What you need to consider when you decide to go into business
The Saafenet Corporation prepared a training manual for the use of anyone that has considered opening their own company. It differs from many training manuals in that it does not describe some new method of making a fortune. Instead, it describes the only way that has ever worked for starting a business since the beginning of time. it’s different from what’s available because it offers advice for a person with modest resources to start a business. The manual includes a five step plan that demonstrates how an individual can open hundreds of different businesses.
But even with that, many people fall victim to issues that would cause even a well intentioned person to fail. Look at the lists below before you attempt a life changing endeavor like starting your own business.
- If you think going into business will be a road to instant riches.
- Or, if you open a company without completely understanding best practices for business.
- If you lack focus and think you can open multiple businesses at once.
- Or fail to correct poor money management habits.
- Finally, if you believe you can operate for long without help, your probability of failure is great.
Details of those attributes you should avoid appear below:
Believing opening a company will be a road to instant riches
Though a few people know the truth, most people open businesses thinking it will make them rich. Because of that school of thought, people search for, and spend billions on get rich quick schemes. Unfortunately the only person that gets rich is the founder of the scheme. People with a drive to get rich forget about or may have never known the importance of their customers. Going into business has the capacity to make you rich, however you must place your customer’s needs before your own. Because, few companies that place profit as their first motivation ever reach the financial heights they seek.
You must decide to develop an innovative way to deliver your products. A way to deliver unique value added features, A way to deliver consistent discounts or features your customers want. Because, if you can do one or all of those things money will come to you. If you forget about these types of things you will struggle to survive, if you are able to remain open at all. Without a focus on your customer, you demonstrate you have no idea what going into business is about.
Opening a company without understanding business itself
A material part of starting a successful company, is how well you understand the phases of business development. Many people do not seek any method of learning it, because their focus is on making money. There are however, a minimum of two variables one must learn to survive in business. First you must understand best practices for starting and growing a company. And, second you must understand the specific details of the particular industry in which your business will operate. Only then can you plan innovative methods of satisfying your customers. Your customer is the reason for starting any company not a desire for wealth. Knowledge of business itself will indicate how that can best be done.
Believing it is possible to start several unrelated companies at once.
There is an old cliche stating “you can be a jack of all trades and a master of none”. This is especially true in business. Opening a landscaping, a frame making and catering company would not make sense. These operations are unrelated and other than money, if you made any, could not benefit each other. Opening a single landscaping company selling lawn care products on line, and accepting all landscaping work by subcontracting anything it couldn’t do, might. Its landscaping operation might use some of the products it sold on line which it purchased wholesale. Architectural landscaping work that required licenses could be subcontracted. Giving the company the ability to accept work for which it was not licensed. With no salary or equipment cost it would earn the amount of the discounts offered by subcontractors. Greater detail on making money on subcontracting is available in the Saafenet training manual.
Failing to correct poor money management skills
If you can’t manage your own money, it’s unlikely you can manage the money of your company. Learning restraint is not easy. A first step might be to sign up for the Saafenet free newsletter then forcing yourself to follow its recommendations. If you want to go into business you have to be able to be in control of your own finances.