4 Principles That Matter To Good Entrepreneurs + What They Should Pass On
Entrepreneurs from all walks of life are aware that any knowledge gained early in the startup or business launching process can be key to future success. From Henry Ford to Elon Musk, these essentials have been passed on down the generations and are key attributes for today’s budding entrepreneurs to support their journey. Typically, entrepreneurs are individuals who push the envelope and have a constant need for growth. It takes a lot of resources to launch a new business or startup and first-hand knowledge of these processes is invaluable to the entrepreneurial community as a whole.
I’m inspired to share the below four principles based on a recent encounter I had, in addition to my first hand experience as a serial entrepreneur for what this knowledge has meant on my journey to success. Please read and then pass them onto the next entrepreneur you know who could also use the wisdom!
1) Details Matter
One of the main differences between the person with an idea and an entrepreneur is in the attention to the little details. “The devil is in the details” is a catchphrase for a reason, and it’s because while something like an idea may seem simple at first, in order to succeed as an entrepreneur to execute upon it, one must put in the necessary time and effort. These details don’t only include things like business expenses and management, but can also include everything from sales trends to written company communications. Customers notice businesses who go the extra mile and are more likely to stay loyal to these brands for the long haul. The finer details in execution are often what differentiates a business that just gets by from a great one that truly exceeds its customers’ expectations.
Good entrepreneurs also spend time considering these same details for new opportunities or avenues of income potential for the business, or to find a financially viable niche.
2) Finances Matter
Very few people enjoy crunching numbers on a good day, and accounting is often the entrepreneur’s least favorite task. I don’t have an accounting degree, but I do pay close attention to the bookkeeping aspect of every business I operate. A keen eye on the business financials can be the defining factor between a successful launch and a company set to fail. The entrepreneur that is paying extra attention to their finances will often find potential ways to cut off unnecessary spending and monitor costs.
Currently it is estimated that around 30.2 million private businesses launched by entrepreneurs are operating in the United States. Compare this to the fact that up to 24 percent of startups fail due to cash flow problems, the need to be on top of the numbers becomes obvious. Staying on top of any money flowing in and out of the business is particularly essential early in the startup process.
3) Paying It Forward Matters
Recently in my newsletter I discussed an encounter I had with a well-known angel investor running a sizable investment syndicate. I went to him for some advice on building out my own non-competing syndicate. He offered to help, but at a cost. While this is understandable, at the epicenter of entrepreneurship is the drive to solve problems, help people and offer new solutions- and this should include your fellow entrepreneurs. This doesn’t only promote a feeling of goodwill internally, but also helps strengthen connections and could lead to the return of good will in the future. Our communal knowledge as entrepreneurs is invaluable to other potential entrepreneurs, so pay it forward.
As the old adage goes, today you, tomorrow me.
4) Launching Before You Think You’re Ready Matters
Out of all the advice given by other entrepreneurs, there is one singular word that describes launching a new business accurately: jump! Many entrepreneurs put their plans on hold, waiting for some feeling of “readiness” or some sign that it’s the right time to commit to the business idea. The trouble is, very few people ever experience this feeling. While it’s good to put serious consideration into your business idea and test the waters, at some point, you will need to draw the line. After all, the longer you take to go to market, the greater the chance of being beaten by a competitor offering their own solution to the same market. The best way to learn about consumers, the competition the market and more is to launch your startup before you feel ready.
Entrepreneurship is made up of many things, but more than ever these four principles are important for new entrepreneurs to know and to pass on to their peers. The knowledge entrepreneurs gain in the beginning of the startup process often has a determining effect on their actions and performance later in the future of the business.
So jump in, but be prepared to dive into the details and keep swimming for a long time!
And, from one entrepreneur to another, I invite you to visit https://www.kirillbensonoff.com/ and sign up for occasional updates when I share content on lessons learned, perspective on trends and my latest news.