- Are you dissatisfied with your current job?
- Are you not happy with your current financial state of affairs?
- Do you have a dream to be your own boss?
If your answer to any of the above questions is in affirmative, then Congratulations! You are reading the right blog – Tips to do well in new Business Venture. It does not matter whether you are already in your own business or are thinking of starting your business venture soon.
What makes me competent to write this article?
It is my passion and profession to guide, coach and mentor people to be successful in their careers. If you have zeal and risk taking ability, then you too can be a successful business entrepreneur.
Since I also operate several business lines successfully, I’ll share firsthand experience with you. You will find a lot of encouragement and motivation from me in this article to run your current or future business venture successfully and profitable. At the same time, I will not be unrealistic about the ground realities.
Interested? Read till the end. In fact, it would be a good idea to book mark this article and read it a couple of times and discuss the tips you like with your well wishers and advisors too.
Tips to do well in new Business Venture
1. Know your current scenario
If you are discontented with your current circumstances, frankly, no one can fix them except you. You can blame your luck, the economy, your boss, spouse or your family. Change can only occur when you make a conscious decision to realize your dream goals and targets by starting your own business.
Don’t start a business simply because it seems cool or somebody has suggested that there are huge profit margins and returns. Without real motivation it would be an exercise in futility. If you are thinking or starting your business or have started it to serve your ego or impress your girl friend then faster you pull out the better it would.
Do what you love. Businesses built around your strengths and talents will have a greater chance of success. It’s not only important to create a profitable business, it’s also important that you’re happy managing and growing it day in and day out. If your heart isn’t in it, you will not be successful.
To be successful in your business requires nerves of steel, courage of a dare devil and the patience of a yogi. Check your score first. If you score high, then go ahead and read further.
2. Get the right business idea
Before you set out, you must have the clear idea in your head about the line or business activity you want to work on. The right business idea should pass through several test filters. For example, do you have interest in that activity; do you possess the skills in that field; is there a demand for the product or service you intend to get into; would you be able to arrange the seed capital to finance infrastructure, procure equipments, pay for raw materials and the wages, working capital and advertising etc.
Suppose you want to set up a business to sell food items, check the level of demand, intensity of competition and local laws and bye laws about the food products.
Answering all these questions honestly, will let you know what business is right for you?
3. The right business model
This is one of the most important tips as people chase their dream or fall in love with a good business idea but forget to work on the business model. Have you worked out that how will you generate revenues and profit for your business? What is right for you – to buy on credit or at cash and get discount? What payment terms will you offer to your buyers? Do you run the risk of rejection and thereby losing on buyers if you demand payment upright or it is more risky to sell on credit?
The starting ground is to look at different facets of yourself and listen to your intuition.
If you possess certain qualities like business management, team building or selling, perhaps a franchise model is the best road to entrepreneurship. Once you decide to jump into the franchising pool, carefully study and research the existing franchisees in the market.
4. Don’t expect financing initially
Let me put it straight, generally no one will give you money for your start up. Even if your project or business idea is very profitable, it would be very difficult to attract investors to put money in your venture. The banks also like to play safe and unless you have a proven track record and can offer collateral security, banks are likely to say NO.
Therefore, you will have to manage with your own savings and if lucky then additional funds can come from parents, friends and relatives.
If your require large sums of capital to launch your venture, it is better that you go back to your plans and re draw your plans around the funds which are available. Scale down pricey concepts and pompous expenditures. Keep simplifying the idea until it’s manageable within the amount you are sure to have with you in the beginning and call it as an early stage venture.
First you’ll have to find ways to prove your business model on a shoestring budget and go in for the funding at the next stage. The investors and bankers would like you to demonstrate your idea’s feasibility before they put their money. If your concept is successful, your chances of raising capital from investors for the start up will dramatically improve.
Please refer to: How to Start a Business with No Money
5. Learn to be flexible and adaptable
No management book can predict the future nor can any business plan fully prepare you against unexpected problems. There is no such thing as the perfect plan. There is no perfect business model or one that has no competition. To become a successful entrepreneur, you should be read to deal with the new and unexpected situations. Secondly, it would be expected of you to find and provide immediate solution.
This gives 3 lessons:
- Stay flexible and be ready to adapt to new situation in your new business venture.
