Most of you will talk with people who promote entrepreneurship hear positive motivation for entrepreneurship. There are things that are rarely stories, which are also part of entrepreneurship. To open going into the story of entrepreneurship emphasize first 10 warnings that you need to know at the beginning.
Ten things you rarely talks, which are an integral part of the business. Be well prepared and follow our tips!
1 Usually you do not say when start-ups have to think about how you will get out of it
When starting your own business, you are optimistic and hopeful. You hope and believe that you will succeed. Cleverly is still time thinking about an exit strategy? Sooner or later, you can deal with it. There are many reasons: you may not make it, you might decide to sell the business, maybe no one is interested to inherit your business, or some other reason. All this points to the possibility that the way out of work yet to happen. Thinking about it you have a clear picture of the whole process that is waiting for you.
This is not to suggest that you need to have a precise plan on leaving at the moment of its foundation, but surely there must be a viewing angle at the time of making the starting of it. No matter how negative the whole thing looked like our intentions are extremely positive because going out of business is not just a failure. Exiting a business may mean that you want to find someone who will buy your business, in light of this information at the beginning you have to think about the figures (balance sheet and income statement) and how you will manage the same in order to present a healthy financial picture.
When you become an owner of your business becomes very difficult to follow the line of business, not a line of emotions. This is another reason why you are considering the possibility of closing early, make a back-up plan and become aware of the possibility of failure occurrence and not you.
The existence of a reserve plan and prepare something like this happens, shut down businesses will leave less impact on your future life. If you plan to have probably set a limit of persistence, the extent to which you can assign the model of borrowing, define priorities and market signals that will follow.
2 Usually you do not say that small businesses hard can afford debt
It is likely that your potential customer’s needs which you intend to meet your services or products, but meet the same or similar products / services that already exist in the market. Principles exchange market function without you. What is your intention? To gain as many customers and keep them, simply to satisfy their needs. Yes, but you are new to the market and you need to think about how to inform the market about yourself, the way to send the message. Promote and present market create costs that you have to consider the time of occurrence, at the beginning of these costs will be higher than your income, over time, if you send the right signal to the market and meet customer expectations, revenue will grow much faster and increases the chance to go from deficit to profit zone.
This story is not to assign. However, in most cases, entrepreneurs are using different models of borrowing to cover the costs of starting. Borrowing costs create a new position with his maturity and that you need to cover. At the same time, it is difficult to find a bank or other financial institution to approve a loan without having a good share of the property mortgaged.
The intention is not to discourage you, but to introduce you to things you cannot realistically happen. Our advice is to start your own business with as little as possible borrowing. If you need additional funds – make the first detailed plan of income and expenses that you expect and make a decision based on conservative forecasts.
3 Usually you do not say that the market is very hostile
At the time of starting their own businesses are aware of the existence of competition in the market. Your future competitors have the same intention as you, to grab as many as possible customers for them and make a profit. What we now need to know is that your competitors are not friends, but not your friends or your potential customers.
What the competition is doing? Lowers rates below the limits of your endurance, a story that customers have less quality products / services, your story suppliers that are in financial trouble and pay long overdue. Able to attack and compromise are large and often not even aware of what he can wait for you in the market.
However, the longer you are in business for yourself to slowly learn how to fight with the competition. And you have competitors and you want them to disappear from the market. Are you going to pay them, if you play fair when they attack you – for you to decide? Our experience has shown that no matter how much everyone complained about the competition and unfair play, everyone who was persistent and had a strong motivation to survive has built its own model of combat. If you’re after some more time there, it means that you are a safe way to accept the principles of the market.
What about the customers? They buy without you. They market and want the best possible way to meet their needs, and to make them the least possible cost. Your goal is to sell their product / service and get the money. Customers explore, visiting different businesses, visiting all promotions, buying about, or do not buy anything, because I only do what brings them personal satisfaction and benefit. They will buy from you only if you give it to them for a good reason – the best price, the best quality, a lot of conviction, or whatever they want – and will work with you until you find out that someone else can offer more and better than you. Their concern is not whether you’re working with a profit or loss. If they fail, most of them will come up for sale and be happy for the added benefits they are receiving from your failures, buying on sale.
The sooner you realize these expectations will be more realistic and realize that you are the only person who cares about your business succeed, and therefore the only person who has to work leads to success. Do not, no one would ever work!
4 Usually you do not need to say a lot to know
Franchise? Have you ever thought about that? Those that you are given the franchise will tell you how easy it is, how can anyone in two days of training will teach you everything, experience is not necessary, only need hard work.
Is it possible to start and run a small business without knowledge?
All this kind of advice from people who never did anything alone. Especially when it comes to speakers, who invites you to a one-day workshop where you will learn about business, and for 24 hours to become your own boss.
To avoid any confusion, initiating and managing your own business requires a lot of knowledge and skills. The list is very long, just to name a few things: the promotion, planning, cost accounting, taxes, hiring staff, training staff, knowledge of the regulations, finding and negotiating with suppliers, persuading customers, defining the terms of payment and billing, determining wage employees, defining the number of associates … not to mention just being aware of the work that you do and what is actually the core of your business.
