The stories from the Silicon Valley may make it seem like billionaires are made overnight, with twenty-something founders just jumping in disrupting established businesses with their innate abilities and revolutionary ideas, reality is a little different.
Starting a business is hard, and to have a better chance at success it is important to lay the groundwork and stay organised and prepared for whatever comes your way. Here are five things to remember when starting out:
Money management
It seems obvious, but keeping track of your income and outgoings is fundamental to running a business, and without good organisational skills things can get out of control – fast.
As soon as you decide you want to launch a business, open a business bank account, put some money aside as a runway to get off the ground, and sign up for a book-keeping and accountancy service. Quickbooks competitors like Xero and Wave have made these tools accessible and often free, so get acquainted with them early because they will be key to helping you keep on top of everything.
Time management
The old adage of it being better to work smarter than harder is true. As a startup founder you need to devote your time to what you do best, and outsource everything else as soon as possible.
Startup founders are famed for working every living moment, but be careful not to burn out. Remember to give yourself time to exercise, eat right, and spend some time with family and friends – it’s better to work an eight-hour day at 100% than working a 16-hour day at 30% of your potential.
Clear goals and objectives
Part of time management is setting clear and achievable goals that you can work towards and complete. Plan your projects out carefully, with time-sensitive tasks clearly laid out so you know where you are and what you still need to do.
Your end-goal may be to be bigger than Google or Amazon, but you won’t get anywhere unless you set goals that are a lot closer to home and more realistic on the way there.
Market research
You might have a great idea to disrupt an antiquated industry, but until you do your research you will never know if the idea is functional or attractive to customers. Many startups are built by founders who saw a niche in the market after working in the industry for years, but even if you don’t have that experience it is always worth talking to those that do and possibly even getting a low-paid relevant job to get a more thorough lay of the land.
As Matt Redhawk, founder ofMy Patriot Supply says: “If you start your business without having the required knowledge and skills, disaster awaits”.
Luck?
No matter how much preparation you have done, you need to be aware that there is a fair amount of luck in any business success. No matter how smart and how hard you work, sometimes you just aren’t the right business at the right time and it all might go pear-shaped.
If you are My Patriot Supply founder Matt Redhawk, then at least you will be left with food to last you a lifetime if things don;t work out, but for the rest of us just be careful to have some sort of plan. It is important to throw everything at your business to get it off the ground, but you need to know when to pivot and when to stop and throw in the towel. Your mental health will thank you for working this out in advance.