Starting a business isn’t a kid’s play. You need a lot of courage and risk-bearing ability to do it. According to the leading entrepreneurs, it is a game where there is an equal possibility of winning and losing. However, it is possible to reduce the risk significantly by following some fundamental “Do’s” and “Don’ts”. Let’s understand what all you should follow and what all you should avoid while starting the business. These are the rules of thumb that you should tweak according to your business needs.
Things you should do
(i) Always launch the business as a limited liability company. You can incorporate the business to achieve it. The fundamental objective is to keep the liability of the investment as low as possible. Strangely, most of the budding entrepreneurs miss it.
(ii) Meet a seasoned business lawyer and discuss the pros and cons of different types of business entities. Also, discuss issues such as buy-sell agreement, tax and other liabilities, and legal aspects.
(iii) Do invest in technology. It is impossible to flourish without making use of the best technology in the competitive scenario. Get the knowledge of what is the latest in the niche?
(iv) Know your customer, suppliers, and other stakeholders well. It is not advisable playing blind when large investments are involved.
(v) Make plans for an effective online presence. The more people know about your services; higher is the possibility of getting success.
(vi) Do an in-depth research of the success stories and failures in the niche. Have a good understanding of what went well and what went incorrect in their case? It will give a big picture of the business.
Things you shouldn’t do
(i) Don’t spend extravagantly on office space, furniture, and fixtures, and lavish interior unless you are in a “show business”. Overinvesting in startup cost will put you under an unnecessary burden. Successful entrepreneurs always look for the ways to bring revenues to offset every penny spent. You can do it later, once the business gets established.
(ii) Don’t underestimate the worth of your business. Even if you are a beginner, do not underestimate the worth of your services or product. Undercharging is the most common mistake committed by budding entrepreneurs. When you offer things at prices below the market levels, it creates an assumption that the quality is inferior. Do not overcharge, but at least keep the rates comparable to others.
The quick tips are greatly useful for new entrants in the business world.