10 Things Every Entrepreneur Should Know Before Starting Their Own Business

Success Graphic
January 23, 2019
72 / 100

As an entrepreneur or first-time business owner, there is a whole suite of essential elements you need to know about – before you can power through and quit your day job. These elements are what will guarantee your business runs profitably and can support itself without pushing you into tough financial times — or insanity.

Take a look below at ten of our essential things to know before starting your own business. Keep in mind that many of these items seem more complex than they are, so don’t be disheartened if a few of these tips look alien to you. You’ll be able to understand and implement them pretty quickly.

Cash Flow and Profitability Are Number One

Of course, you can’t run a business without any money. Let’s start here. One of the first things to remember about starting a business is that the first few months to a year will be the most financially difficult, but don’t quit! This isn’t a sign of poor business skills, it simply takes this long to build your skills, consumer trust, and profitability.

Only start your business when you have a few ongoing clients. This way you’ll have money coming in and you’ll be able to afford the essentials. At this time, purchasing stationery and other accessories should be paused and all income should be reinvested into growing the business or put toward your bills.

Be Deliberate About Your Time

Too many new business owners focus all of their time designing their websites, ordering business cards and doing everything other than work. Make sure this isn’t you. To be successful you must be exceptionally deliberate about where you spend your time. If a task isn’t going to move you forward or make you money, don’t do it.

All of your time spent working needs to be directed toward client outreach, completing projects and ensuring you put out great quality work. These are essential to creating a solid business foundation and will ultimately lead you to success and they’re really not as hard as you think.

10 Things Every Entrepreneur Should Know Before Starting Their Own Business 1Contract Freelancers, Not Employees

When you first launch your business, you don’t need full-time or part-time employees to do you work for you. Hiring someone is expensive and, if you don’t have the income, they could bankrupt your business.

A great tip here is to only contract out work that is specialised and you’re not able to do on your own. If a client requires something technical that you’re not prepared to do, look toward a freelancer, not a full-time employee. This will give you the power to come through with a great result and a satisfied client, even if you didn’t do the task yourself.

10 Things Every Entrepreneur Should Know Before Starting Their Own Business 2Slash Non-Essential Expenses to Zero

In the beginning, you’ll be hit with the fact that money won’t come in as quickly as you thought it would. This isn’t a bad sign though, it’s actually completely normal, just be prepared. Make some lifestyle changes before starting your business to ensure you don’t quit due to unpaid bills or because you’re not able to splurge at the mall.

Keep business expenses low too. Invest in on-site storage before cloud storage, choose an affordable computer, and don’t overcapitalize on expensive business subscriptions. Just a few changes will keep you in the green and make your income go further.

Don’t Spend Your First Paychecks

This is a big one. When you get your first invoice paid, that money needs to be directed right into your bills and then your savings account. This is because, as a new business owner, you need to make your money work for you. You can’t hand off all profits to a shopping mall or cinema, they need to be invested into the business’s stability.

Ultimately you have to remember that you’re in this business for the long run and that requires some restraint on spending and reinvestment. You want to be sure that if there’s a dry spell, you’ll have the funds to power through it.

You’ll Need Business Connections10 Things Every Entrepreneur Should Know Before Starting Their Own Business 3

An effective way to expand your business is to connect with people. Head off to networking events and showcase your business’s results and what you can do for clients. This way you’re getting your name out there and if you market yourself correctly, you’ll have new clients coming through the door too.

Small Calculated Steps Are Fine

A lot of new business owners believe that in order to be successful, they have to make massive advancements each month or quarter. This is far from the truth and actually causes long and short-term damage. If you can get your business sustainably growing by just one percent each month, you’re heading in the right direction.

Small steps are totally fine to take, the most important thing is that you’re taking them. Instead of aiming to finish five big projects in a week, just aim for one. You’re still moving forward and that’s a great sign and something you should be proud of.

Don’t Forget Education

In the world of business, education is an absolute must. If you fall behind on the latest business management and marketing trends, you’ll be losing out to your competitors. This is where industry-related materials come in handy. Purchase a book on business growth, enroll in an online course or follow an expert online.

Learning anything relevant at all will keep you motivated and give you the knowledge you need to succeed.

You Have to Love What You Do

It’s no secret that people who are successful love what they do. You can’t expect to succeed and stay focused if you hate the projects you’re working on. That said, if you’re going to start your own business, you should certainly choose to do something that you love doing.

Loving your work makes the materials you put out look great, and makes you more efficient too. You’ll also notice keeping your clients happy comes naturally to you and, as a result, they’ll be coming back for more.  

Let Go Of Control

Last but not least is learning to let go of control. In business, it’s impossible to micromanage and get everything done on the timeframe you expected yourself to. To have complete control over your business you’ll have to spend hours planning — and who says these plans will even work out?

