As you know, I ran a successful business consulting firm for nearly twelve years. I started with the idea to run a small business to help those in need, but it turned out to be more. By the time I retired, I had expanded the business to four states. I had a team of over fifty, which included employees, investors, interns, and business partners. It was a huge responsibility, but I enjoyed every minute of it. Now, I am going to give you insight on how I did it and give you tips and ideas to help you run a successful business. Here is what you need to know:
The number one issue that most business owners struggle with is having start up capital, maintaining their capital, and knowing how to ask for it. Here are things you need to know:
How to create and maintain your profit and loss statement.
How to create and maintain a balance sheet.
How to create and maintain a forecast for your business.
How to campaign for raising capital.
How to pitch your business to get an investor(s).
How to get leads.
How to turn leads into clients.
How to maintain clients.
Before you can define each point above, you should know what type of business you want, who you want your audience to be, the end goal for your business, and basic information such as, name, owner(s), current budget, expenses, and current employees and business partners. Not knowing these things does not mean you can’t start a business, but it does give you a clearer vision on what you need moving forward.
“You maintain a business by maintaining the flow of the business. You keep a business open by keeping the revenue flowing in.”
Unwanted things, but inevitable things that will happen when you open a business.
You may run out of money.
You will receive negative reviews.
Your revenue will decrease during the holiday (November-January) season.
The best time to start a business is from tax season through the end of summer.
The dominoes effect is real.
Your race does matter.
Doing work for free is BAD!
Starting a business with friends and family isn’t a good idea, but that isn’t a reason to not try it out.
You may have to ask close friends and family for money.
You will fail at something.
Switching roles within your business may be the one thing that saves your company. Even if this means you are not CEO for a period of time.
You are not the only one with the idea, so knowing and understanding your competition is important. Especially, the average rate per product and service.
Debt is inevitable.
In, How to Start and Run a Successful Business Part II, I will break down the key factors above.