Practices you need to consider when you decide to go into business
There are many best practices for business. But there are also things you should avoid if you’re considering opening your own company. The strategy presented here is different from what’s available elsewhere, because it offers advice for a person with modest resources to start a business. We teach yout once you select the right business and the right niche, you will have increased the probability of succeeding.
Even with our guidance, many people fall victim to issues that would cause even a well-intended person to fail. Because they fail to follow generally accepted advice. Look at the lists below before you attempt a life-changing endeavor like starting your own business. If you start with these misconceptions or deficiencies you may have a problem:
- If you think going into business will be a road to instant riches.
- Or, if you open a company without completely understanding best practices for business.
- If you lack focus and think you can open multiple businesses at once.
- Or fail to correct poor money management habits.
- Finally, if you believe you can operate for long without help, your probability of failure is great.
Details of those attributes you should avoid appear below:
Believing opening a company will be a road to instant riches
Few people know the truth, and many open businesses thinking it will make them rich. Because of that school of thought, people search for, and spend billions on get rich quick schemes. Unfortunately the only person that gets rich is the founder of the scheme. People with a drive to get rich, rather than offering value to their customers, tend not to understand the importance of their customers as it relates to achieving longevity in business. Going into business has the capacity to make you rich, however you must place your customer’s needs before your own.
Few companies that place profit as their first motivation ever reach the financial heights they seek. Doing so, is not one of the best practices for opening your own business. You must decide to develop an innovative way to deliver your products. A way to deliver unique value added features. A way to deliver consistent discounts or features your customers want. Because, if you can do those, things money will come to you. If you forget about these types of things you;ll struggle to survive, if you are able to remain open at all. Without a focus on your customer, you demonstrate you have no idea what going into business is about.
Opening a company without understanding business itself
A material part of starting a successful company, is how well you understand the phases of business development. Many people do not seek any method of learning those things, because their focus is on making money. There are however, a minimum of two variables one must learn to survive in business. First, you must understand real best practices for starting and growing a company. And, second you must understand the specific details of the particular industry in which your business will operate. Only then can you plan innovative methods of satisfying your customers. Your customer is the reason for starting any company, but focus on him as the key to wealth must be limited. If your offer him good value and a pleasant shopping experience, money will come. But, without a focus on your customer’s needs, it’ll be difficult to even stay open. Knowledge of business itself will indicate how that can best be done. A basic understanding of business is one of the rudimentary best practices.
Believing it is possible to start several unrelated companies at once.
There is an old cliche stating “you can be a jack of all trades and a master of none”. This is especially true in business. Opening a landscaping, a frame making, and catering company at the same time would not make sense. These operations are unrelated and other than money if you made any, could not benefit each other. Opening a single landscaping company selling lawn care products online, and accepting all landscaping work by subcontracting anything your company couldn’t do, might. The landscaping operation might use some of the products it sold online which it purchased wholesale. Architectural landscaping work that required licenses could be subcontracted. Giving the company the ability to accept work for which it was not licensed. With no salary or equipment cost, it would earn the amount of the discounts offered by subcontractors. It’s possible to start several businesses simultaneously. But, they must be related, and even then you may spread yourself too thin. It may be best to take actions to get a single business operable and profitable enough to pay you a salary while you hire someone to operate that business for you. This would free your time to get another business started, allowing you to work on the first business rather than in it. Ideally, this would also allow you the time to work on another business. But, trying to start several businesses at once has proven to be a mission impossible for most.
Failing to correct poor money management skills
If you can’t manage your own money, it’s unlikely you can manage the money of your company. Learning restraint is not easy. A first step might be to sign up for the Saafenet free newsletter then forcing yourself to follow its recommendations. If you want to go into business you have to be able to be in control of your own finances. Only then should you consider managing the finances of your own company.
If you believe you can operate for long without help, your probability of failure is great.
Trying to decide the right business for you and the niche hungry for your product requires research. Preparing a business plan requires additional research. Ensuring you are properly licensed before you serve your first customer requires respect for the law. These three things alone could burn you out. And, at some point you have to start normal operations. Starting a business can be hard. If you expect your business to pay for the professional help you’ll need, don’t expect it right away.
49% of small businesses don’t have a website which may be the first contact a customer may have with your company. But, you should avoid using a brochure style website, which is little more than an online business card. To the extent possible, you should sell your offering online in an e-commerce website. Because around 97% of customers shop online. This gives your customers another means of spending money with you, and may offer him an improved experience with your company. A website is a small part of the foundation all businesses need, and it’s best when it’s part of your business rather than the focus of your company. Making money online without an offline component is tough. And, a review of the most successful businesses online would reveal most of them are looking for ways to start an offline component to their operations. If you understand you don’t need an expensive brick and mortar location to operate offline, you’re on your way to starting a company. This is almost always superior to starting a business with an online component or an offline component alone.
It’s usually best to work your business for a while to be certain you understand it inside out. But, at some point you’ll need help. You will absolutely need a CPA for help with accounting, business planning and taxes. Waiting until you have a legal problem is to late to retain the help of an attorney. But you may also require the help of a specialist to ensure you have a foundation that encourages sales and growth. If you aren’t intimately familiar with the inner workings of your business, which takes time, you may not know what type of help to seek. Understand once you are open with the right foundation, there are a million other things that can go wrong. Understanding your business will help you decide the type of help that will work best for you.
Continue your reading by reviewing what types of real businesses exist.