Starting your own business or trying to grow the one you have? We all know the risks of taking on a large financial project, especially one such as starting a business from the ground up. Even the most successful entrepreneurs seek advice or tips from coaches, masterminds, and other experts.
Risk and reward are the common strategies entrepreneurs have to balance to become successful as they share their new ideas, services, and products with the market. That said, there is a lot of hard work that goes into becoming an entrepreneur. From planning to education to choosing your target audience, networking, marketing, and selling your ideas, some days you may wonder if it’s even worth it.
Entrepreneurs often get to escape the average 9-to-5, assuming they succeed. If they do, the reward is worth it. Before you get there though, you may want some tips on being a growing entrepreneur. Here are a few tips to keep in mind as you navigate your journey.
Understand your finances or hire someone that does
“If you gon’ be in business you gotta understand numbers… Numbers drive deals.”
-Magic Johnson (on the best advice he received from Dr. Jerry Buss, former owner of the Lakers)
Being an entrepreneur comes with a lot of risks and rewards, especially ones involving money. You have to really believe in the product or service you are pitching in order to do so.
Once you have established exactly what your plan is, you’re going to have to spend money either trying to finance it, or set yourself a budget in order to make sure you don’t go bankrupt trying to become successful.
For some, numbers come easily. For others, not so much. When it comes to budgeting, be sure you know how much you can invest and be careful not to exceed it. Many find it beneficial to reach out to a financial professional for assistance while launching their service or product. This way, you have another set of eyes (a professional set) to help you to see things you otherwise might not be aware of in your business.
Having someone and your team to weigh in on financial decisions is immensely helpful. They are there to not only make sure you are compliant, but to help you save money and maximize how much you make, and be positioned to take advantage of future opportunities. Remember, as far as entrepreneur tips go, being smart with your money is arguably the most important!
Build and maintain connections
Connections are everything when it comes to being a growing entrepreneur. Without people who can attest to your professionalism and passion, refer your services, or know/like/trust you enough (which takes time) to retain your services, you are taking a huge risk. Building connections is a great way to set a foundation for your business. This way, you have reputable sources who can speak on their past experiences with you. This is a huge benefit as many people typically look at testimonials and reviews, as well as referrals from others when investing in or purchasing a new service or product.
Additionally, making connections can open a world of doors for you. Someone you met five years ago who you have stayed in touch with may even have some input on the business you are trying to build. These industry insights can be priceless entrepreneur tips. By building and maintaining connections, you have mentors (in a sense) who can help you navigate through your entrepreneurial journey. Further, a customer or potential client may not need your services today, but may a year from now. By building and maintaining connections, you are planting seeds so they may sprout at some future date.
Take risks
Every business owner has to get comfortable on some level with risk. Your ability to manage and leverage risk will determine your ability to succeed.
“There’s no such thing as a good idea.”
-Marc Randolf, Former CEO and founder of Netflix
I love this quote from Marc Randolf. He says that it is impossible to fully know in advance if an idea is good or bad. This doesn’t mean you shouldn’t do your homework or create a plan. It does mean that our success or failure lies in our willingness to try something, correctly interpret the results, then apply our findings moving forward. You will never know unless you take a risk and put it out there.
On the contrary, taking risks can be tricky when it comes to finances. Of course, you’re going to need to put some money into your ideas for them to be successful, but that does not mean using your entire savings in hopes that it will pay off for you. If you’re not sure how to weigh risks as far as finances go, find a financial professional to help.
Keep reading and learning
When you’re an entrepreneur, opportunities come up every single day. Prioritize reading and learning about new opportunities, technologies, and trends that may help you grow your business and leadership skills.
Additionally, it is great to find others who have more experience in business or your industry and look to them for guidance. Read their interviews, websites, blog posts, books, and any other resources they offer regarding growing a business. This is a great way to get entrepreneur tips to help you stay informed, adapt your plan, and get a new perspective.
There is so much potential in our ability to not only grow our businesses but also ourselves depending on how much we are willing to put in. Sometimes the financial risks and rewards piece can be a struggle or confusing for some.
Need guidance? I’m here to help. As a business solutions expert, I have helped dozens of businesses untangle complex issues and clarify a path to greater profitability. Let’s schedule an Introductory Call and start a conversation.
If you enjoyed this content and want more of the same check out my free guide Do This, Not That: 5 Things Keeping Your Business From Reaching Its Fullest Potential where I discuss common barriers to profitability that I observe among most small businesses.