SCREW BALANCE. YOU ARE A HUSTLER!
If you subscribe to the motto “work hard, play harder,” you will likely never succeed in entrepreneurship. The simple fact is that people need to take what they want; it will not simply fall into their lap. Throw away any trepidation or uncertainty to have the best chance at success….
THE TOP 5 REASONS WHY ENTREPRENEURS FAIL
While heart and dedication may get the foot in the door, they do not determine the success of an entrepreneur. Having a well-structured and outlined plan is much more important to ensuring success of a company, and the best approach is building such a strategy is first figuring out the…
TIPS: HOW TO PROMOTE YOUR SMALL BUSINESS LOCALLY
As a small business owner, you already understand the challenges you are facing, especially if you are set up in an area that has big box stores or high saturation rates. However, understanding the best ways of promoting your business to the local area will go a long way in…
SCREW BALANCE. YOU ARE A HUSTLER!
If you subscribe to the motto “work hard, play harder,” you will likely never succeed in entrepreneurship. The simple fact is that people need to take what they want; it will not simply fall into their lap. Throw away any trepidation or uncertainty to have the best chance at success. Follow these simple tips to become the most profitable entrepreneur possible.
The Rules for Success
While people may see financial victory with following each of these guidelines, the chance of achievement is vastly improved when you adapt the principles into everyday life and approaching other businesses and consumers at every chance possible.
Work Hard, Work Harder
Some people put over ten hours every day into their work. If the effort is actually beneficial, this does substantial improve success rates; however, another critical reason for this determination exists. They enjoy the results and the process to get there. Many low wage workers drive home after their day job to drink a beer and forget about the daily struggle. Instead of staying in this painful situation, entrepreneurs attempt to step out of the box to start enjoying that struggle.
Force The Sale
Simply stated, always reach out and grab the sales. Know every possible piece of information on the market and the product to prepare for any possible question, and start selling. Contact local businesses, consumers, investors, banks, and any other possible source of funds. Never receiving enough startup income is one of the main reasons for entrepreneurial failure, which can easily be prevented by being aggressive.
Aggressive But Personable
You will never land the sale if you are rude or belligerent. Understand the customer and their needs to adjust the sales pitch correctly. Polite, understanding, and reasonable behavior will always go further in the long term. Realize that people work hard for their money, so they may struggle with the decision to give some to you. Learning the best tactics to talk them into sparing some of that cash comes with experience.
Learn When To Settle
Sometimes settling on a reduced price is better than receiving nothing, but every entrepreneur must learn when this becomes detrimental to the business. Even no profits could lead to further financial success in the future; however, constantly accepting lowball offers will likely drive the business into the ground due to lack of profits. Therefore, realize when large benefits will be received in the long term, rather than focusing on small levels of short term return.
If you want to become an entrepreneur, it costs more than just thinking the part; it requires a substantial amount of hours to get started. A prosperous entrepreneur can afford to put work aside for a vacation, but it takes time to reach that level of success. Therefore, focus on working on something enjoyable. Entrepreneurship is so diverse that everyone can find a profitable niche that fits their personality perfectly. Put significant amounts of time into that niche to receive huge returns.
THE TOP 5 REASONS WHY ENTREPRENEURS FAIL
While heart and dedication may get the foot in the door, they do not determine the success of an entrepreneur. Having a well-structured and outlined plan is much more important to ensuring success of a company, and the best approach is building such a strategy is first figuring out the reasons for failure. Therefore, we have compiled a list of the top five reasons why entrepreneurs fail.
Starting on the Road to Failure
1. Lack of Substantial Planning
Do you believe that your guide to business success is detailed enough? It isn’t. Business plans can exceed more than one hundred pages of highly critical topics that help prevent disaster. Unless you have experience in the matter, it will likely be necessary to contact a professional to cover every subject in-depth, such as estimated revenues and expenses, goals, market analysis, and funding sources.
