Entrepreneurship is a journey full of twists and turns, but once you start enjoying it, everything seems so much easier, more manageable. So, before you go down that road, what should you know?
We prepared a list of the 5 things you should know before taking off:
1. Time
The first thing you need to invest in your business is time. Time to plan, to research, to understand the market. Let’s just call it investment time, that kind of time to make sure your business does pay off.
It takes time to build a successful company, thus we advise you to start your journey by writing down your itinerary, also known as your business plan. Then focus on developing strategies for startups growth for a certain length of time. The first years of your company are the most critical. Following that, assess your finances, pick your team and choose the best tools and systems in marketing to help you get your sales off the ground.
2. Resources
To make a long story short, we can just condense the start of your journey to two key components: money and people. Are you a budget traveler?
Money – If you’ve reached the point of opening your own company, we are sure you’ve saved up quite a nest egg. If not, you should know that it is possible to start a business with very little money if you have the right combination of skills, business model and marketing know-how. There are many options to raise capital. You can join a startup incubator or accelerator or find a crowdfunding platform or possibly consider venture capital companies. Another option will be to access non-reimbursable funds or seek a bank loan. Or if you are into angels, seek out a business angel.
People – A journey is more fun when you have the right people next to you. Choose the right team to ensure the success of your business. Human resources will be your business’s driving force. Before starting recruiting, you should make a specific list of skills and qualities that are critical to the success of your business idea.
3. Market analysis
Check the market essentials such as competition, demand, target customers, value and volume.
The focus of business has transformed from specific requirements to a strategic view of the business plan and the marketplace. Understanding critical trends in the market will be crucial to keeping up with an ever-changing business environment. The length of time needed for each phase of opening a business are decreasing rapidly through technological improvements, and what once took years or months can now be done in days or weeks. The new business model will use technology-enabled systems that are driven by flexible business rules; rules that encourage entrepreneurs to be innovative and use good business judgment to distinguish their company from its competition.
4. Unplanned changes
“There is nothing wrong with change…if it is in the right direction.” —Winston Churchill
Take you time to reflect on that, but in the meantime, upgrade your game. By that we mean adapting your services or products to reflect the changes arising from business circumstances or market conditions. A successful entrepreneur must have strong ability to adjust to unplanned changes in their industry. Always keep an eye out for changes to the business environment because you will be able to predict and prepare for the future while focusing on the present.
5. Return on investment formula
One approach to evaluating an investment’s ability to generate value to the company is to calculate its return on investment. The return on investment equals the total benefits minus the total costs, divided by the total costs over a defined period of time, usually the life of the investment. We encourage you to develop your own formula to accurately calculate or predict the return on investment of your business.
Now, remember, just because you are taking your ideas and turning them into reality doesn’t mean you need to figure everything out on your own. You can always ask for advice from people with the right expertise. Please check out our range of services fit for your idea to make your job easier. From start-up to scale up your business, Adeco – Advisory Development & Consultancy Services is the right choice for you.