from the start and create excellent culture in your venture to carry you to the your defined outcome.
13) Don't hoard power, give control away.
14) Copy others where it makes sense.
Recommend books:
- Do More Faster
- Tribal Leadership
- Permission Marketing
- Delivering Happiness
- Linchpin
Things I don't recommend.
- Business Plans - Waste of time no one sticks to them. Use a project management system instead that will control tasks and costs.
The most important hing is to make sure you're taking care of yourself so you have a healthy base to launch yourself and support your efforts. What's the point of success if you're not feeling well enough to enjoy it, or you jeopardize your ultimate ability to hang in there? It's like making a product out of shoddy materials. So, eat a balanced diet of mostly fruits and vegetables with clean protein; find ways to move your body that you enjoy; get enough sleep and rest and learn to manage your stress; take the right supplements to fill in the gaps.
Lots of good, solid advice! Here's what I would add:
(1) Spend the first 20% of your day promoting your business, everyday. No matter how many client deadlines you have or how many meetings you have or how buried you feel. Give the first and best 20% of your workday to the long term health of your company (marketing, marketing, marketing). Like Andrew, I had an all consuming client early on in my business and did not take this time and had to rebuild. Momentum is everything.
(2) I once read something that still focuses me everyday: It's not about loving what you do or what you sell. It's about loving the people you serve. Like Matt said and Susan echoed, customers determine value. In the transparent and immediate world of social media and online marketing, customers can tell very quickly if you really care about solving their problems. A lot of other elements mentioned here (market research, knowing your customer, understanding the value of your product) fall in line pretty easily when you have a passion for the people you work for (customers).
Understand and be honest about their strengths and weakness (finance, marketing, operations etc) and partner with someone who can fill your short comings. Actual partner or virtual but fill the gap.
I'd definitely agree with the cash flow suggestions; that's the most crucial part of making your business successful! Count on everything costing twice as much as you'd planned for, and your business taking three times as long as you'd anticipated to start turning a profit. You'll definitely need some cash in reserve as back-up.
It's all about the value-add to either solves someone's problem or to fulfill a (undiscovered) desire. The value proposition needs to be crystal clear to answer 3 questions: 1) who are you, 2) what is your business about and 3) why should I buy your product or services - what's in it for me? The combination to adding value to your target audience and the way you market it are 99% responsible for success - the rest will follow. Start with great - not with good or average and plan before you pledge.
Ask yourself, "Who will buy this, why, where, how, at what margin?" That will determine the viability of the idea.
If I had to give just one piece of advice, it would be:
Never take the easy way, there is no "push button" business. Know your competition, and do what they do better. Find your own angle and approach so you stand out. And always do your business as a service to your customers, giving them more than what they expect.
OK, that was more than one piece of advice, but I got it into one paragraph at least :)
The best business you can be in is the one that you can run from your garage with little or no capital outlay. Many businesses large and small go under due to the heavy load of initial capital needs. I understand some businesses like a restaurant needs a hefty amount of cash to start before you have a single customer. Be careful of such propositions. As a technologist, a middle manager, and a lifetime in corporate America, I have witnessed first hand how good business ideas sink under heavy loads of initial capital outlay even with excellent technology and awesome inventions behind them.
Do what you do best,are passionate about, and something that no one else wants/can/likes to do. That's how I started, and continue to be very busy. Don't try to be someone else, be your own person and have your own 'brand'.
I advice young guys to start up with business without investment.I have started a business without investment and with full hardwork we have tried to achieve 2million turnover in less than 6 months.Just 2 MBA graduates passed out.
So if you have passion for doing business you can do it.
Just Do it
CEO
PAUL BROTHERS
Great question, i feel a kindred spirit with all the enterprenuers who have responded. My advice would be:
1. Before you step out into the wild ride of enterprenuership, first 'test' your product/service with one client (even if it is a friend or relative).
2. Join a enterprenuers networking organisation that will expand your client base through referrals, the forum will also give you confidence in articulating your sales pitch.
3. Provide value to a segment that is neglected eg SME's and tailor-make your product and pricing to suit the segment.
Great question. I've just started my third business (sold the first two) and people ask me this question all the time. Here's my answer.
1. Think about how you'll spend your time all day in the new business and make sure that this is your idea of a great day.
2. Talk to people who need this type of product or service before you begin. Really listen to what they say. Make sure the way you communicate about your solution sounds like exactly what they need. Repeat (forever -- never stop).
3. Promise yourself that for one year after you start the business, you will not second guess your decision. You will keep doing number 2 and keep working hard, even though the going is much tougher than you imagined. At the end of the first year you can re-evaluate. So yes, you need enough cash on hand to make sure you don't starve if/when you make very little money that first year.
I know you asked for just one piece of advice, but my businesses would not have succeeded if I'd left out any one of these.
