The top 5 things entrepreneurs need to know before they start a business

"The critical ingredient is getting off your butt and doing something. It’s as simple as that. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer.”

Nolan Bushnell, Entrepreneur

If you are thinking about starting your own business and joining 582 million of other entrepreneurs in the world, hats down to you. It takes courage to make a big step like that and it is most definitely something that will take you outside of your comfort zone and challenge you in more ways than you can imagine.

We are here to help make this transition smoother by sharing some tips about what to keep in mind so that your business would be a successful one!

#1. Cash flow is job No. 1

It may be fun and interesting to get caught up in a lot of the details of starting a business, such as setting up an office or having stationery and business cards printed, but what you should really be focusing on is cash flow and that should be your job No. 1.

Simply put, without cash flow there is no business. Keeping cash flow coming in will be an ongoing challenge, and this is especially important in the startup phase. Before you can officially launch a business — in fact, before you can even say that you’re in business — you need to have some clients and some cash flow coming in.

So, before you even think about setting up an office, you should build a sound business model that will generate consistent cash flows. You need to know how you will acquire customers and what services you will provide, and you should have a backup plan for a backup plan.

And remember: 20% of small businesses fail within the first year. Why wouldn`t you be in the remaining 80%?

#2. Knowledge and expertise

This section might seem like common sense, but don’t overlook it.

The most successful entrepreneurs have an advantage of acute knowledge in whatever industry they are targeting. They have become experts by spending time learning about the problem they are trying to solve. Thus, they are naturally in a better position to start a company.

We are not saying that you need to know all there is to now about the industry you want to get into, but you should have a very good idea about what you know and have the expertise on, and what you do not know and still need to work on. Knowing your limitations is a strength, not a weakness.

There is no doubt you will learn a lot as you go along but you need to start putting active efforts into learning, developing and bettering your skills and knowledge.

Today, there are numerous courses (free and paid) you can take online or in the actual classroom to learn more. In fact, you should never stop learning about the field you are in because, your competitors are learning as we speak and if nothing, you need to do it just to keep up with them and the trends.

Therefore, if you have a business idea, make sure you have a knowledge advantage over others too.

#3. Get to know your customers before you start

Do you really know your customer and market? Do you know whether they have a desire or need for your product or service, or whether your proposed pricing makes sense? Do you intend on competing on price, quality, service, or all of the above?

Get to know your customers and market. Many businesses stumble because they fail to understand their target market. And when you’re ready to expand, don’t assume new customers in different areas will have the same tastes and priorities — get to know them, too.

#4. Be prepared to fail

One of the reasons why so many people are afraid to start their own businesses is because of the uncertainty that it carries. You should be prepared for that uncertainty by being prepared to fail.

Perspective is important, and you will need to accept the fact that not everything you try is going to succeed. That makes a strong case for having a backup plan for anything that you attempt to do. The idea is to make sure that you have the resilience to survive a failure or two, without losing your business.

Research showed that the average millionaire goes bankrupt 3.5 times before they eventually succeed, so if you do not succeed from your first attempt…

#5. Don’t give up!

Those people still become millionaires, which means – they didn’t give up. They had learned something from their failures and they have tried again.

Starting and running a business is a long-term commitment. You have to be ready to tough it out no matter what obstacles you hit and that experience will be critical to the long-term success of the business. The lessons that you learn during the tough times are often what will give you your edge in the future.

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.”

Jeff Bezos, Amazon Founder and CEO

If you feel overwhelmed or need someone to assist you to develop a solid business strategy, head on over to the Work With Us section, so we can help you out!

Join us via Social Media to get your daily fix of tips and tricks to build your business: