Starting a business is a challenge and around 70% do not survive past the first year. Chances of a business surviving can be increased if the owner increases his or her entrepreneurial intelligence. Entrepreneurial intelligence is the knowledge and skills needed to increase the chances for a business to succeed. Starting a business in today' economy is daunting and can get quite confusing. However, there are ten nuggets of entrepreneurial wisdom based on real awareness and understanding of the critical make-it-or-break-it requirements of starting a business.
Self-delusion does not have a place in starting a business. An honest, unpassionate assessment of the strengths and weaknesses of your startup idea is essential. Because you think you have a good idea, it is not enough to ensure success.
Keep It Simple
Simple is usually the most effective strategy, especially in startup businesses. Focus your resources and efforts where the impact and profits are the greatest.
Continually Develop Your Products and Services
Companies often fail because another business starts offering a superior product or service. Entrepreneurs must adapt and/or innovate to pivot out of the inevitable plateau and decline that every business faces.
Learn How to Market Your Products and Service
Marketing is getting your product and services to the customer. Every entrepreneur must have a strategy how to exchange money for products and services. Marketing strategy continually changes because the market continually changes.
Build a Winning Team
Every entrepreneur must be a manager, marketing director, HR director, and accountant. The problem is that few (if any) people are good at all four. An entrepreneur must put together a team of people for their business to succeed.
Keep Immaculate Records
Although it may not seem important in the early stages of a startup, it is important to hire a first-rate certified public accountant. They can help you avoid many financial pitfalls.
Never Run Out of Cash
The saying goes, "Cash is King." This is especially true with small businesses. I have witnessed beginning entrepreneurs begin spending profits too quickly. Work toward having cash available to take the business through the lean times.
Avoid Rapid Growth Pitfalls
Too many sales, made too fast, can also kill a business as much as too few sales if they are not managed correctly. Managing growth is a make-or-brake condition of small businesses.
Know Your Business Inside and Out
This understanding is the foundation for controlling the company and improving the profits. Business pivots cannot be made without a correct understanding of the business and their markets.
Formulate critical and challenging goals and convert them into productive activities. Knowing when and how to adapt or innovate in an ever evolving global market is the key to success.
StartupPower is having there third workshop on August 11 at Binary Space in Bryan, TX. The topic of this workshop is on Identifying Your Market and Customers.