Entrepreneurs are the drivers of any developing economy and the governments across the globe are introducing many support measures to help and encourage aspiring businessmen. It noted that the first three years of a start-up business are the most crucial and it requires proper planning and an insightful approach along with the dedicated efforts of the entrepreneurs to take their business through this phase and bring it to success. In this article, we are trying to compile a few best pieces of advice from the experts for the budding entrepreneurs.
1. Develop a solid business plan
As in case of any accomplishments, planning has a crucial role in succeeding in a startup business too. For aspiring entrepreneurs, a solid business plan is a right place to start. It should not just be an outline of the business you aim to start, but also an elaborative description of your core skills, resources, weaknesses, what you go to offer, what makes your service or product unique, and how you can plan to grow your business.
A good business plan will help you to prepare mentally as well as practically to face any adversities and make you capable of dealing with the challenges. For example, you can have contingency plans for late payments from clients, bad weather affecting your production, measures to take if natural disaster effects, or what if your one of your vendors goes bankrupt?
2. Meeting up with the financial challenges
One survey conducted with more than 500 startups showed that the major challenge business owners had to face was related to the inflow of cash. Keeping a fair balance in the cash flow cycle is real trouble for new entrepreneurs, which is essential for the success of any business. As we can hear from the most successful entrepreneurs, the break in cash flows may simply blow off business if you are not creative with your financial management and also with measures to lower down the overheads.
Some creative ways are to offer a 10% discount to the buyers if they pay in full upfront or offering an incentive on paying at the right time of delivery. Whatever measures you take to creatively deal with the cash flow gaps, be careful about debt, which is one big killer of small businesses
3. Don’t be extravagant
Many start a business simply to boast about it to their peers. A good entrepreneur always resists the temptation to simply shell out their funds on making fancy offices, add expensive equipment, and to go over-the-top in marketing. A start-up business’ livelihood is left on the owner’s wallet, so every expense must be cross-checked. It is always essential to limit the overhead and manage the cash flow productively.
Never re-route the business returns to your personal expense. It is not necessary that you own a cozy premium car as a business owner at the initial phase of it, but it is necessary to ensure that you reinvent your returns on purchasing new machinery which helps you double the productivity or performance of your business. Experts of Liberty Lending advice to young entrepreneurs to always ensure that you have proper financial management, which is mostly focused on business establishment and growth than being an extravagant business owner
4. Don’t hesitate to seek help
There are plenty of resources for aspiring businessmen to explore regarding funding, networking, knowledge sharing, and to get advice. Business networking is not only for the business owners, but it can also be the right source of getting fresh ideas regarding business expansion. You may also participate in business expos and don’t hesitate to take advice from those who are out there. You have opportunities to meet many successful entrepreneurs at that place who are willing to share their experiences with you on asking.
There are plenty of online forums also, which you can access to raise questions to experts and also to do virtual networking with experts. Join on the Facebook or LinkedIn business communities also to see what they share for the aspiring business owners to get motivated. Most of the times, it is also possible to get connected with the angel investors and also other funding programs too through these platforms.
5. Try to find a trusted mentor
A good mentor can be anyone from within your family, your previous boss, or a college who is a business guru. There are many online resources and blogs too now offering essential information for business owners to find success. A mentor is an invaluable resource who has a solid understanding and proper insight about the business and the industry you want to explore.
However, a mentor should be someone with whom you can do an unbiased and non-judgmental check in anytime. On assessing the cause of failure of many start-up businesses within the first year of their initiative, the respondents of many such businesses mentioned they haven’t had any mentors. Those who found proper mentors did have a significant positive impact of it in their businesses. A good mentor can push you beyond the fears and confusions and give you the right inputs at the right time to move on.
6. Effective marketing on a budget
Marketing is an essential need for any new business, but it shouldn’t cost you the earth. For the newbie businessmen, social media can be your best friend. It is essential to create a business account on the leading social media platforms. A great profile is a right point to start, and you have to build a fan following from your desired target group slowly. Proper social media efforts can also assist in improving your search engine performance too, which will ultimately help you get more traffic to your business site.
There are many free as well as premium services offered by social media sites for all types of businesses to fit their budget. Along with promotions, entrepreneurs also need to keep a close eye on their follower community also to see what their interests and priorities are. It is also essential to track the performance of your competitors too to understanding their strategies and outweigh it with more innovative marketing approaches.
To conclude, you need to understand that the most successful entrepreneurs don’t seek for risk, but they seek opportunities to mitigate risk. You need to foresee the risk factors and take all necessary measures to prevent or overcome these risks to ensure that your small business gets established, nourishes, and grows beyond your expectations.
Kelly Wilson is an experienced and skilled Business Consultant and Financial advisor in the USA. She helps clients both personal and professional in long-term wealth building plans. During her spare time, she loves to write on Business, Finance, Marketing, Social Media. She loves to share her knowledge and Experts tips with her readers.