Being a first-time entrepreneur has so much more to it than most of the first-timers are able to comprehend. In fact, turning your big idea successfully into a running business is the first step in the right direction. The real challenge lies in maintaining your personal drive and pushing forward to help your company gain some early momentum. No need to worry though, as we are here with these 6 Business Essentials for First-Time Entrepreneurs, so that your inspiration keeps thriving and your big dream turns into a long-lasting success.
1 Foster Right Connections
In many cases, fostering your entrepreneurial network can literally make or break the deal. Staying around with fellow entrepreneurs helps you and your business grow rightly, with appropriate people offering you advice and help whenever you need it. This ultimately results in you gaining influence inside as well as outside your industry. Various effective ways of connecting with other entrepreneurs include:
• Reaching out to them via Twitter.
• Get affiliation of a professional organization.
• Use your existing connections to further build up your network.
2 Implement A Good Business Model
David Skok, a world renowned entrepreneur and venture capitalist holds business model inadequacy as one of the major reasons behind failure of startups. According to him, so many entrepreneurs simply fail to realise the difficulties that arise in acquiring and ultimately monetising the customers. As a result, too many resources and too much time are dedicated to attract customers, which leads to quick depletion of funds. He suggests resorting to two major rules:
• CAC/LTV rule – where CAC refers to the cost of acquiring a customer, which should always be lower than the lifetime value you get from a customer (LTV).
• Capital Efficiency rule – according to which you should be able to recoup CAC in 12 months. This ensures that your company is not under financial stress for a disproportionate period of time.
3 Always Be Ready To Learn More
Embarking on a never ending learning journey (about everything in general and your industry in particular!) is one great way of continually pushing your startup further. After a while, you get convenient with the daily grind of your business, no matter how tough it is, but you must be ready to get out of your comfort zone to expand your learning curve. Workshops, seminars and other such interactive sessions offer you a great deal of learning opportunities. All this will add up to your knowledge about your industry and how you can benefit your business with it.
4 Come up with a product that a significant number of people actually need
Many seasoned entrepreneurs believe that one of the major reasons behind early death of countless startups is none other than coming up with a product with no market need. And it really makes sense. Why would people shell out money on something they never need in the first place? Without being able to grab some money, your business can’t survive for long. So, it is very important to run through detailed market research and ascertain whether or not your product offers people something worth their money, also determining that enough people exist in the market to continue buying your product for a significant period of time.
5 Cut Costs
It is quite likely for startups to not earn enough amount of money to dash through prosperity in their early days, so an alternative approach to manage things well is to cut costs whenever and wherever possible. For example, don’t rent out a bigger space right in the start even if you want to expand later; your business is not in a position to bear additional expenses of any kind as yet. Outsourcing or Virtual Staffing also helps cut costs. Instead of investing on inhouse IT infrastructure for your startup, you better keep the costs minimal by resorting to virtual staffers rather than full time in-house resources.
6 Value Customer Feedback
Last but not least in is valuing your customers’ feedback to make sure your business continues to prosper. There are so many ways it is helpful for business, particularly the startups. It helps startups validate their market agressively, so that they know what people exactly want to get and continually evolve their offering. The key lies in knowing your audience to be able to fulfil their needs while sticking to your core mission.