Starting a business of your own is very exciting, but let’s not forget that entrepreneurship can be very tough and tricky, and it would be safe to say that no college degree can prepare you for it. In this article, I am going to tell you about smart things to know before starting a business, that can be beneficial for you and your partners.
Starting a business isn’t always a bed of roses. You will face all kinds of challenges and obstacles almost every day and will learn a lot about them while on the job. But wouldn’t it make the oath of entrepreneurship a little easier if you knew some of these things beforehand?
If you too are thinking of taking this plunge, then keep note of these few things that will help you with your business.
10 Smart Things To Know Before Starting A Business
Activity Does NOT Mean Growth
When running a business, remember that just because you are trying out many things, launching new products, features, employees or any infrastructure does not translate to growth.
You need to separate and stop the confusion between expansion and growth. These are two separate things and can be easily mistaken. Growth is measured when you see an increase in the number of customers and profit. Whereas any update or increase in the number or employment, product means the activities that are happening in your business.
Have A Consistent Cash Flow
One of the important things to know before starting a business is Cash flow and Entrepreneurship which go hand in hand, and there is no denying this. If you have a consistent cash flow, you can finance your own mistakes. Usually, entrepreneurs make the mistake of not keeping a tab of the money or investment that eventually gets drained out, which affects the company and disrupts it in a significant way.
Keep a check on your spending and cash transactions to avoid any such contentions. Regular cash flow should be one of the key goals of the growing business and something that should not be overlooked.
To keep track of all your expenses and cash inflows, use Lio, which lets you do all this much more efficiently and straightforwardly on your phone.
Money is Important, But It Is Not Enough
You might raise a lot of money and have substantial funding, but this is not enough to have a successful business. For a strong foundation on your business, generating consistent cash flow early on is crucial to help your business grow.
You Are The Owner But More Importantly An Employee
Yes, you are the company owner, and yes, this business is truly your own but to have a business that flourishes and reaches great heights, you need to separate your identity from an owner to an employee and a shareholder.
Separating these two identities and working as hard as other employees in the business would eventually help you in separating your personal finances from the business.
Savings Are Crucial So Start Saving Early On
When a business begins, it would not be easy to keep track of all the money transactions in the initial years. Some payments would be necessary while others would be not so necessary but what is important is you keep track of all money.
Keep a track of the money inflow and outflow would make you well aware of where your business stands. But what is even more important is to start saving from the very beginning. Having savings would only help you in dire times especially when you need cash early on.
Find Yourself a Mentor
One of the blessings you can have while starting a new venture is having a good mentor who guides you. Someone who can support you gives you in-depth knowledge and at the same time can hold you accountable for your decisions.
Make sure that your guide is someone who has a history in a successful business so that he understands your journey, its importance in your life and can give useful tips. Someone who believes in you, in your ideas, your business, and most importantly, is not afraid to give you honest feedback.
See Your Numbers Closely. Numbers Don’t Lie
Whether your business is doing fine or not, the numbers will tell you all that you want to know. It is very important for an entrepreneur to know the numbers well and keep track of them. If you don’t, then eventually, it would crumble your business.
You must know all kinds of costs of your business, whether it is an expenditure, investment, income made from customers. The basic rule is that your cost should not be greater than your worth. If it is, then it’s time to make some decisions.
Engage With Customers and Develop a relationship with Them
One of the most important things to know before starting a business is to engage with your customers as much as possible. Nobody wants to do business with a faceless brand. Actively engage your customers and start developing a relationship with them.
Thanks to social media, today it is very easy to connect with people and your customers. All you have to do is just be present on social media. It makes it easier for your brand to reach out to maximum potential customers. Post constantly, ensure all queries are answered on all platforms and be prompt about it.
This is also a great way to get some authentic feedback from your customers that can help you in understanding what they like and don’t and how you can cater to their needs and requirements which will eventually benefit you and make your business flourish.
Be Mindful and Choose the Right Business
You might have the best intention, the hard work, and perseverance to run a business successfully, but it might still not happen. This may occur because you may not have chosen the right venture for you. Sometimes the market conditions are not in favour or there might be something else.
Therefore, always study the market well, do thorough research in what the current market demands, and then decide on what company you want to start or what field you want to get in.
At last, Don’t Forget To Have Fun
Starting and then running the business is as it is very challenging. You would be running high on emotions all the time, feeling frustrated, happy, disappointed, and eclectic, all at the same time. But while you try to find ways and solutions to tackle hurdles, do NOT forget to have fun along the way. A little fun would only help you keep your sanity and mental peace.
There is no way all entrepreneurs will go through the same journey, face the same problems, or have the same success. But these are some of the rookie mistakes that many make during the initial stages. So learn from these and manage your business in a much smarter way.
Also Read: Business Ideas In Kerala You Must Know
I hope by now you have understood all about starting a business and are ready to take on the world and start your own. So wait not and start planning.