Worrying about giving up a secure job and not being able to pay the rent or mortgage is a valid concern but hearing those worries echoed by your loved ones can make even the most intrepid entrepreneur wobble.
If a lack of capital is an issue initially (which it usually is), then many business owners have to continue working their day job, while beavering away until the early hours on the new project. Entrepreneurship and micro businesses are launching at an astonishing rate too, with new businesses in the UK increasing by a vast 28.5% from 2012 to 2013. Last year, research found that under-35s starting new businesses grew by more than 70% since 2004.
My point is that all of these people will have made a conscious decision to be an entrepreneur, as well as accepting all the ups and downs that it brings.
I launched My Parcel Delivery in 2010, while the UK was still in the depths of the recession, following the financial crash in 2008. Despite many people telling me otherwise, the economic situation didn’t put me off – especially as I was creating a service to save people money and give them better choices in terms of delivery.
In addition to this, setting up a new company which challenges the status quo in any industry is tough. Ultimately, it’s important to keep the right mind-set from the beginning in order to stop the fear from getting to you!
Here are my top three tips to help early entrepreneurs get their businesses up and running and give up the day job even faster:
1. Be persistent
If I gave up every time I got a knock back or someone wouldn’t return my phone call, then I definitely wouldn’t be here today. Persistence pays off – and do not let the knock-backs affect your confidence. The early stages of setting up a company can be very difficult and many people do give up. It helps if you accept from the beginning that it’s going to be hard work and you know that it is determination and self-belief that will pull you through.
2. Look after your costs
Everyone has heard the saying: ‘cash is king in business’. It really is so important to keep on top of your finances right from the beginning – even if you’re not yet making any income. Be ruthlessly organised with all of your accounts, including both incomings and outgoings. Keep every single receipt, keep monitoring your bank account and think before you spend any amount. Once you can afford to pay someone to handle your accounts for you, it will be the best investment you make.
3. Use feedback constantly
Every entrepreneur has a vision of what their business will look and feel like. However, this vision should never be at the cost of everything else. Any business must respond to what customers actually want, so business owners should always be seeking feedback to improve the customer journey. Using feedback to improve your business proposition will enable you to get the business up and running – and most importantly, turning a profit even quicker.
The UK has an amazing number of growing entrepreneurs who are creating revolutionary companies and this should be encouraged in every way. Good luck to anyone setting out on their own – it will be an eventful journey but will be worth it in the end!