People always start a business based on two reasons either to look for an extra income or they have some money somewhere and they want to invest it. That why you if you analyze google searches Phrases like ” Which businesses to start with $10,000″ are very popular.
And honestly there is not the wrong way to start maybe you’re unemployed, or maybe you’re looking for a side hustle to boost your income. Perhaps, like many people you are a parent taking a temporary break from the workforce – the transition back can be tricky, but hey, you got to do what you got to do!
Actually, most of the of the entrepreneurs I have interacted with started for a reason which lies between these two reasons, they did have a business idea, but trough feedback from a friend they helped they realized they can turn their “helping’ to business. I usually call this “Business by mistake. But before you start here are some valuable lessons to consider before you start.
1. Complex Strategies Often Fail
The thing about starting a business is that things change very fast. The shiny business plans you spent hours crafting might not translate perfectly to the real world. Most of the valuable knowledge you will gain comes from experience in the market, not just research reports. Don’t get me wrong, doing market research is important and it is very necessary before starting your business. However, this research can be misleading, often leaving out crucial factors like overhead costs.
Take an example of a drop shipping which is a very popular business with Influencer, you might hear someone brag about making 10,000 dollar a month, they will show you the results, but they probably won’t mention that more than 70% of their customers are from their audience, they won’t mention the blood, sweat, and tears they poured into building trust and loyalty of their customer base. Learn from your mistakes, pick yourself up, and keep moving forward.
2. Have a Success Mindset: Grit over Degrees
Why would a college dropout run a business successfully while someone with a master’s in business administration struggle to break even? Because the drop-out might be more action-oriented, less likely to get bogged down by overthinking. They’re willing to get their hands dirty, to hustle and learn from their mistakes.
Starting a business is a wild ride, unlike popular belief, more than 70% of businesses fail. There’s a reason why a single mom who is a roadside vendor is also running multiple apartments – it’s a testament to the power of hard work and determination. Graduates goes with plan B, C up to E, but a drop out Know’s there is no option B is either Sucess or Sucess. So go into the Business and hustle like a drop out.
3. Avoiding the Greed Trap
Don’t get greedy. Focus on securing enough capital to get your business off the ground. Remember, you get what you deserve. Entering in the business ventures requires sacrifice and one of it might be discounts and offers. Think about ways to keep your overhead costs low. Can you share space or internet expenses? High overhead eats into your profits, even if your revenue is good. Cash flow is king – make sure the money coming in is always more than what’s going out.
4. Business is a Balancing Act
Don’t confuse profitability with just making a sale. For instance, marketing might not guarantee immediate profit, but it’s an investment in your future success. As your business grows, remember to take care of yourself too. Burnout is real. Step away from the daily grind sometimes. No business is foolproof; unexpected events can happen (think forex fluctuations wiping out your savings). Focus on building a sustainable business, not just chasing a quick buck.
5. Paying Yourself: Patience is a Virtue
When your business is young, you might not be able to pay yourself a regular salary. Most people quit their job to start a business with an expectation that the business will pay them better. Surprisingly it might take you even up to 7 years before you start making the money you were being previously paid by your employer. As a matter of fact, some of your employees in your business will be getting a higher salary that you; and you are the owner. So, remove your focus on money and focus on growth first. As your company flourishes, so your salary. It’s crucial to separate your personal finances from your business finances. Discipline is key here. Don’t be tempted to dip into the business funds just because you have a million shillings “on paper.”
6. Mindset Matters More Than Money
Strong business principles are the foundation of success, but your mindset and character are even more important. That’s why you see supermarkets going bankrupt in one location while another one thrives in the same spot. It’s all about approach and how you adapt to challenges.
Bonus Tips:
- Network with other business owners, learn from their experiences.
- Explore getting funding from relatives or microloans to supplement your capital.
- Don’t pay for everything upfront. Negotiate payment terms to manage your cash flow effectively.
- Remember, wealth is built on what you don’t spend, so be mindful of unnecessary expenses.
- Make your money work for you! Explore investment opportunities.
- Treat every customer with respect, even if you have a feeling they won’t buy – you never know!
- A supportive spouse can be a game-changer in your entrepreneurial journey.
This is just the beginning of your business adventure. There will be bumps along the road, but with hard work, a smart approach, and your determination will lead you to Success..