5 Crucial Things To Assume Before Starting A Business
Almost all of us are attracted to that one successful person we see on TV or on the Internet. That could even be a friend on Social Media who usually shows off his new house and car while telling you how you should step into an opportunity that will make you as successful as he is.
Considering that the new house and car are actually theirs, what they might not tell you is that their journey towards financial success was not an easy path. Success is not achieved overnight. It took years of planning, trial and error, and possibly a few wrong turns before these people reached the peak of success. And it is important to take note of this if you are planning to build your own business as well.
Sure, it might be easy to think that having a business is cool or great because you get to be your own boss and just enjoy the revenues you get, but the reality is, these are not handed to you on a silver platter. To create a profitable business, you have to work for it.
That kind of work is not like what you do when you’re in a 9 to 5 job, because building a successful business means that you have to make sacrifices, maintain the right attitude, and make good business decisions. One wrong move (no matter how small it is), can cost you everything.
The reason why many entrepreneurs fail is that they did not foresee the harsh realities of the business world. They were focused too much on the house and car, but not on the actual work and journey that was required to be taken in order to get those. So before jumping into that venture, you must be aware of these 5 assumptions below:
It will really cost – a lot.
Of course, you are starting a business. Any reasonable person would know that money is going to be spent on this. However, most people also overestimate their financial capabilities. If you take a drive around your neighborhood, you might notice buildings and houses that may have been under construction for as long as you could remember.
What happened? Well, these are probably owned by people who thought that they can finance their dream project – only to realize halfway through that they really can’t shoulder the overwhelming costs.
Your business could suffer the same fate too. If you overestimate your finances, your business will end up in ruins or as an unfinished skeleton of a building for years to come. So keep in mind that your business is going to cost – a lot.
Don’t just make rough estimates for your budget, write them down on a spreadsheet, review and revise it whenever necessary, and don’t forget to add an emergency fund that can get you through slow business days. That is on top of other expenses like payroll expenses, office rentals, equipment, insurance, and licensing costs, and even advertising costs.
Your closest friends and family might not even encourage you.
You might be expecting that your close friends and family will be there to support you in this venture. However, that might not be the case. Sure, they care about you, but they might not have an entrepreneurial mindset yet. Most likely, they are afraid to see you fail, which will prompt them to discourage you from continuing the business.
At times, it would be tempting to heed their advice, especially during the hardest days of the business. Your friend might say that it is best to stay safe and give up while it is not too late. But if you’re entrepreneurial gut tells you to take the risk – you probably should. Doing business is all about taking risks, and success will never be realized if you give up too early.
There’s stiff competition everywhere.
You might be thinking now that doing business is easy because you can just log in online and promote your business there through Social Media and websites. However, it’s not as easy as you think. The competition will be tough – whenever online or offline. You have to compete for customers and try to get even the slightest attention from them. And that leads us to…
You have to learn how to market yourself.
To get ahead of your competitors, the first thing you should do is to get noticed. You might think that putting up signboards, distributing flyers and business cards, or posting on Social Media is enough – it isn’t. You have to reach out more to your market. Engage them, entice them with freebies, talk to them through emails, webinars and let them know of special offers and deals!
Marketing will take up a huge part of your work (and will eat up your business capital). If possible, you must take up lessons, seminars, and training to know how to do this more effectively.
You might not even earn profits for a while.
It will take some time before your business could take off, that’s why you really have to set aside an emergency fund from your capital to help you survive throughout these days. And when you do start earning profits, make sure to spend them wisely.
It might be tempting to use it as a down payment for that dream house or car, but you must think about the business first. Will reinvesting the profits help the business expand? Will it help you increase more profits by next month? The growth of the business should be your top priority from now on.
Now, these reminders are not created to discourage you from doing business. Rather, this is created to help you prepare for the worst challenges that you will face as an entrepreneur. Preparing for the worst can increase your chances of surviving and succeeding in the business despite the numerous risks. So tread slowly, plan meticulously, work hard and enjoy the process! Success will taste so much better after the most difficult journeys.
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