Being an entrepreneur will be a challenge that’s unlike any you’ve faced before. Unfortunately, the lack of experience is always scary and the consequences of acquiring it may be quite expensive. Luckily, you have a chance to learn from the experience of others. With that in mind and without further ado, here are five must-hear tips for first-time entrepreneurs.
Validate your ideas and put them on paper
The first thing you need to understand about a business idea is the fact that while to you it may sound great, the idea itself might not be as viable as you think. This is why you need to validate it before you start making moves to make this idea come to life. After you validate the idea, you need to start making a business plan. While you may be confident about your ability to keep all the vital data in your head, your investors and your team won’t be as thrilled with this idea.
Taking money means making a commitment
When it comes to fundraising, a lot of entrepreneurs just want to get their hands on the resources to make their dreams come true. What they don’t realize is that after taking the money, they’re making a long-term commitment that might decide the course of their business. Look at it this way, if you use your personal funds, you’ll be in dire financial straits until your business is profitable (which might not happen at all). If you get a loan, you’ll have a break-even point to worry about and an interest rate to deal with. Those who lend money from friends and family (which is about 38 percent of all startup owners) might end up ruining a long-lasting relationship.
Put your staff first
One of the biggest misconceptions of the business world, as well as one that’s done the most harm is believing that the customer always comes first. Needless to say, by siding with a malicious, unreasonable customer, you’ll alienate your team the fastest. This will lead to low morale and high talent abandonment rate. To avoid this, you need to put your staff first. Remember, you don’t have to be loved or even liked by your employees, however, they do need to trust and respect you. This means always keeping your word and always, always, always paying on time. Even if your cash flow is depleted at the moment, this is something worth considering payday loans for.
Two laws of productivity
When it comes to the productivity of your staff, there are two major laws that you need to keep an eye out for. The first one is Price’s law, which claims that only a small portion of your employees is doing the majority of all the work. Anyone who has ever worked in a collective (or even on a group project) knows this to be true. The second one is Parkinson’s law, which claims that the work expands so as to fill the time available for its completion. This means that regardless of how much it takes for a project to be completed, the deadline will always be a determining factor. This is why you need to be less lenient with your deadlines.
A successful business burns a lot of money
Being frugal is a good trait for any entrepreneur but being too frugal might end up being quite problematic. You see, a successful business makes bulk orders of supplies they’ll need in the future. It also spends a fortune on marketing, gives out employee bonuses and refunds their clients when they’re not satisfied. All of this money comes under operational expenses and unless you can drastically improve your cash flow, you won’t be able to do any of this.
Conclusion
Finally, even though there were times in life when you’ve felt overworked to on a tight schedule, but the truth is that this is nothing when compared to the amount of work that you’ll face as an entrepreneur. Unfortunately, if you sacrifice too much of your personal life it will be easier for you to lose it and burn out mentally. Also, keep in mind that you’re not pursuing success for the sake of success alone. Most commonly, you’re trying to create a better lifestyle for your family or achieve some personal goals. This means that sacrificing these things for the sake of your business might be more than a bit paradoxical.
