The idea of being your own boss is part of the American dream. All of us have clueless bosses that leave us scratching our heads and wondering how they ever became a leader of a company. Not being tied down to depend on someone else for our finances feels like a dream come true for most of us. Starting your own business can eventually lead to financial independence, but it comes with serious risks as well. That is the life of an entrepreneur.
When approaching a bank for a business loan or just trying to figure out ways to make your business successful, a business plan being in place would be worth its weight in gold. A business plan is basically a map for how your business begins and where you would like it to eventually lead to. It will include your goals and how you plan to achieve them. When I went to the bank to start my business, I had my plan in place. I was told by the loan officer that the amount of new business owners that have not even taken the time to create a business plan is a bit crazy. Over fifty percent of them did not even have a short two or three page plan in place.
Another thing to keep in mind is to learn from others that have succeeded in business already. Many will offer you advice, but the trick is to sort the good from the bad advice. Find a business mentor that will guide you along the path a bit. After some time, you will realize that the only people you should really be listening to are the ones that have already achieved the success that you want. In this world, everyone has advice to offer, whether we want it or not. Just look at social media for a quick example. Everyone has their own opinion and they are bashful about sharing it. The key is to tune out the worthless from the important.
Another thing to keep in mind is how much money you will have to spend in the beginning. When beginning a new business, every single dollar matters. You will probably need an actual building to rent, and that will cost you a nice sum. They will probably ask you to sign something like a five year lease even, which is extremely frightening because you can’t be certain your business will last one year or twenty years in the beginning.
You also might want to show everyone that you are a professional business man by purchasing expensive new equipment, but this is not really needed. Everything does not need to be brand new with the stickers still on it. If you buy slightly used equipment for half the price, nobody will know this except you. It is not difficult to find a large variety of used equipment dealers. Plus, any work that you can do without hiring someone else will save you money.
The majority of all small businesses fail during their first five years. That is the cold hard truth. It is not an easy thing to hear, but you must be prepared if things don’t go as well as you thought early on. However, the number one reason they fail is not because of the product or service, but from their lack of sales. Not everyone is a born salesperson. Some people just don’t have the knack for it. If you know this is a weakness of yours, hiring an experienced salesperson is the best thing you can do for your business. See if they will work exclusively off of commission, so the amount they make every week will depend on how many new customers they are bringing in.