Part of starting your own business is the freedom; the ability to make your own decisions, and therefore learn from your own mistakes. As important as it is to be able to get back up after a blow, it is good to try and avoid negative experiences as much as possible in order to prevent demoralisation early. We have gathered five important tips that everyone should know when they decide to go it on their own.
1. Reverse Niche
One common mistake with new Startups is the tendency to aim the product or service to one demographic. It is much more effective to market to everybody at first, as you may find customers where you didn’t originally expect. Once you know who is interested in your product, you can become more specific and concise with your marketing approach. This way you won’t miss out on any potential customers.
2. Stay Lean
Invest all of your profits in your company at first, until you are comfortable and profitable enough to take a salary. Set up your accounting properly and take any leftover money and invest it in marketing. The more you re-invest profits in your company the better.
3. Focus on Profit
Many people have an idea for a startup but don’t think about where the profits are going to be made at first and how much is going to come in. If your profit margin projections are not good at first you really need to start thinking about how to increase them, or maybe the idea, although exciting, isn’t worth investing time and money in. Often hiring someone and paying them a salary can make it very difficult at first to generate any profit. It may be worth thinking about a co-founder if you are not able to take on the workload alone.
4. Be Prepared to Give Up Your Social Life
In order to build a business that will give you freedom later in life, you need to be prepared to give up your freedom for at least a few years of your life. You may need to keep another job for a while before you can take a salary from your own business. This means that your social time will be consumed by your business. It is a big blow to take personally but if you are fully committed to your startup it will have a much greater chance of succeeding in the long term, and ten years down the line when you can take as much time as you wish, you won’t regret it.
5. Marketing is Key
If nobody knows about your product or services it could be the best thing in the world but it won’t sell. Marketing is so important that you should always have at least one person working on it at all times. It is an ongoing process, and you should always be pushing to increase marketing as much as possible. The more people know about you, the more money you will make.