Money can be tight in the initial stages of business. Most people find it hard to continue the business especially when it demands most of their time. Many entrepreneurs start their business with low costs, they start small or they keep their day time job while pushing for the business. In this post, am going to share with you five things that every aspiring business owner should know before starting a business.
NO. 1. It is not about the money
It is not always about money, the mission is very important. Starting a business is an exciting and challenging journey. Most of the people who start with the main aim of getting money out of the business do not usually succeed. They may quite in the face of challenges. In a 'documentary how we made our millions' Peter Jones one of the Dragons, asked Richard Reed, the found of Innocent a smoothie drinks company, if he was motivated by money when starting his company. Richard said that money is not really the motivation for most great companies. Richard Reed believes that most great companies are driven by a clear sense of mission. He added by giving an example of Google who have the mission of making information readily available to everyone in the world. I am not suggesting that money is not important but rather focusing on the mission is what makes businesses successful. The money should be seen as a bonus to after achieving the mission.
Designing a business around a clear sense of purpose will help you overcome the challenges that come with a business in the initial stages where there is more to do and little cash. This is true for both a traditional business model and a network marketing business. Focusing on the mission helps the business grow but this is not to say that it comes at a low cost.
NO. 2. Build your business around your passion
Doing business demands most of your time, if you do something that you are doing just for the sake of making money, the chances are that you will make it but if the passion is not present, the business is more likely to fail. Most great entrepreneurs will tell you that you should have passion for what you do. This is true because if the money is the motivation, the times when the money is tight will most likely be the hardest for you. If you build your business around what you love you will never have to work a single day and the chances are that you will overcome most of the challenges that may come your way.
If you are starting a network marketing business, the principle is just the same. The product, the company and the way they do things in the company have to reflect your beliefs, your values and your passion. If you are not excited about the product, or the business plans, do not start the business. You have to believe in the product, it has to work for you, if you cannot buy it then you will find it hard to convince someone to use it. The network marketing products range from beauty products to health supplements, so if you do not believe in using beauty products and are considering a network marketing business, the chances are that your business will not succeed, the product has to work for you, then the business will work as well.
NO. 3. Make sure you know the business
Knowing the business means you should understand your business model. A business model shows how your business makes money. Since a business is a set of repeated processes that are done to produce value, they have to be sustained by cash flow. You can only make money and avoid making mistakes in a business that you know and have confidence in. This means that you have to learn everyday because businesses operate in dynamic environments. These environments presents different challenges. Luckily, we have a course to help you prepare against uncertainty and you have many resources on the internet to help you know more about your business and how to prepare against uncertainty in the market.
Knowing the business will help you save a lot of money and time, because a single mistake can make the entire business system to fail. Take your time to learn about the business, but make sure that your are not just procrastinating. Make the decision when you are at least 70% sure that you know the business will work, you do not have to be 100% sure. Sometimes you will have to learn through the hard way as you go along on the journey. But to serve you time and money, you need to make sure that you learn the business.
NO. 4. It is about your customers not about you
The product/service has to solve a visible problem in the market. If you have a product/service and you think it is incredible the chances are that not everyone will agree with you. You have to solve the problems people are facing. This starts by developing skills that will help you understand the business environment and identify the problems that you can solve. This is key to any business success because people do not buy your products they buy the value that your product/service proposes. If your product/service solves that problem then bingo! you will make the money. It is important to note that the problem has to be seen in the eyes of your customers and not the way you see it. If you think there is a problem with something but your customer thinks its fine, the chances are that your proposed solution will not bring as much value as it could have done if your customer saw the problem. We have developed a course to help you learn how to identify problems in the market. subscribe using your email address and you will be receiving free courses from our team.
NO. 5. Know the numbers
Businesses have indicators of success or failure. Numbers do the talking then you make the decisions. For instance, your turnover, will tell you how much the business is bringing in, you can call it total sales. A good business is one were the turnover is seen to increase over time. This can be both an indication that your customer base is increasing or the product/service uptake is increasing in the market. Gross profit is turnover less the cost you incur when selling your product/service. Increasing Gross profits means your customer base is increasing. These however, are not the only indicators that will show if your business is doing well. But the point am stressing here is that you need to know the numbers, know how to interpret them this will serve you a lot of time and energy especially when you are working towards a failing business model, these indicators will show you to stop or change a direction if possible.
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Doing business can be both exciting and challenging, many times you will feel like you cannot go on on the journey. That is why you need a an impersonal dream and proper mind set. The dream to serve others will help you get many partners on board and people will always support your work. This however, is only possible when your business proposes to solve their problems. Money making is but a bonus after the real value of your business has been delivered. Therefore, your attitude should be, deliver value first then get paid. If you put this in your business culture, you are on your way to immeasurable success and only the sky is the limit.
