Top 9 Things to Know About Starting Your Own Business

Top 9 Things to Know About Starting Your Own Business

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The majority of Americans want to start their own business, according to a Gallup poll. The distance between thought and action, however, can be immense: the sad reality is that the majority of these Americans habit start their own business.

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If you are one of the few to start businesses, welcome to the adventure! The odds are not in your favor, but that is why you are doing it. If you decide to close this gap and take the plunge, you could be the kind of person who hears and thinks the following words, “Yes!”

We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are difficult.

– John F. Kennedy

You were also probably also electrified by the famous line of Steve Jobs:

The people who are crazy enough to think they can change the world are the ones who do.

If such phrases resonate with you, you probably have the tenacity, the gut, the grain, the chutzpah, the energy to succeed. What you might miss are some insider tips from a seasoned entrepreneur. Here’s what you need to know to start your own business.

1. Your business will likely fail.

If you are in tune with the statistics, your business will bite the dust.

Popular knowledge puts the overall business failure rate at around 90%, which may or may not be correct. The most reliable statistics are nuanced, taking into account issues such as type of industry and failure time. They don’t tell a radically different story.

An important factor to consider is the timing. Regarding this crucial timing problem, 50% of businesses will fail by the fifth year. After ten years, about 75% to 90% of small businesses will have been closed.

As dismal as these figures are, they are not predictive. In other words, just because many companies “fail” or close within a given period doesn’t mean your business will be the same.

LikendisLikes are born to think differently, act differently and live differently. In the crowded mass of struggling startups, your startup can rise above and last.

2. You will have competition.

Don’t get into the business of thinking you are the only fish in the pond. There are many other competitors for the same clientele.

And the fact is, some of these competitors may be better than you! Their brand image can be brighter, their pockets deeper, their talent greater and their knowledge greater.

So get ready, but don’t be discouraged. Without competition, you could easily become lazy and lose your advantage. Embrace the competition and improve with it.

3. You will need to know more than you already know.

Most entrepreneurs start a business because they are expert or knowledgeable about their job or trade. However, as Michael Gerber made clear in his book, The electronic myth revisited, what these entrepreneurs have in expertise, they may lack business acumen.

In other words, talent and expertise alone do not guarantee success. You will need to know much more about accounting, scalability, marketing, sales, software, laws, and a multitude of halo topics necessary for the operation and success of a business.

Related: 3 Famous People Who Started With Little But Got Success

4. You will need money to spend.

Businesses can be started, that is, started with nothing more than existing money or resources. However, businesses often need significant initial capital beyond good financial planning.

Small business loans are a common place to get initial capital. Note the word small. Small business loans are for small businesses, and are generally small the amounts.

In the commercial banking sector, the median range for a small business loan is $ 130,000 to $ 140,000. It may sound like a lot, but when you consider the many expenses you face – legal services, service providers, workspace, employees, and other operating costs – that amount drops rapidly.

You must be prepared to spend the money and protect it as a valuable resource.

5. You will not get rich immediately.

The title of “business owner” has a certain cachet, sometimes associated with visions of Bentleys and Rolex. The harsh reality is that owning a business is more of a soul-sucking adventure than a stroll to the source of income.

The riches may be in your future, but the path to reach them is narrow, long and difficult.

6. You must obey the laws.

In all countries of the world, companies have legal regulations with which they must comply. Exercise due diligence in understanding how to register as a business entity, the licenses you must obtain, and the taxes you must pay.

There is nothing worse than being in a legal quagmire because of laxity.

7. You can’t do it yourself.

LikendisLike Lone Ranger is a romantic image. It also seems economically provocative. Unfortunately, this image is not accurate. On average, startups with only one founder have a higher failure rate. One of the main reasons for failure is the emotional pressure that business ownership puts on an individual.

Paul Graham, extraordinary entrepreneur and co-founder of Y Combinator, explains this.

The weaknesses of a startup are so low that few people could handle them alone. When you have more than one founder, the esprit de corps ties them together in a way that seems to violate conservation laws.

At the very least, start your business with a co-founder – or three. Beyond that, call on independent contractors or other service providers to complement your time commitment, talents and knowledge.

8. Your customers will not be coming.

No matter how good your product is, how innovative your idea is or how revolutionary your technology is, customers will not automatically find you and will not rush you.

In the real world of business, you have to do marketing. Thanks to online marketing, content marketing and growth hacking, your business will grow. There is no other way.

9. You are going to want to stop.

Let this last warning take hold. At some point, at some point, you will be caught in doubt and consider jumping off the ship.

Rest assured that you will face a moment in your entrepreneurial adventure where you will say these words: “I have finished.” It is difficult. It’s really, really hard. I know.

However, if you continue, you will defy the odds. The best thing to do is to prepare yourself. You must be prepared to move away from the chilling temptation to throw in the towel. But don’t stop progressing.

Conclusion

All of these new apocalyptics have left out the true legacy of entrepreneurship: the reason you decided to pursue independence and become your own boss in the first place. You see the world as a place of abundance and possibility, and not as a miserly and miserly place of predetermined futures and unavoidable circumstances.

You know there are opportunities, something waiting to be created, customers waiting to be served. There is money to be made.

Only you can do it on your own. May the odds be cursed and the risks taken! You are going to start a business.

Have you started a business? What advice would you give to a novice entrepreneur?

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