The best way to make things work is to go with the flow, wait for ideas to naturally come to you and don’t rush projects to fit within a timeline. You don’t always need to be right, or in total control of your business and that’s okay, it’s part of the development process.

Categories

More Posts:

How to Avoid Tax Trouble at Your Business

As a business owner, you know how important it is to stay on top of your finances and taxes. But if you don’t have the knowledge or resources to do it yourself, getting help can be the best way to make sure everything is handled properly.  Here’s an overview of some...

Nyago Michael Emmanuel

We invite many people who can invest in our Akiba Ya umoja community benefit savings and investment group of Uganda to enable us expand our operations in Uganda

How Startups Can Ensure Health and Safety at the Workplace

Everyone, including the owners, management, and staff, is responsible for ensuring workplace safety. All parties must take the proper steps so that no one is harmed while working. If you are looking for ways to keep your workplace safe, here are ten tips to help you out.

How to Put Safety First at Your Business

As a business owner, it is your responsibility to provide a safe environment for both your employees and your customers. When you take the proper steps, you can prevent accidents, injuries, and even lawsuits. You need to make safety a top priority at your business. ...

Supplies Your Business Should Donate to Schools

Back-to-school season is upon us, and that means it's time for businesses to start thinking about donating supplies to schools. Donating supplies is a great way to give back to the community, and it can also be a great marketing tool for your business.  Here are a few...

How to Decide Which Business Data to Archive

When it comes to business data, it's not a question of if you should archive it, but rather how you should archive it. With so many factors to consider — from the costs of storage to the ease of retrieval — it can be tough to know where to start. In this blog post,...

A Five-Step Guide to Starting a Logistics Company

If you've been considering launching a transportation and logistics company, now is the moment. The transportation and storage sector is very important and profitable. Statistics show that by 2027, the global logistics market would have grown from its 2017 valuation...

Which technology should businesses invest in?

Introduction The top three IT firms this month are Fair Issac Corp., Enphase Energy Inc., and Arrow Electronics Inc. With outstanding third-quarter sales records in a struggling electronics industry, semiconductor distributor Arrow Electronics has become a top bargain...

13 Best tech business ideas to start this year

Technology companies are concerned with the research and development of technology-based goods as well as their distribution. The products and services that technology companies provide are applicable in a variety of different markets. The following is a list of the...

How to Avoid Regrets When Selling Your Business

For years, you have spent countless hours and allocated immeasurable effort into growing your business, and now the time has come to sell. Even with an offer that exceeds your expectations, you may have trouble letting go. When selling your business, to avoid regrets...
How to Avoid Tax Trouble at Your Business

How to Avoid Tax Trouble at Your Business

As a business owner, you know how important it is to stay on top of your finances and taxes. But if you don’t have the knowledge or resources to do it yourself, getting help can be the best way to make sure everything is handled properly.  Here’s an overview of some...

Nyago Michael Emmanuel

Nyago Michael Emmanuel

We invite many people who can invest in our Akiba Ya umoja community benefit savings and investment group of Uganda to enable us expand our operations in Uganda

How to Put Safety First at Your Business

How to Put Safety First at Your Business

As a business owner, it is your responsibility to provide a safe environment for both your employees and your customers. When you take the proper steps, you can prevent accidents, injuries, and even lawsuits. You need to make safety a top priority at your business. ...

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

How to Reduce Health Insurance Costs for Employees

How to Reduce Health Insurance Costs for Employees

As a business owner, you know how important it is to provide your employees with quality health insurance coverage. But you also want to make sure that you’re not overspending on health insurance costs.  Fortunately, there are several ways to reduce health insurance...

How to Avoid Tax Trouble at Your Business

How to Avoid Tax Trouble at Your Business

As a business owner, you know how important it is to stay on top of your finances and taxes. But if you don’t have the knowledge or resources to do it yourself, getting help can be the best way to make sure everything is handled properly.  Here’s an overview of some...

What to Do When Your Vehicle Lease Comes to an End

What to Do When Your Vehicle Lease Comes to an End

As your vehicle lease reaches the end of its term, you are presented with three options: return the car to the dealership, sell the lease or buy it outright. Each choice obviously has benefits and drawbacks that must be weighed before making a decision. In this...

The Power of Women-Owned Small Businesses

The Power of Women-Owned Small Businesses

     Women-owned small businesses are on the rise, and their impact is undeniable. In fact, in 2019 alone, women-owned nearly 12 million businesses that employed nearly 9 million people and generated over $1.9 trillion in revenue. From retail to technology to finance,...

Nyago Michael Emmanuel

Nyago Michael Emmanuel

We invite many people who can invest in our Akiba Ya umoja community benefit savings and investment group of Uganda to enable us expand our operations in Uganda

Soe Tun: The Copy Doctor

Soe Tun: The Copy Doctor

Autistic kid finds out that he’s unemployable and doesn’t enjoy most social settings. Decides to be a pro copywriter as a result.