How to Increase Your Chances of Entrepreneurial Success
Running your own business is daunting for anyone, especially in a difficult entrepreneurial environment. Fortunately, there are a few areas you can focus on that will increase your chances of success.
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Cash Flow
Data show that most business failures are due to problems with cash flow. This means taking care of your finances significantly improves your likelihood of long-term survival. When first starting out, research different sources of funding:
Venture capital
Loans
Grants
Personal savings
When securing initial funding, it helps to have a detailed business plan. This document explains the structure, market, product or service provided and other aspects of the business. It helps both you and investors make sure the idea is viable before parting with any cash.
A major component of the business plan is the revenue forecast. This calculation considers expenses and expected sales to estimate profit or loss over a given timeframe. After the startup phase, it is a good idea to update your revenue projection regularly to help you adjust your expenses and marketing strategies as needed so that your business turns a steady profit. Consider making both an optimistic and a conservative projection. It is generally safe to assume that your actual profit will fall between those two estimates.
If you’re a business novice and would like to learn more about business projections, marketing, operations, and leadership, consider enrolling in an MBA program. Online programs are ideal for busy professionals as they give you the flexibility to learn on your own time while still running your business.
Relationships
As a business owner, you need to foster a variety of relationships. Establish connections with customers through marketing and customer service. Social media is a valuable tool for these aspects of entrepreneurship. Market research and customer surveys help you tailor your strategies to improve your branding.
Networking, on the other hand, is a way to connect with customers and business partners, including vendors and suppliers. Attend local and national meetings to foster professional relationships. Practice describing your business model so that you can quickly and easily explain it to those you meet. Maintain relationships by reaching out to acquaintances you haven’t spoken to within a while. Be helpful when you can so that others are likely to return the favor.
Stress Management
As an entrepreneur, you likely have a lot on your plate besides running your business. Family, friends, and other obligations can add up and become overwhelming. For your company to succeed, you must first take care of yourself. Fortunately, stress management does not have to be complicated. The following are some simple strategies to stay calm:
Take mini-breaks
Delegate
Find a hobby
Get enough sleep
Even simple strategies require time, so time management is key to controlling stress. Stay organized, and minimize distractions. Create a schedule, and do your best to stick to it. It helps to plan out time for relaxation.
Paperwork is a big cause of stress for many entrepreneurs. Staying in control of this area helps reduce that anxiety. Research all legal requirements and relevant taxes to ensure you don’t neglect anything important. Although an accountant and attorney can be helpful in this area, many small business owners research these topics online and use software to do the paperwork. Put all due dates in your calendar, and set aside time each week or month to work on bookkeeping.
Owning your own business is both stressful and rewarding. Focusing on your cash flow and business relationships are key strategies for success, but don’t forget to take care of yourself. Do what you can to decrease work-related stress, and make time for relaxation and other forms of self-care.