How to Successfully Launch your First Business
August 31, 2007
Some serial entrepreneurs can practically start businesses in their sleep, but for the first time business owner launching a new venture can seem like a daunting task. Starting a new business does NOT have to be scary or hard-if you go about it the smart way. Oh yeah-huge proponent of doing things the smart way here.
- Go with what you know- Too many people make the mistake of starting their dream business as their first venture. Now, there is nothing wrong with wanting to open up a bed and breakfast or own your own bookstore. I see it done all the time. But when you are starting your first business-go with what you know! If you have been a chef all your life and your dream business is to own a restaurant-more power to you! But if you have been a hairdresser all your life and want to start a restaurant as your first venture, be careful. If you really want to build up some courage and understand how business works-Go with what you know. My first business was a tutoring service. I absolutely loved working with students, but it wasn’t my dream business. However, it did teach me a lot about how to successfully run a business.
- Find a Model Mentor- Find someone who has already done what you are wanting to do. If you have a rather innovative idea, find someone who has done something similar to that. By studying someone who has already created what you want to create you get the benefit of learning from their mistakes. You also get an objective take on the business. Make sure that the mentor you approach does not view you as a threat and always be ready to tell them what you can offer in exchange.
- Define your Goals- Most people think about defining their business goals AFTER they launch but this is a crucial mistake. Your business should be built around your goals. Try asking yourself questions such as: Why do I really want this business-To make more money or spend time with the kids?, What revenue do I need to bring in per month to satisfy my needs? How many clients do I have to get or how many widgets do I have to sell in order to do so?
- Forget the Business Plan- While I highly suggest that you focus on your goals, I do not recommend writing out a 100 page business plan (unless you are looking for investors and they require it). If your idea is strong and you already have certain goals in mind-your business plan should be no more than two pages long.
- Gather up the Troops- Your first business is bound to be an interesting experience and may be challenging at times. (It helps to remind yourself that it’s all a process). Be sure you have lots of supportive people around you. Before you launch, have a chat with your family about what this may require of them (patience, encouraging words, etc). If you have kids-get them involved. It’s the best way to teach them about business.
- Don’t be afraid to start over- You may launch your first business and realize that it isn’t what you expected. In this scenario you have two options-Re-Launch or Start Over.
- Don’t mistake having marketing problems or not knowing how to sell as reasons to scrap the business. These are things you can learn AND are supposed to learn in your first business.
- If you feel your idea is still good but the packaging and brand are lacking-get professional help-and then Re-Launch.
- If you are convinced (after looking at it objectively) that it just isn’t your cup of tea-either sell or scrap the business. And start over.
The most important thing to remember when launching your first business is that it’s a process and that it takes time. If you work smart, you can save a lot of time but you still have to let the business grow. Working smart is like watering your plant (business) and making sure it gets plenty of sunshine. This allows it to grow into a healthy plant (business), but it still takes time to grow.
10 Commandments all Entrepreneurs must Follow
August 29, 2007
I am the first to admit that having your own business is a blast but I am also the first to admit that it is often unsure terrain out there. Here are 10 commandments that may help you along.
#10 - Develop Patience. There can be no denying this commandment. Clients and customers sometimes need time to make up their minds, vendors get delayed, mercury goes into retrograde and throws off your computer system. For the sake of those around you and your own piece of mind don’t let delays and distractions get you down.
#9- Learn to Accept Responsibility- If you get the job, you did it! If you messed up, the credit still goes to you. Responsibility often gets a bad rep because people associate it with guilt. In reality, responsibility is all about “your ability to respond” to what happens.
#8- Understand Risk- If you think business is a gamble, please think again. Entrepreneurs are natural risk takers, but that risk has to be a calculated, well thought-out, risk.
#7- Take time to Recharge-Being an entrepreneur does not mean that you have to have work on your mind all the time. Take time off to recharge your batteries and enjoy the day!
