Starting a business? Are you realising a dream or avoiding a nightmare?
If you are considering starting a business and are serious about it, there is no time like the present. But before you prepare your pitch or your concession speech for when it inevitably doesn't work out, let's take a closer look at the many hidden costs that come with venturing into entrepreneurship.
In this article, we've compiled all of them from a list of 100, so if nothing else, know that you're not alone in thinking that it might not be worth it.
We also want to highlight some of the common misconceptions that people have about entrepreneurship, so you can hopefully get a better idea of what it really entails.
But before we go any further, let's make two points abundantly clear: a) no one is ever happy working for someone else and b) always try to be honest with yourself about whether or not you are cut out for the role of entrepreneur.
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1. Selling yourself
We'll start off with a relatively obvious one. Until you've made it, you're always going to be selling yourself. This is why it's so important to know exactly what your brand stands for before you begin any endeavour as an entrepreneur.
In order to ensure that your customers get the full value out of your product or services, you have to first make sure that you believe in what you're selling. If not, how can others?
There are many ways of selling yourself; from using social media and networking websites to writing a blog about what inspires you and what makes your business different from the rest of the competition. We'll cover more on this later.
But the most important thing is to simply come off as genuine and honest. This can be hard in today's world when people buy into everything you say through a quick Google search. But you have to remember that there are more people out there who trust their gut instinct than the first result that Google throws at them.
2. Keeping track of everything
When you're first setting up your business, it's a good idea to create a spreadsheet of all aspects of operations such as finances, borrowers, clients/customers, suppliers and employees so you don't lose your head if things go wrong during the early phases of your business.
This spreadsheet will serve as a reminder of how much things might cost you as well as where you are at in terms of achieving your business goals. Make sure you keep track of future goals and look back at things you've achieved in the past to motivate yourself when things get tough.
3. Surrounding yourself with the right people
Being an entrepreneur is a lonely task, especially if no one knows what you're up to. The last thing you need when things get tough is to be alone. There's nothing more disheartening than someone looking over your shoulder telling you that what you're doing is stupid, not feasible or just plain wrong.
The right people, on the other hand, will encourage you more than anything. And you don't have to hire someone to do this. Your friends and family are probably the best motivators out there. You need someone who will be honest with you when things aren't going your way but who also backs you up when people tell you that what you're doing is wrong or stupid.
4. Setting up shop
The first thing that people think about when starting a business is putting together all of the financial elements such as finding funding for a lease or buying equipment for your office or workshop.
But before you even think about that, you need a place to work from. This means finding a co-working space, renting an office and getting yourself suited up for the job. Choose somewhere that is central as well as somewhere with easy parking, wifi and decent coffee shops nearby.
5. Pitching your idea
The next step on the list is to sell yourself and your idea to investors. But before you do this, make sure that you have already done your research on what they're looking for in an investment opportunity and what kind of businesses they are interested in funding or backing. This way you can tailor your pitch accordingly so it highlights all of the positives of your business idea.
6. Learning how to sell
Even if you've already established yourself as a business owner, the art of selling is never over. You need to always be thinking about what you can do to make your customer's lives easier and your business better.
Ask yourself questions like: How can I make my product or service more affordable? How can I build a closer relationship between myself and my customer so that they won't go anywhere else for this specific thing? What kind of service can we provide that no one else can? These are the kinds of questions that will make you stand out among the competition.
7. Building a successful network
One of the most important ways to sustain your business is in networking. While your customers will be the ones that will buy from you, it's other people that will help you know where the next business opportunity is or what kind of products and services are going to hit their market.
This means begging, borrowing or stealing from anyone who could help you out to get more customers or expand your products and services. Be open-minded about asking for help when you need it because no one is always going to be able to give it to you straight away. Instead, they'll tell you where you can find these people in order for them to take time out from their busy schedules.
8. Understanding the business landscape
This is going to be more relevant for those who are running their own businesses. But studying the industry that your business falls into will help you strategize for the future. This means taking on board things like cultural trends as well as other competitor businesses that are out there.
There's nothing worse than being stuck in your comfort zone and not taking on board new developments, especially if you're behind in a race to the top of your industry. Take the time to do some independent research so you can understand where the business world is headed and what you can do to stay ahead of things.
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Conclusion
These are my top 10 tips on how to become an entrepreneur. If you think one of them may be of use to you, please share this post with your friends so they can learn from your experiences.
Best of luck!
About the author:
Wayne Thieke is the founder of The Biz Coach, where he helps people start and grow their own businesses. He has helped businesses develop in a wide range of industries, especially those that do well in online business including property, real estate and multi-level marketing. Wayne has worked as a personal trainer and as an accountant in the past.