Startup Advice: 4 Things Every Entrepreneur Should Know
Launching a business is one of the toughest yet most rewarding things you can do in life. If you’re one of the many entrepreneurs preparing to embark on this epic journey I commend you. You’re going to need all the help you can get.
Luckily, when it comes to startup advice there’s plenty to go around. Many successful entrepreneurs have been kind enough to share their stories and provide guidance to those following in their footsteps. That said, here are four things every entrepreneur should know before launching their business.
Passion is Necessary But So is Making Money
Nearly every successful business person will tell you to do what you love and the money will soon follow. When launching your business it’s extremely important to get behind a project that you’re personally passionate about. That passion is what gets you through the toughest hurdles throughout your journey. That all said, your business also needs to make money if you want to survive.
As you develop your business plan you need to determine your business model from day one. How are you planning to generate revenue? What are your price points? What is your backup? Sure the model will change overtime but the important lesson here is that you’re able to develop and articulate a revenue model for your company. If you’re unable to come up with such a model you may want to pivot or even come up with an entirely new concept.
Find Your Customers Early On
In order for your business to succeed you need to find your customers early on and learn what they truly want. Before you’ve launched your products or services you should get in front of potential customers.
A great tactic to use is grassroots marketing. This marketing strategy is where you target your marketing efforts to a small group in hopes that the message will spread out to a larger audience. If you’re able to identify a small group of your key customers, and they express interest in your products or services, then they essentially become your early evangelists. The more you can engage with them the more they’ll become invested in your business. This will help you develop strong, long-lasting relationships with your customers from day one.
Do Your Homework
Odds are your business is not entirely original. That said there’s likely tons of information out there that will help you get a better understanding of your industry as well as potential obstacles. Before launching your business you need to spend the time doing your homework.
Research your competition and who their customers are. If you’re really ambitious try to get in touch with competitors and or their customers. You have nothing to lose and truly a lot to gain.
Treat Every Dollar As if it Was Your Last
As you run your business you need to be frugal every step of the way. Every single dollar counts and if you run out then you’re in big trouble. Try to get creative and find ways to save money.
One strategy that works well is bartering. Anytime you’re in need of certain products or services try offering yours as a trade. For example if you’re a software development firm looking for some accounting you can offer your services to them as payment. It’s always worth it to make the ask, the worst case scenario is they simply say no.
Startups are tough. If they were easy everyone would be doing them. Instead of trying to recreate the wheel I always recommend researching those who’ve succeeded before. The four tips above are only a handful of all the great advice at your disposal.