#6- Be Nice to Fellow Entrepreneurs-No man is an island. Neither is a business. Show fellow entrepreneurs kindness and compassion. If they need help and you are in a position to provide it-do so.
#5- Have Good Tech Support- We are lucky to be living in the technology age, but that also means that our lives (and our businesses) are intertwined with the technology we use. When the technology goes down, make sure you have a list of pros you can depend on.
#4- Follow Good Models- Whether they be people or methods-good models are often time tested and proven ways of doing something and doing it well. Seek out good models and follow them.
#3- Love what you Do- 6 out of 7 days at least, love what you do. All entrepreneurs are allowed “off-days” where their feelings may border on simply liking what they do.
#2- Ask for help when you need it- You have a dentist who helps your teeth, an instructor for tennis, and even an interior decorator for the rooms you don’t know what to do with. Why stop there? Your business is a crucial part of you life. Get help when you need it.
# 1- Work SMART, not Hard- The number one commandment for all entrepreneurs. Hard work is overrated. If you can do something in less time with less money and more ease-go with it.
Hitting the Three year Mark in Business - Top 5 Rules to Follow
August 28, 2007
Only 1 out of 5 businesses survives the first the three years. The majority of these businesses go under due to poor business decisions and lack of support. Once a business hits its three year mark however, the chances of it failing dramatically decrease.
Here are the top 5 rules to follow if you want to get your business to the three year mark (and beyond!)
1) Commit to Commitment- Being a huge fan of the show Fraiser, I remember a particular episode where Niles advises his relationship shy brother to “Commit to Commitment.” If you are truly serious about seeing your business succeed-I suggest that you take this first rule to heart. Once you decide that you are in it for the long haul, you are much more likely to see eventual business problems as challenges to overcome. Don’t run your business with one foot in the boat and one foot on the shore.
2) Love thy numbers- I will be the first to admit that I was never a fan of math class. History and English were much more my cup of tea. However, when it comes to business-I love the numbers. There can be no way around this rule. Can you delegate this task? Sure. Is it advisable? No. Especially not in your first three years of business. If you need help understanding and managing the numbers-get it. But at the end of the day, make sure you are the one tallying your numbers. I am not talking about complicated formulas here, but if you don’t keep a detailed expenses sheet you are bound to get into trouble. Here is a quick test. See if you can answer these questions OR have the means (meaning papers somewhere) that can help you answer them. What were your total business expenses for last month? How many clients/customers do you need this week to help you reach your revenue goal? What is your revenue goal?
3) Be Value Driven- Make sure that what you are providing has real value to people-your people. If your products and services are valuable to your target market-it is just a matter of time before the business takes off. The world is full of people trying to make a buck and while that is the way of society, just be sure you are making that buck by providing a service people can benefit from and feel good about. If every day for three years you focus on improving your services rather than on making money-you will naturally increase your profits. People are happy to pay (and pay well) for products and services they enjoy.
4) Take Time out for Yourself- Running a business can challenge you in ways that you had never thought possible. If you are in it for the long haul (and if you are reading this far-I am assuming you are), take time out to recharge your batteries. Bill Gates is known to regularly take time away from his business in order to catch up with himself. If Microsoft can be okay without him for a while, your business will be okay without you for a few days as well. Often when small business owners are starting out they wonder if they can afford to take a vacation. My rule is-If you can’t stop thinking about taking a break for two straight days, it’s time to take that break.
5) Get a Support System- If you choose to ignore every other rule in this post, go ahead, but please pay attention to this one. Every small business owner needs a support system. Who do you turn to when you have questions? Need advice? Want to share a successful moment? A word to the wise-look beyond your significant other and family for business advice. While they may make ideal cheerleaders, they aren’t always the best people to go to for business advice Make sure you have a good mentor. The prerequisite to starting every business should be the creation of a solid support system. You can’t get through the first three years without it. I have never seen any entrepreneur do so and please don’t take this statement as a challenge. Get yourself the strongest team you can find and onwards you go!
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