This is a big question, and I’m sure you’ve asked yourself (and Google) many times, your head, heart and gut will all be answering you at different intervals. It is a scary thought… or is it? I believe excitement and anxiety are the same emotion, it’s only your outlook that determines the outcome.
I’ve collated my thoughts and compiled a list of the key considerations you need to secure before venturing into the unknown.
Before I kick off with these, I will lay this statement out: “If you can onboard a paying customer before you take the leap, this will give you confidence, however, look after that customer, never dilute their importance to your new life, they have allowed you in this journey. Your first customer could also be your last. The power of referrals can grow a business foundation organically”.
1. Support from your nearest and dearest
I recommend Before you go any further with your idea, have a chat with your husband, wife, partner, kids, parents and other close family members and friends. However, most importantly ask strangers at a coffee shop, buy them a coffee and run your idea by them, create a succinct ‘elevator pitch’ hopefully inspiring some questions. Keep it short, respect their time and if you can entice a handful of strangers, it might lead to something new. Ask them to be candid, they may not get your idea, they may know of competition you didn’t. They will all have an opinion and it’ll help you perfect your narrative.
2. De-risk financially
You need to make some decisions about your finances before you start a business – and that includes your personal financial situation. First, reduce any unnecessary financial commitments and work out what is the minimum amount that you can live on. Think about your income, – will you work full time and launch a side hustle? Or do you plan on working part time? Or are you going to go ‘all in’?
I recommended using a Personal Survival Budget template to work out your finances and coming up with a timeline for how you’re going to transition yourself into the business.
3. Have a plan and a vision
You can’t expect to be successful in business unless you plan and Ollie suggested developing a business plan, business model canvas and cash flow forecast before you get started. Set some stretch goals to keep you focused and motivated.
Studies have proven that entrepreneurs with a business plan have lower failure rates. Planning will also give you more confidence and it will make you consider all aspects of your business – including any ‘what if’ scenarios.
Develop your vision and know your ‘why’. This will be your north star to guide you.
4. Get to know your customer
Consider a deep dive into your target customer’s life. Work out what problems they have, what their view on the world is.
Write down a large list of all their problems and analyse all of your results. It’s likely there will be three standout trends, this is where you should focus your business. If possible go and ask a spectrum of your potential customers for their problems, don’t guess.
Get specific and drill down on your target customer. The more you know about your customers, the more your message will resonate, therefore the less you have to spend on marketing.
5. Get to know yourself
Getting to know yourself, as well as your customers, is just as important when starting a business. Your biggest competitor will be yourself. Remember your self worth is not based on the success or failure of your business. Do not let it be all-consuming.
To get to know yourself a bit better, I suggest taking a personality test such as a Myers Briggs test, or DISC profiling.
6. Sell it before you build it
The idea that “if you build it, they will come,” doesn’t work for start-ups. You need to make sure that people actually want what you’re making. Get sign ups, pre-sales, any form of financial commitment. This is your proof of demand.
‘Potential sales’ are often worthless – people’s outlook on the future is less tangible and unfortunately skewed. Instead, consider options such as crowdfunding to kickstart your business and build sales.
7. Find a mentor
Having a mentor with more experience than you can prove invaluable in the start-up world.
Mentors have been there, done it and got the t-shirt. They can help you make better strategic decisions, reach your goals quicker and open doors for you. I personally have mentors in various spheres of my life. Those who exude energy and a cross-section of backgrounds.
8. Develop networks with other founders
There are loads of other people who are starting businesses right now – and facing the same challenges that you are. Get to know them and it could prove very useful for your business. Peer learning can double your profitability.
My community offers access to other founders who are on the same journey as you. I will also start to run regular events where you can meet other entrepreneurs.
9. Patience, perseverance and the right mindset
It takes time to build a successful business, you can’t expect to be an overnight success.
Building a business takes time, bags of grit, and determination. Developing the right mindset will be one of your greatest assets. I’d encourage you to learn to get comfortable with the uncomfortable.
Podcasts are a great resource for gaining insights about how to think like an entrepreneur. Yet, instinct will hopefully play a part. You can listen to all the advice you help digest, but action makes things happen.
10. Don’t forget to have fun
Most importantly of all, remember to have fun.
Build relationships, not sales. Do unexpected things to surprise your customers. At the end of the day, business is all about people.
Thank you for reading.
A.