As a novice entrepreneur you will face many problems: legal, financial, marketing; problems related to product development, intellectual property, human resources - the list is endless.
In this article we will share with you 16 of the most important lessons that every young entrepreneur should know.
1. Invent a name for your business
Choosing the right name for your startup is very important for its success. Here are some tips you can follow:
• Avoid difficult-to-write names.
• Don't choose a name that could put restrictions on your business if it grows.
• Search the Internet to see if the name is already being used by other businesses.
• Check that the name is not a trademark.
• Make sure you and your employees are happy to say the name of your business.
• Make a list of at least 5 name suggestions and test them.
2. Understand that fundraising is a difficult task
Raising funds to start your business takes time and effort. It is not easy to convince investors that your idea is worth it.
3. Focus on creating a great product, but don't spend an eternity making it
Your product must be good and in some way different from the competition. Listen to your customer feedback and take steps to improve it.
4. Learn to sell
If you want your startup to be successful, you need to learn how to sell. As an entrepreneur, you will need to sell your business not only to customers, but also to potential investors and even potential employees.
Therefore: practice, prepare a commercial message, collect feedback, be sociable, be confident, be positive, listen carefully. Use online courses to learn the most important things, how to sell , what are the main stages of sales, how to create a brilliant team , how to motivate your people , how to lead them as a true leader .
5. Make a website - for example, see what we will offer you
Every entrepreneur must spend time and effort to create a company website . Investors, clients and partners will certainly look for information about your business on the Internet and it is good to impress them with a professionally designed website. Here are some tips you can follow:
• Browse the competition sites.
• Start by sketching the site.
• Find 5-6 sites that you like and show them to the people who will create your site.
• Make sure the site is search engine optimized. Contact a company for copywriting services to prepare appropriate texts for the site.
• Make sure your site is displayed on mobile devices.
• Make sure your site loads quickly.
• Your site should offer an excellent user experience.
• Your site should be clean and easy to navigate.
• Select the appropriate domain.
6. Commercial message
Your business message should be short and clear. You can change it depending on whether you are talking to an investor, client, employee or partner.
• Start confidently. Create a brilliant presentation. You can contact us .
• Be enthusiastic and positive.
• Present your idea within 60 seconds.
• Avoid using professional jargon.
• Say what makes your business unique.
• Tell what problems your business solves.
7. Business plan
The business plan is a very important document, because it is through it that you will try to convince investors to invest in your company. On the Internet you can find detailed information about the sections and the information you need to include. Some of the main elements are:
• The problem you are solving.
• Experience of the manager / managers and managers.
• Description of the product.
• The market opportunity you see.
• The technologies and innovations you will use.
• Competition analysis.
8. Financial literacy
You need to fit into the budget you have. To do this, you need to understand what is written in the financial documents. Many startups fail, precisely because the entrepreneur has failed to meet costs and has exceeded the budget. Therefore, you need to make a detailed monthly budget at the beginning, which you should review regularly.
In addition, the better your financial literacy, the better you will answer the questions of potential investors.
Here are some questions to look forward to:
• How much do you think you will earn in the first 3 years?
• On what grounds do you think this will happen?
• Do you have loans?
• When do you think the company will kill the initial investment?
• What are the factors that you think can affect the growth of the company?
9. Keep your investors informed, whether the news is good or bad
It is good for entrepreneurs to inform investors once a month about what is happening with their business. The reports do not have to be very detailed, but you can include the following information:
• Summary of the company's development.
• Summary of product development.
• News about the team and new employees.
• PR activities.
• Basic metrics you pay attention to.
• Financial report.
• Strategic issues you have encountered.
10. Advertise yourself
To succeed as an entrepreneur, you must constantly attract and build new contacts with your target audience. What to include in your marketing strategy ?
• Learn the basics of SEO optimization so people who search for your products can find you.
• Use social networks.
• Write useful articles.
• Use press releases.
• Build a network of contacts.
11. Use consultants or freelancers
In the beginning, you will be able to afford a small team to come together on a budget. A good way to fill in the missing skills is to use consultants or freelancers.
12. Agree with your partners at the beginning
If you are starting a business with a partner, you need to settle your future relationship from the beginning. Failure to do so can lead to major problems in the future. Discuss the following issues:
• What percentage of the company will own?
• What will be the responsibilities of the partners?
• If one of the partners leaves, can the other redeem his share? At what cost?
• How much time should each partner spend on the business?
• What salaries will the partners have?
• Under what circumstances can one of the partners be fired?
• How will the sale of the business be decided (if such a situation arises)?
13. Find a suitable lawyer
To save money, novice entrepreneurs often hire a friend or relative as a lawyer who, however, does not have the necessary experience. But keep in mind that to avoid serious problems with the law, you need to have the right lawyer on your side.
14. Consider taxes
When starting your own business, you need to consider the taxes you will have to pay. A good accountant will help you if you have not dealt with these things before.
15. Choose the right employees
Before hiring an employee, do the following:
• Your employees must have relevant work experience for the position they will hold.
• Do not interview the candidate yourself. Ask your colleagues to talk to him to make sure he fits into the team. You can take the Interview Skills course to be prepared for the interview.
• Check the references and diplomas provided by the applicant.
16. Expect great challenges and be prepared for them
Some of the challenges that entrepreneurs often face are:
• How to come up with a great product or service?
• How to develop a plan and vision for your business?
• How to find the necessary finances?
• How to find the right employees?
• How to fire inappropriate employees?
• How can you not be discouraged if you receive a negative response from a customer?
• How to build a good balance between your personal and professional life?
• How to maintain the right level of energy and enthusiasm, even in difficult times?
Use the experience and wisdom gathered in the trainings from the business academy , where you will be able to quickly acquire the basic skills that will help you on the path to success.