It’s easier than ever for almost anyone to be an entrepreneur. Thanks to technology, it’s possible to start a small business with a global clientele. However, before you join the ranks of entrepreneurs, it helps to know how to increase your chances of success. Lomesh Shah, the founder of NonProfitEasy, has 5 tips that entrepreneurs can use to increase their chances of success:
1. Test Your Ideas
The first thing to do is to make sure that your idea is going to work. “Entrepreneurs cannot be afraid of testing their ideas and thinking differently,” says Shah.
Before you get started, do some research. Is there demand for what you are selling? What price points are likely to provide you with success? Can you get feedback from people you know and trust? Do what you can to make sure that your business is likely to succeed by testing your concept and reviewing your ideas.
2. Stay Passionate
One of the most important qualities of a successful entrepreneur is passion. It can be difficult to maintain your motivation if you are not passionate about what you’re doing. “Motivation is directly proportionate to the passion one brings to the idea,” says Shah. “You still have the lows and the highs, but you’re better prepared to ride the waves and enjoy the ride.”
If you can connect your entrepreneurial efforts to your passions, you will be more likely to hang in there, and more likely to succeed. You should also consider moving on to something else if you feel your passion flagging. There are many serial entrepreneurs out there that make it point to start different businesses, building them up and selling them before moving on to the next project. Figure out what works for you, and consider moving on if necessary.
3. Save as Much Money as Possible
Shah suggests that you boostrap your business for as long as you can. Once you start spending money, you are likely to find more ways to spend even more.
“Get your financial house in order first, then bootstrap it as long as you can and be prepared to occasionally spend ahead of revenues,” Shah says. You want to make sure that your finances are such that you are prepared for running a business. And when you’re an entrepreneur, you also have to learn to make do in some cases. You don’t want to wreck your fledgling business by making poor financial decisions or by spending indiscriminately.
4. Put Together a Solid Team
One of the things I’ve learned in my own business journey is that your team is an essential part of your success. I’ve been happy with my business partner, and we look for people with the right skills to help us out. From hiring a virtual assistant to farming out graphic design work, it makes sense to invest in the right people. They can help you by taking care of some of the more mundane work while you focus on the big picture items and doing what you do best.
Shah suggests looking for people who share your passion, and who aren’t afraid to work hard. He also thinks that it’s a good idea to look for people who are highly skilled at what you want them to do. Hire good people, and your business is more likely to succeed.
5. Know What You’re Willing to Give Up
In many cases, success as an entrepreneur means a certain level of sacrifice. Sometimes, you need to be willing to sacrifice, whether it’s your own money, or your time. You might need to make sure that your family is on board, since sacrifices might also include entertainment and vacations.
Over time, though, you can build up your business to the point where you have more flexibility and options. If you manage to stick with it, entrepreneurship can ultimately lead to financial success and a great deal of freedom.