All beginnings are tricky, so is starting your own business. If you have a good business idea and would like to see this come to fruition, how do you start? Here are some basic rules to stick to which should help you launch your business.
Find a business idea and area you really love. Running your own business means long hours and spending every waking moment on your business, so make sure you have the stamina for it. Choosing the right industry is an essential element that can ensure you will have longevity. Picking the correct business domain that you know well will also ensure you have the right experience and know how to carve out a profitable niche for yourself. Also, your connections are invaluable when you are starting out.
When you start adding people to your team, think of different reward models rather than wages. Wages can be a massive money sink, especially in the beginning. Obviously, no one works for free, and you wouldn’t want to do that anyway, but you can find other ways of rewarding people for their effort. Think of equity or some performance-related reward. Treat early employees fairly, make sure they 100% believe in your business and start building.
Not everything can be bought on an equity basis, you will start running cost at one point. This could be cost incurred in traveling, basic office supplies or actual production and prototyping costs if you are making a physical product. In terms of your actual money to run your business, you can turn to your savings or find a facility that offers credit cards for business to fund your operations. Funds will be scarce, and you will have to really weigh up every expense.
When you are bootstrapping your business, you will have to build around your budget, rather than build around your list of wishes. There is something about bootstrapping that entrepreneurs get infinitely more creative making things work and eliminate wastage as a second nature. It will also display for any future investor that you aren’t frivolous with money and can work productively and efficiently. Bootstrapping, by definition, if done successfully, will be a big selling point for investors to see you as a person they can trust with their money.
Resist the temptation of making a significant investment or financial commitments. Office space is one of the first big things entrepreneurs get lured by. Some of the biggest businesses have started merely in somebody’s basement or garage. There is a reason why this has become part of the archetypical origin story for so many companies.
Being agile, not only in physical footprint but also financially is one of the most important things to achieve success. Agility means you can adjust and tweak your business as you learn more of market demands and reality. It also means you can pivot your organization if you must. Even if you have all the hallmarks of a budding successful business, cash flow issues can end the party prematurely. Being agile also means being able to walk away when a business idea does not pan out. Any successful entrepreneur can tell you, they are as much defined by their failures as their success.