Thinking About Starting a Business – Think About this…
I’ve been working with entrepreneurs for the past 13 years. I’ve worked in startup companies for the past 20 years and it still amazes me how many times people overlook the fundamentals of business.
One of the biggest mistakes women entrepreneur make (and also men…) is that their enthusiasm and optimism (which is essential for entrepreneurs) blind them from looking at the one issue that will break them or make them – which is numbers…
Most women HATE looking at numbers and figures, they prefer playing the ostrich and keep hoping that it “will all work out”. The biggest problem that I see is that they are so “in love” with their product/service/idea that they forget looking at the numbers and figures and focusing on their target audience and on their market. I’m not saying that money is the most important thing, but numbers and money are essentials for the livelihood of your company and YOU.
Having being part for so many times for new companies and adventures of entrepreneurs I sometime wish that someone would have told me what are the important issues that I need to look at when starting a company.
After so many years (and mistakes) here is what I would have wished someone would have told me I should focus on when starting a new business.
7 Point to remember when starting your own business:
1. Do your own research – The only way you would be able to get money is when you truly understand and know your audience. What it is that they love, what it is that they dream about, what it is that they fear and what keeps them up at night. For that you’ll need to know your market and audience better than anyone else – don’t delegate this to anyone else – You need to do this research. Do it thoroughly and make sure no one knows your market better than you do.
2. Divide your financial expectations by 3. Most women would not even bother with creating a business plan (unless forced by the bank in order to get a loan). Even those that do it would usually be over optimistic. It’s easy to put impressive numbers on a spreadsheet, but it’s extremely difficult to realize those ambitions in the first years. It takes expertise and market knowledge to forecast properly. Do yourself a favor – divide your financial expectation by 3 for at least the first year.
3. Give 20 to 30% to non-expected costs. When thinking about your budget, make sure you take in account unexpected costs. For crying out loud – it’s your first business; you are not supposed to know EVERYTHING, so just be prepare well for the surprises. What do you really know about your legal costs or how much your accountant is going to charge? Trust me: it will be more than you imagine. Make sure to allocate some money for unexpected costs.
4. Cash is king – especially for a startup. Make sure that your cash flow is positive. Be a MacDonald not a restaurant. In MacDonald you pay before you get your food. In a restaurant you pay after. Build your payment system in a way that your customers are paying in advance.
5. Take care of your first sales personally. You are the best sales person you could ever have make sure that you stay in touch with your audience and market – take care of them. This way you can also learn a lot from the feedback of your prospects and customers. Cherish it.
6. Stay Positive – if you, your product or your services are criticized, listen to what they are saying. I know it is hard, but by defending and giving explanations you will be missing out on some free advice. Stay positive even when you get those feedbacks and thank those clients. People want to do business with positive people.
And the most important tip…
7. Have fun – learn from everything that comes your way. Starting a business will be the biggest adventure you’ll have in your life. It would also be the most powerful and would stretch you the most – you would have to grow as a person. So just enjoy this journey. It might feel at times as a roller-coaster ride of and it might upset your stomach every now and then. But using the tips above, I hope you will be able to keep things real. It’s a fantastic journey!
Now I’m curious…
What have you learned on your journey?
Share with us your tips and advice to someone who is thinking about starting their own business. Share with us in, the comment box below.
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Have a magical week! Vered