2. Poor Decision Making
Should you partner with someone? How much should you pay professionals? Do you need the extra cost of higher quality development products? These questions and so many more are everyday decisions faced by entrepreneurs. Smart and decisive choices are critical when establishing businesses. While making the wrong move is highly likely, realizing the mistake and attempting to correct and recover will showcase great decision making skills.
3. Underdeveloped Marketing
While the product or service may be better than anything currently on the market, if no one knows about it, it might as well be the worst. Therefore, a substantial amount of professional marketing is quite important for getting investments, landing sales, and establishing an empire. This involves a constant social media presence, press releases, and awareness campaigns.
4. Giving Up
As previously mentioned, dedication is not everything, but it is certainly worth something. An absolute guarantee is that startups will face many challenges, so staying strong and sticking with the plan is paramount. By giving up early, you are the sole reason for failure. Have confidence in the company and the products that are offered to ensure full commitment and the best chance for victory.
5. No funding
Many other aspects play into low funding, marketing being one of the most substantial. However, this can be quite easily changed by approaching the right people with the right sales tactic. It is important to know the business and the product from front to back to gather funds from even the most unlikely sources. Approach the local community, banks, other companies, investors, and crowd funding services to use every avenue possible to raise the necessary cash to get started and stay strong.
If you realize from the beginning when one of this disastrous mistakes is being made, you can prevent failure and ensure success of any business. It is not debatable that becoming an entrepreneur is tough, so you should not make it even harder by making any easily avoided mistakes. Proper research and planning will prevent any unnecessary money, time, and effort from being wasted when attempting to establish a business.
TIPS: HOW TO PROMOTE YOUR SMALL BUSINESS LOCALLY
As a small business owner, you already understand the challenges you are facing, especially if you are set up in an area that has big box stores or high saturation rates. However, understanding the best ways of promoting your business to the local area will go a long way in helping you get noticed in a land among giants. There are a variety of options available for local promotion, including free and paid options. The following are some of the best methods available to increase exposure, and grow brand awareness.
Communities provide excellent opportunities for growth and exposure. Consider sponsoring a local sport team, or host a fund raiser to help raise funds that will go back into the community. You can also incorporate your advertising with local cleanup or park restoration. All of these things help people take notice of your business, which will lead to increased profits later on.
If there are other businesses in your area, especially those that are related in some way to yours, networking is a must. You have to make sure people are aware of your services or products, and getting out there to introduce yourself is one of the best ways to do this. When you network with others in the community, you allow for improved word of mouth – without paying a dime. Don’t forget to attend community functions either – whenever locals gather it provides you with a great promotional opportunity to make sure other businesses and potential customers know you’re there.
Coupons and Advertisements
People love saving money, no matter what they are purchasing. Consider running coupons in the local paper, or print off several and ask local businesses (non-competitors) if you can leave some for their customers. You should also make sure that there are coupons available through your website that can be printed off and brought to your location.
Advertising can be cheap if you know how to use it properly. Ask local businesses if you can hang flyers in their windows or on bulletin boards. Libraries and community centers are also great places to do this, and you will reach a wider base of potential customers.
Don’t Forget Social Media
No matter what, it seems that no business can avoid teaming up with Facebook and other social media platforms to get the word out about their products and services. The sheer number of users worldwide, along with the amount of content that is shared each day makes social media a worthwhile time investment. Just make sure to interact with people who like of comment on your page. You can also offer discounts and freebies to people who like your posts to make the process even more engaging.
There are plenty of ways to promote your small business locally, and most of them require you to get yourself out there. Businesses don’t grow themselves, so you will need to make sure to find the time to get out in your community.
3 BIGGEST CHALLENGES FACING YOUR SMALL BUSINESS
Small businesses seem to be popping up everywhere, and while this can be a great thing for local economies; this is not a venture to approach lightly. According to the U.S. Bureau of Labor Statistics, there were 400,000 businesses started over the last year. However, another 470,000 closed during that same period. In the U.K. 1 in 3 businesses failing within the first 3 years. 20% of businesses fail within the first year, and in the next 3 years 50% of those fail. These unbalanced numbers show just how important it is to understand the reality of opening and maintaining a small business.
