The things Entrepreneurs should know before starting their new Business.
Entrepreneurship is not everyone’s cup of tea, and definitely not for the faint hearted. No amount of formal education can teach you the essentials of how to do a business in the real world today. It is a trait you can cultivate while on the job, some say its in the skin. Even then, having a good knowledge of how to start and manage a business should hold you in good stead and bring you along the road to success.
Practices, tools, strategies are essential toolkit implements to have in your possession. Check out our bullet points which can act as realistic guidance on your journey.
We at, John M Shanahan & Co, Chartered Accountants, Tullamore, Co Offaly have listed some salient points for inclusion in your armoury.
Get yourself a Good Mentor
The perfect mentor would be the one who has a good knowledge of your chosen business and has belief in your ideas. Someone who complements your intellectual acumen can best be your godfather. Just the way your parents acted as your guiding force through life, you need a mentor to guide you through the intricacies of a business start-up. Your mentor should act as a guiding force and hold you accountable for your actions – whether right or wrong.
Prepare a Business Plan
Its a start-up, so the right focus can only be achieved with the right amount of planning. If you find yourself struggling with the essentials of your business, you may talk to a financial adviser or accountant to assist you. Choose someone who has the best credentials in the industry. Sure, your project is close to your heart. But, ensuring that it is customised and specific to the industry standards can go a long way in ensuring success. A good business plan can indeed help you out in this venture.Getting tangled into a whole lot of things can be quite common while starting a business. You are NOT working for someone, but starting a business on your own. As the sole proprietor, every single issue is your own. You have no one to point at.
That is precisely why the focus is quite important.
Cash Flow Forecast
Cash is going to be a cornerstone in starting a business. While you may have a lot of ideas with respect to starting a business and becoming successful, without a proper cash flow it can come a cropper.
Ensure you can latch on to few key customers that can give you decent cash inflow and ease the burden as early as possible in the process. In fact, it can be an ongoing challenge to keep the cash flow in positive territory. A decent initial cash flow should be the prime concern when you plan to start.
During the initial days of your business, the uncertainty of staffing up can be daunting. Instead, think about opting for partnerships or subcontracting certain services you cannot handle. You can enter into strategic partnership with others or sub out the work to contractors. This will help you keep your expenses under control. That is precisely why suggesting not to hire employees right in the beginning can make sense Of course, you will need staff at a later stage, but my then you have some visibility.
Test Your Product or Services
No matter how good your product or service might be, you are rarely in in a position to guarantee the success. It can fail for any reasons. At times, the reasons can be quite strange that you might not have imagined in the wildest of your dreams. It is therefore prudent to test your product in the market before launching it on a full scale.
Be prepared to Fail
Being prepared for failures is the essence of being a successful entrepreneur. Most of the capable individuals refrain from starting a business because they fear failure. If you fear failure then entrepreneurship may not be for you and that fear may have the effect of impeding your ultimate success.
One of the essential elements of achieving the success as an entrepreneur is to be ready for failure. Of course, looking ahead for success is good, but losing heart over failure can ruin your chances.
The above are just a few strategic tips which you can employ for launching a successful business. You will no doubt devise your own strategies once you are successful, but these basic ideas should help you make the right decisions at the early stages.
We at JOHN M. SHANAHAN & CO. are here to help you with all your accounting, business, financial and taxation requirements, by providing expert, specialist and professional service tailored to meet your needs.