An experienced businessman gives hard-earned business advice, which she would like to have for the first time.
The life of an entrepreneur can become a real roller coaster. After creating several companies in my career, I thought that it would be useful to highlight some of the difficulties I experienced that I learned during this process – a piece of advice that I would have liked when I had my first or even my first job started secondly, business.
1. Do not underestimate the business plan
If you do not start looking for debt, there is a temptation to abandon the formal business plan. However, having spent the time to write your business plan, forecasts and marketing strategy is a particularly effective way to improve your vision. Planning should focus on two key issues: how does my company respond to a particular need or vulnerability, and this is an excellent opportunity for the market?
In addition, do not neglect the exit strategy at the beginning. Do you want your children to take control of the business? Do you want to sell it? From the very beginning, it is important to think about these problems, because the basic elements of your business (for example, legal structure) should vary depending on the end result that you prefer.
2. Do not be late in the past
My husband and I started our first online legal document creation service in 1997 and resumed the work of our second company in 2009. Although our previous experience allowed us to take a step forward the second time, we quickly realized that the market landscape had changed dramatically since our first venture. We had to stop adhering to past competitors, customer needs and expectations for service, and writing a new guide.
The market and your business plan are living things. they always move. Whether it’s your first business or the fifth in a particular market, you have to constantly ask: what should we do today?
3. Do not Hire Your Friends
I quickly connect and communicate with others. Although I usually think this is a positive feature, he created difficult situations in business management. Sometimes I did not want to let people go, although I know that things are not going so well. When things go wrong between the employee and the startup, it’s time to drop feelings and believe that a person will find a better situation elsewhere.
Unfortunately, I also learned that people can let you down, from laziness to deceit. I still believe that believing in people is good. But blind trust can cause problems.
4. Do not dive without a plan
As in the business plan, it is important to rethink all the initiatives that you want to start. When you are in the middle of a fever, it’s easy to cope with every new idea. Make sure you lose focus. Moving forward is critical for each move, and a regular change in direction can prevent this progress. With each new idea, take a step back and think about how it fits the overall goal and vision of your business, and then create a plan for it.
5. Do not fall into the snare trap
To begin with, too many young companies are under pressure to drastically cut prices in order to earn money. While the acquisition of customers is important, attracting customers with prohibitive prices leads only to a race to the bottom. In the end, increasing your prices for goods and certain services can be difficult. I learned that in the end it’s better to focus on how to increase the value of your customers, and not just lower prices.
6. Do not be afraid to fail
Football coach Sven-Goran Eriksson said: “The biggest deterrent is the fear of failure.” The entrepreneur’s path is unknown and sometimes a bit bumpy. It’s easy to be stressed or panicky, but you can not let fear prevent you from following your dreams. Imagine: the sooner you fail, the closer you learn what works.
Although you can not guarantee the result of a new business, you can combine chances in your favor. These are the six lessons that I learned over time, and many others are here. When you are open, you can acquire the wisdom of everything that you are trying to, and get an idea of other entrepreneurs.