Getting into the business world is not easy. Successful entrepreneurs with great experience often fail with new attempts. For those starting theirs first deal, the difficulty is even greater. Many deals don’t last long and close faster than the entrepreneur would like.
A research conducted by Entrepreneur Weekly, uncovered the top causes of death in American startups. That incompetence (Non-payment of fees and lack of planning) is the main cause at 46%.
Then the appears lack of experience Management (bad lending practices and expansion too fast), in 30% of cases. In third place appears the lack of experience in the delivery of goods and services (insufficient stocks, lack of knowledge of suppliers, among others), a characteristic found in 11% of these American startups.
The study also shows that half of the startups formed in the country complete their activities in less than four years. Given these numbers, how can you make your first business a success and not be part of the stats of early mortality?
Tips for success in the first business
When starting your first business, inexperience and lack of preparation can be major obstacles. Learn four tips for success and reduce risks if you are a first-time entrepreneur.
do what you can
When founding his first company, he prefers to get involved area in which you are aware. This reduces risks because you are on familiar territory. If you don’t have a financial or business background, contact people who know the area.
make a plan
That business plan It is the starting point for every project. When it comes to the first venture, it’s even more important. Although there are entrepreneurs who say that it’s not good to follow everything exactly and that in some cases it’s best to get rid of the plan, it’s good to take a more orthodox stance in the beginning. Follow your business plan and only do something else when you are more competent and confident.
keep the concentration
Staying focused in the business world isn’t always easy. The entrepreneur who is just starting out wants instant results and it won’t always stay on schedule. This can be a mistake, especially for those who are inexperienced. Before trying to innovate or vary too much In your sales portfolio, remember that it’s better to do one thing well than ten mediocre.
Find the right investors
You need money to start. It’s best to start with your own resources, but that’s not always possible. Financing can be done with loans from financial institutions, angel investor either development agencies and acceleration.
In an Entrepreneur article, Due entrepreneur and founder John Rampton explains that the ideal is to find investors who share your passion for the area of your business. Rampton explains that it’s important to hear what investors have to say because they’re generally more knowledgeable and know the ins and outs of the business world.
Did you like the tips for opening your first business? Remember that planning It’s basic. Reach out to the right people and seek support from them experienced investors.