When we want to start a new business, we just think of a few things like what will be the capital investment and how should we get it or where should we get it from.
Then we start thinking of finding a better place to start an office. Then we even start thinking of legal matters which are related to the registration of the company.
All the above mentioned are significant to be discussed before starting the new business, but there are a few things which we need to understand before we start any new business today.
Scenarios were completely different in earlier days, and when compared to now the challenges have increased but with even increase in care of opportunities.
In this article, we will be discussing all those 10 Tips To Know Before Starting Any New Business.
Opening your own business is often a learn-as-you-go process.
But, the more smart decisions you make early on, the better chance your company has for success.
If you have an entrepreneurial idea, try these ten tips.
Freshchat is a modern messaging app for sales and customer engagement teams. A leap from legacy live-chat systems, it brings the continuity and experience.
1. Do Not Be A Complainer
Entrepreneurship is never scheduled work, where you will work form 9 to 5 and you are done with your work, and you see results after few days.
No, if you think this is the case, then you are wrong.
If you are thinking of starting a new business then you need to get ready to go against odds and work without any schedules.
You will get a lot of excuses for getting uncomfortable, and remember getting uncomfortable will make you think to give up.
If you are a person of always a complainer on any works and you are not seeing the opportunities in the problems, then you need to rethink about your goal of starting a new business.
When you are starting new business, you get a lot of reasons to give excuses and no one is even there to question you because you are your own boss.
Countless people dream of becoming entrepreneurs, but they never do. They’re burdened with excuses and fears of failing.
From money to time to responsibilities, you can make a million cases for not starting a business.
Worrying about the risks of business ownership is normal.
But, excuses only slow you down from reaching your goals.
If you really want to start a business, you need to address the reasons you think you can’t start a business and get rid of them.
Now let us go to the 2nd tip,
2. Be Open Minded To Learn Every Day
Attitude is expected in business, but the attitude which is always open-minded ones and open to learning new things from the right people.
Asking people about the things which we do not know is not wrong it is the attitude which we are always open to learning and are sincere in knowing about new things.
If you do not have ideas on any concepts have the habit of asking your friends or in your family for the consultation or asking them to give the leads or contacts who are more experienced in those fields.
Entrepreneurship is always about learning new things every day.
There is no single day, that you will not learn new things.
Get adjusted yourself to go and ask questions to the people who have already experienced in the fields or any field work.
When you are in the stage of learning new things, have the habit of making notes of those learnings and keep them aside.
When you sit for detailed planning you can use those notes for your assistance.
When you tell people about your startup, read their body language.
Do they like the idea? Or, are they just being nice and really think you’re going in the wrong direction? Encourage your listeners to be honest with you.
The collective opinion you get from peers could be a reflection of how consumers will react.
Don’t ignore the power of advice from experts and veteran business owners. These folks know first-hand what does and doesn’t work.
Smart entrepreneurs learn from the mistakes other business owners have made.
Now let us go to the 3rd tip,
3. Be A Problem Solver
Any successful businesses today are solving people's problems.
It is not always about just selling goods and making money, they are basically solving the particular sector problems, in which they have turned it to the business model and are doing the business.
When you solve people's problems, they agree to pay you the money.
When you are in the process of solving the problem and provide a solution, then you even no need to think more about marketing.
Being solution provider will give you faster traction for your business and will even help you get recognized by people in less time.
It’s a lot easier to gain a solid customer base when your business is fixing a problem. Your startup should fill a hole in a certain market or niche.
Home in on why you are opening your own business.
Understanding your motives will help you create a brand and market your company.
Know what problems your target customers face and how you can solve them.
An online cloud-based customer service software providing helpdesk support with all smart automation to get things done faster. Sign up for a free trial today!
Now let us go to the 4th tip
4. Do Not Complicate The Things
When you are starting new, do not just ramp up everything in your business and make your goods or service so costlier that people won't buy.
Start with small product or service which is the most necessary one and get the traction for that product or service.
When you start with all the features, you rn out of money and you lose control of what you are doing.
When you grow step by step you can start implementing the extra features for what big corporates are including.
People will accept your product initially when you are solving their real problem and make sure that you are using low or medium pricing for your product or service.
Create a simple, quality good or service. A successful business idea should fulfill promises to customers and exceed expectations.
Cut unnecessary features that water down your offerings and cost you money.
As a small business, you don’t need all the bells and whistles of a giant corporation.
It will be easier to add to your business as it grows.
Now let us go to the 5th tip,
5. Keep An Eye On Your Costs
Here comes the most significant tip in this article, which itself is the oxygen for your business.
The Money Factor!
There are no great maths in understanding how much money do you need to run your business or to pay your expenses and cutting costs.
Plan every small costing you incur in your business, because once you start you will not know how much cash flow or expenses you incur.
