When it comes to entrepreneurship, there is no such thing as a cookie-cutter approach, just as there is no such thing in life. These three guidelines will help new business owners avoid failure and ensure a smooth transition into the world of entrepreneurship. 

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Founders with little to no experience and first-time business owners who are enthusiastic about entering the world of entrepreneurship frequently find that they are preoccupied with matters that are “not important right now.” 

When an entrepreneur is getting distracted by something that is not important, it is usually easy to tell. Their attention is drawn out over a period that is significantly longer than is required for matters such as branded clothing, business cards, and the appropriate titles. When you’re establishing a business, it’s critical to avoid wasting resources on priorities that aren’t important right now even though there is a constant cycle of priorities in the business world that are always in play. To make the point clear, let’s take a look at a quick summary of the priorities that are different for experienced and inexperienced businesspeople: 

Inexperienced Attempt at a Priority List

  • Find a moniker for it. 
  • Check to see if the file to incorporate it is available. 
  • After the completion of the incorporation process, you can open a bank account for the business. 
  • Get a logo 
  • Get branded apparel 
  • Obtain the calling cards right away. 
  • Begin compiling a list of potential customers. 
  • Get a customer 
  • The natural progression of goals experienced 
  • Keep compiling a list of potential customers. 
  • Find a moniker for it. 
  • Perhaps pick up a business card, etc. 

When it comes to launching a new company, novice business owners and founders frequently make the mistakes outlined in the following list. 

Get a Firm Grasp on the Distinction Between a Predetermined Order of Goals and a More Fluid Flow of Goals

Unseasoned businesspeople tend to believe that to achieve their objectives, certain steps must be carried out in a specific sequence. For instance, I have seen several people begin their journeys as entrepreneurs and refuse business from potential customers because they believe it is essential to accomplish their goals in the order presented above. 

This line of thinking, particularly in the beginning stages, causes a slowdown in execution rates because it causes a bottleneck in the next thing that needs to be done. This results in friction, which ultimately leads to burnout for a new business owner. In the meantime, an experienced entrepreneur is aware that in the beginning, particularly, there will be multiple goals in play, and they will be working toward their completion simultaneously. The problem is that the brain wants everything to be in the proper order, but that’s not always how things work. Occasionally we need to concentrate on multiple things at the same time to see them through to completion. 

The progression of goals will look different depending on the circumstances of each situation. However, in the beginning, the most important thing to do is to make certain that attention is being paid to the appropriate goal, and more importantly, that the business demonstrates at least some premise of validity. The aforementioned goals can be accomplished in a little over a day; time constraints are not the issue. The problem is that inexperienced people have a tendency to get caught up on things that are not important, and this can turn a one-day list into a one-week or one-month list, or even a list that is not finished because the person “got distracted.” 

Even the formation of a legal corporate entity may not be necessary at this time in some circumstances. When it comes to starting a small business, the majority of them can and ought to be started as sole proprietorships — at least in the beginning, before they begin the process of incorporating. Having said that, there are certain fields in which the decision to form a corporation ought to be given significant thought. 

For instance, a low-risk graphic design company may wish to move forward with starting operations and get its business up and running. On the other hand, it might make logical sense to integrate it if the industry in question poses a risk of people getting hurt on the job. (You should always seek the advice of a qualified legal professional regarding the options that might be most appropriate for you.) 

Be Aware of the Potential Drawbacks and Benefits of Each Priority

Every single action, or lack thereof, comes with some type of risk or opportunity cost, and this is especially true in the beginning when the compounding effect is at its strongest. In light of this fact, approaching the list of goals by weighing the risks involved against the potential benefits provides us with direction on how to proceed. 

When they first get started, founders with experience will focus on acquiring new customers. It is not very risky, but the payoff is substantial: there is an expansion of the business, particularly growth that is compounded over time. Taking the inexperienced route, on the other hand, puts at risk all of the resources used in steps 1-8 (including time, money, mental capacity, and so on) in the hope of generating the reward of step 9, which is adding a new customer. Additionally, the risk is made even more significant by the fact that a founder might discover that the actions in steps 1-8 might change as a result of the compounding effect of time. For instance, the company logo may not be the best option, or perhaps a C-Corp or LLC structure would have been more appropriate. 

This indicates that we need to put the steps in writing and number them according to the order in which they should be completed. You always have the option to implement it at a later time, alter the logo, or purchase branded clothing at a later date. Even though you can always acquire customers at a later time, the focus should be on getting new customers because doing so offers the best return on investment, particularly at the beginning of the business. An untrained founder who places their attention on the wrong stuff from the very beginning tends to continue to place their attention on the wrong things until either of the following occurs: 

They will continue to throw away resources worrying about things that are “not relevant right now” until they have no more resources left, at which point their company will fail. They will keep squandering resources until they discover the method of carrying out operations that is most suitable for them. (Although it may be necessary at times, one should not throw away resources if they can be avoided.) The second choice brings us to the third piece of advice for beginning an entrepreneurial endeavor: 

Recognize the Type of Businessperson You Are

It’s not a part that can be filled by anyone and everyone. In the same way that you can’t fully understand who you are and how you function until you go through life yourself, the same is true of entrepreneurship. You may fool yourself into thinking that you can take things one step at a time, only to find out that you’re the type of person who needs to show headway on all fronts in spurts. 

When it comes to entrepreneurship, there is no such thing as a cookie-cutter approach, just like there is no such thing in life. In the beginning stage, there are specific essential requirements that must be met, but it is entirely up to the individual to determine how those needs are met. Entrepreneurs with years of experience who are fully aware of who they are and how they function most effectively are in the best position to devise the strategy that will allow them to construct the ideal company. In the meantime, novice builders can improve their skills by starting from scratch and applying the advice given above.