How knowledge and skills are relevant to your business is so convinced that all this work alone dangerous trap business. Someone once said it was not a smart one who knows but that you know who to ask! Be open to collaboration with people who can help you to cover all aspects of the job. At the same time you work on your training, are “business writing” and learn how to interpret and understand the things others do for you.
5 Usually you do not say that knowledge of the profession that you are involved in knowledge management and small business different knowledge – like night and day
Many people start their own businesses after they have as employees specialize in a particular job. Someone mechanic, a bartender, an electrician, accountant, teacher, etc… The mechanic opens the car workshop instructor holds private lessons or organizes training courses, accountant accounting agency. The basic idea is to provide a workplace for business owners.
Where is the danger? Know the job is not the same as knowing how to run a business. These are two very different skills. They have in common is that both of them can be learned. The question of motives and the time when you will know the difference and importance of both. The sooner the better!
6 Usually you do not say that loans from banks and government agencies are limited
Listening to the advertisements and messages that we receive from banks and government agencies, the impression is that it is just waiting for your request and the money will be credited to your account.
Things still work a little differently, and at your happiness. No one will take the risk of your failures and because each of the potential providers of funds require the fulfillment of certain conditions. Your qualifications, how much money you have already invested their funds and how you plan to give, why this business, who are the buyers, business plan, a way of providing funds, cash flow projections. If all of these conditions be seen as a person’s intention to torturing and make you do some unnecessary stuff, not yet mature enough in their intentions.
People who do not compete with means that are aware that they are not eligible, but statistics say that such a person will never make enough effort and there is a likelihood of failure. People who apply are fighters, willing to make every effort and hard work in the interest of their work; hence the probability of success is higher. It is the small number of people who participated and succeeded. Find it!
7 Usually you’re told you have to understand the numbers if you want to run your own business
Numbers are the language of business. Everything in your business, ending and may be expressed in numbers – positive or negative. The results of each business venture are recorded numbers. Bankers believe in numbers. Products are sold, suppliers and taxes paid – for all that use numbers and often – as much! You will hardly hear business people talk about work without using numbers.
None of you are expected to know accounting. But you have to know your “magic” numbers. How much income you need to cover costs, as expressed in the quantity of goods sold, the margin by which, as a month … to the point of how much profit can calculate and make new plans.
You cannot make good decisions in business if you cannot make good decisions about the numbers, and you can make good decisions about the numbers if you do not know them.
8 Usually you’re told you have to sell
It is impossible to have your own business if you are not willing to sell. People usually hate sales. Looking at selling something that does not want to work or even worse something that is a shame.
In business, nothing happens if the sale does not happen. Sales occurred when the buyers decided to give you money for the product or service you sell them. Customers will not give you money unless before that you made the effort to sell them. To be fair, there are small businesses who are being held without selling, usually a service business, where most effort into it to open the door and wait for customers. Some are doing it, but not for long. No effort no growth in sales and continuity.
Your customers have more choices in the market. You are the only one. Without you, they are still buying. Are you ashamed of your products / services? Do your products are not quality or life-threatening? If not, what is the problem?
Maybe you sell word sound too pushy. Observe then things the right way, you do not sell, you meet the needs of their customers and make them happy.
Once my friend said: “It is better that you do sell, you love it.” I said, “Yes, I enjoy selling.” The real answer is that I have to sell.
Start your own business and ignore the fact that you have to sell is the same as building a house and ignore the fact that you need a roof.
9 Usually you do not say it unless you no one cares about your business
The most common cause of starting your own business is the motives: to be “their own boss”, independently of time planning, independence, the best way to make money that should not be shared with anyone and the like. But if someone tells you that you are the only person, and when to share the care of the problem?
If you try to get money from banks realize that banks do without you and will do only what is in their interest to get the money, the same situation is with the government stimulus programs to encourage entrepreneurship. Try not to comply with certain provisions of laws and how they will realize that law enforcement take care of your business and how quickly your business shut down.
The same situation is with your customers. You need to convince them to do what is necessary and useful to them. For a moment, imagine yourself in the role of customer. Do you remember the times when you put out a job where you were the customer? How much you care, and what have you done to help?
The sooner you realize that you are the only person who cares about the job, the sooner you learn to do the things necessary to find, inform and sell to your customer.
10th Usually they do not tell you is your ability to persuade others critical to your success
In business you always persuade others to work with you. And it all comes down to the power of persuasion. If you do not convince them, they will convince you.
He convinces a bank to give you a loan to start a business, you have to convince the owner of the premises to give you that same lease and at a great price, you have to convince suppliers to trust you and give deferred payment, you have to convince customers to buy from you – and then you salary. If you have employees, you have to convince them to respect the business rules that work for the customer and not to steal things in the company.
Job persuades others to accept your view of things in business is never-ending. If you are good at, running your own business will be much easier.
Train and practice negotiation, communication, interpersonal relationships … will be a big help – but if you are not good at it.