I believe, from personal experience, that an evaluation of where you are physically, emotionally and psychologically is the first and foremost area to examine to determine if you are ready for entreprenuership. Of course, financial backing, knowledge of your business idea, marketing plans, business connections, etc. are all critical, but reaping the success from those things is very difficult, if not impossible, without a healthy mindset. I have learned, and I truly believe, that our thoughts and beliefs are what drive our behaviors, decisions, actions, etc, whether we realize it or not. And, most of these thoughts are deeply rooted in your vault, the subconscious mind that is. Hence, if your mind is cluttered with fear, anxiety, frustration, etc., attaining success as a business owner is going to difficult. A saying that I say everyday aloud before I start my day is "wherever my mind goes, my actions, decisions, and my body will follow, and I have a choice in determining where my mind is going to today." This is easy to say, but not as easy to practice. But it all starts with practicing this a little each day. Build a healthy mindset day by day, and the rest will fall into place.
That was excellent Greg and so true. Don't forget to never hire friends or family.
Great question Brielle. In addition to all the wise answers experts have shared I'd add two thoughts. Do what you love and create a business plan. Everything about starting and building a business is easier if you do work that is deeply meaningful to you and you have a plan to help you chart and measure your progress.
Great question and after all the excellent advices hard to find one additional piece of advice. Many entrepreneurs question its usefulness, but bankers and most investors require it and that is, a well thought out Business Plan.
Simple:
If you are planning to run a new company, before enter in a no return path, with big financial problems, the question is - Do you have any real potential client identified (as Matt Heinz posted)?
Dream big and visualize where you want to be 25 years from now financially, reputation, number of clients et. al. then in a reverse planning strtategy begin writing down how you got to where you are from where you were, be specific on weekly if not a daily cycle. Then once that is clear in your heart and head write a succinct business and marketing plan. Share your vision with friends make a dream board. Get their input keep one foot in the heavens and one on the ground
Only do what really excites you it will be yours for the next 25 years like an invisible partner 24/7.
Prepare to sacrifice to achieve work you passion. I see the word "Sacrifice" as a fork in the road, you consciously take one of those forks almost daily. It may mean not making your house payments or not attending your son's graduation or daughter's softball playoff. If you are not prepared to make those kinds of choices you are probably not an entrepreneur. Working on the bleeding edge, makes the cutting edge seem safe. It is going where you or maybe no one has gone before. It is not for sissies, but what a ride...
John
Evangelist for eAhoy.com
Have a plan even if its only a 5 pager to answer what you are offering, who's going to buy it, how you are going to market it to them, how much they will pay.
This is great topic for me because I am at the stage of starting my business and all just seem to be going the wrong way. I lost my last business Real estate to the crisis in Dubai real estate bubble and now getting into general trading. I found your contributions very helpful nevertheless have length some valuable lessons I may share some here.
1. Do not be too ambitious it might take you to the hospital bed for stress and stress takes long to treat before you are well your business has already collapse. Avoid accruing stress and no one likes a stressed person employee and customers alike and no insurance for that as well.
2. Choosing which business to do can be very difficult task as they are amble opportunities out they and each having a challenge. You need to dynamic because what might be the best cash cow for you might not be what you thought at the beginning. Be Dynamic they lies your success in choosing the best business. U need use some business Guru to help and often they are nowhere to be found.
3. Have faith. After you have identified what you want to do and have taking amble advice. Start do not waste time for time is money. Give in your 100% and have faith. Do have faith you will come across lots of opportunity you never thought of at the start and can only make the best of it when you stay fresh.
4. Access to finance. I am sorry I have no idea how one can get this when you are just starting a business and do not have family and friends who can raise money in times of need. Great if this becomes the next topic.
Regards I am learning as I go along and great reading your suggestions again
Kenneth Limen
For me the most important learning of my entrepreneural carrer:
- find a good idea
- be convinced of the idea
- have the passion for the business
Know why you're taking this route, what you expect as its outcome and the map you're using to get there.
Create a rolling cash flow projection. This should be weekly for the first 12 weeks and then monthly for the remainder of the year. Over estimate expenses and under estimate incoming cash. Most start-ups under estimate the amount of cash they need to get the business up and running.
Have a good business plan, adequate financing and be in a good/great growth market. Ask for help, no one person has all the answers.
I gave a thumbs-up to Matt's answer, but I'm going to stick with the question and give you one. And it's not on Matt's list (but I'm sure it underpins it). The one thing: "Know, understand, and live the unique dream (or vision) that put you in business in the first place.". It may sometimes be difficult to communicate it, but there is an underlying reason you are where you are, and it is the only true differentiator for you. Many, many people will tell you how to do business THEIR WAY, but they are not now, nor will they ever be YOU. In the beginning (and probably the end), YOU is all you've really got so I'd certainly advise paying attention to him or her.
