Entrepreneurship can be difficult. You won’t learn this skill if you don’t have a degree from a university or college. Most learning happens on the job.
I had no thought that the journey will be so arduous when I started my first company in 2004. These are few things I wish I’d known when I first started.
#1 Money is essential, but it’s not enough
Although many entrepreneurs raise capital in their early stages, it is often not enough. It will help if you have a great business model that generates consistent cash flow. A team of people is also necessary to implement your systems.
#2 Focus on people, their needs
It’s all about people. You cannot do it all yourself. It’s essential to focus on people. Understand their needs and provide adequate compensation. While they might not stay with your company, you must continue to train them.
#3. The owner of the business is distinct from his employees
It is important to be independent of your business. You should see yourself as an employee or shareholder of your company. I have seen many people struggle with separating their finances from their business.
#4 Choose the right company for you
Sometimes choosing the right company for you can make the difference between success or failure. You may find that market conditions are against you, and it doesn’t matter how hard you try.
In most cases, the profit margin for airlines in many countries is less than 2%. Most airlines, even though run by competent people, don’t make much money.
#5 A solid work-life harmony
A lot of entrepreneurs spend 12-13 hours a day in their business. This is even though they have been doing it for more than ten years. It eventually leads to burnout and unproductive. When you work less, you can find ways of streamlining your operations and getting things done quicker. You can find many apps to help you become more productive.
#6 Start Saving Early
I have never been a great spender. I was a good saver, although I didn’t do it often in my early years. Start saving early so you can invest your money in your business. Savings offer you many options.
#7 Learn how to manage debt better and stay out of debt
Many entrepreneurs take out debt to fund their business ventures. This can be extremely dangerous for first-time entrepreneurs. Starting a business is always risky, especially when the business model has not been tested.
Because most of the debts are personal guarantees, even if the company fails, the business owner must still pay them back.
Many entrepreneurs turn to personal loans and home loans for financing their businesses. The interest rates on these loans are meager. But be cautious and less optimistic. Also, make sure you have a manageable amount of debt.
#8 Find a great mentor
Mentorship is similar to parental guidance. It would help if you had someone to hold your hand and give you advice throughout your journey.
Choose your mentor carefully. You want someone who can trust your ideas and has a track record of business success.