- Never jump into a new business venture without any thorough planning. Take a few days or weeks extra to do your homework but there is no point spending months or years waiting either to execute your business idea.
- If there are problems, then don’t fume or fret. Rather welcome them as you will become a well-rounded entrepreneur when tested and trained under fire. The most important thing you can do is learn from your mistakes–and never make the same mistake twice.
6. Be ready to sweat it out
A successful business demands far more than an idea. It requires blood, sweat, time and tears to the point of obsession. Succeeding in your own business takes passion, determination and hard work. If you want pride, money, recognition and freedom tomorrow then today be ready to give your business venture every ounce of courage and conviction.
Of all the things you can do to be a success, the one which always wins out is “working hard.” Successful people believe in “Hard Work Beats Talent.” There are lots of highly educated and successful executives in the employment world who aren’t willing or able to push themselves hard enough to become a huge success. They know that they are not made to leap from a comfortable job at a big company to a completely blank slate.
You have to come into work a little earlier, stay a little later, and know how to put in the extra effort to do a fantastic job. Once you make this habit and make your business successful, you will never look back!
7. Customer Delight
One of the keys to success in your business venture is the high quality of relationship with customers. It is an important tip because you want to keep your customers happy and satisfied so that they keep coming back to you and also refer more of their friends to you. It is a true partnership and crucial to success. You will have to work very hard to earn this level of trust – something not easy to achieve at least initially.
Whatever be your business domain or field of activity, it has to be customer centric. Obsess over your customer or would-be customer from the very beginning, and the rest will work itself out.
8. Allocation of Time and Money
To some extent time and money are each other’s substitutes. There would be a crucial need to balance the two most optimally.
Since you ultimately plan to run your business full-time, starting on a part time helps give you more confidence and reduce your risk because you can rely on regular flow of income, networking and other benefits from your full time job. This way you won’t get impatient as you allow the business to grow gradually. If there are unforeseen delays or unexpected expenses making the budget overshoot, you can take it in your stride – both financially and psychologically.
The other side of the story is that you should be prepared to get your hands dirty, no matter what business you are in. This will save you money but you should be ready to spend extra hours. Also you should not mind doing even the junior most level jobs – which may not be required to do in your full time employment.
9. Choose your partners, team and vendors wisely
In a business everyone has a role to play. The tip here is that whether it is business partner, vendors, employees or channel partners, they all can contribute in a significant way to the growth of our business venture.
Your ability as an entrepreneur to evaluate, attract and build strong working relationships with co-founder(s), employees, channel partners, associates and investors often means the difference between success and failure of the start up business.
As first-time entrepreneurs, you would be fortunate to have like minded and intelligent partners and associates as it helps tremendously to discuss ideas and talk through big decisions with one another. The trust built will help you smoothly go through the inevitable emotional roller coaster ride that is part of every start up journey.
Your key early employees will help determine the fate of your business, too. It is better to select those who are willing to play multiple roles within the company. The founding team and early employees set the future trends and establish the work culture. Of course, the importance of solid partners and great employees always remains in any organisation, but it is especially important in the beginning.
As a start up, with so much at stake, it is important to be profitable as early as possible. There are various reasons for that. One you need to be reassured that you can be successful in your start up venture. Second, money is always scarce and third if you are in a full time job, you cant be riding two boats at the same time for long. Lastly you want to go in the direction that you find most rewarding. Thus the tip is to Act like a start up. Forget about fancy offices, first class travelling, staying in expensive hotels and fat budgets. Your wallet is your company’s life-blood. Practice and perfect the art of being frugal. Watch every dollar and double-check every expense. If you successfully maintain a low overhead, you can manage your cash flow and budget allocations effectively.
11. Top line
Of course bottom line is the first focus point of the entrepreneur but the tip is to grow the business and make it profitable. You can’t be doing most of the jobs yourself or running the business on shoe string budget. Thus continuously and consciously scaling up your business is the key to success. Of course, you’ll be challenged as you go on higher levels, but it is better to face the challenges in a 10 million per annum sales company over a half a million annual turnover company.
Recommended Article: How to Earn More Money in Career or Business
Here is wishing you all the best in your start up / current business venture. Do read this article a few more times to draw full benefit and do share with your friends.
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