In today’s article, we have gathered valuable advice and serious mistakes of the new entrepreneurs. These tips are for those who are perfect in their work, but still work for the salary. For those who do not have a million starting capital, but have a business that they truly love.
So, what mistakes they usually make?
1. Doing not what you love
It often happens that a family has its own grocery store (pharmacy, studio, bakery). Father and mother work there and sometimes – son.
Father loves the store. He knows all the suppliers and makes them work well. He is the soul of the business, the owner in the best sense of the word.
But the shop is not interesting for the son. He does not want to work there. This provokes scandals.
But in fact, the guy is right: if you run a business, let it be one that you love. Because only love gives strength to cope with difficulties.
2. Not being an expert in the field
A lot of people turn their hobbies into a business.
Two girls loved sewing and surfing and began to make fashion swimwear. They sew it in Asia and sell around the world, living in the places where it is the surf season.
A guy loved to cook and opened a cafe-sandwich shop in a trailer near the business center. Now he is buying the third trailer.
A man worked in a bank, but after 7 years realized that creative work with wood brings him much more fun. He started to design hand-made furniture, opened kitchen shop and design studio.
All of them have been successful due to the fact that they perfectly understand the business and are better, faster, more interesting than the others.
There is an inverse situation: when a person creates a business in the field which he doesn’t know. This model is also working, but then he immediately hires business experts. It’s a great plan when there is a starting capital. But rather unrealistic if you are currently working in the company for a salary.
3. Stuck on fundraising
People often say: “I want to open a cafe, but I can’t get money in the bank. I will continue to work in the sales department”. This is complete nonsense.
First, it’s not a big problem to get money in the bank. Secondly, if you can not start without a lot of money, you’re doing something wrong.
Business start-up capital is not just money. This is time, knowledge and the people with whom you start. And most often the problem is not just in money but in time. People think that they can not leave their work even for two weeks to make something for themselves.
These people live in dreams that once they’ll have the opportunity to accumulate a lot of money, to leave their work and finally open a business of their dream. But there will be no right time for that. There will be new spendings, loans and a lack of free time.
Lack of money is not the reason for delaying your own business. This is an excuse.
4. Going for broke
There is another extreme: a young man takes a million loan, rents an office, buys a gold watch, leather seats, creates a website, hires a secretary and waits. But customers do not come because it’s not clear what he sells and why. And the most piquant fact is that the guy has no more money.
Entrepreneurs sometimes confuse the outward signs of a successful business with its internal causes. If you rent an office with leather seats, you may feel cool, but your business will not. Cool business depends on cool sales, and they can be done in a bathrobe from home.
So, before you spend money on convenience and beauty, make sure that your main product will be sold.
5. Stuck on a business plan
Any business starts with a business plan. It is true. However, a business plan should not be an obstacle to starting the business.
A business plan should contain:
- The clear and simple description of the product.
- Understanding of the problems that the product solves, and the audience it is relevant for.
- Ways to attract customers and a description of the market.
- Basic economics of an enterprise: where the money comes from and how, how much money is spent and on what.
If you understand these four things, you can begin. Do not waste time to clarify points that do not concern you so far. Start as soon as possible. Why? Because the market will adjust your plan. You’ll see what works and brings revenue. Work for a few months and feel the market. Get first profit, and then make further plans.
6. Staying in the same place of work
It’s a banal fantasy: “Now I am starting my own business, but will continue to work in the background.” It won’t work.
If the employer pays you for working hours, he will not allow you to make a parallel operation, even on your own project. And even if you manage to work half-day on your own, it is not enough. Your company will require all the available time and energy and even more. If you are serious in relation to business, you’ll still have to go.
How to leave without burning bridges
There is nothing wrong with leaving the workplace if you do not behave like a coward or a traitor. Honestly and openly tell your supervisor that you want to organize your own business. Do not hide it, there is nothing to be ashamed of.
If a new business is related to what you do at work, offer the employer to become your first client. Another thing is if you create a business competitor. It is unpleasant for the employer, but not fatal. Perhaps your employer will ask not to take away customers and the team. Or he’ll offer to organize your business on the base of his company. This can be a good start.
Finally, the manager may consider your decision foolishness and will laugh in your face. It’s even better. You’ll leave without complaints.
7. Stuck on the legal entities
It is not as difficult to open IE or LLC as it seems to be. But it’s not a problem if you still do not want to do it. You’ll organize everything later if necessary.
You will see that the absence of your own legal entity leads you to lose money. Then the fears of the tax service will disappear. If not, pay to the auditing company and they will organize everything for you.
If you need it tomorrow, buy a ready-made company (but then do a normal one, and close the ready-made).
After some time you’ll understand all the charm and features of your own legal entity. It is not something to be afraid of in the beginning.