Being the Head Cheese: Don’t Just Work Hard…Work Harder
Tips to be a better Entrepreneur!
The world of business can be compared to Social Darwinism at its finest, which means only the fittest survive. This doesn’t necessarily mean having gladiator like biceps or raising a billion dollars in funds, but what it does mean is the need for hard work, and a lot of it. Young entrepreneurs, often find themselves going through trying times in their entrepreneurial journey, which can range from anything from new products going dud to critical employees unexpectedly quitting, and businesses losing either good customers or crucial investors, and so on.
What to Do
Whether it comes to raise funding or starting up a business, the road to wealth is littered with countless road blocks and potholes like these, but young entrepreneurs can avoid all that by using the following strategies in their business plan.
Fill a Gap and Cater to an Unfulfilled Demand
One of the key things to keep in mind when setting out on starting a new business is that, good ideas aren’t the same as profitable ones. Most entrepreneurs fail miserably in their first try simply because they didn’t ask themselves the most important question of all. Will anybody actually buy my product? Let’s take a quick look at the iPhone for example. People flocked to the stores for the gadget because it fitted a specific need at the time, which was, bridging the gap between a computer and a phone.
Keep it Simple
For an entrepreneur, it is extremely important to keep their product or service simple and within the budget of their target consumer demographic. The more complex your business strategy is, the more risky it will be in the long run, especially for new entrepreneurs who have just started out in the business field. The best way of finding out what a customer wants is by asking them.
What about Insurance
For an entrepreneur, there is really no excuse left for remaining ignorant to the insurance needs of their business. Whether it’s a professional liability or medical, no matter what your needs are, there are professionals who are able to provide free advice and quotes whenever needed. One of the main reasons why many entrepreneurs land in hot water is because they try to cut corners when it comes to getting business insurance or worker’s compensation.
So, whether you have an office and employees, or are going at it solo, it is important to remember that we live in an era where you may find yourself staring at a lawsuit for the most simple of things.
Make a Connection with the Consumer
No matter what the business, you will be looking to increase sales and raise funding, and that can only happen if you get the proper exposure. You will need a way for people to connect with you and having an online presence will help you build a larger fraternity. When starting out, entrepreneurs should spend a bulk of their time trying to boost their online presence. This can be done easily with the help of using social media outlets. To do this, you must first set up an online business account which is totally separate from what you use personally.
Don’t forget to offer your customers with regular tweets on what’s going on behind the scenes, or offer them cool discounts to keep them interested and coming back for more. You can also book a domain name to get you an email address and make your business look more professional.
How to Encourage Growth
If you are looking to make your business grow, you will need to raise funding by finding yourself the customers who are willing to join and support you. And guess what? The only customers who will be willing enough to do that will be those who are looking for something new. So, in a way, growth will come from bringing something new to the table every time you set out to introduce a new product or service.
Pursuing an Investor
The number one challenge which all entrepreneurs face when starting up a business is capital. Getting the proper investment in order to survive and thrive in a fast paced business environment is crucial for any business. The right amount of capital can be generated from a variety of sources which include, raising money with the help of family and friends, getting it from venture capitalists, taking out bank loans, going to angel investors, and even from personal funds. While believing in what you are about to offer is very important, there are three main ways of approaching investors, which are preparation, relationship and diligence.
Any investor will not be ready to give away their money to an individual or company which isn’t going to provide them with a return on investment. So, make sure you have all your finances in order and a good management team in place.
What Not to Do
Now that we’ve discussed the things that you should be doing, let’s focus on the things you absolutely should not be doing. Let’s start off with the following.
Not Paying Attention
One of the biggest and most damaging of mistakes an entrepreneur can make is not paying attention to the small things, like keeping an eye on their financials perhaps. The finances of your business is the life blood of your business, which means an entrepreneur needs to keep an eye on their A/R and A/P graphs, they’re bank statements and their monthly expenditure. Basically, what this means is you can’t sleep much when there are traps virtually everywhere, because if you do step in any one of them, it will be the end of your business.
Not Having a Contingency Plan
Lately, when the economy got manhandled we saw many examples of companies getting flushed down the toilet or asking for bailouts, this happened because many companies didn’t have a disaster plan, which ultimately led to their demise during the recession period. On the other hand, all the businesses which survived had a contingency plan in place. In order to stay safe from future recessions and an impending demise of your business, it is important to have a backup contingency plan in place.
Being a Bad Boss
One of the most vital traits of being the boss, is having the ability to extract the best out of the team you have put together. All entrepreneurs who fail have one common trait with each other, and that is, they make the lives of their employees miserable by treating them in a dictatorial manner. The main reason for businesses that fail is not bad employees, but bad leadership. Nobody wants to jump out of bed to follow a bad boss or an ineffective manager.
Use These Tips and Ensure Your Entrepreneurial Success
There aren’t really any sure fire ways of success in business, nonetheless, using these tips and some common sense can lead your business towards the success it deserves. The good news is that the new technologies being introduced in the market every day are opening new business opportunities for young entrepreneurs. It is safe to say that the odds of success are in favor of the entrepreneur provided that you have the right business model.