Being a first-time entrepreneur can be challenging and nerve-wracking but also very exciting and rewarding. There is no end to the many financial, legal, staffing, marketing, and customer issues that will come up as you launch your business. And, unfortunately, there is a lot of conflicting advice out there for the aspiring entrepreneur. But here are 15 core tips to help you begin navigating the startup landscape:
1. Start a Business You Are Passionate and Knowledgeable About
Startups can be quite a grind, so pick something that excites and motivates you. Avoid businesses or industries that you don’t already know a good deal about, as the steep learning curve may hamper your success.
2. Pick a Business Idea That Has a Big Market Opportunity
Make sure to carefully reseach if there’s a big market for your product or service. Investors will typically only invest in your company if they see a large market opportunity and that the company has the potential to grow into something significant.
3. Raise As Much Startup Funding As You Can
It’s almost always harder and takes longer to raise startup financing than you think. You must ensure you have a cushion for all the product development and marketing expenses you will incur. In an ideal world, you will have sufficient capital for your operations to break even. Don’t worry about diluting your percentage ownership in the company. Developing a great product takes time and money.
4. Constantly Monitor Your Finances
You must keep on top of all of your expenses, income and balance sheet. Many startups have failed because the entrepreneur wasn’t able to adjust spending to avoid running out of cash. Maintain a low overhead. Be frugal with expenses and avoid unnecessary costs. Learn to live on a shoestring budget until meaningful revenues start to flow in.
5. Research the Competition
Make sure you are thoroughly researching competitive products or services in the marketplace, and keep on top of new developments and enhancements from your competitors. One way to do this is to set up a Google alert to notify you when any new information about your competitors shows up online.
Read the rest of the story at allbusiness.com. Copyright © by Richard Harroch. All Rights Reserved.