My first piece of advice is "Don't!" Running a business is like having a child. It is extraordinarily difficult, all consuming, gives you grey hair, drains your bank account, makes it difficult to do normal things like buy a home, puts strain on your relationships, and generally becomes your life.
It can be very rewarding in many ways, however, so my second piece of advice is "Do" if the "Don't" doesn't scare you away. The right motivation for being self-employed is extremely important, and money shouldn't be it.
My third piece of advice is to find a single client who will provide some level of cash flow while you build out the rest of your business.
Hey guys i know these are some great suggestion .I intend to start my business someday .i m not happy with my job currently ,but cannot quit it because i have a family to serve.Do you think i should quit with all the responsibilities i have or shall i wait for my time and then take a decision .I know there are some great minds here and any advice would be appreciated
a
Simple - people won't buy your product, service or expertise if they don't know about it. Tell your friends, tell your family, give freebies, get online and don't be shy! I can't tell you how many people ask me about PR and then say they don't want to talk to the media. If you won't tell people about your business, no-one else will! Kirsty
Wow ... lots of great feedback on this one.
My simple advice if it's just 'one thing' -- never run out of cash. They can figure out the rest.
The most important thing is to make sure you're taking care of yourself so you have a healthy base to launch yourself and support your efforts. What's the point of success if you're not feeling well enough to enjoy it, or you jeopardize your ultimate ability to hang in there? You wouldn't have a leaky boat as your foundation. So, eat a balanced diet of mostly fruits and vegetables with clean protein; find ways to move your body that you enjoy; get enough sleep and rest and learn to manage your stress; take the right supplements to fill in the gaps.
Believe in your venture and be focussed. Things would work out , if your intentions and passion is clear.
Have belief in yourself but understand why you do. If you start something with no income and no contacts or no offering then cashflow will do you down fast. Work hard, build your network and your reputation and then everything should be ok - also, in my experience, try to keep up with your knowledge and contacts in this massively changing world and know your limits - outsource or delegate where you should.
Hi all,
I love every indiviudal comment on this topic. One should save these who is thinking of starting on his own. Great insights!
You all have covered pretty much every thing. I cannot think of adding any more to it. If you read through the above comments, it should answer any question that one may have.
Love it!
All the best!
Vageesh
Don't wait until everything is perfect to get started, because then you'll never start. Get going and you can learn, make improvements along the way. Be sure you love what you do, because you'll be spending a lot of time doing it. Hire professionals for the areas you're not an expert it. You don't have to know it all. Keep working in your day-job if you can because it might take a while to get your business going and you don't want to feel the financial pinch. Failing is your greatest teacher! Don't be afraid. Embrace It took me over a year to see profits. Don't give up. Good luck!
Just be ready to commit mistakes and to learn from them. When you're just starting a business, there's always so much for you to learn. And success is a matter of doing more right decisions than failures. Just a tip, it would help if you'll use a letterhead to promote your business, especially because it contains your company logo and contact details. Should you need more information about letterhead printing, visit http://www.printrunner.com/letterhead.aspx
You need to have a clear business idea and know how to distinguish from the products or services available on the market.
know your market and your competition.
I have an accounting / finance background as well... but now enjoy more time on operations and growing businesses / entities rather than the accounting piece... HOWEVER, it is a great base to have if you want to run operations (in my opinion)
Most of the folks giving answers probably have better insight I do, but my simple answer would be to buy and read – carefully, like a text book - Steven Blank’s The Four Steps to the Epiphany.
A lot of very solid advice in this thread. I would add that your marketing research is going to be of paramount importance and a critical component of your success or failure.
Many people will often start up a new business or enterprise based upon what they think is a great product or idea and then go out into the market place and try to sell it to the wrong or non existing market.
A better approach in my opinion is to find a hungry market that already exists, develop your product or service offereing around feeding that already existing hungry market,and then place your product or service in the path of that hungry market.
Find the people that are hungry for hamburgers and sell them hamburgers and you'll be much more successful than trying to sell them tofu because you think it's the greatest thing ever.
A very good resource for market research is www.empiremarketingresearchgroup.com
Here you can find research and data on just about anything. You'll find data on hungry markets, best products and services to feed those hungry markets, your model prospective customers, etc etc etc..just about anything you need or want to know to plan and implement an effective marketing plan and campaign
Just my two cents. Good luck
You can read the book The Four Steps to ... online at:
http://www.stanford.edu/group/e145/cgi-bin/winter/drupal/upload/handouts/Four...
For anyone else who may be interested here is a corrected link for Empire Research Group
http://www.empireresearchgroup.com/
Excellent resource for marketing research data on just about anything
Plan carefully, try not to borrow money, use tools such as BizIgnition.com or thevirtualentrepreneur.co.uk these will allow you to have a massive support network and for those starting with a small budget, they can start from home with the look and feel of a Professional city based company.
Dreams are great, making them happen is hard work and takes time, so patience is key and the ability not to lose heart or focus.
Tony R
create a good business plan
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