Starting up a new business is exciting for everyone, but it’s more challenging as you step forward to build your dream. Even seasoned entrepreneurs who have built successful ventures in the past, at times find themselves in trouble while working on a new business model. So, don’t worry if you are a first time entrepreneurs and you see a lot of challenges around.
This article will list and discuss the five most important areas of a startup that every first time entrepreneur should know about.
1- Have big dreams, but take small steps
When you are in the beginning steps of building your own startup, you dream of reaching millions of people with your incredible idea. It keeps you up at night, imagining the adulation, respect, and of course mounds of money that will be heaped on you. You can even dream that people will call you the next Mark Zuckerberg.
You have to have the big dream to take the leap into the unknown water of building your own startup, but you don’t have to gulp the whole ocean down at once to get there. Do your research and take small, manageable steps toward that lofty dream. Each day, find one thing that will drive you closer to your goal and do it. Don’t let anyone dissuade you and be flexible enough to change course if you need to.
2- Find support
Having a mentor or advisor on your journey is invaluable to the success of your startup. Once more, research those who have come before you with similar ideas. If they’re accessible, connect with them and ask for their advice or to create a formal mentoring relationship. Their experience in the real world of startups will help you determine any stumbling blocks and overcome them quickly.
Mentors or advisors will also help you stay focused on what’s important. They’ve been down the path you’re on so they know how easy it is to get distracted and lose your focus. They can be a valuable asset to help you keep moving forward.
3- Know the difference between raising and bootstrapping money
It’s important to know the difference between raising money from others through business loans, gifts, or angel investors and bootstrapping. Bootstrapping is a term used for someone who wants to take on all the financial investment by themselves and fund the startup through their own monies or personal family loans.
One way allows you to own all of your company and the other gives a portion of your company’s money to another business or individual. Either way is a risk and it’s best to know which route is best for your startup before you get there.
It’s also important to consider any past debt you might have because it can affect your ability to start a business significantly. If you’re one of the many people who still carry their student debt, you might be eligible for some write-offs, so explore all options and make sure you’re in the best position possible before starting.
4- Prepare to be unprepared
There are going to be things you try and methods you adopt that aren’t going to work out. You’ll be constantly changing course as your business grows and normal events happen. Employees quit, your computer crashes with all your data on it, you lose that big contract you spent weeks preparing and working on.
Things happen that you can’t prepare for, so be prepared to be caught off guard at times. Be flexible with how you approach problems and issues so you can leverage your experience and knowledge to overcome those obstacles that will naturally raise their ugly head.
5- Know how to manage your money
This step is vital to building your startup successfully. Not knowing how to manage your money can bring financial ruin to you and your incredible idea. You don’t want to see everything you’ve worked for dribble down the drain because you didn’t understand how to manage a startup’s finances. If you do end up in hot water, you can consider a debt relief order or other debt consolidation to help you if you’re already on that edge.
There may be many ways to build a startup, depending upon your business idea, target market, industry trends and other factors that contribute to the success of a startup. However, these five points must be followed in order to put you well on your way to having a successful startup that thrives for years to come.