5 Things You Don't Know When You Start Your First Business
Being an entrepreneur and creating your first business is a huge milestone in one's life. It comes with great responsibility and a feeling of accomplishment if successful. If you have yet to start your business but have an excellent idea and you're ready to take the plunge into this life, get ready. It takes time, commitment, focus, and drive. But, our guess is you knew all of that already. We are here to share five things you don't know when you start your first business, so you can really decide if this is the right move for you.
You may have an idea of how time-consuming starting a business can be, but do you really know how long your efforts can take? Let's say you need income, so you have to work while starting your business. That leaves you only a few hours each day to get your startup going. It's recommended that you put a full-time effort into creating a business. So, things can get complicated if you need cash coming in and aren't making anything yet off your business. However, don't be too discouraged. If you put the time and effort into it, you can get it done part-time. Burnout can happen quickly, especially when you don't see success. Keep in mind that it typically can take two to three years on average to make profits for a startup, and many can fail.
Research and Planning is Crucial
It's human nature to get ahead of oneself and just shoot for the stars, this is what most people do. While that's great as an entrepreneur, you also need to have a plan intact. The research stage of starting a business can be brutal. The internet has different opinions on what works best, but no one answer fits all. That's something you need to realize. It would be best if you took the time to research:
- Trade information
- Economic data
- Your web presence
Basically, think of this stage as homework. You'll need to research tons of information before hitting the ground running. Once you have all the information you need, it's time to set it up in a plan. A business plan and forecast analysis help you receive funding from potential investors and can help put your mind at ease on the next steps it'll take to become a successful business.
You’ll have to network to get off the ground. This step is often overlooked or not taken too seriously, and it should be. Networking allows you to access opportunities you might not be able to find on your own. Find entrepreneurs or like-minded industry leaders to help you on this journey. They can help provide helpful information on how to improve and even contact you with funding and future customers. This goes beyond just going on LinkedIn, and networking can truly show you some valuable insights, including:
- New business and referrals
- Partnership opportunities
- Mentorship and support
- Leverage with investors
- Feedback and Ideas
- Increased access to business resources
- Accelerate learning
Prepare for Sacrifice and Failure
We aren't going to beat around the bush. There is a high chance of failure. Data shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first ten years. Now, we aren't trying to scare you, and if you have a great idea and the drive to create a business, do so! However, keep in mind that failure is possible. Many times you'll get advice on starting a business that's nothing but positive feedback, and unfortunately, that's just not true. You need to be fully aware of this before giving up your career or job to start a business. There is a high chance of failure.
You also need to be prepared to sacrifice a lot. Starting a business will require your money, your ideas, and an enormous amount of time. You need to be ready to give it your all if you want to find success. Everyone loves the idea of work-life balance, but unfortunately, you'll have to say goodbye to that when you're starting your own business. It's easy to get carried away and excited thinking you'll become prosperous. It's always best to understand the high risks associated with this path.
Your First Idea Won't Be Your Best
Here's one of the hardest pills to swallow before starting your first business. It's that your first idea most likely will not be your best. However, the great thing about starting a business is that you're constantly learning and coming up with new and innovative ideas. Now, this isn't always the case, and there's a chance your first idea is great. The best way to find this out is by getting help from like-minded entrepreneurs, family, friends, and other professionals in the industry who can give you the stone-cold truth. Don't be discouraged if you have negative feedback. It's all a part of the process of being an entrepreneur, especially on your first business. Take time to reevaluate ideas, create a plan, and gain experience before running with your business idea.
Start Your Business
We hope we didn’t scare you off before you reached the end of this article. Starting a business takes guts and perseverance. Get ready for a lot of no’s and dismissive people. The best thing you can do for yourself in this journey is know everything it takes and give it all that you got. Now, there’s a lot more to learn when it comes to starting a business. If you need help building a website or other advice, reach out to us today at BetterLegal. We are here to help your business become successful in any way we can. There is a lot to learn, it’s quite the journey, but if you think this is for you and you have an excellent idea, it’s time to show the world what you got!