5 things I wish I knew before starting my own business!
Starting a business is an exciting and fulfilling experience, but it can also be a scary and challenging journey, especially if you’re a first-time entrepreneur. As you embark on your entrepreneurial journey, there are some key things that you should bear in mind to avoid common pitfalls and increase your chances of success. From my experience as an entrepreneur, here are five things that I wish I knew before starting my business.
It Takes More Time and Money Than You Think
One of the most common mistakes that I made starting out was underestimating the time and money it will take to get my business off the ground. Not only did I need to invest money to launch my business, but I also needed to be prepared to wait a while before I started generating an income. A lot of folks think that starting a small business in America is a breeze. But the truth is, things can get pretty tough. Did you know that according to the Bureau of Labor Statistics, 18% of small businesses go out of business in their first year? And it only gets worse from there. Half of small businesses will fail within five years, and a whopping 65% won’t make it past the ten-year mark.
In my most recent business, I decided at the start how much income I need to make per year for 3 years to be successful. I invested $20K of my own money to start the business and I had credit cards to fund the business and travel expenses.
Once I start in business:
- I broke-even in the first year.
- I was short by 12% the second year.
- Made a 10% over break-even amount the 3rd
- And my company grew every year since (except COVID but that is another post)
Therefore, you need to be realistic about the time and money you’ll need to invest and be patient as you wait for your business to take off.
You Need a Solid Business Plan
I have seen grown adults panic over writing a business plan. A good business plan does not have to be overly complicated and is a crucial tool that outlines your goals, strategies, and financial projections. It’s a roadmap that can help you stay on track and make informed decisions as you grow your business. A well-crafted business plan can also help in securing funding for your business if you so desire. If you’re not sure how to create a business plan, there are many online resources available to help you get started.
You Need to be Flexible and Adaptable
Starting a business is a journey and you will grow in abilities, knowledge and confidence as your grow your dream. It’s essential to be flexible and adaptable as you navigate your way through it. Your initial plans and strategies may need to be tweaked as you learn more about your market and your customers. You also need to be open to new opportunities and be prepared to pivot your business if necessary. For instance, if a marketing campaign doesn’t yield the expected results, you may need to try a different approach.
Networking is Essential
Networking is a critical aspect of starting and growing your business. Building relationships with other entrepreneurs, industry experts, and potential customers can provide valuable insights and make important connections. Attending industry events, joining local business groups, and connecting with other entrepreneurs on social media can help you expand your network and grow your business.
Depending on the type of business you start, I recommend signing up for Alignable: The Small Business Network, especially for a business to consumer type of business. The Alignable Network is a great way to network with other local businesses and build a team of people that you can work with and share customer base.
And don’t forget that most cities have a Chamber of Commerce that is devoted to helping businesses grow and learn. Successful businesses are the backbone of the financial income to the cities, counties and states.
Self-Discipline is Key
It does not matter if you are running a physical business (often called Brick & Mortar because they have a physical business site) or a home based in your pajamas. I have run both types of businesses and they both have Pros and Cons. However, running any business demands a lot of self-discipline and self-motivation. You need to be able to set goals, manage your time effectively, and stay focused on your priorities. It’s easy to get sidetracked by daily tasks and lose sight of your long-term goals. Therefore, it’s important to stay organized and focused on your goals. (Note: the self-motivation is often called positive mind-set in todays jargon. Check out my later post on mindset.)
In conclusion, starting a business is a challenging but rewarding journey. By keeping these five things in mind, you can increase your chances of success and avoid common pitfalls. Remember to be realistic about the time and money needed to start your business, create a solid business plan, be flexible and adaptable, network with others in your industry, and stay disciplined and focused on your goals. With determination and hard work, you can achieve your entrepreneurial dreams and build a successful business.