WASHINGTON, February 12, 2014 — Every business has a why factor. There is a reason why someone starts a business. Whether they are following a passion, see a need that isn’t being met or something in between, there is always something that gets the process started.
Not every business has a how factor. This is the hardest step. A business has to answer how questions before it even starts. How will the business operate? How will it identify and attract customers? How will it scale? Often entrepreneurs know little about marketing, accounting and other business disciplines. Or they simply don’t know how much work it will actually take to be successful.
First and foremost, an entrepreneur has to have passion. Passion is what allows an entrepreneur to work long nights, be patient as the business grows and battle through adversity.
As discussed earlier, a business must assess its goals and have a clear vision. Not only should a business know how it plans to succeed, it should know how it could possibly fail.
Entrepreneurs can believe in their business too much. No business is fail-proof. There is always competition and obstacles that are visible from day one.
Once everything good and bad is identified, it’s time to start talking money. Many marriages fail because of arguments over money, and businesses are no different. A young company has to assess what it will spend its limited money on immediately, what it can wait to spend on later and what does not need to be considered.
That office pool table may look cool, but not every business needs to, or even should, copy Google and buy it.
Large purchases should be made later in the cycle of a business. Once a business is operational and starts making profits, expenses like rent and payroll are deductible as taxable income. Before then, though, they are just expenses. That’s why it’s important to delay many operational expenses.
Smart spending combined with bootstrapping – starting a business with the bare minimum costs – can put a young business in the best position to succeed. Most businesses don’t turn a profit immediately. Limiting costs, so a business can survive the lean months, is vital to success.
These tips are just the beginning, but are a good start when considering whether or not to start a business from scratch.
Jeff Barrett is an experienced columnist and digital public relations professional. He has been named Business Insider’s #1 Ad Executive on Twitter, a Forbes Top 50 Influencer In Social Media and has contributed to Technorati, Mashable and The Washington Times.Click here for reuse options!
Copyright 2014 Communities Digital News
• The views expressed in this article are those of the author and do not necessarily represent the views of the editors or management of Communities Digital News.
This article is the copyrighted property of the writer and Communities Digital News, LLC. Written permission must be obtained before reprint in online or print media. REPRINTING CONTENT WITHOUT PERMISSION AND/OR PAYMENT IS THEFT AND PUNISHABLE BY LAW.
Correspondingly, Communities Digital News, LLC uses its best efforts to operate in accordance with the Fair Use Doctrine under US Copyright Law and always tries to provide proper attribution. If you have reason to believe that any written material or image has been innocently infringed, please bring it to the immediate attention of CDN via the e-mail address or phone number listed on the Contact page so that it can be resolved expeditiously.