You want to start your own business – great idea. Now, make a plan. What will you sell? How will you sell it, and how much will you need to sell to support yourself and your business.
Once you’ve got a clear vision and plan, then use these tips to lead you toward success.
Offer What People Want to Buy
Interestingly enough, having a unique idea is often harder to make money with than something already necessary for consumers. Such as, if you can come up with a better way to harness the end of a shoelace, then you could make a fortune. Simple ideas can often be great, but creating a market where one does not already exist can be an uphill battle.
Start Cash Flow Without Delay
You may be thinking you need to establish your brand idea and develop leads and contacts before starting to sell anything. That is the wrong approach. Establish income immediately. You can do that by asking for a deposit up front for your work with the balance to be paid on delivery – tie that into the customer receiving a guaranteed delivery date and you add value to them for making a deposit. Alternatively, you can establish monthly membership for items that your customer might want to receive every month. For professional services, get a retainer. Focus on getting good customers who will return regularly for what you offer.
You might also need to keep working in your current job and doing your new business in your free time to ensure adequate funds for you and your family’s need.
Find New Ways to Keep Costs Down
Always keep searching for new ways to cut costs or reduce them. Never pay full retail price for anything and shop for used and gently used items to equip your office or workspace.
Always Overestimate Expenses and Underestimate Revenues
Once you have your financial planning in place, then add 30% to what your cost estimates are and deduct 30% from your revenue estimate. However, you want to do everything in your power to come as close to your original projection numbers. Just be prepared in advance for the difficulties you will likely hit along the way. The 30% helps you do that.
Be a Sales and Marketing Maniac
Your business goes nowhere unless you are selling what you offer. For that reason have many plans in place. Since personal recommendations will grow your business easiest, always ask for client referrals, offer free consultations to new referrals and possibly a finder’s fee if a customer sends in two or three referrals. Support local events, speak at industry gatherings and conferences. Whatever you can think of to keep your company name out there will benefit your business
Armed with your plan and these tips, you will be well on your way to a successful entrepreneurial experience.