Many novice entrepreneur fond of taking risks at startup of their business. This is certainly a good practice but may not give expected results sometime and may cause a big blow to a newly started business.
So here are the 5 simple tips for first time business owner with an intention to guide them to run the business smart and steady way.
1. Know what you do. Do what you know.
Don’t start a business simply because many of your friends and relatives tell you to do so or it seems sexy or boasts large hypothetical profit margins and returns. Do what you love. Businesses built around your strengths and talents will have a greater chance of success. It’s not only important to create a profitable business, it’s also important that you’re happy managing and growing it day in and day out. If your heart isn’t in it, you will not be successful.
2. Focus, focus and only focus
Many first-time entrepreneurs feel they grab every “opportunity” they come across. Opportunities are often wolves in sheep’s clothing. So always focus on your primary business plans and avoid getting side-tracked. Juggling multiple ventures will spread you thin and limit both your effectiveness and productivity. Do one thing perfectly, not so many things poorly. If you feel the need to jump onto another project, that might mean something about your original concept.
3. Don’t forget that you’re at startup phase.
Forget about fancy offices, fast cars and fat expense accounts. Your wallet is your company’s life-blood. Practice and perfect the art of being frugal. Watch every single money being spent and verify every expense. Maintain a low overhead and manage your cash flow effectively.
4. Nobody is going to invest money in your business.
Always remember, no one will invest in your business. If you need large sums of capital to launch your venture, go back to the drawing board. Find a starting point instead of an end point. Simplify the task until it’s manageable as an early stage venture. Find ways to prove your business model on a shoestring budget. Demonstrate your worth before seeking investment. If your concept is successful, your chances of raising capital from investors will improve.
5. Don’t compete blindly.
Please avoid blind competition of each and every move of your competitor. Do not forget you are still at your startup. Any such worthless move may destroy your balance sheet. So be careful.