Tips For Entrepreneurs

Entrepreneurs have to make a big commitment to their business. On the path to success, many will become stuck along the way. This is normal; however, having the right expectations while being open to learning will help curb anxiety during the usual ups and downs of doing business. Things will happen and it’s important not to become discouraged or disappointed. Most businesses fail within the first 3 years of operation for a variety of reasons. Getting the right education and putting the certain measures in place will help you navigate during the early years.

There are definite steps and actions all entrepreneurs can take to reduce the risks and avoid potential pitfalls. Every business owner, particularly new ones, faces many obstacles and hardships in the course of doing business. Set realistic targets when it comes to making money. A positive attitude and good guidance is needed to make it through the early years of a new business. Here are some tips for the entrepreneur that wants to thrive in the fast-paced business world.

Tips

• Learn from your mistakes: Everyone makes mistakes. Take the time to dissect what worked and what went wrong instead of just trying to get through a bad situation. If you pay attention to all mistakes that you're making, you will actually learn from them. Don’t be taken in by “get rich quick” ideas.

• Set a regular work schedule: Most new business owners work day and night. This practice is actually draining, ineffective and creates stress. Guard your personal time and ensure that you take breaks. The mind requires peace and quiet to receive new ideas. You’ll find that if you create a daily work schedule, including time for personal activities and “Imagineering”, more will be accomplished in less time.

• Seek assistance and/or guidance: You can avoid mistakes, save money and reach your goals faster if you surround yourself with people that know more than you do. Network with successful business people. Get a mentor and/or a coach. Join groups locally or online with people that share their insights and experiences. You will be able to ask questions and get help. Avoid the temptation to go it alone thinking that you have to figure everything out on your own. There are many great resources that can save you time, money and frustration.

• Create a strong, loyal customer base: It’s far easier and less expensive to cultivate an existing customer instead of finding a new one. Understand your customers’ needs and always look for ways that you can help them achieve their desired outcomes. Establish good relationships by putting their needs first and be willing to walk away from business that isn’t part of your core offering. Many new business owners chase every opportunity they come across and soon lose creditability in the marketplace. Know your strengths and stick to them.

• Be direct: When starting new business relationships openly discuss each other’s expectations and thoroughly understand how system works on both sides. Many misunderstandings and disappointments can be avoided by investing time in the beginning to go through order, delivery and payment processes. Review any terms and conditions before accepting them. This can be particularly important when doing business with large companies. Establishing guidelines is essential to creating a strong working relationship.

• Always cover your expenses: Get a down-payment from the customer if payments must be made to suppliers for products or services that you need in order to complete the work. Establish milestones and a payment schedule based on attaining those milestones so that you have regular cash flow. Many small businesses go out of business simply because they didn’t have the cash to keep the business running. Ensure that out-of-pocket expenses are covered by the customer upfront.

• Ask for testimonials and referrals: Immediately upon completion of a project, ask customers for a testimonial and a referral. If possible, have them made a quick video (less than 90 seconds) explaining what their problem was, why they chose you as a vendor, what the outcome was and then their recommendation. A video is even more effective than a written letter and it’s easier for the customer. Be prepared by bringing along a video camera. After they record the testimonial, ask them if they know of anyone that would benefit from your services and then ask them to call that person right then on your behalf. A referral is the second easiest sale to make.

• Remember special occasions: Make a note of personal accomplishments or events with each of your customers. It could be a birth of a child, an anniversary, a promotion, or any other event that would stand out for your customer. By giving a card, a gift or something extra demonstrates your appreciation for their business. This helps to build a strong relationship and a loyal customer.