30 Golden Rules For Start Up Entrepreneurs
Starting a new business is both a tedious and challenging task. Each entrepreneur faces a myriad of obstacles before venturing into a new avenue.
Make sure that you undertake a SWOT analysis before starting up your business. Realizing and working on potential mistakes and threats can help your business achieve success and avoid failures.
We bring to you a list of the most important rules to be followed by start-up entrepreneurs that can avoid potential losses:
1. Do Not Borrow Hefty
Borrowing too much in the start can be threat to the business. Borrowing money at the right stage is important.
Always start up a company with a goal. Be clear about the long-term goals and short-term milestones that you want to set for your organization.
3. Hoarding Stake
Hoarding equity ownership can be a great risk to the business. With increase in equity, the number of shareholders in a venture increases. This affects the decision making power of the entrepreneur at the end.
4. Never Underestimate Existing Competition
Never underestimate the existing competition. Study and evaluate the strengths and weakness of your competitors.
5. Right Decision
Never start your business without a clear purpose. Knowing your goals can help you make the right decisions.
6. Have The Ability to Pivot
The best example can be Nokia, which at one time was a paper mill and now is one of the largest brands in the telecommunication sector.
7. Do Not Over Depend On an Outside Influence
Sean Parker, who is Mark Zuckerberg's friend, suggested him to change the name of The Facebook to Facebook, and Mark followed it. The plan worked, but this need not be appropriate always. Too much of outside influence can be a real threat to the business.
8. Balance Working on Your Business Plan
Most of the entrepreneurs sit back and analyse to check the viability of their plans every day. See what pattern of planning suits your business the best.
9. Have a Concrete business plan
Carve out a draft plan that makes you understand where the business is heading.
10. Keep Updating
You have your draft plan up and running. That’s not enough. Continue updating the plan to keep it current with your business.
11. Do not confuse Profits with Cash in Hand
Cash in hand is more important than profitability because the business needs to incur different expenses with cash and not with profits. No one pays bills with profits.
12. Identify your USP (Unique Selling Point)
Always find a niche, stand out from the competitors. This competitive edge helps your business harness strength; a niche can help you attract more customers and business investors.
13. Never Overvalue your Business Idea
Always understand that the business is not valued by the idea, but by its functioning.
14. Never Confuse Plan with Planning
That’s right. You need both the things to succeed. Value the plan and work on implementing it. Do not just write it, follow it.
15. Never Reveal All the Details First Year
Make sure that you do not announce any financial responsibilities and deadlines in the first year itself.
16. Believe in the Impossible
Starting up a company is going to be a tedious task and most of the people will make you believe that it is impossible. However, always remember that impossible, says I am possible. Never let go of the dream just because someone says you cannot achieve it.
17. Have a Strong Understanding
Working in agreement with your cofounders is an important thing. It is like getting married. Understanding and compromising are two important traits that can help your business run smoothly.
18. Do not Dilute Priorities
Prepare a list of all the important priorities that have a significant bearing on your business.
19. Do Not Plan Finances for Coming Years
The business environment is full of uncertainty and risks. Never plan your sales projections and finances for the next thirty years. Understand that business environment does not stay the same.
20. Have a KISS Plan
Keep the plan short and simple. Do not have a flashy and unrealistic plan with ambitions that cannot be reached.
21. Do Not Succumb to the Guilt
Understand that business venture is just a company. Though it is your own baby, understand the pros and cons of keeping it and letting go. Guilt is pointless.
22. Hiring Right People
A start-up needs the right staff and people to work and succeed. Ensure that you hire people with the right skill that match the job requirements.
23. Do Not Spend Too Much Time on Product Development
It is important to have a great product, but if the company loses all the time improving a product, then forget making money. Entrepreneurs who spend too much time working on the product may lose their customers to a competitor.
24. Do Not Overspend on Advertising
Advertising is a great thing to attract customers, but never overspend. You can attract your customers for a short time, but making them stay for the long run depends on the service and product your organization offers.
25. Calculate the Start-up Cost
Most of the organizations do not understand that a start-up requires a large number of resources. Calculate what is required by you to run the venture smoothly, analyzing the cost of resources.
26. Never Target Wrong Segment
Be clear on the segment you want to target. Target the right set of people to yield profits.
27. Always Have Channels of Distribution
Never enter new markets without channels of distribution, like retailers, wholesalers and agents. The already existing network gives you a chance to push your product towards the customer.
28. Right Location Matters
Choosing the right location can do wonders to how the business runs and operates. Undertake Geo-positioning and segmentation to understand where your customers lie.
29. Launch at Correct Time
Understand that launching at the incorrect time can harm your business. Evaluate the timing when customers precisely need the product or service you are selling.
30. Do Not Forget To Enjoy Your Dream
If you are not having fun while running your venture, there is no point. Understand that you have put in all the hard work and effort to realize the dream and this is the time to enjoy.
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