What must an entrepreneur assume when starting a business?
What skills are necessary for a founder to start and run a business successfully?How can a new business owner minimize risk to run an efficient operation?
The Census studies show that in 2010, the government received about 2.50 million new business applications. Comparatively, in 2020, the number rose to a whopping 4.38 million! The COVID and work-from-home situations have pushed people into discovering alternative modes of earning and starting businesses. Today, there are more business owners and freelancers in the world than ever before!
If you are looking for a framework adopted by the most successful entrepreneurs out there, you are in the right place! With this 4-part series of blogs, we will discover the critical things that every entrepreneur must assume when starting. In part one, let’s discuss the few things that most successful founders keep in mind while starting their profitable businesses.
Part 1: 7 Things an Entrepreneur Must Assume When Starting a Business
Part 2: Created a New Business Plan? Do This Next!
Part 3: New Entrepreneurs Must Master These 4 Skills
Part 4: 7 Ways for Entrepreneurs to Decrease Risk on Payments
7 Things Every Entrepreneur Requires When Starting Out
#1. An Ungodly Amount of Discipline
As a single entrepreneur, the only person holding you accountable is yourself! Most entrepreneurs have little to no guidance/supervision on their schedules. So, they need an incredible amount of discipline to be successful. The two main reasons why people quit the startup business soon include:
- The inability to stick to a discipline because they are too lazy, inconsistent, mentally ill-prepared, or easily distracted.
- They overwork themselves and burnout, which again is a symptom of the lack of discipline
#2. The Ability to Persevere
One thing that you can assume when starting a business with no prior experience is that you will encounter a lot of naysayers. All successful entrepreneurs usually have plenty of competition and opposition when they begin. Under these high-pressure circumstances, you need to have the ability to persevere and stick to your idea until the very end.
#3. The Ability to Pivot
On the flipside to the skill of perseverance lies the skill to pivot. You need to realize the journey’s endpoint and know when to call it quits. Sticking to an idea when you see that it is not going to work is unhealthy and can consume a lot of your time and money.
#4. The Courage to Experiment and Fail (Again and Again)
Successful people go through multiple iterations of their idea, often changing their whole business plan before hitting the goldmine. Experimentation with innovative ideas lies at the heart of entrepreneurship. Constant iteration and innovation are the only way to ensure that large businesses do not capitalize on your unique vision. Creating a moat around your business can help you establish a high-quality company resilient to change.
#5. Financial Knack and Emergency Funds
Running a business requires financial planning at a whole different level. You are not responsible for your personal finances only once you start your business. Instead, you are now accountable for your business finances, too. You need to treat your business as a baby and be entirely responsible for its health. As a new entrepreneur need to assume when starting a business that it is quite possible that you do not see a sustainable profit for several months. In building momentum, it could be years of trial and error before establishing a successful business. So, you need to have an emergency fund in place that takes care of your personal expenses. You will also need to plan to satisfy any business loan payments during this period.
Some of the costs you must consider:
- Cost of adopting new technology
- Legal and licensing fees
- Cost of hiring talent
- Manufacturing costs (for product-based businesses)
You also need to spend time setting up your merchant ACH account so that you are ready to accept payments when they start coming through. With reliable payment processing solutions, you can stay one step ahead of the curve and receive payments in multiple modes.
#6. A Solid Path and Motivation
Most entrepreneurs who leave a good job to take a leap of faith into the unknown fail because they forget their motivation. They underestimate the time and energy it takes to build a business from scratch. These new owners must assume when starting a business they need to set small milestones first. Then, regularly acknowledge all the help you get to stay true to your path.
#7. The Skill to Delegate
Entrepreneurs can be independent, but they don’t need to do all the tasks by themselves. When an entrepreneur starts a business, if you are not able to hire full-time employees yet, you can always hire independent contractors and freelancers. New business owners often outsource tasks like bookkeeping and accounting to contractors to save time and money.
You must assume to plan your business for at least 6-months of turmoil and have the necessary cash reserves to run operations without external support/funding. Get all the help you need on the payment processing front for reaching your goals today! Contact our team to start your business journey here!
Date originally published: January 25, 2022