Have you had moments of self-doubt as you weave through the world of entrepreneurism? Do you question the daily activities that you think should be in your daily regime? We have some thoughts about how you can get yourself on track and incorporate some best practices as far as how you think and perform every day in your business.
Is Your Business Viable?
You have the passion, you have the drive, but have you tested the market when it comes to your business idea? Even if you’ve already launched, you can take some of the following steps to ensure you made the right decision.
Get in touch with your target audience to find out what they think. Have questions drafted in advance, so you know you’re collecting the information needed to make the right decisions.
You can accomplish this via:
- Focus Group
- One-on-one Conversations
- Beta Testers – they use your product or service and provide feedback
If the information doesn’t demonstrate that your product or service doesn’t carry the demand you initially thought, it may be time to shift gears and adjust or begin again.
It’s better to fail quickly than to fail long after you’ve started the business. By failing sooner than later, you’re not failing; you’re saving yourself time, money, and pride.
And, you’ve gained invaluable experience to use in the future. There’s always another business idea, and your first round will give you even more experience than you had the first time.
Financial Plan is Vital
When you had your big idea and started your business, like many, you may not have put much thought into the overall plan on how funds will come in and go out (receivables & payables).
But now you’re moving through your day-to-day activities, are there times you realize you don’t have the funds to pay certain expenses? Because customers/clients are paying late, or sales aren’t there yet? This scenario is one of the signs that you need to sit down and jot down all of your expenses and then look at what incoming revenue is guaranteed and what is not.
If the costs are higher than the income, now’s the time to cut expenses or put a more concerted effort into increasing sales or making an adjustment to your pricing.
The best scenario is to have a reserve fund so that you’re able to cover what is needed before making a rash decision that could harm the future of your business. But, don’t make this a regular thing as reserves should be for emergencies or an investment for your business (equipment, new employee, etc.).
Solve One Challenge at a Time
Most entrepreneurs may appear to be invincible, but behind the scenes, there is unknown chaos. Sometimes everything runs smoothly, and then other times, it seems like problems are coming at you simultaneously.
Prioritize these challenges and then come up with a solution before moving to the next hurdle. And make sure you document the process you went through to solve it.
Doing this could save you lots of time and aggravation should the same issue come up again.
Exception: should multiple problems arise that absolutely must be solved immediately as not solving them could be detrimental to your operations, then that is a decision you will need to make for the health of your business.
Don’t Get Discouraged
If you’ve determined that your business is indeed viable, following some of the above approaches will help you move forward sustainably.