Tips to Startup Entrepreneurs

Starting a business is scary in any economic climate. You’re putting yourself on the line – your ideas, sweat, capital, time, and relationships – in the hope that your gamble of starting a business will pay off.What do you need to succeed in business? Experts say that you need to have loads of persistence, passion, and hard work – and yes, luck. But there’s really no single winning formula that can guarantee the success of your business. You have just to do it, and do it right.

I’ve collected some of the tips given on books and internet, as well as from other experts and authors, on what a startup entrepreneur needs to do to increase chances for success. Here are the initial 25 tips:

1. Develop a product or service that people will want to pay. Find out what your customers need and want. Watch them. Talk to them. Understand them. Ask them about their problems, and what types of solutions they think will address those problems. Give customers what they want, and they’d gladly pay you for it.

2. Define your business model. Think how your business will make money. Simply put, first identify where you will get the money (your customers) and then how you will get the money (sales, marketing and other strategies).

3. Don’t reinvent the wheel. You don’t have to invent the idea. McDonald’s did not invent hamburgers and Starbucks did not invent coffee. Instead, they pursued markets that already exist and did everything better.

4. Be unique and “do your thing.” Think differently and resist the urge to be a clone. Your business is unique. Instead of copying others, differentiate yourself through your concept or presentation. You may be offering the same products, but clearly define your unique selling proposition to help users see your business apart from your competitors. It is important to identify and concentrate on making the unique aspects of your business as superb as possible.

5. Work hard to give your customers quality products at a reasonable price. Meet client expectations so you can win their loyalty. However, be careful not to promise the world to your customers in your desire for them to love your product. Promise only what you can reasonably deliver at costs that are acceptable to you.

6. Know your customers. Be very clear about who your customer(s) will be. Who are they? What are they like? What are their motivations for buying your products or services? Where can you find them? What is the best way to communicate to them and reach them? The more you know about your customers, the more successful your business will be.

7. Don’t wait for perfection. If you’ve got a product or service in mind, you don’t have to wait until it is 100% perfect before you release it. Aiming for perfection is good, but it can hold you back. You need to start getting out there and be visible. Just be sure to listen to your customers’ feedback and adjust or modify your product as you go along.

8. Learn from – and fix – your inevitable mistakes. You will commit mistakes, some big and some small. But the key is what you learn from those mistakes, how you correct them, and how you improve your business based on those learning. Ultimately, like all successful entrepreneurs, your success will depend on how well you learn from your mistakes.

9. Build the right team for your business. The quality of your team – employees (if any), investors, professionals and strategic partners — will spell a huge difference in the success or failure of your business. In fact, many successful entrepreneurs consider the quality of people as key to success. Find people who share your passion and vision for what you want to accomplish with the business. Look for people who are ready to fully commit themselves to your business.

10. Provide customers with the ultimate buying experience. A bike is just like any other bike in any store, but think of ways you can sell your bike differently. Recreate in your business the best customer experience you have ever had, every time. Make the selling experience personal and interactive – and customers will love you for it.

11. Understand your market. Develop a clear understanding of the market and your competition (oh yes, you do have competitors). Businesses do not operate out of a vacuum, and it is important to learn as much as you can about the industry, the market and the players. You need to recognize competitive threats and opportunities; in order to give you time to prepare contingencies for either.

12. Keep realistic expectations. Starting a business is not easy. You’ve heard the statistics that 80 percent of all small businesses fail within five years – yet you think that yours is going to be different. Good for you to have that kind of optimism! But don’t forget for a minute that making money is hard, period. For some, it even takes up to a month, or worse, even six months before they even get a sale! Be prepared for these eventualities.

13. Stick to what you know. Find a business that will play to your strengths. It is easier to fire up passion to move forward as well as generate credibility in an area where you have solid understanding and knowledge.

14. Be prepared to dedicate time and energy into the business. Building a business is hard and definitely not a walk in the park. When you’re just starting a business, you will be doing all the work needed to keep it viable. Be patient, as it may take months or even years before the business can be viewed as a success.

15. Expect to work a LOT harder than if you were an employee. As an employee, you can just do your job in an 8-hour period, go home and even forget about work. As the business owner, don’t be surprised to find yourself working 16 hour-days, especially at the start. Plus, you will need to wear many hats, as you’ll be responsible for the strategic direction of the business, marketing it, administering it, finding financing for it, and many more.

16. Run your business lean. Keep your expenses and spending as lean as you can for as long as you can. Keep your fixed overhead as low as possible. It is important that you don’t spend what you don’t have! With tight resources, put your money where it can bring in the most bang for your buck, such as marketing and product development.

17. Be flexible and willing to change. Be ready to make the shift. Like a child, your business can grow, change and mature. Even if you have set how you envision your business, you may find out that some things are not working out as expected, and the only option is to make the change. Change the things that are not working, improve those that are only marginally performing, and keep those elements that really do well in your business. Adjust, but don’t quit, when things are not heading in the direction you want it to.

18. Try to avoid outside money. If you can do without it, don’t take in investors or outside money. Fund your business using your own money, and use your sales to finance your growth. If you use your own money, you’ll be forced to spend it only on things that will make sense for the business. You will also have no outside pressure dictating the strategies you need to use and pushing you to become more aggressive in the company growth. Sweat equity is the best equity.

19. Don’t be afraid to get help. Find people who can give you advice and support. You don’t have to do everything alone, and the sooner you realize that, the better. Focus on what you can bring the best to the table, and farm out (whether you hire employees or outsource to professionals) the other tasks. Seek advice when you need it. Look to your networks, find mentors in your community, or go to your local small business centers.

20. Learn from the experiences of others. Be inspired by stories of successful entrepreneurs. Connect with other business owners – including those who are running the same type of business as yours. Find people who are smarter and more creative than you are online and offline. Better yet, find people who really understand the business and have had hands on experience that resulted in successful outcomes.

21. Keep your focus. Be clear what your business stands for, and stick to it. Don’t get distracted by trying to moonlight for personal profit or even starting another business. Like a baby, that new business needs all your support and attention, so don’t open yourself up to situations that divide your focus, attention and resources.

22. Keep customers happy. Happy customers are your best marketing tools. Aim to please your customers, and they will willingly spread the word about your business.

23. Review your business. Set benchmarks and targets – and review how well (or not) the business is doing. It is important that you take time to regularly review, revisit and revise your business strategy. Look at changes in the overall economic situation, analyze your industry and determine how and where your business stands.

24. Find meaning in what you do. When making the decision to start a business, you are going to invest the most valuable of all resource – your time. You need to believe in what you do in the business, and what contribution your business can really give to the community.

25. Adopt a strong moral compass. Stay true to your convictions and draw your own lines. Do not overdo it where you lose your own values and your way of life.