Every business has a why factor. There is a reason why someone starts a business. Whether they are following a passion, see a need that isn’t being met or something in between, there is always something that gets the process started.
Not every business has a how factor. This is the hardest step.
A business has to answer the "how" questions before it even starts.
How will the business operate?
How will it identify and attract customers?
How will it scale?
Often entrepreneurs know little about marketing, accounting and other business disciplines. Or they simply don’t know how much work it will actually take to be successful.
First and foremost, an entrepreneur has to have passion yes passion.
Passion is what allows an entrepreneur to work long nights, be patient as the business grows and battle through adversity.
Large purchases should be made later in the cycle of a business. Once a business is operational and starts making profits, expenses like rent and payroll are deductible as taxable income. Before then, though, they are just expenses. That’s why it’s important to delay many operational expenses.
Smart spending combined with bootstrapping – starting a business with the bare minimum costs – can put a young business in the best position to succeed. Most businesses don’t turn a profit immediately. Limiting costs, so a business can survive the lean months, is vital to success.
These tips are just the beginning, but are a good start when considering whether or not to start a business from scratch.
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