It can be a challenge and nerve-wracking to become a first time entrepreneur, but it is also exciting and rewarding. As you start your business, there will be a multitude of financial, legal and marketing issues. Unfortunately, aspiring entrepreneurs are given conflicting advice. here she is – 15 tips that will help you navigate the startup world:
1. Entrepreneurs should choose a business that they are passionate about and have knowledge of.
Pick something that you are passionate about. Avoid industries or businesses that you are unfamiliar with, as a steep learning curve could hinder your success.
2. Choose a business concept that offers a large market opportunity
Be sure to do thorough research if your product or service has a large market. Investors are more likely to invest in a company that has a big market and the potential for growth.
3. Raising as much funding for your startup as possible
Raising startup funding is almost always more difficult and takes longer than you expect. It is important to have enough cushioning for the marketing and product development costs. You should have enough capital to cover your costs. Do not worry about losing your ownership percentage in the company. It takes money and time to develop a good product.
These two articles will help you learn how to raise money from investors. 28 Mistakes that Entrepreneurs Make when Pitching Investors, and Twenty Things Entrepreneurs should Know About Angel Investors.
4. Monitor your finances constantly
Keep track of your income, expenses and balance sheet. Many startups failed because entrepreneurs were unable to control their spending and avoid running out cash. Keep overhead low. Avoid unnecessary expenses and be frugal in your spending. Live on a shoestring until you start seeing meaningful revenue.
5. Search for the Competition
Be sure to thoroughly research the products and services of your competitors and stay on top of any new developments. Set up a Google Alert to alert you to any new information that appears about your competitors.
6. Get advice from other entrepreneurs
Advice from business professionals and entrepreneurs (such as accountants and lawyers) can be very valuable. Don’t hesitate to give stock options to your members as a way of motivating them. You can also read startup magazines and industry newsletters like AllBusiness.com or Entrepreneur.com. Find mentors to help you with hiring, product development and marketing.
7. Create a compelling elevator pitch
This should be a short and compelling description of what your startup is and the problem that it solves. This is what you should have ready for investors and potential customers (although it will need to be tailored to the audience). Limit it to 30 seconds. Explain your goals and mission, as well as why your product is unique and compelling. If an investor shows interest, you can follow up by presenting an executive summary or a 12- to 15-slide PowerPoint deck that goes into greater detail about your company and market opportunity.
8. The Right People to Hire
One of the most common mistakes that first-time business owners make is hiring the wrong people. It is important to hire employees with relevant experience and background. You need them to fit in with the culture of your company. As employees in startups are often required to perform multiple roles, they need to be flexible and hardworking. Reference checks must be done thoroughly. In your offer letter, make sure you state that they are “at-will” employees who can be terminated anytime. Remember the old saying: “Hire slow.” Fire quickly.”
9. Never Stop Networking
You can find a great investor, employee, customer or mentor by networking. Attend startup and industry events. LinkedIn is a great tool for networking, so be sure to have a profile on LinkedIn as well as ensuring that your company has one. You should also make it a point to add new connections regularly. If someone searches for you on Google, your LinkedIn profile is likely to appear at the top. Make sure that you make a great first impression.
10. Give great customer service
Zappos, Virgin America and other companies have been successful due to their focus on excellent customer service. Your early customers should be happy to recommend you and praise your services to their friends and co-workers. Email your customers to express your gratitude. Show your gratitude by going the extra mile.
11. Experienced startup attorneys are available to help you.
You will need an experienced startup lawyer who is familiar with the business world, has advised and formed many entrepreneurs in the past and is a specialist. A startup lawyer with experience can assist you in the following ways:
- Contracts with co-founders
- Prepare important agreements for your business
- Create a stock-option plan for your employees
- Offer protective letters to potential employees
- Negotiating with investors
- Limit your legal liability
- Protect your inventions and ideas (through patents, copyrights and non-disclosure contracts)
Ask other entrepreneurs or venture capitalists for recommendations. Be sure to have a good relationship with your attorney. Before you decide, meet with several attorneys (the first meeting should be free). Check out The 10 Most Common Legal Mistakes Startups Make.
12. Public Speaking: Get Comfortable
Effective communication is crucial to attracting customers, motivating employees and pitching investors for capital. Many people are afraid to speak in public and aren’t very good at it. It is important to work on overcoming this fear. You can work with a business or public speaking coach to improve, practice and get feedback from professionals. Many of the most well-known entrepreneurs, including Steve Job, were excellent public speakers.
13. Focus on creating a great service or product, but don’t wait forever to launch it
It is important that your product or service be good if not excellent from the start. Your product or service must be different in a meaningful way. This principle is the foundation for everything else. Early customer feedback can help you improve your product. As Reid Hoffman said, “If your first product is not embarrassing, so here you have launched it too late.”
14. Advice to first-time entrepreneurs: Do it!
It’s never too late to start a business. Even if you are still working full-time, it is not too late to get started.
15. Then, market again
You must constantly be building your market, attracting new customers, and educating them. Include the following in your marketing strategy:
- Build a professional-looking, up-to-date website.
- Learn the basics of SEO (search-engine optimization) to ensure that those searching for your product or service will find you at the top of the search results.
- Use social media (LinkedIn Facebook Twitter Pinterest etc.) to promote your company. ).
- Write guest articles on relevant websites to engage in content marketing.
- Release press releases about any important events.