Millions of people around the world are starting brand new businesses daily. However, just as many people fail and tank, losing money and sales in the process. This isn’t great. Sad truth is, many people do not deserve and have no place in running an internet business. Make sure you stay on top of your game by applying the following crucial principles.
Firstly, every small business opportunity needs to be evaluated in terms of money. Money is important and raising capital is hard. If you cannot justify how much money you need, you will fail. Make sure you know exactly how much coin you would need to sink into the business especially if it is your own. You do not want to end up in a financial black hole later. Make sure you also realize what is at stake here. The opportunity cost of raising a business is incredibly high and if you cannot do that you probably deserve to tank and lose in terms of income. If you realize you cannot commit, don’t even bother starting because you will fail.
Playing to your strengths is important to. A business will take off only if you have the walk to back up the talk. True story. It might be a lot better to find something that closely mirrors your skill level. Getting out of your comfort zone and learning a new skill is one thing – but completely doing a 180 and not having a clue on what to do when business building is detrimental. If you are still stuck consider hiring or finding a business partner that can back you up.
Next consideration: the future. Is there anything up and coming on the horizon that will destroy your business? Whether it is government regulations, taxes, new technology, social pressures, all these factors have a huge say. So quickly do a SWOT analysis on the upcoming threats so that you can prepare yourself. For example – It might not be realistic to bring AirBnB to fruition when there are regulations from preventing you from doing so. On a similar note, there might be factors that help out your business as well. Positive externalities like the lowering of taxes could help you out too so make sure these factors have been identified.
Do you have the right crew of ballers to build around? If the answer is no your business might very quickly become a 1 man band. You need a motivated and skilled work force to succeed. Make sure you’re able to meet this demand. Good staff members can be extremely difficult to find – retain them. If a staff member is not pulling their own weight you need to get rid of them as well. Such toxicity should not exist in your business!
Does your business opportunity meet these rules? If no, have a good long think before diving into the flames.