Having their very own startup is the ultimate dream of any entrepreneur. Leaving a steady income job and taking the plunge needs a lot of determination and careful planning. Most of the entrepreneurs fail to comprehend the practical difficulties involved in starting a company.
An entrepreneur should be aware of the following do’s and don’t’s on their checklist before plunging into a startup:
1. Launch at the right time:
Timing is everything when launching a company. The businessperson should prepare themselves well in the following two aspects of:
- Have a well thought and well-laid business model,
- Build a customer base before launching the business.
Taking necessary steps to launch a product or a startup requires planning, but the plan should lead to execution. Many startups are cut off in the embryo stage as they waste time in too much planning and lose out the window of opportunity.
2. Proper budgeting:
When launching a startup, the entrepreneur should be careful of the expenses that will be incurred and what are the areas need a bigger budget and which area requires a lesser amount are to be determined. The primary rule of any startup would be that every single penny or rupee should be accounted. Not all startups have sufficient funds to start their business, most of the money would be sourced through loans or through other methods, which makes the entrepreneur responsible for the funds of the investors.
3. Self-discipline and core values:
The success of any venture is attained when the person involved in the venture has strict self-discipline and core values that define their vision and the target intended to be achieved by them. A persons’ life revolves all around the formula of work and balance method. However, a startup requires much more involvement than an established business. A startup can be compared to an infant who needs nurturing till it is quite ready to walk on its own.
4. Get onboard the best team:
A startup cannot survive on the strength of a single person, and a team is needed to monitor all the aspects of the business such as finance, management, human resources and so on. Assembling a team of like-minded people who are ready to work at a moments’ notice and is willing to put in long working hours can do wonders for the growth of the startup.
5. Be ready for any work:
Not all startups shoot up in the air and start generating millions in a single day; the growth factor will be slow and steady and at its own pace. Rushing things ahead will not help in producing the required output for the company. The entrepreneur should not hesitate to take orders or to get in the zone and work at any place and at any time. Building the trust of the customers or clients is the most essential and crucial base for any startup. Prolonged customer satisfaction will go a long way in retaining clients and will definitely help to widen your resources and customer base through referrals or surveys.
6. Be ready for the cash crunch:
Having a startup can mean that there will be short on the home front. The entrepreneur should have a comfortable nest egg for the expenses for the minimum six months to manage familial costs, or if the entrepreneur is a bachelor, they should try living in college budget just until the startup takes off. Getting into additional debt can prove harmful to the entrepreneur and the startup.
7. Analyze your skill set and know your weakness:
Before getting into the world of startup, the entrepreneur needs to know their strength and weaknesses and work on them. Knowing one’s strength and weakness is like knowing half the battle. Strengthening the weak points is the best way to combat any surprises that might arise in the future.
8. Humility is the key:
After becoming boss of their enterprise, the entrepreneur should not let the fact to overcrowd their thinking. Being polite, humble and not hesitate in using the magic words of please and thank you can get the job done very much easier than commanding the employees to do the work. The entrepreneur should not be a loose cannon but a very humble person who respects and values the work of the others around them.
9. It is a temporary phase:
Many startups fail to manage the hard times that they incur during the initial days and in the end remove themselves from the business. This is a very wrong move; the entrepreneur should understand that every startup struggles during their initial stages and it gets better as they grow. The entrepreneur should bear in mind that this just a temporary phase till they find their footing.
These are some of the points that an entrepreneur should bear in mind before starting a startup. Keeping in mind these points will help the entrepreneur to have a clear vision and plan to launch their business.