Emily always dreamt of starting a business and being her own boss. After working in corporate for years, she finally felt she had the means to take the leap and start her own company.
She had a killer business idea, loads of enthusiasm, and intense passion. Like most people, she thought she had it all figured out. Unfortunately, it didn’t take her long to realize that she was way too over in her head, and there was a steep learning curve waiting for her.
This story is not just of Emily but of thousands of aspiring entrepreneurs.
Statistics say 9 out of 10 startups fail. More surprisingly, only 18% of first-time founders succeed.
You see, bringing your entrepreneurial dreams to life is not easy. However, diving into the journey armed with a few golden nuggets can make your winning bet higher.
So here we have the 5 most crucial ingredients for startup success. Use them well in your business recipe, and who knows, it might yield a delicious meal!
5 Things You Must Know When Starting a Business
Ideas Are Worthless Without Action
Have you ever wondered why a lot of venture capitalists hesitate to sign an NDA (Non-Disclosure Agreement) when they buy a stake in an entrepreneur’s idea?
It’s because, to them, your business idea is only the beginning of the battle. It’s the execution that helps you get to the finish line and further. And if the success of your idea depends on competitors not knowing about it, it’s not worth investing in it.
You see, your idea is a significant part of the puzzle, for that’s where it all begins, but it’s worthless in isolation. Unless you take action to implement it with your resources, it is just a thought.
We know this business mindset might sound offensive to many people, but Steve Jobs himself believed the same.
“To me, ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.” — Steve Jobs
Another reason why ideas have little to no value without implementation is that there is an abundance of them. Strike a conversation with anyone around you. and they will share five business ideas at the drop of a hat. That too good ones! So having one, or ten, doesn’t make you any special. But the way you execute them does!
Learn from the aces — Facebook wasn’t the first social networking site, nor is food delivery revolutionary. Still, Facebook is the most-used social platform in the world, and new food delivery apps are launching every day. So all you need to do is execute your idea better and more strategically than your competitors, and you’ll be on your way to success.
Nobody Cares About Your Business More Than You Do
They say employees are the backbone of your business. It’s true — your staff brings their skills, expertise, and hard work to help make your business a reality.
However, when you start a business and hire your chosen set of highly-skilled employees, don’t expect them to deeply care about your business. Demand and expect their 100% efforts in their job, sure. But if you wish them to invest the same level of care and dedication as you and other co-founders, you’re building castles in the air.
Your business is the product of your dreams and desires. It has a glistering sweat of your burning passion and your need to materialize something you deeply believe in. No matter how much money you throw, no other soul will care about it as much as you.
And guess what, that’s okay! You should be able to make peace with it.
To your employees, their job is simply a means to earn their paycheck. They focus on their motivation and goals. When they align with your business goal, it’s awesome! But 9 out of 10 times, they won’t.
You see, your employees have their limitations. They may face time constraints, competing priorities, or simply not have the same level of passion for the business as you. It, by no means, means they are less worthy to be your employee.
You Don’t Need Money to Start a Business – You Are the Business at the Beginning
If you ever wonder how hard it is to start a business, consider this analogy.
Starting a new business is like jumping off a cliff from an edge. It’s risky and exhilarating at the same time. And most importantly, there’s no guarantee of a successful landing.
And here’s the thing — if you think a premium parachute will save you, giving a quick heads up, there’s none. YOU are the parachute here.
The heart of the argument is people keep waiting for the right resources and the right time to start a business. They make excuses for not having enough money for the business.
But guess what, you don’t need a lot of money in the first place. You can set up a business foundation for just $100. In the beginning, it’s your skills, expertise, and passion that carries you through.
A frequent mistake made when starting a business is looking at an established company’s final stage and confusing it for its starting point. You see a ton of employees and a large number of resources. But that’s not how businesses are started.
Businesses start with hustle – don’t wait around for paid resources; leverage free or low-cost resources to help get your business off the ground. And focus on networking and building relationships with the industry community.
Be Ready to Make Sacrifices
Every office has one common Monday morning culture. Employees get around the coffee machine, slurp their vile concoction, and crib about the weekday. 4 out of 5 times, the conversation smoothly derails toward how they wish to leave their shitty, stress-inducing job and start their own business.
You see, in a corporate environment, 8 out of 10 people despise their job.
Why?
It’s because they hate working for someone else and dream of becoming their boss.
However, this notion of ‘being your own boss’ is highly misconstrued. Let us break it to your – it’s not all roses.
In your 9-5 job, you work for 8 hours. However, when you start your own business, you might be working for 16 hours.
Your job has an off switch. At 5 pm, when you turn off your laptop, you disconnect from your work and go home with a free mind. But your business doesn’t offer that luxury. You never, we repeat, never disconnect and your mind is always thinking and worrying.
Sleepless nights and working weekends are just a small part of your bonus. You will miss parties, see your friends less, spend compromised time with your family, and may even see your health deteriorating. So be ready for what life may throw at you, as entrepreneurship is not easy, my friend!
Of course, running your own company is likely to offer you a way better life than a regular 9-5. But those rewards come at a price. You are required to make your business your priority to make it a success.
Must Read: 9 Tips to Achieve Work-Life Balance
Build Smart From the Beginning
A crippled foundation can’t sustain you for long. If that’s the case with your new business, no matter how high you plan to fly, you’re bound to fail.
If you think about it, starting a business is like building a home. Without a solid foundation, it won’t stand the test of time. And it needs the strong support of elements like a business plan, target market, and brand identity, to stand straight.
Here are a few of the boxes a smart business will check –
- Your Business Shouldn’t Have a Demand Ceiling
No matter how successful you are, your business should always have customers. Specialization is welcome, but don’t get too specific that you’re the only one selling it. Or else, after one point, you would hit a demand ceiling where you can’t increase your sales anymore. It’s a cap to your growth.
- Every Part of Your Business Should Be Replaceable
Does it sound counterintuitive? Well, hear us out.
You’d want to hold onto the things that make your business unique. However, it’s vital to scale and adapt to changes in the market and your industry and not stay stuck.
So be it employees, vendors, or entire business models, you should be able to swap them without disrupting your operations. Your business shouldn’t become dependent on just one key part of it.
- Your Business Should Be Able to Scale
Most businesses aim to reach a high level of success but don’t plan for it. But before you start a business, you should have a scalability plan.
If the demand increases, how would you increase production?
How would you allocate the resources?
How would you balance your short-term and long-term goals with strategic planning?
Develop a plan that answers these questions!
Starting a Business – The Bidding Words
Let’s face it – starting a new business is an exciting venture, but it’s definitely not for the faint of hearts. It comes with its challenges and setbacks.
However, don’t lose heart just yet. Even the most seasoned entrepreneurs face dark moments in their initial days. Remember these 5 valuable pearls of business advice and put your blinders on — you’ll soon be on the path of merriment and success!
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