In order to provide insight into why so many small businesses go under, top business advisors all over the country have focused their efforts on determining the key challenges facing small businesses, and how they can be avoided. The following are the top three challenges you should expect to face as a small business owner.
Lack of Knowledge
Knowledge is a valuable tool for any business, but small businesses are especially vulnerable to the problems associated with not having enough. In a business sense, knowledge consists of much more than simple smarts – there are a number of things that you need to be sure you understand when opening a new business, including:
- Industry – You need a complete understanding of the industry you are entering, including current trends, potential competitors (and their prices), and the overall availability of similar products or services (saturation).
- Financials – Starting a business requires an in-depth understanding of how to deal with accounts payable and receivable, payroll, taxes, and other financial matters.
- Marketing and Advertising – You will need to understand the best ways of attracting new clients, and making sure that potential customers know your company exists.
Time is Precious
Many entrepreneurs mistakenly believe that running their own business will provide them with more time to do what they want. However, the exact opposite is usually the case. When first starting out, you will need to plan on spending plenty of time with your new business – if you don’t care enough to be there, your employees certainly won’t. Additionally, you will need to plan everything you need to do on a daily, weekly, and monthly basis to ensure that you don’t forget anything. By taking the time to focus on your business, you will see a much greater chance of survival.
This is the number one reason most new businesses fail, and the main issue is not having enough saved back to support the business until it becomes established. New businesses do not generate money overnight, so you need to make sure that you have plenty in reserve to handle recurring bills such as rent, utilities, and taxes. A good rule of thumb is to have up to two years worth of funds available to ensure that there is enough to see your business through to when it actually starts generating income.
A new business is a great way to change your way of life – providing you are aware of the challenges that you will be facing. As with any new venture, education is a valuable tool.
WORK ON YOUR BUSINESS, NOT IN YOUR BUSINESS
Owning your own business can be both exciting and exhausting, especially when you first start out. While your business is in its infancy, there is no denying that much of the work and labor fall to you – you have to generate an income in order to hire employees. However, once you have established your business, the key to true growth is letting go. You have to learn to follow the steps needed that will allow you to work on growing your business, rather than working in it. After all, you probably became a business owner to lessen the amount of work required each day, not increase it. The following steps will help you better understand how to ensure that you are leading your business, rather than being another employee.
Understand Your Wants
The first step in the process is to decide if you truly want to continue wearing all of the hats in your company. If you love the added stress, lack of family time, and general exhaustion that comes with this, then stop reading – you are already doing what you love. However, if you want to create a business that does not need you there every single minute of the day, keep reading. Just be aware that many of these steps will require you to move outside of your comfort zone to reach your goals.
Team Building/Understand Your Limits
The number one requirement of any successful business is a team that can make it happen. No one person is the best at every aspect of running a business, regardless of how much he or she may think so. Unless you have spent the last 24 years earning degrees in business management, human resources, accounting, manufacturing/distribution, marketing (whether it’s traditional marketing or Internet marketing, such as paid search and Search Engine Optimization), advertising, web development, design, and labor, you are not the best person for every one of those jobs within your organization. A team consists of more than one, and it is up to you to be choosy on how you build it.
The best place to start is often with a human resources person – this will be the team member that ensures that only the best people for the other jobs are hired, which means you won’t have to oversee every aspect of daily operations. When you build a talented team that you can trust, you are providing your business with the basic tools it needs to grow.
Develop Systems and Standards
A business that has a strong foundation of operating systems and company-wide standards has a strong base from which to grow. Proper training systems, and daily operational systems are key aspects of creating a business that you can oversee. Once you have systems in place, develop standards by which your team attacks every aspect of business. This will ensure that everyone understands what is expected of them, and the best ways of dealing with daily operations.
When you follow these steps, you will allow yourself to work on your business, while your team works in it to make it grow larger than you ever imagined.