5 Rules When Starting Your Own Business
There are many people who dream of starting their own business. There are many people who actually go out and start their own business and then they fail dismally. There are horrific statistics of how many start-up businesses fail within the first two years. Some say as many as 80% of all start-ups fail within the first two years and of the remaining 20% another 80% fail in the following three years. The four businesses that survive the first five years will most probably be successful and exists for some time.
The question is why do so many businesses fail? There is not a straight forward answer why so many businesses fail. Many people have studied this phenomenon and there are many reasons why businesses fail but we are not going to focus on that; we need to focus on what to do to make your business sustainable. You want to ensure your business survive the first two years in order for you to build up a reputation as reliable and sustainable enabling you to respond to that large tender that will provide you with financial independence.
There are many factors that one needs to consider when starting your own business and here are five rules that you need to adhere to when starting your own business:
1. Location, location, location. If you are going to sell goods then you need to be located at the best location. You can have the best product or service on offer but if people do not know of your existence you are going to fail. Find the best place to put up shop so that as many as possible customers see your goods that you have on offer.
2. Ensure you have sufficient funding. There aren't many businesses that you can start without money. Even the smallest of small business will need some kind of cash injection to get the ball rolling. There are many ways to get funds to start a business but the trick is to have access to funds to sustain the business when times are tough. Always save money for tough times.
3. Be committed. The main reason you start your own business is because you want to be independent. The problem is that once you have the freedom you lack the commitment. When you work for yourself you need to be 110% committed otherwise you are going to fail. The rule is to apply the same work ethics and commitment that you would have applied should you have been working for a boss.
4. Advertise. There is an old tale about the business owner who did not believe in advertising, eventually his business failed and the first advertisement he had to place was advertising the liquidation of the business. Advertise as much as possible.
5. Be willing to grow. There are not many businesses that started out as multi-million dollar operations. Ninety nine percent of the time it is small businesses that grow into large businesses. The rule is to start out small and affordable and then grow your business over time.
If you follow these 5 simple rules you will give yourself the edge needed in succeeding in your own business.
We at How2Tender.com will be hosting workshops on "How to start and run your own business" within the next month or two. Please email us at firstname.lastname@example.org should you be interested in attending one of these workshops.
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