5 + 5 tips for a beginner entrepreneur: what to do and why?
The life of an entrepreneur is full of surprises and obstacles.Each obstacle creates what we eventually perceive as something that stops us or vice versa moves forward with renewed vigor.
Every surprise we take as something that does not fit into the script outlined in our head.
Since the moment I began my life path as an entrepreneur, leaving my job as an official, I believed that my previous work taught me all sorts of ways to successfully resist tricks, obstacles, surprises, and life changes.
I thought that I can see what others do not see and maybe even considered myself an ace in matters that may seem super-complicated to ordinary people.
However, only by becoming a full-fledged entrepreneur, a person realizes the boundaries of their actions and the consequences of some mistakes.
At the same time, an entrepreneur, regardless of whether he or she is already experienced or just a beginner, faces the same events and problems.
Let’s call it the “returning wheel” because it will come back to you again and again. The difference is in the reaction each of us has.
Having gone through a certain path as the entrepreneur, I decided that it is worth sharing something that wasn’t shown to me often. And since a novice entrepreneur does not always read much or rather tries not to spend much time reading, I will try to reduce the load to the minimum.
So, what awaits the beginner entrepreneur in his journey into a new life? Yes, indeed it is a new life. For entrepreneurship is not just a new way, it’s a new way of thinking, a new way of life, and a new form of interaction with the world around us.
#1. Double check the IDEAS
The inner desire to achieve quick results in the realization of the idea lies at the heart of all the mistakes made by new entrepreneurs. Sometimes it’s an idea coming from a friend, relative, or someone else.
I do not presume to say that all or most of the concepts may initially be bad or useless.
I am sure that quite often we are given a good advice which can bring an extra penny and increase financial well-being.
The most important thing at the beginning of the entrepreneur’s way, after hearing the idea or thought, is the necessity to double-check it. Do not be afraid to spend time studying the topic (go with Google), to sleep with this idea, to give two or three weeks (even if you are rushed, claiming that the deadline for this idea is the end of next week) to understand and truly realize that this venture has the right to live in your (exclusively in your, and not someone else’s) entrepreneurial experience and life. It is better to spend two to three weeks than to regret over the wasted thousands of dollars for months.
#2. Do not rush into JOINT VENTURES
The usual and the most common mistake that often led to the death of a considerable number of interesting ideas are associated with an improperly formed partnership. Partners, views on business, differences in life position, lack of common interests often drove the best and quite well-working businesses to collapse.
Probably it’s difficult to reconcile all the principles at once, but try to put yourself in the position of the “devil’s advocate” and play in your head the most unexpected and possibly not the best scenarios that may arise. Partnership holds a lot of issues, both positive and negative. Be prepared for the worst scenario but do not stop thinking positively. Because the success or failure of your idea depends on how you address different questions to yourself and the partner.
After you studied the idea, do not rush into a joint venture.
Think out, understand whether you are ready to share profits with your partner.
Are you ready to accept his / her advice?
Would you mind when your partner says that in a restaurant, you’re planning to open, a tablecloth should be red in white peas and not the one advised by a hired restaurateur?
Are you ready to make concessions and are you prepared to cover the financial inconsistency of a partner, if it happens suddenly, and the business will need to be extended?
If you answer these and many other questions flashing in your brain like fireworks, then boldly go forward.
#3. Calculate and be sure to read the BUSINESS PLAN, but do not get hung up on it
Business plans always look good.
I and my colleagues read a lot of business plans and none promised a failure. But then, often we found the opposite while studying the results of those that were supposed to take off.
As a rule, the essence of the business plan is that it is prepared by good, and sometimes best minds.
Nevertheless, the problem is that everything always looks perfect on paper. For example, when we launched one of the projects in the field of agriculture, the scheduled business plan promised a good profit even in the worst case scenario.
Everything was calculated with taking into account the dynamics and trends of the last five years and other analytical metrics. But after the project was launched, the situation on the market had changed and prices went down. We did not consider the external factors that seem to have appeared from nowhere. And still, the numbers showed that not everything was so bad.
The analysis demonstrated that we hurried in the #2nd point and the business plan failed due to the current situation.
So, everything went according to a new business plan which was very different from what was planned.
Without calculating the #2nd principle forget about the effectiveness of your business plan.
#4. Do not DELAY
One of the main problems of beginner entrepreneurs is excessive caution.
Not rarely the ideas that I and my colleagues were working on or rather thinking over for a long time were realized by someone else.
Just remember, on the planet with more than 7 billion people not only you are the smartest and most creative person. Do not be afraid of mistakes. You did fall off the bicycle, but it did not stop you from learning how to ride it. Try, make mistakes, try again, and do not waste time launching new ideas. If of course, they meet the requirement #1.
For if this idea came to your mind, rest assured it has already come to someone else’s. The question is who is implementing it faster: you or your laziness?
#5. Do not spare TOO MUCH at the initial stage
As your idea will be formed in your head, you have to calculate the costs. Often, I had to hear that someone started a business without a penny in their pocket or with a hundred dollars they moved mountains.
