So you want to be an entrepreneur? Good for you! Setting up your own business can be incredibly rewarding, both financially and emotionally. You get to be your own boss, work on your own schedule, and could potentially make a lot of money. Your success won’t happen overnight. Rather, running your own business will take a lot of work, especially if you want to be massively successful, and it isn’t for the fainthearted.
If you are considering becoming an entrepreneur, there are a few things you absolutely need to know before starting a business. Hopefully have an idea of what you are creating your business around, but have you ever considered these options?
High Failure Rate
New businesses have a high failure rate. Some argue that it is as high as 90 percent, but it’s hard to tell what the exact failure rate is when you account for different industries, products, and time etc.
We don’t tell you this to be discouraged, but rather to make you aware. While the new business failure rate is high, you need to know that it isn’t predictive. Just because 90 percent of business fail within 10 years doesn’t mean that you will. In fact, it could mean just the opposite. If you are determined to succeed, work incredibly hard, and never give up, your business has a much better chance of enduring.
Your business doesn’t have to be a statistic. Just be aware of it and do everything you can to prevent your business from failing.
You Won’t Know Everything
Too many people wait until they know ‘everything’ before starting a business. Guess what? That won’t happen. You won’t know everything before you start and while you should learn as much as you can, there are some things that you just can’t prepare for. For example, you can’t know how to manage employees or payroll until you actually do it. Most of your training will come “on the job.” You’ll learn as you go.
Separate Yourself From Your Business
This useful tip is something you absolutely need to know before starting your business. As the business owner, you have to separate yourself from your business. Sure, you’re the boss but think of yourself as one of the business’s employees. Keep your business finances separate from your personal finances or you’ll lose money, instead of making it.
This is especially important in the event that your business does fail or faces legal issues. If you haven’t separated your personal finances from your business finances, you could lose both your business and your home.
Find A Mentor
If you want to be a successful entrepreneur, then you need to find a mentor to help guide you. Choose someone who is already successful and can help you find success for yourself. Your mentor doesn’t have to be someone from your industry. In fact, it’s almost better if they aren’t because they can give you outside advice on how to improve your business. The most important thing to remember though is that you choose a mentor who won’t be afraid to give you honest criticism and help you work on improving your business.
Obey Local Laws
Understanding your area’s local laws is something you have to know before starting a business. Every country, state, county, and city has certain laws and regulations about starting a business. If you want to have any chance at all of success, you have to know what those laws are. Learn what you need to do to set your business up legally. Otherwise, your business will fail purely because of negligence.
Entrepreneurship Is Hard, but Worth It
Becoming an entrepreneur and running your own business has a lot of perks. While it may take a lot of work, it is worth the attempt. Before you start, make sure you know these 5 things and your chances of succeeding will improve immensely. What are you waiting for? Go start building your dream business now.