The Five Things New Entrepreneurs Need To Know11 December, 2017 / Articles
More often than not, it’s neither the brilliant idea nor the perfect scenario for funding to be the force that turns you into a new entrepreneur. Rather, it’s that bittersweet moment or crossroads where you cannot fathom another day as an employee.
So, you’re at the point where self-employment seems your only option. Congratulations, you are now an entrepreneur.
Here are the top five things you should know for success and survival:
- Doing business is a creative process that will consume your thoughts constantly. Be positive, keep it exciting and have some fun. But, know that most of what you try may not help the business grow. This is not a failure but rather another step in moving toward success.
- Stay connected to your community and help however you can. Create or join a nonprofit or volunteer your time in any capacity. This will help you with your business vision and allow your clients and customers to get to know you. If you let it, the self-employed process can give you tunnel vision; to avoid this, stay connected.
- Capitalize on what works, minimize what clearly does not and hire a consultant if you cannot tell the difference between the two. Hiring the experts, especially the sophisticated ones, can be intimidating but possible if you use the 90-day rule.
If the consultant’s efforts are successful, it will be apparent almost immediately and cover its costs after 90 days of working with them — or it never will. Give no latitude on this 90-day budget rule, and never sign a contract to the contrary. Fire them as soon as it is apparent that they are ineffective and no later than your 90-day deadline. Either the increased cash flow that stems from their efforts will continue to pay them or it’s time for them to be gone — move on to the next one.
- You will need continuous, reasonable financing. Make sure your budgeted cost of living is in line with your new venture’s cash flow projections. Do not take an aggressive tax position so you can use the unpaid tax dollars for cash flow. This type of short-term thinking about taxes not only puts the business at risk of a catastrophic tax audit, but it renders the tax returns useless for your bank’s underwriter to properly understand your business financing needs.
- Find a Certified Public Accountant (CPA) who has a long history of working in your industry. This is not for tax planning purposes primarily: your compliance retainer with them will serve as an endless source of past experiences you can capitalize on. They should be familiar with your business’ stage of growth and add value to its progression.
There is an invisible bridge that leads to the success and sustainability of your business. Through persistence and hard work, this bridge reveals itself over time. Be patient, do not take shortcuts, and know that it is there. It just takes a while for the world to see where you’re going with your new venture and for the gutless naysayers to get on board with helping you to further succeed.