Every new entrepreneur needs advice and guidance to make it in today’s highly competitive business landscape. When new entrepreneurs take the time to properly research their line of business and to prepare themselves for the realities of owning a new company, they will find that they are more likely to succeed. Experienced entrepreneur Jesse Erdle, the CEO of Dead Ringer, offers these 6 tips for new business owners.
Don’t Quit Your Day Job Too Quickly
The opening years of building a business are full of research and legwork. This time is necessary, and you should stay in your previous job as long as possible. When you go out on your own as an entrepreneur, you might experience tough times and a serious lack of cash flow. Staying in your job will help you pay for the necessities of life like food, rent or mortgage, vehicle payments, and health insurance. As your business gathers steam and can support you, consider quitting your day job.
Not everyone has the correct temperament to be a successful entrepreneur. While you may think that working on your own will exempt you from dealing with others, being your own boss involves a great deal of interpersonal skill. If you aren’t naturally outgoing, you will need to put a good face on. You will need to deal with suppliers, customers, potential investors, and other important people. Getting out of your comfort zone will help your business thrive.
Be Passionate, But Rational
When you are starting your new business, it is important to be passionate about your idea. However, it is a bad idea to let this overwhelming feeling color your business decisions. You will need to have a rational attitude about spending money, hiring, and other major issues that arise in the early months of your company. Being blinded by your passion may cause you to damage your chances of success. Always listen to friends or colleagues who tell you that you need to slow down.
Be Careful with Legal Requirements
Many new entrepreneurs have no trouble researching their new line of business, but they may neglect the rules and regulations that come along with starting a new company. Be aware of all of the legal requirements that you will need to meet. Taxes, insurance, business registration, and licensing are only a few examples.
Hire with Care
When you are staffing your new business, friends and family members may expect to be automatically offered a job. This is unrealistic for many reasons. Shy away from hiring friends and family members unless they truly have skills that will benefit your business.
For example, if your sister is an experienced bookkeeper with a great understanding of business tax requirements, she may be an ideal hire. If your brother’s distinguishing feature is that he avoids doing work as much as possible, avoid hiring him. You may hurt people’s feelings, but you will be preserving your business’s chances at survival.
Conduct Yourself Professionally
While it may feel liberating to be out from under the thumb of your previous company, you can’t let yourself relax completely. You need to behave professionally to be taken seriously. Everything about your company needs to have a level of polish that boosts confidence in your customers. Be sure that you treat people in a professional manner as well. Nothing destroys a business’s future prospects faster than being thought of as untrustworthy.
Ensuring Your Success
While it is true that up to half of all new businesses fail in the first five years, you can boost your company’s chances of survival by taking these 6 tips under consideration.
Established entrepreneurs like Jesse Erdle encourage everyone who is interested in opening a new business to start slowly and stay in their day jobs as long as possible. When cash flow has become positive, you can transition toward making your new business your full-time job.