Being an entrepreneur is not easy. There is no training for entrepreneurs; you must learn as you go along. If you’ve decided to start your own business, here are a few things to know before making the leap.
Establish a cash flow
In many cases, entrepreneurs find themselves figuring out the particulars of starting a business, like finding office space, printing business cards, and finding potential employees, before first figuring out where money is coming from. As a startup, establishing a cash flow is essential. No cash flow means no business. Before launching your business venture, there should be money coming in.
Prioritize the most important tasks
As the owner and founder, everything to do with the business is your responsibility, and everything is important. While all of the tasks on your to-do list need to be accomplished, figure out how to prioritize them. Learn to separate the “important” tasks from the “crucially necessary” tasks. Some of the crucially necessary tasks are marketing and building a customer base.
Employees come with a fixed expense. In a startup, income is reliable. Some months, you may not have enough money to send out paychecks. In the beginning stages of your business, focus on forming partnerships with other entrepreneurs for specific services or outsource some tasks to freelancers and independent contractors.
Rent, don’t own
In the beginning stages of your business, it’s crucial to keep capital outlays as low as possible. At this initial stage, find a rental office space. If possible, host your office out of your home until you feel confident enough in your business to rent out an actual office.
Focus on your customers
Customers are what makes up a business. Get to know your customers, what their needs are, and what is important to them. Understanding your customers will help you to serve them better.
Be ready to fail
One reason why most people are reluctant to start a business is because of the risks involved. 80 percent of entrepreneurs fail in the first 18 months. Even if you have a great idea, there’s no guarantee you’ll be successful. Have a backup plan every step of the way, and don’t be afraid to fall back on it.
Starting a business requires a lot of hard work and perseverance. Entrepreneurs who understand that and are prepared are more likely to be successful in their ventures.
This article was originally published on Medium.com.