So, you’ve finally saved enough to enter the hustle of running your own business. You’re confident in your skills and funding to bring your ideas to life. However, uncertainty about the market can be daunting. It’s crucial to arm yourself with knowledge, research, and understanding to mitigate risks and self-doubt. Here are 10 things you must know before starting a business.
Know your entity: What should you append to your business name—sole proprietorship, partnership, LLP, private limited, or one-person company? Each has its own set of rules and regulations. Choosing the right one is critical for managing your company’s ecosystem. Consulting a lawyer is recommended to ensure smooth operations and management of assets and liabilities.
Know your target audience: Understanding demographics like age, class, culture, and geography isn’t enough. You must also know their preferences, hobbies, daily challenges, purchase behaviours, and value systems. Define your buyer’s persona early to generate leads effectively. Distinguish between your primary and secondary audiences. For instance, if you sell a hair loss serum, your primary audience is those suffering from hair loss, while your secondary audience could include their friends or family. Aim over 75% of your marketing efforts at your primary audience to maximise returns.
Your employees are your biggest asset: Treat your employees with respect and value their ideas. Foster a work culture that’s safe, secure, and rewarding. A business thrives when its employees are motivated and valued. Correct mistakes privately and appreciate them publicly to avoid talent loss. Implement an employee grievance redressal system, and work to ensure it’s rarely needed.
Get rid of the “I know everything” attitude: Never underestimate creativity, no matter the source. Be open to feedback from anyone. Learning is a continuous process, and seeking knowledge from your mistakes and others is invaluable. There’s no age limit to learning.
Networking and collaboration: Partnerships and collaborations are essential for scaling and growing your business. They offer mentorship and support, keeping you from feeling isolated. Maintain connections with service providers, distributors, and suppliers—fostering relationships can yield long-term benefits.
Make sure you are adding value: Money follows when you add value to your customers’ lives. Focus on improving their experience, and they will become loyal. Customers who find value in your product or service will recommend it, enhancing your reputation and growth.
Don’t underestimate your competitors: Always be aware of your competitors. Research their strategies and learn from their successes and mistakes. This awareness gives you an edge and helps you create effective market strategies. Understanding their journey allows you to set realistic goals.
Balance between open-door policy and delegation: Being available for your team ensures quicker decisions, but over-involvement can hinder your focus on critical tasks. Find a balance between accessibility and delegation to avoid micromanagement. Train your team well, trust them, and step back when necessary.
Master conversion and sales funnels: Conversion is key to business success. When a lead shows interest, have a solid action plan to guide them toward a purchase. Consult experts to optimise your approach to sales funnels. Business coaches and mentors can provide valuable insights to overcome obstacles.
Be prepared: Business can be stressful and emotionally taxing. Cultivate resilience and patience to handle setbacks. Emotional intelligence is just as crucial as technical skills in managing a team and making sound decisions under pressure.
In a nutshell
Running your own business is daunting and unpredictable. Surround yourself with the right support, and be prepared to handle both the highs and lows. A strong network of experts and colleagues can make the journey less lonely.