Tips on Starting a new Business
In previous columns I have discussed tips on starting a new business and below is six tips:
1) Go with your heart in choosing a business.
It is very important that you LOVE what you are doing. You didn’t spend all those years in a so-so job, position or employer to now start something that you’re truly not passionate about. Don’t be tempted to jump into something because you read or heard that someone made a killing in it. No, it has to be something that you are truly interested in. One way to measure this is to determine whether you love the product or the process.
Many people start businesses around hobbies and/or products that have always interested them. It’s hard enough to start a business and will end up being just too much work unless you really love what you’re doing.
Of course, the new idea needs to be feasible and that is why the next step is so important.
2) Plan.
Prepare a business plan; even if it is very basic. The act of preparing a business plan, forces you to think through your idea. But note that the plan doesn’t have to be overly complicated or extensive. But the better thought out your business plan is the better chance that you have for success. The bottom line is that the business has to make money and you want to give it some thought. The sections of the business plan to be addressed include Overview, Financial, Management, Marketing and appendix. Every aspect of a plan is important.
3) No entrepreneur is an island.
Even if you are going a the business alone and prefer not to have to be bothered with managing people, remember everyone needs outside assistance in at least some aspect of their business. Make sure you receive the proper legal, financial and tax advice in setting up your business. It is always good to obtain tax advice particularly when investing large sums or funding a business with your 401(k) which is becoming more popular. The money that you spend on your professional advisers is well worth it and can save you from a lot of problems down the road. Don’t be afraid of lawyers and CPAs. They want your business.
Keep an eye out for business networking groups that can help you with your business. Check them out. I have found that some are very helpful while others are sort of useless. But you won’t know until you give them a try. But avoid shelling out too much on the front end for dues etc. and most organizations will give you some opportunity to evaluate them as a guest.
Also, there are many design professionals who sell their services on Internet sites such as Elance that do a great job.
4) Persistence is the key
Starting a new business from scratch is far from easy and anyone who tells you differently doesn’t know what they are talking about. Despite the best planning and research, the venture will never quite go as planned and you’re going to have to make adjustments along the way. You new undertaking may be like the jet airplane that is actually off course most of the trip, but nearly always lands on the correct runway. You will learn and refine your model. But you need to start somewhere and virtually no one is going to do everything right, just out of the gate.
5) Advance confidently in the direction of your dreams, but still have fun and try to enjoy yourself
I know I know. You may have retirement funds on the line and who can have fun in these circumstances. But this is your chance to make your mark in the world and if you approach this challenge with the relaxed confidence you will be less tense and much more likely to succeed. The entire quote from Henry David Thoreau (which I love and which summarizes many aspects of self help and success is as follows).
If you advance confidently in the direction of your dreams and endeavor to live the life which you have imagined, you will meet with success unexpected in common hours.
6) Learn from your mistakes, but keep the tuition low
Of course, you’re going to make mistakes, but learn from them and change course accordingly. The faster than you can realize and correct your mistakes, the less painful the experience will be.