Of course, everything depends on the volume of business.
But now we are talking about somewhat serious matters.
Therefore, we will have to spend on everything: creating a landing page, writing project documentation, publishing a presentation booklet, creating a graphically illustrated presentation, attracting a specialist, hiring an employee who will do most of the work, etc.
As a result, a beginner entrepreneur usually wants to save on freelancers, hire people who don’t know each other, who can approach the essence of the project in a completely different way.
If you are sure that you will be able to save, then most likely the amount spent will exceed the amount that should have been planned in advance for the implementation of these tasks.
The initial consistency will allow to coordinate the work and keep the entrepreneur and performer in tune.
#6. Take out the waste of space IMMEDIATELY
At the beginning of the process or when it was already launched, there will be those who do not cope, who are weak, with no spark and no fire in their eyes. They do not feel like becoming a strong link in your team. Do not cherish the hope that the situation will change. At best, it will remain the same.
Undoubtedly, some members of your team might be just gaining an experience. They seek to learn new things, succumb knowledge, try to improve themselves and make a feasible contribution to the new business. It’s completely different.
Therefore, those who are not with you initially should leave the team. If you feel (and the entrepreneur is obliged to feel) that someone from the team does not cope or is not particularly interested in it, then good riddance to them.
After all, pedestals don’t stay empty for long.
#7. IGNORE any rejections
So, the project is launched.
By going through the hardship to the stars with courage you managed to launch the business idea despite all the difficulties and rehearsals. This is just the beginning.
For, as Winston Churchill said, “now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”
So, at the end of the beginning, you are confident of success (and this is the most important thing, we will talk about this later). You send notifications to friends and acquaintances about a new project being sure that they are your first consumers. They, in turn, will involve their friends and everything will work in a geometric progression.
You assume that the profit will grow immensely, so your own private jet is at stone’s throw.
Nevertheless, realities are often slightly different and the first one is based on the fact that in business statement of facts differs from the ones that we would expect.
And here the new businessman faces the first refusals. They are like a “sword of Damocles” hanging over your desire to move forward.
You will receive a notification or a message that the idea did come through, that the goods did not get interested, that the project did not pass, that participation in the tender was not the best. You should know that it will be so and it has to be.
You have not forgotten though that nobody is waiting for you in this market, you are needed by very few people, your ideas are not clear yet (even if they are perfect).
Only faith in yourself, constant, as a woodpecker, moving forward will make it possible to succeed.
And most importantly, every morning repeat to yourself that failure only strengthens you and your desire to succeed!
#8. Cut off the ability to MANIPULATE you
Now everything is spinning around and now it is important to learn the next lesson.
The basis of business is manipulation: a competitor, partner, and people around you. Perhaps you have not learned this yet. Experience and only experience will teach you this.
However, from the very beginning of your entrepreneurial path, have the courage to say “NO!”.
Have the mind to soberly assess and understand all sorts of insinuations that you will be trying to involve.
Your competitors, partners, associates will try their best to take you into the ring of their own ambitions.
It’s hard to recognize.
Everyone strives and will strive solely for his own ambitions and interests. Man is created to set goals and ambitions above others. Because initially, try to ALWAYS REMEMBER about your own interests.
#9. Be KIND and SWEET, but not soft
Imagine yourself during the negotiations. You sit tight, in a formal suit and very strictly, in a businesslike manner, discuss the project that you plan to launch.
Your possible partner and the potential investor is in front of you: cheerful and sympathetic, at first glance, a man who is trying to establish the most comfortable contact with you.
You are opposite to him: strict, clear, businesslike, cutting off every opportunity to joke to not to look light-headed. Do you think you would have built up contact with such a person? I certainly would not.
Business is a smile, a well-groomed look, and a well-delivered speech. Every novice entrepreneur always tries to please potential investors, future partners, potential customers or clients.
Therefore, you need to be nice and kind. This is true.
You should radiate positivity, and your positive mood will affect others.
But kindness and a pretty smile shall not become an indicator of your weakness.
The mistake of new entrepreneurs is that sometimes they are often kind and sweet more, and most importantly, longer than it is acceptable. It is vital to remember that a positive attitude towards life, business, and the belief in success does not mean kindness in business.
Softness and kindness are qualities for charity, business is a win-win situation.
Be soft once, it will be difficult to clean up the results later.
#10. Be CONFIDENT of success
Probably the shortest advice that I heard and I like to repeat every morning, and which would give to any beginner entrepreneur is the advice to believe in success and it will be guaranteed!
In spite of everything: on complexity, vicissitudes, surprises … just believe that success is not far away.
Projects will crumble, the financial condition will be deplorable, not everything will go as planned and you will be denied.
The level of stress and amounts of thoughts that you’re a loser will go off the limits.
This is a normal state for almost all start-ups. In such a situation, remember the “ring of Solomon” and the words written on it: “and this too will pass”.
I usually repeat the words of Mahatma Gandhi to myself: “At first they ignore you, then they laugh at you, then they fight you, then you win.”
And for me, this is enough for success.