Write down all the expenses in a sheet and make sure to find and include every cost you are incurring daily weekly and monthly and even yearly.
Once you have written down all the expenses, now quadruple the expense!
Yes! I am serious!
Rather going out of cash by just seeing the small numbers in the future, be ready with big numbers in the initial stage itself.
Now I am not telling about unwanted expenses like costly furniture, A/C office or a coffee machine. NO!
I am talking about real expenses like rent, electricity bill, loans, and interests etc.
Plan your cost expenditures separately and capital investment separately.
Do not forget to even include your personal expenditure for your business, like how much money do you need to live and how much money you need for daily cashflows.
Once you have a grasp on all your expenses, start to create a business budget.
At first, you might need to get some outside capital to make ends meet, like a small business loan.
Go over all of your options before putting your money into the startup.
Now let us go to the 6th tip,
6. Be Ready With Zero Cash
I mean a big ZERO!
This is normal in every new business.
People might not accept your business or they might not get any solution from your product or service.
Having a full proof plan with such serious situations in the future is better rather than not having any plans.
You might be asked to relocate, no one else but your situation makes you do it.
You need to go back to your parent's house and leave all your comforts.
Getting ready with such serious conditions is to get ready with full proof budget planning.
Sometimes we might launch an unsuccessful business idea, which will not make any revenue.
Over half of new businesses fail within the first five years of opening. How would you handle having no incoming money?
It’s a good idea to come up with a “just in case the worst outcome happens” plan.
Plan out with your current source of income and see how much cash you already have in your hand and then start making money with your initial traction.
If possible have one source of income which is fixed and do not let it go.
Now let us go to the 7th tip,
7. Have One Fixed Source Of Income
When we start the new business, we are bound to fail too often.
We even have too much expenses and we can come into accidental expenditure, but when we see it to the next level, we need to have one source of fixed income.
The best way to have the fixed source of income os by doing a 9 to 5 job with a fixed salary.
Having a job with a fixed salary will have enough cash flow so that we can handle our monthly expenses.
Rather taking a risk by just doing the new business without the source of fixed income might lead us to problems which are worse.
Changing yourself gradually from being an employee to an entrepreneur so that you start earning a decent source of income from your business and you can relieve from your job.
As a new business owner, it will take some time to earn a steady income.
Keep your nine-to-five and work on the business during off hours so you can earn during those tough, first stages.
Once you have a healthy inflow of cash from your company, you can tackle business ownership full time.
Freshmarketer is an all-in-one conversion optimization tool that boosts your website conversions and enhances user experience.
Now let us go to the 8th tip,
8. Start Networking For Your Business
Most of the times new businesses fail because they do not know how to sell.
When it comes to selling part, they are either afraid of what people might tell and then think about not going and meeting people.
You need to change this behavior to complete opposite ones.
You need to have the habit of going to conferences, meetings, and public functions so that you can go and meet people and network about your new business.
You need to learn selling skills and convincing abilities to make people purchase your products.
When you start selling your products you will have the confidence within you and you will develop the engaging attitude which will help you make more networking.
Be ready to speak confidently about your business, even if it makes you uncomfortable.
As a new business owner, you will need to market and network constantly.
From networking with clients to negotiating supplier payment terms, you must be able to communicate.
If you’re worried about what people will think about your business, you need to get over it.
If you can’t convince consumers to buy from you and support your company, it’s difficult to make money.
Fake it ‘till you make it. If you really want business success, you can’t afford to be shy.
Now let us go to the 9th tip,
9. Understand The Legal Requirements
Setting up a new business is better compared to following any business laws.
So be prepared with rules and regulations.
It is always better to have a talk with company secretaries and lawyers, take their consultation and then move forward.
There is no hard and soft rule that you cannot start a new business without registration, but once you start growing to make sure that you are not in any problem.
But, you need to understand the rules that come with opening a business.
If you fail to follow government regulations, you could face steep penalties.
From forming a legal structure to set up an accounting system, you must follow laws.
You need to register the business with your state.
You must also take care of business-specific tax liabilities.
Now let us go to the 10th tip,
10. Do Not Get Confused With Passion & Wisdom
Our passion pulls to run our business, but knowledge makes you go in the right direction.
So have the taste of balancing both at the same pace.
Start the market research by asking your target customers about your products & then analyze how you need to build your product or service.
Take the consultation of lawyers and accountants, so that you are heading in the right direction.
When you know what you are doing then it is very clear for you to make the business model.
As your business starts to come together, think of it like driving a car. Let your passion hit the gas pedal and your mind control the steering wheel.
That way, you can be confident about the direction you’re headed and sustain the momentum you need to get there.
Consider getting connected with us on
If you believe in our Why!
NOTE: This post contains the links which are affiliated to the sponsored products when you click on them and do the purchases, we get the small commission for those links.