Starting a business in a professional way can be the difference between success and failure. Although there are no magic formulas there are practices of great value when launching your venture. Today I share with you five of them.
Nobody was born knowing, therefore it is common that those who start their first business do it to fools and crazy, to pure trial and error. It is no accident that many of these ventures end in failure.
Failure does not have to scare you since it is a vital part of the road to success but one thing is that you failed having done things well and another thing is to fall into a failure by your own negligence.
The five practices that I recommend to start a business in a professional manner are:
Validate your business idea.
Develop a business plan.
Think about the long term.
Pay you your own salary.
Invest in marketing and advertising.
1 Validate your business idea
It is a recommended practice if you want to start a business in a professional way since one thing is what happens in your imagination and another very different what happens in reality.
Sometimes we believe that our idea is something new, successful and that it will be acclaimed by the world when nobody really cares.
This does not have to do only with digital enterprises, it is common for someone to rent a place, hire employees and buy merchandise and then realize (late) that it does not work.
A few years ago I did a radio program, well thought out with good content and great production but I made the mistake of not considering it as a business and for not having done things well I had a resounding commercial failure. As you will see, you learn from failures …
Validating a business idea does not necessarily mean investing in expensive market research, in my articles ” Validate your business idea with Facebook ” and ” You can validate your business idea at low cost ” I tell you simple and economical alternatives to have a first response from the market to help you take a correct course of action.
The idea is that before investing time, effort or money you have reality data to know if you must move forward with your idea, change it so that it succeeds or directly discard it and do something else.
2 Develop a business plan
Many believe that to undertake is to have a millionaire idea, sell it to an investment group and retire to a paradise island to enjoy the good life. Maybe so in a galaxy far away, but not here .
To start a business in a professional way you have to take safe steps in predictable scenarios and for this a good business plan is essential to help you make decisions, set goals and draw up a strategy to achieve them.
Without your business plan instead, your head is muddled and you fall into the “analysis paralysis” or do not do it. It’s about doing something simple, writing down the key points of your business such as:
What is your business (core business).
What products or services are you going to offer?
key partners and activities.
What are the characteristics of the market.
Which is your ideal client?
What is your business model?
Your strategy and channels to reach your customers.
Your investment need.
your expenses and income forecasts.
the profitability threshold.
A good way to address this is by using the ” canvas model ” one of the most used by entrepreneurs.
In an upcoming article I will give you an example of a business plan explaining point by point the same.
For now the important thing is that you understand the value and convenience of lowering your idea to the plane of reality and putting it face to face with data, situations and key aspects that you would not otherwise consider.
3 Think in the long term.
There are those who invest all their savings in their project with the hope of earning income from day zero (which rarely happens). In this way of proceeding I call it “chronicle of a death foretold.”
It is normal that we all start a confident activity and hoping that we do well, however with faith alone it is not enough. Starting a business in a professional way involves looking at the distance in time since certain resources, such as money, are limited.
Imagine that you invest your savings, or worse, money from a loan trusting that your business will take off right away and spend one, two, three, four, five months your business still does not take off and you already ran out of a peso …
With what are you going to pay the fixed expenses such as rent, salaries, taxes and loan installments?
As you will see, it is vital to think long term if you want to start a business in a professional way. This is so obvious that it should be the rule, however it is the exception since there are few people who work in this way.
A long-term look and an annual budget will allow you to know how long you will be able to “hold” your business before your money runs out and also get ahead and adapt to certain market fluctuations derived from seasonal, festive or seasonal issues. of another nature.
4 Pay you your own salary
There is a lot of literature about it, mainly in the field of personal finance. I will approach it from the point of view of creating your own business.
When we start a business we are super motivated, to the point that we are even able to resign our own income in favor of the development of our enterprise.
We would never work for another person without fair compensation, even if we were promised a greater profit in the future. However, if it is our own business, we are able to sacrifice our salary. What is, quite simply, a mistake.
I could explain it to you in a thousand ways but I will do it in the simplest way so that you understand it without turns:
If your business doesn’t even give you a salary, what business are we talking about?
It makes no sense to work, work and work waiting for the golden moment in which your business is successful to get what you deserve with justice because that moment never comes. Your salary and your business earnings are two different things.
We who undertake know that there are always unforeseen expenses, something to invest in and even imponderables that require attention, that is why your salary must be contemplated in your budget from day one.
It is true that when you start your activity you probably cannot pay yourself and you should wait a bit but it is still a concept that should be part of your monthly fixed expenses.
5 Invest in marketing and advertising
Resources for marketing and advertising should not be considered an expense but an investment.
It always seemed absurd to see how some invest a lot in their premises, in facilities, vehicles and even in superfluous expenses but when you tell them that they have to invest in a web page, in a strategy of digital marketing and online advertising they look with the face of Constipated cow as if you were talking about going in search of the holy grail.
Thanks to the Internet, consumers have powerful tools that allow them to find what they are looking for and compare different product and service options. The only way to make your business stand out from a multitude of similar offers is to draw up a good and professional marketing strategy and invest in advertising.
A marketing plan and the advertising derived from it will allow you not only to communicate with your audience but more importantly, connect with them to transform them into customers or build loyalty to those who already are.
If you don’t have money you can invest time creating content that seduces your audience. The important thing is that you do not sit in an armchair waiting for “rain of manna from the sky”, today more than ever you should go out to look for customers, whoever does not have his death date guaranteed.
As always I hope this content is useful to you. Do not forget to leave me your question, comment or concern in the contact form , I will be answering you shortly.