10 Tips for the New Entrepreneur

Entrepreneurs come in a wide variety of shapes and sizes but one thing that all of them have in common is that, at one point in time, they were new entrepreneurs. Unfortunately, there are very few real resources that address the challenges that new entrepreneurs face and it’s for that reason that we’ve put together this blog today. The 10 tips below should be extremely helpful for anyone who’s just starting their own business and help them to avoid many of the pitfalls and problems that many new entrepreneurs have to deal with (or at least see them coming).

  1. Don’t jump at every ‘opportunity’. When you first get started it may seem like a good idea to involve yourself in everything possible but spreading yourself too thin definitely can limit your effectiveness. When first starting out it’s better to do one or two things very well than a dozen things are not so well. If you are ready to jump into another project  before yours has even gotten off the ground it might mean that your original plans aren’t as strong as they should be.
  2. Build your business around something you love to do. Here’s the thing; creating a profitable business is hard enough when you’re starting out that there is no need to convolute the process by getting into something that you either don’t know, don’t love or a combination of the two. Even though a new business idea may be trending or have a potential for large profits and returns, if you don’t truly love what you’re getting into your best bet would probably be to not get into it at all.
  3. Perfect your elevator pitch. It helps to be able to quickly and concisely explain what your business is and what it produces. Being able to describe it to a complete stranger and walk away knowing that they understand exactly what you’re doing is vital to your success. If you can’t do that, you may not understand your service or product as well as think.
  4. Knowing everything isn’t necessary, but knowing people who can fill in the gaps in your knowledge is. Here’s the thing; nobody knows everything about their business until they’ve been in it for quite a few years (and even then sometimes not). This is only a problem if you don’t have people around you that can help fill in your knowledge gaps, meaning that surrounding yourself with at least one or two knowledgeable individuals is vital to your success. It also just makes good business sense.
  5. Frugality is your friend. When you’re just starting out the last thing you need is a fancy office filled with expensive furniture in a high cost location. (Unless, of course, you’ve managed to secure the funding to do this.) (Which you probably haven’t.) In most cases, maintaining an extremely low overhead and strictly managing your capital and cash flow are not only a good idea but are vital to ‘making it’ in the long run.
  6. There is no such thing as a perfect plan. Even if you’re purchasing a franchise where everything has been laid out and tested previously, there will be bumps in the road and setbacks. If you’re prepared for them, your chances of success will be much higher. Some of the best entrepreneurs in the country faced immense challenges and were forced to learn from their mistakes but, since they were prepared for these challenges, they endured.
  7. If you’re entrepreneurial idea will needs lots of funding, you may wish to reconsider. Simply put, if you can’t start your business on a shoestring budget you may not want to start it at all. In today’s tentative business world, finding backers for an expensive and unproven idea is extremely difficult. Better to start small and, once you’re successful, bring your idea to investors who will then be more likely to back you.
  8. Take care of your health. Many entrepreneurs work themselves to exhaustion and, frankly, in many cases, a new business venture can be very exhausting. While working hard and putting in long days is necessary, it is also necessary to give yourself a break, take care of your physical and mental health and set your business aside occasionally to re-energize your batteries. The reality is that if you get sidetracked by exhaustion or burnout there’s nobody that’s going to be able to step in and to take over for you while you recover.
  9. Avoid exaggerating what you and your new business can do. This one is extremely important. If you make promises that you can’t keep or exaggerate what your product or service can do you’ll quickly find that negative word-of-mouth stops your new business dead in its tracks. While enthusiastically talking about your business is a great idea, keep the hyperbole to a minimum.
  10. Know when to say when. If your new business is sinking you further and further into debt and it looks like there’s just no way that it’s going to work, don’t let your ego push you to keep going. Take the experience for what it is, a learning experience, and move on. Remember that, unless you are actually the captain of a ship, there’s no need to go down with it.

If you have any questions or comments about this blog or need help to figure out what your next decision should be, please drop us a line and we’ll be sure to get back to you with answers and solutions. Best of luck with your new business venture.

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