New business ventures can be quite a thrilling experience, but not everything should be expected to go smooth in an instant. It takes a lot of perseverance and diligence to make your mark and to elbow your way to an enviable spot on the market. Sometimes success can happen overnight, but it’s usually a story of patience which befalls most of us. So, before you start-up your new business, let’s see what should be considered in order to make this endeavour more clear and easy.
Investors are hard to get
It is highly likely that you will present your business plan to many potential investors and most of them will say “No”. However, their lack of interest shouldn’t discourage you. A lot of them tend to sugarcoat the rejection, but that should only prompt you to work on your pitch and see how you can present yourself better. The most important thing is to ask them why they declined your idea, so you can improve your presentation for the next attempt.
Raising money ≠ high salary
This one goes especially at the very beginning. You may feel an elation when you “strike gold” by raising a lot of money, but aim to put things in perspective. Once you get your starting capital, it’s better to invest that money in order to make more money, rather than to spend a decent portion of it for yourself. Investors can be flexible with their money, but all of them will tell you the same thing – the higher your salary, the higher the overall burn. Consequently, the more money you raise, the less you own your company.
Simply because most of them are a waste of time and money; and you can basically learn the things they preach online. The only thing that should occupy your mind in such matters is the attendee list. Why? Well, some of the names that pop up can be either your potential clients with a lot of influence or people who simply have more experience than you. Also, a good networking event is usually an intimate one. It might be hard to get inside, since they tend to be ‘invite only’, but once you do, you should look forward to new friendships and business partnerships.
It’s never too early to sell
A lot of young companies take their time to create a revenue stream once enough money has been raised. This is because focus is usually shifted on developing a product/service, rather than acquiring paying customers. Consequently, if you were using your personal start-up money to get your business on its feet, you’d be rushing to break even immediately. Once you start the sales process before completely creating your product/service, you’ll reduce the burn much quickly and learn crucial facts from paying customers, too.
Experience or passion?
When it comes to hiring people at the very beginning, there is one choice that can be a puzzle. Do you hire the smartest person out there with a ton of experience, or the hungry individuals who are eager to succeed and learn? The first category has its advantages, but such men and women are more used to working in big corporate environments and are excellent at farming. That is why they lack pace and are not good at figuring things out on their own. The ones who will fight, act quickly and strive to reach mutual goals are a much better and productive choice when your company is just an ambitious fledgling.
Pick your friends
In the world of entrepreneurship, it is always good to surround yourself with capable, confident, innovative industry peers who would rub off on you, just as you would in your private social life. If you need help with building products, make friends with skilled engineers and product development people. If you don’t know how to raise money, hang out with the finance guys. If you have trouble understanding the law and state rules and regulations, get necessary business legal advice by befriending people from a professional law firm. While you’re at it, make sure to help them back whenever you’re needed, because that’s what friendship and mutual growth is all about.
All in all, entrepreneurship isn’t a job for everyone. First and foremost, you simply have to love it, if you want to make it work. It is kind of a job where you can make an empire even though you started with practically nothing. It takes quite a lot of patience, nerves and dedication, but it is also important to have realistic expectations before you delve deeper. Starting may be the hardest part, but if you stay the course, rewards can be immense.
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