Many people may enjoy the notion of starting their own business because of the lure
of generating immediate profits for their innovative inventions and ideas. However,
it takes more than just having an idea of a establishing a startup that will lead
to a company’s success. There is a considerable amount of planning that needs to
take place prior to the launch of a company in addition to personal and financial
dedication. Despite the fact that the majority of startups will eventually fail
in their first year, many of these failures can be prevented if entrepreneurs’ simply
took the needed time to properly assess if they have what it takes to run their
One question forthcoming enterprise founders should ask themselves is whether or
not they are fully capable of starting their own business. The idea of a startup
may seem like an alluring prospect, but without familiarity and understanding of
the industry, entrepreneurs may experience a difficult time in sustaining their
company’s success. The imperative qualification of industry experience should not
be overlooked because it may mean potential failure in the end. Lack of experience
does not necessarily mean that entrepreneurs should not start a business; however,
they should wait until they have developed considerable knowledge in the field.
They can accomplish this by talking to other business owners within the same industry
who can give practical advice about startup costs, revenue projections, expertise
in running a company, and other additional company expenses. A prospective entrepreneur
should also conduct independent research regarding competitors as well as find out
which sorts of businesses are needed within their community.
Many entrepreneurs will agree that starting a small business is a risky endeavor.
Not only should ample time and energy be invested during a company’s preliminary
stages but company founders should also be aware that their reputation may be jeopardized
if their business fails. In addition, if a company is not successful as anticipated,
there may be a strong possibility that business owners may have to resort to closing
or bankruptcy and lose much of their invested wealth. The first few years of a company
is considered to be a very crucial time for entrepreneurs since their startup’s
fate is unexpected. It is important that an individual evaluate the different risks
involved when considering entrepreneurship. If they do not feel comfortable with
taking these risks, then perhaps they may need to reconsider whether starting a
small enterprise is suitable for them.
For more information about the Pros and Cons of Angel Investing, please refer to
related articles section of Angel Investing.
Be ready to be the boss
Many first-time entrepreneurs will agree that the reality of running a small business
is very different than what they had initially expected. Some business owners may
have the misconception that once they launch their businesses, they will be able
to finally have more available free time and can live a comfortable, stress-free
lifestyle; however, this is not completely true. A significant part of owning a
company and becoming your own boss includes an undeniable amount of sacrifice, where
much arduous effort and comprehensive hours of labor is required. Many business
owners may not be prepared for these daily challenges and may lack the necessary
personal drive and motivation to manage their employees, deal with customers, or
even run a whole company. Forthcoming entrepreneurs are encouraged to actively solicit
the opinions of others to find out if they are completely capable of being their
own boss and running a company. The pooled opinions may vary, and at times, be painful
to accept; however, it is always a good practice to obtain constructive criticism
from others before making the crucial decision to start a business.
Starting a small enterprise and managing family life are considered to be both demanding,
full-time responsibilities. Both commitments encompass the sacrifice of time, effort,
and finances to properly sustain. These can be quite difficult tasks for the entrepreneur
to properly balance and for their family members to fully accept. Family members
of business owners should be prepared for all the daunting challenges associated
with a startup, including the demanding schedule of their loved one. It is a proven
fact that entrepreneurship can be mentally, physically, and financially draining.
Family members should offer their loved ones understanding and emotional support,
especially during the preliminary years of the company launch.
Genuine enthusiasm and creativity
Many people become inclined to start a business simply for the financial return.
On the other hand, there are entrepreneurs who have the tendency to see beyond this
monetary gain, are clearly very enthusiastic about entrepreneurship, and confident
that their products and services are what people want. In addition, this latter
group of entrepreneurs tends to have a relentless inherent sentiment that once their
unique ideas are marketed, these innovations can clearly improve one’s quality of
life. This unwavering optimism and passion for their company is the driving force
behind their solid success.
For more information about Winning Entrepreneur Characteristics, please refer to
related articles section.
Once an entrepreneur has evaluated they have what it takes to start a company, they
can now follow a few steps to launch a successful business.
- Visualization and research of product, service, and market
The initial step to a successful business involves the company owner’s work in preparing
and improving the products and services that will be offered to paid customers.
Prospective entrepreneurs must first decide on the type of business they are interested
in starting. They must then use those ideas along with their personal and professional
experiences into envisioning and creating goods that will greatly attract a consumer
base. The design and innovation of such products often entails extensive research
of competitors and prospective consumers in the targeted markets. Once the products/services
are determined, a product prospectus should be written, documenting how each of
the products/services are prepared, used, and its competitive edge.
- Preparation of a marketing strategy and well-written business plan
Once entrepreneurs establish enough knowledge about their target markets and have
implemented their active concepts into reality, they are now ready to market their
goods and ideas. This often entails devising a marketing strategy which is successfully
accomplished by paid professional assistance and/or experimental presentations to
attract a consumer base. A detailed business plan is also needed for any business,
regardless of the size of the company, which documents the company’s objectives,
their goods/services offered, startup costs, and the targeted market and customers.
Every business plan varies, and the Small Business Administration (along with other
private companies) may be able to offer paid technical and practical advice in creating
a business plan tailored to a company’s needs.
- Seeking professional assistance
Government agencies can offer company owners much needed expert and friendly advice
on starting a business. In addition, lawyers and accountants can provide entrepreneurs
with valuable information concerning government rules, regulations, zoning, and
other legal issues. Many of these professionals can also critique proposed business
plans and assist in determining which legal form is most suitable for their company
(i.e. partnership, proprietorship, corporation, etc.).
- Sources of capital
The final step in starting a business entails obtaining the necessary
funding to sustain a company’s survival. Some sources include the use of
personal savings, angel, (for more information about angel investors, please refer
to our related
articles section) and venture capitalist financing, borrowed money from
business associates, private loans, and family and friends. The process of obtaining
funding may be time consuming and frustrating; however, it is important to stay
motivated until the desired capital is raised.
While many people can envision the idea of owning their own business, some do not
have what it takes to start and successfully sustain a company. Most small enterprise
failures can easily be avoided if business owners would simply be aware of the challenges
that lie ahead and evaluate within themselves if they are fully prepared to start
their own business. Once they are able to determine that they are capable, they
can then take the necessary steps needed for startup success.