Do you want to become an entrepreneur? That’s great. But before you enter the world of entrepreneurship, there are things you must know when starting a business.
When I was starting out, it was challenging to start a business because there were very few people I could ask and had no idea how to get a mentor. And the worst part is, I actually don’t know what I have been doing, which is why I made a lot of mistakes in the past.
From the experiences that I’ve had, here are some things you must know when starting a business.
90% of startups fail
Based on recent reports, it seems impossible to have a successful business because a staggering 90% of startups fail. Competition is surely tough, but don’t let this discourage you.
A lot of startups may fail, but there will be those who make it to the top, and this could be you.
It’s okay to start without experience
Employers may be looking for the most experience. But things work differently when starting a business. Sure, having experience is a plus, but most of us have to start without one.
I am not saying that experience is not important at all. Having a lot of experience will actually be the key to having a successful business.
But it doesn’t need to be yours alone, which is why we need mentors. We can learn from their mistakes and also from their big wins. Their experiences will be added to yours without all the hard work.
You also need to keep in mind that you don’t need to be the smartest. You just need to surround yourself with people who are smarter than you and learn from them.
You don’t need large sums of capital to get started
The most common reason why most people can’t get started is because they think they need a lot of cash to get started. You may think you need a lot, but you don’t actually need to.
Believe it or not, I have started most of my ventures with only little to no money, where I partnered with friends, got some funding, and got a consignment deal. Sure, there will be types of business that will require large sums of capital, but there will be more that don’t need to.
With the rise of technology, a lot of opportunities have opened for us. For instance, you can start an online business in the comfort of your home. No rental fees, no need for employees, and can simply sell your product online without cost.
You just need to be more creative and be resourceful.
Having a job is highly recommended
Don’t do your business full-time. At least not yet. When you are just starting out, having a job that will support your daily needs is highly recommended.
You may be tempted to quit your job and focus on it full time because you think your business idea will take off and attract a lot of customers, but it’s hardly gonna happen. We all think that way.
If you have a job right now, that’s great. Stick to it. You’ll have more security once the business doesn’t take off. The good thing about this is that you will be able to test a lot of things even if the business doesn’t have enough profits yet.
The only challenge with this is gonna be your time. The time you will be putting into the business will be limited. But with the right time management, you will be able to make time for it.
And once the business starts gaining traction and customers seem to be coming back for more, that may be the right time to focus on the business full-time.
Dream big, but start small
You may think of a world-changing product. We all do. Thinking of building the next Amazon, a social network that could compete with Facebook, or a company that could also send humans to other planets such as Spacex do?
It’s okay to think big. But we all have to start small. Even tech giants such as Steve Jobs, Larry Page, Bill Gates, and even Jeff Bezos, started in garages and their basements before what they become today.
Keep in mind that not all world-changing ideas are gonna be a success. Most ideas just went straight to the trash and wasted a lot of resources. Everything must be tested, which is why the current best practice for startups is creating an MPV (Minimum Viable Product).
Do you have that world-changing idea but not sure how it will go? Here’s what Mark has to say, “Ideas don’t come out fully formed, they only become clear as you work on them. You just have to get started”.
Final thoughts
Becoming an entrepreneur is challenging. But believe me, the rewards outweigh these challenges.
Do you have a question that aspiring entrepreneurs would want to know more about? Let me know in the comments below.
Featured image credit: Andrea Piacquadio
I’m a budding entrepreneur. My blog focused on entrepreneurship, where I share my personal experiences, lessons I’ve learned from other people, and strategies that I’d love to experiment with. Learn more about me.
