Entrepreneurship may seem like a sure ticket out of your desperate financial situation but, in truth, it too has its challenges. More often than not, new merchants dive into business without understanding what success entails. Unsurprisingly, therefore, only one in five startups make it through the first year.
If you’re planning to realize your business dream, you can save yourself the headache of possibly making a huge foundational mistake by taking these five things into consideration.
- Owning your brand
Coming up with a name is one of the first steps in establishing a business. However, many young entrepreneurs just perform a Google search and conclude a name is free for use, only to find out that it had been trademarked before.To avoid putting your fledgling business at risk, pick a unique company name. The United States Patent and Trademark Office’s website allows new entrepreneurs to check trademark availability across business records from all over the country.
According to the 2016 Global Entrepreneurship Report, over half of businesses fail because of lack of funds. The problem often arises at the start, when the owner inadvertently underestimates how much money they’ll need for the operation.
So, don’t be overconfident with your product. Plan your finances accordingly, and seek funds when your business needs them. Financiers like First American Merchant offer reasonably-priced merchant for startups, which can help to give your business a successful launch.
- Getting right with the law
Industry policies govern every business. Therefore, consult a trusted lawyer and accountant for help with structuring your business in compliance with the law. You wouldn’t want an administrative detail or technical legality to block your path to success.
- Racing with the competition
Regardless your type of business, there will always be someone that’s seemingly doing it better and achieving more than you. It’s easy to get caught up in the chase, but competition, when a business is just getting on its feet, is rarely a positive aspect.
Don’t be too envious of your developing rival across the street. Keep to your business plan and work everything out in your own time. Making rash decisions is a sure way of failing.
- Don’t lose yourself
Starting a new enterprise will take brains, bravery and endless hours of hard work. Regardless, don’t forget to take your living costs into account. You may need to cut out all your unnecessary expenses, but ensure you leave room in your budget for those “just-in-case” moments. If you reckon it’ll take a while for your business to gain some ground, consider a part-time job and speak to a financial planner to help you budget appropriately.
Although no amount of learning can guarantee the success of a business, sufficient knowledge will make the first few months or years a little more bearable.