You know what? I messed up my life, wealth, and health when I started my new business in 2006.
As a serial entrepreneur, I thought I know everything. I had blind confidence that every idea will work.
See, how tyrannical my thought was?
People like me don’t realize until they burn themselves. Lessons learned by making big mistakes would never repeat in one’s life. If he does it again, then he should be dumb.
I messed up in all stages of my new business, starting from money management, product choice, type of business operations, people management, work-life balance, and even debts! Overconfidence and a never listening attitude made my business turned down.
When you begin with the wrong step, the entire journey should end up in the wrong place. Later, when everything is out of my hand, I sat and took note of all my mistakes. I realized and arrived at the amazing seven habits that every person should follow before they start their business.
Being an entrepreneur might look like pride. It gives you a feeling that you are doing something great. The fact is every entrepreneur is starting a lonely ride to an unknown destination.
Ok! Let us focus on those amazing seven habits!
Money, More Money, and Lots of Money
Money is most important, and entrepreneurs manage to start their business with the money that they had.
Started, then what’s next!
Operation costs start to burn your investments and need more money for day-to-day operations, fund mobilization, and to pay advance for sourcing materials, and so on.
A good business model needs to generate regular cash flow. Before touching any business, understand the mechanism of cash flow. In case of delay, have a source to manage it and not how to manage it.
Is your product or service going to solve people’s needs?
A business has a simple definition — there is a need, here is a supply, resulting in a small margin, which is our profit. The requirement comes from the people, and you solve their needs and earn a profit. So, business is nothing but what people need.
Happy Team delivers more.
Running a business needs a team. You can’t run everything alone. Choosing the right people, assigning them responsibilities, training them, monitoring them, mentoring them, and making them feel they are running the business.
Understand that you are not a business
You must understand that you are just a part of your business. Many people think that without them, it cannot run. Business needs to run without your presence. You are just a shareholder or an employee of your business. It is a separate entity where you are associated with it.
Work-Life balance — Entrepreneurs’ costly mistake
I hear from most of the entrepreneurs that they work more than 12 hours a day, including Sunday. They feel proud as they spend long hours in their business so that it can grow faster. Overwork makes you more unproductive. It spoils your health and affects your family life. It shows how you mismanage your time.
Trust me, set a goal to work only eight hours a day and focus on completing it within your work hours. First few days, you might struggle, but leave the office and don’t extend at any cost. Come and do the pending work the next day. It might be difficult for a few days. In a week, you will find a way to finish your work on time, even much before office hours, and be productive. Trust, that this will happen.
Profits are to save and not to spend
People start spending when they see money in their business. Saving and investing are very important in personal life. Likewise, the business also needs some savings and investment. It helps you to manage your business in a tough time.
Know your credit and settle within your limit
If you are a budding entrepreneur, never start your business with debt. Use your own money and have funds to run your business at least for six months. Have a plan or fund even if you don’t have any cash flow in the beginning. Understand that any business needs to start cash flow as soon as it starts its operation.
There are many chances that your business might fail, which is not in your hand. Taking a personal loan or home loan and feeding your business is not a wise idea. Take a calculated risk and have your debt within manageable limits. Be optimistic but have no overconfidence.
Choose your mentor
The right mentor guides you the right way. You need someone who knows your business very well and makes you accountable for your daily role. The right mentor is a caption of a ship, and he can guide you in the troublesome period to lead the right way.
Take away
Being an entrepreneur is good and starting a new business makes you excited. You should follow these seven habits to have a minimum risk in your business journey. Do a lot of homework and have plan B, plan C, and more if required. Know where you stand and act accordingly.
©Rajalingam Rathinam