If you want to be an entrepreneur, there are a few things you should know before starting a business – actually, there are at least 10 of them. Knowing what they are, and how to implement them, will go a long way toward ensuring that your business venture is a success.
#1. Cash Flow Is Job 1
It may be fun and even interesting to get caught up in a lot of the details of starting a business, such as setting up an office, having stationery and business cards printed, contacting various vendors, and even talking with people about potential employment. But when you become an entrepreneur cash flow is Job 1. And that’s a relationship that you need to understand from the very beginning.
Simply put, without cash flow there is no business. Keeping cash flow coming in will be an ongoing challenge, but it’s never more important than in the startup phase. Before you can officially launch a business – in fact, before you can even say that you’re in business – you need to have some clients and some cash flow coming in. When you start your business, that should be your primary mission.
Related Article: 4 Ways to Increase Your Monthly Cash flow
#2. Focus Most of Your Time and Effort Doing What’s MOST Important
When you start a business you can get tangled up in a lot of details. After all, as a sole proprietor, virtually every issue in the business is your responsibility. But this is where focus becomes extremely important. You have to be able to separate critically important activities from those that are just merely important.
We just discussed the importance of cash flow, and that will need to be a priority for as long as you own your business. That can involve other important tasks in the same direction, such as marketing, customer/client contact, and product/service delivery. These are the foundation of any business, and they are the functions that you must get right.
#3. Don’t Hire – Partner or Sub Out Instead
When you start a business, you don’t need to hire employees. After all, employees create an immediate fixed expense at a time when income is uncertain. The better route is to either partner with other entrepreneurs for certain services, or sub out the work to independent contractors and freelancers. That will help to keep your expenses in check, especially during the startup phase of your business.
Related Article: 46 Insights On Partnering And Collaborating In Business
#4. Rent – Don’t Own – At Least at the Beginning
It’s almost axiomatic that you will need cash in order to start a business. But most of that cash will likely be needed for your personal survival. The less that you put into the startup itself, the more you’ll have for survival, and the longer that you’ll be able to last during the early days of your business.
That means keeping capital outlays to an absolute minimum. You should rent office space or storage space, as well as any necessary equipment. That will keep upfront capital outlays to a minimum, and “preserve your powder” for survival as necessary.
#5. Market Test Before You Commit
There’s no such thing as a can’t-miss product or service. No matter how good a product or service looks on paper, it can fail for any number of reasons that you never imagined.