Entrepreneur: a person who sets up a new business, taking on financial risks in the hope of profit
So, you’ve decided to take the plunge and become an entrepreneur?
Congratulations! You deserve to be commended for your courage. Leaving a steady job and taking on the life of an entrepreneur is no small feat. Entrepreneurship is a daunting – and risky – endeavour in more ways than one. Ask any first-time entrepreneur how they felt when they first started off and they will use terms like ‘shaky feet’, ‘sweaty palms’, ‘buyer’s remorse’, etc.
That said, entrepreneurship can also be extremely rewarding. It can give your life purpose and meaning so you can create something of your own, add your own stamp on the world and leave behind a legacy – things that are very difficult to do with a normal 9-5 routine.
So have you decided that this is the life you want to choose?
Great!
But before you do, check out the 10 key lessons we have put together for you. Take them to heart and you will surely enjoy massive success on your entrepreneurial journey!
1. Build a great product or service and let people know about it!
What makes your product great or unique? Build it and ensure that it is different in some meaningful way from your competitors’ offerings. At the same time, it’s OK if your product is good to begin with and not great. Don’t take forever to launch! Launch and then focus on moving from good to great.
2. Maintain the right expectations – yours!
You may think that your product is the next best thing since sliced bread but that does not mean that financiers and customers will agree and fall into your lap from Day 1. Raising finance for a new business is not easy and neither is converting interested parties into customers. Slow and steady is okay!
3. Don’t put hurdles in your own way
Maybe you’re worried that someone – an angel investor or VC perhaps – will steal your idea. Are you wasting time trying to get them to sign an NDA before they commit to releasing any funds to you? If yes, know that they may change their minds as soon as you say ‘NDA’. There will be plenty of hurdles in your entrepreneurial journey. Don’t create more.
4. Start building a great brand from the beginning
Do you think that great brands are only built by large corporates or MNCs? It’s not true! A brand is more than just your company name, website or logo (although these are important elements too). Your brand is your promise to your customers. It differentiates your offering from that of your competitors (see #1 above) and tells the world that ‘this is who I am and this is who I want to be’. Why would you not work on this crucial aspect of your business?
5. Get used to multi-tasking ego-free!
Entrepreneurs have to wear multiple hats, sometimes by design but often by necessity. Prepare to be the CEO one day and a peon/cleaner/pest control person the next. And leave the ego at home or you’ll never succeed!
6. Know yourself, your industry and your customers – and not necessarily in that order!
What are your industry’s realities, challenges and opportunities? Who are your customers? Are you targeting the right people? What is your unique offering and why should people buy from you? As an entrepreneur you need to know all this if you hope to succeed. Perfect your ‘elevator pitch’ and executive summary – the next person you meet in the lift might be a new customer or investor!
7. Celebrate the ups but be prepared for the downs
Entrepreneurship can be exciting but it can also be lonely. Your first customer, first order and first delivery are all milestones to be celebrated. But be aware that downs will also hit you on your journey. Expect challenges and risks. Prepare for them and remain pragmatic at all times. And don’t lose sight of your purpose (the ‘WHY’ of your business)!
8. Educate yourself before you drown in a sea of details
By necessity, entrepreneurs have to be detail-oriented and excellent multitaskers (see #5 above). Stay on top of financial, legal and compliance details. Understand budgets, profit and loss statements, balance sheets, and income tax returns. Keep an eye on cash flow. Many businesses fail because entrepreneurs are not able to understand – or keep up with –the nitty-gritties of business. Good ideas are good, but details make them great!
9. Be clear on the law
Understand the legal ecosystem your company will function in. What laws apply to you in the areas of taxation, revenue-sharing with co-founders, registration and trademarks, patents, provident fund payouts, etc? Hire competent legal counsel and if necessary (and if you can afford it) keep them on retainer.
10. Provide value – the customers will come
Be a resource, not a sales pitch. Don’t make assumptions about your customers and definitely don’t try to hard-sell (unless it is the norm in your industry). Focus on providing value and solving problems instead of on earning money. Do the former well and the latter will happen automatically. And remember that happy customers provide the best – and free! – advertising.
What did you think about these 10 key lessons for first-time entrepreneurs? Do you have any more lessons you’d like to share? Let us know in the comments box below!