“POPULAR ERROR – START A BUSINESS WITH ITS ATTRIBUTES, NOT WITH YOUR BUSINESS “
Even experienced freelancers, deciding to switch to official registration, stumbled at the simplest steps. To prevent this from happening, I share tips for beginners.
#1. Form a client stream
One of the most common mistakes is to start a business with its attributes, and not with the business itself: to rent an office, register a legal entity, print business cards.
You need to start with the formation of the client stream.
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If there are no clients and a financial model, it is not clear what are the prospects for the business.
Almost always, I started the next project without a financial model. When you are full of energy and motivation, you are ready to give all 300% to emotions. But when there are no results, depression certainly ensues and a desire comes to quickly end the torment of one’s business.
# 2 Start by looking for customers when it comes to client business.
Do not go into retail or into a business with a large initial capitalization (plant, restaurant, construction), unless you have figured out how to fuel it, until you make all the mistakes.
# 3 Sale of services – the best solution for starting
You can provide services with minimal advertising and without the usual attributes of a business.
We decided to launch offline courses for children – start with tutoring on ads.
Promote the service on Instagram – declare yourself in various publics. Integrate CRM – make your way through the recommendations of friends, spam in the mail or in private messages. By spam I mean cold contacts, not automatic mailing.
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Cold methods are a great school of business communication. If you learn to convert at least 10% of the initial base, you will become a pro in sales. And if not, the experience of field communication with customers will remain. It opens a lot of eyes.
#4. Do not hire employees while doing it yourself
Delegation makes your business real. But at the initial stage of development, generate sufficient cash flow for reinvestment. If you spend it on unloaded employees, there is not enough capital for development.
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Ideally, even at a mature stage, you need to have exactly as many employees as you need to close tasks.
#5. Do not create management management until necessary
Top management is one of the attributes of a mature business. At some point, the scope of management tasks exceeds capabilities. You have to hire or promote someone up the career ladder in order to remove some of the tasks from yourself.
But this always leads to a decrease in marginality. Account managers, executive and commercial directors – all these positions will wait until the business is firmly on its feet. Then it will be clear where to get the resource for managers.
Additional advice: from the start, determine your fixed salary in the business. When the time comes to delegate authority to an employee, this will be a ready-made resource in the company’s budget.