Preparing yourself for a new role business is vital. There is no room for ‘winging-it’ even when it’s your own company! First impressions matter most, so you’ll want to hit the ground running with the wisdom, education and right mindset to face off the many challenges that will come your way. To top it off, you will need to know how to navigate your startup during tough trading times like an economic recession or pandemic!
Rather annoyingly, no one set rulebook can help you with starting a business, and there’s no blueprint to follow as no entrepreneur’s journey is ever the same.
Despite all that, there are things that many business people wish they knew before embarking on such an endeavor. In this article, we give our wise words on can make the difference between taking the straight or winding road to success with a new business.
Money Isn’t Everything
While it’s possible to get by without sound financial acumen, it’s really not where you should want to be when you’re the owner of a business. Even if numbers don’t come naturally to you learn and appreciate the financial statement and other important metrics like profit and loss. When you are competent with the balance sheet of your startup, you can dig deeper and know exactly what it is going to take to make your startup stable. For example, cash flow is king – not capital. Many early businesses have been able to raise a sizeable amount of investment and grow the revenue, but despite this, these businesses have eventually failed.
Cash flow keeps the wheels turning in a business
With ample working capital derived from cash flow, you can focus on improving the business while your team works in it.
Strategic planning to avoid troughs and peaks that threaten your service levels and thus, business reputation is an example of working on the business.
Worrying about money is detrimental to productivity, and with great cash-flow, workers are paid, marketing continues, sales go up, and your business can go from surviving to thriving.
Get An Education
Just like with money – education isn’t everything, but it will give you the confidence to make the right business decisions. Business is no walk in the park. You will need to arm yourself with skills and in areas that are currently foreign to you. Formal tertiary degrees and courses, provide the foundation from which you can grow as a business manager.
Education provider, Victoria University Online say it takes less time to get an MBA when you do it online. These courses can either give you an overview of the business to enable you to be competent and confident with all aspects of the business. Alternatively, you can choose to study a specification so that you can get expert insight and understanding into a more focused department, such as finances and leadership.
It’s also a good idea to learn some of the key skills and characteristics that many businesspeople have, such as critical thinking, problem-solving skills, and good communication.
Shouldn’t Be Work All The Time.
It can be tempting as a business owner to put all your energy into making your business a success; however, putting in over 12+ hours a day can be detrimental as it may mean you’ll suffer from burnout.
Burnout will make you extremely unproductive and can force you to make bad decisions, so you must get that right work/life balance. Working fewer hours, or appropriate hours, will help you streamline your operations and make you more efficient, and a good way to do that is through various automated software.
Separate Yourself From The Business
Business owners at some stage look to move on, and thus they have an ‘exit plan’ to sell up. Knowing how to, and when to start to ease back, so the business is a valuable asset for sale without them in it is challenging, and this is when an exit strategist is required.
Your exit strategy should be part of your overall business plan and thus from the first day onwards you’re aware that you’re not the business but an employee and shareholder within it. Are you inspired to forge ahead with a startup? See our inspirational quotes.
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