At least two in five youths have a business idea. With diminishing employment opportunities for young people fresh out of college, starting a business is important. However, not all business startups grow to become successful ones. The difference between a startup and a successful business is usually few years of dedication and proper management of a startup. Every other successful business was once a startup.
The sad thing for budding entrepreneurs is the fact that over 90 percent of startups end up failing. Therefore, the big question is: “how do you manage your startup and watch it grow into a successful business?” Below are some of the key issues that any entrepreneur with a business startup needs to address if they want to be successful in future.
Find a Mentor
This should be the first thing that any young entrepreneur should do even before launching his/her startup. Find someone who is willing to guide you and show the way. Someone who has been successful in doing what you are trying to do. If you are unable to find a mentor from your local area, you can try the government-backed mentoring service which is a free service that has been set up to provide startups with experienced support through a network of quality-assured mentoring services.
You can also engage your friends and family members that you trust and have started a successful business. You can easily grow your business from the startup to a successful business with the right guidance from the right people.
Write a Business Plan
There is a big difference between having a great business idea and having a great business. Writing a business plan is an essential way of encouraging yourself to evaluate your business idea in detail. The purpose of a detailed business plan is to break down your idea into segments that can be implemented. With a business plan, you get a clear picture of your realistic goals should be and what will be the cost of setting up and sustaining your startup business.
Limit Your Fixed Expenses at the Beginning of Your Startup
The key to longevity is keeping your expenses low at the beginning of your startup. You do not need a huge and stylish office or fully catered meals three times a day at the start of your business. Try to limit your expenses to necessities that you can’t-do without.
At the beginning of your startup, you should operate thin, and pump most of your capital to the business for growth and expansion. Most startups fail because entrepreneurs focus on the wrong things such as fancy offices and meals and tend to forget the fact that generating revenue should be their number one priority.
Be Inspired and Learn from Other People’s Mistakes
Every entrepreneur makes tons of mistakes at the beginning of a startup. Find time and read start-up stories of other entrepreneurs online and in books. You can also find inspirational stories from events and seminars where successful entrepreneurs often talk about the mistakes that they made with the purpose of helping you gain the benefit of hindsight. The purpose of reading such information is to identify the mistakes committed by other people and avoid repeating them in your startup.
Remain Optimistic but Prepare for the Worst
Anything is bound to happen when starting a business, so it is better to prepare yourself for the worst possible scenario. For example, do not quit your job and eliminate your primary source of income when starting your business. A startup can never replace your source of income.
Make sure that you have enough money that can sustain you for at least 12 months and maintain an emergency fund kit. The moment you fail to prepare for the worst moments, they are bound to happen. Even when you start making money from your business consider investing in other opportunities.
With these tips in mind your startup will have a smooth ride – not to say with no hitches – on its way to the top.