Turning a passion into a profession is a great place to start. However regardless of how excited you are with your great “business idea”, you will not achieve success without proper planning and a means of execution in place.
It won’t matter how extensive or detailed your business plan is, it must cover the essentials first. Most successful startups require good self-analysis and a revenue plan. The revenue analysis is particularly important as it determines when your outlay is returned allowing you to progress with the next stages of your business. Without correct planning you could spend all your capital before receiving any returns and effectively go broke in the first few months.
Build Something You Believe In
This is a very powerful lesson and requires a lot of tenacious passion from anyone going into entrepreneurship. When you’re all alone, sitting and wondering why your business is failing, there is only one true thing to power you forward, and that is your own drive and passion for the brand you are trying to create. If you don’t have this you will hit a wall very fast.
How Will You Make a Profit?
Ah, Profit the number one and ultimate goal for all small businesses. Start by taking a close look at your business’ expenses such as rent, equipment, employee compensation, etc. This allows you to see the operating cost of your business. Now you can work out how much you need to sell in order to cover your costs and generated your desired profit.
Do you want your small business to become a success? Have visions of creating an empire with locations all over, lots of people working for you and truckloads of revenue? Before you get ahead of yourself you must tread lightly. You know the saying “you have to learn to walk before you can run”, well the same idea goes for startups. Avoid taking on more than you can handle. Not so much in terms of workload but in terms of costs and returns.
By starting small, you avoid a simple mistakes often made by a startup. Those startups who begin with sizeable operations can recover and learn from their mistakes without borrowing too much upfront. Starting small will help your business grow in a quick and healthy manner.
One such success I am reminded of is a friend of mine who started a Bondi Dog Walking business. He started as he loved dogs and the great outdoors. The idea of getting paid to be outside and playing with dogs did not seem like a business to him at all. However by starting small as a one man operation he now has multiple vans and team members and they are continuing to grow at a steady rate. This is the success of starting small and letting the business grow naturally.
Prepare to be copied
If your idea is truly original and takes off, you can count the minutes before the wanna-be’s arrive. How will you survive the competition from the heavy hitters sitting next to you on the block? Or even from the little guys just starting out? Your key is a system of continuous iteration and innovation. Although you could also take the road of many other companies.
Surround yourself with the right people who can really help you
“If you surround yourself with 4 millionaires eventually you will become the 5th”, the experienced and strategic partners aren’t the only kind of people with whom you’ll need to align with.
Surrounding yourself with a good team is just as important. Build your staff with an assortment of smart, talented, and driven people who each have their own talents but share the same vision. They can not only improve your business but also help it grow much faster.
Hiring the right type of employees can help create an environment that encourages teamwork. create an environment in which everyone can participate, so you can collectively create and enjoy your growing company’s successes.