What does it take to make a startup truly successful? Many first-time entrepreneurs may be under the impression that it will suffice simply to have a great business idea. But really, this is just the first step in an ongoing process of business leadership that will require careful planning, hard work, and dedication.
Additionally, entrepreneurs need solid knowledge about how to manage their startups successfully. A startup owner who is unaware of, or ignores, small business best practices, may even end up undermining their own efforts. So, what are the practices you need to know? Here are seven principles of entrepreneurship for small business owners to take to heart.
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1. Create a product that solves a real problem
If you build your startup with a theoretical idea about something the market is telling you might work, you probably aren’t going to have the passion and vision to see it through. It’s not so much that you need to believe in your product. It’s that you need to have a clear picture of a specific need, something you have experienced in your own life, that your business will fill.
2. Try to find lean solutions
New entrepreneurs can get carried away with expenditures and think of them as investments. But this can get you into trouble if your business doesn’t become profitable quickly—or doesn’t become as profitable as you’d like it to be. Instead of “investing” in non-essentials, do your best to avoid spending unnecessarily during the startup process. And stick to this principle even when your company is up and running. Yes, you must spend money to make money. But that doesn’t mean you need to spend a lot or spend all the time.
3. Be a communicator
This doesn’t just mean “talk about your business.” It also means ‘communicate within your company so your team members are all on the same page and understand your goals and objectives. Business owners who don’t communicate well end up wasting time, frustrating their employees, and disappointing clients. Eventually, this will harm your business’s reputation. So, stay accurate, stay informative, and keep everyone in the loop.
4. Outsource and delegate
Your time is precious, and you need to manage it wisely. This means not spending all your work hours on tasks that aren’t essential to running your business—or that you don’t do well. Yes, there are times when you may need to multitask, especially early on, when you’re aiming to spend as little as possible. But learning how to delegate, even if this means investing in professionals who can do certain tasks rapidly and correctly, will usually end up being a money-maker—because it is a time saver.
Looking for more small business tips? Check out this article on asset management for small business owners.
5. Invest in good software
This is another way in which a small investment can be a true game-changer. The technology to complete myriad tasks is out there. Other entrepreneurs—your competitors—are relying on it. You need to familiarize yourself with the many tech options to help manage your projects and streamline all your processes for maximum efficiency and profit. For example, look for software suites that integrate a verify bank account number API so you can conduct frictionless financial transactions.
6. Be flexible
Yes, planning is essential. That’s a given, and something no entrepreneur should ever forget. But within the parameters of a comprehensive plan, you need to leave yourself some wiggle room to change, innovate, and problem-solve. The market changes, after all, and you need to change with it. Also, it may simply be that some of the strategies you came up with initially aren’t working out as you’d hoped. Don’t feel you have to be married to those strategies just because you originally built them into the larger plan.
7. Never stop networking
New startup owners know that networking is crucial to success. The need to network—and the benefits of networking—never go away. It’s important to build solid, ongoing business relationships, with networks of trust and support. What you want to avoid is using your connections to get a foot in the door, then forgetting about them once you have some momentum.
Of course, different entrepreneurs have had different experiences. Some of them have gotten lucky, too, or started with a lot of resources. So not every startup story is going to be the same. However, if you keep these principles in mind as guidelines, they can help you as you build your company.
If you’re thinking of starting your own small business and like the idea of having a partner, take a minute and read “5 Reasons to Start a Business with Your Spouse Now.”