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What You Should Know Before Starting Your Very First Business

What You Should Know Before Starting Your Very First Business

This answer found in Quora by Oliver Emberton helps to describe what all first time entrepreneurs should know before starting their very first business.

11 years ago I was an impoverished student about to graduate with £14k in debt. I did what any sensible person would do in this situation, and started my own business.

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I co-founded with someone who proved to be less than ideal when he punched me in the face during our second board meeting. He owned 49% of my company. Our first annual profit – £200 – was barely enough to buy one iPod touch.

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    A decade later I’m almost embarrassingly happy and successful, but the road there was long and winding. Here’s some of what I learned:

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    On you as a founder

    • Firstly, do it.
      Every single person – from my family to my closest friends – ultimately doubted that this was a good idea. (Many started being supportive, and changed their minds when times got harder). If you feel compelled to do it, don’t let anyone stop you, and don’t expect anyone to support you either.
    • Start with total brutal honesty.
      I’d say this is Rule #1 in life. Everybody deludes themselves in some way – and in groups it can often be easiest to delude each other. But the more honestly you can see the world, the better your decisions will be. Doubt yourself. Question everything. If someone put a gun to your head, could you tear holes in your ideas? When your plans can withstand that, they’re probably pretty good.
    • Practice saying no. A lot.
      You will almost certainly want to do a hundred different things. Almost all business founders are like this by nature – they see opportunity everywhere and change the world (I’m certainly no exception). But this is a terrible way to run a business. You need to focus on doing a very small number of things really well, and that means saying no to 1,000 other things. This is harder than you think, and far more powerful than you can imagine.
    • Growing past 2-3 people will cripple most founders.
      Most small businesses are started by a person who’s good at what their business does: accountants start accountancy companies, bakers start bakeries; I was a geek who – at first – started a web design company. These people will find it extremely hard to grow past 2-3 people; most often they struggle to hire someone ‘as good as themselves’, and end up tired and frustrated trying to do everything. If you only read one business book, get the E-Myth Revisited and learn what to do about it, or at least skim these free notes.

    On your business idea

    • Don’t be afraid to change tacks.
      There is a saying that no business plan survives first contact with the customer. Nintendo started by making playing cards. Facebook was designed for university students. My own company built websites for 10 years before changing to software. Changing direction doesn’t have to make you weak or indecisive – you may have to adjust to find your perfect niche. Just try to do it early and avoid doing it too often.
    • Just one. Powerful. Idea.
      You can blend complementary ideas (e.g. a restaurant with comedy shows) but not totally disparate ones (a restaurant that sells management consulting services).  When you start pick out just a few key features of your idea, and focus on making those amazing. Say no to everything else.
    • A successful business is either loved or needed.
      It’s exceedingly rare to be both, although as owners we always like to think our companies are loved! (see Rule #1: be honest with yourself). Ensure you’re essential or utterly irresistible. Most often if you sell to businesses you have to be needed – like accountants, lawyers, web designers; if you sell to consumers you need to be loved – like iPhones, movie theatres, cosmetics.
    • Imagine being an outside investor.
      Pretend to be someone with a lot of self-made money but not much time. Meet yourself right now, and listen to your own explanation of your business. What do you think? Does it sound like a good investment? Once again – be honest. (Sidenote: it’s ok to have a business which isn’t planning to be a big financial success. But very few entrepreneurs believe they’re starting one of those).
    • Align with your passions.
      True passion is infectious. It will win over doubting prospects. It can make staff loyal to you. Passion will give you boundless energy and keep you going when others would throw in the towel. Ultimately if you build a business around something you’re not passionate about – and I made this mistake – you’ll wake up one day and think “what have I gotten myself into?”

    On marketing

    • Marketing isn’t about changing people’s minds.
      Your job isn’t to convince people to want what you’re offering. It’s to help your prospects convince themselves that what you’re offering will help them get what they really want.
    • A few things not to skimp upon.
      Your logo, tagline and website are utterly essential; they’re the first impression you’ll make to most people, and your only message while you’re not there. (If you sell face-to-face to businesses add business cards to that list). If you need professional help, get it. Don’t be tempted to hire your teenage nephew, or do it yourself. This is akin to being your own lawyer, and equally disastrous. You don’t have to pay a fortune – just keep your requirements simple and emphasise quality over quantity. Don’t worry about letterheads or compliment slips or custom email footers or any of that crap until you’re making money.
    • Advertising is a tax you pay for being unremarkable.
      A good idea is easy to sell; a great one will sell and spread itself. The harder you have to work to explain and sell what you do, the more your idea needs work. There are two solutions: simplify what you do, or change tacks entirely. You won’t sell more of a bad idea by making it more complicated.

    Everyone has to find their own path, but you can save yourself a lot of time and stress by learning from the best and brightest who have come before you. I highly recommend reading just three brilliant books: The E-Myth Revisited7 Habits of Highly Effective People and the Personal MBA; they’re worth at least a year’s head start by themselves.

    Everyone I know who has ever tried had a single common refrain: they wish they did it sooner. If you think it’s your calling, what’s your excuse?

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    Brian Lee

    Chief of Product Management at Lifehack

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    Last Updated on December 10, 2019

    7 Strategies to Keep Employee Motivation High

    7 Strategies to Keep Employee Motivation High

    Highly motivated employees are essential to the success of any business. Most people spend a third of their lives at work.[1] That’s a significant amount of time away from home, apart from the people who make us happy and the things we love to do. So keeping employee motivation high is essential for creating an office environment that gets the best out of our people.

    But do you know what motivates your people?

    It’s simple:

    • Is their work stimulating?
    • Does it challenge them?
    • Is there room to grow, a promotion perhaps?
    • Do you encourage creativity?
    • Can they speak openly and honestly with you?
    • Do you praise them?
    • Do you trust your staff to take ownership of their work?
    • Do they feel safe in their work environment?
    • And more importantly, do you pay them properly?

    Every one of these factors contributes to the general happiness of your employees. It’s what motivates them to come into the office each day and work hard, hit goals, and get results.

    In contrast, an unmotivated employee is typically unhappy. They take more sick days, they’re not invested in seeing your business succeed, and they’re always on the lookout for something better.

    Stats show that 81 percent of employees would consider leaving their jobs today if the right opportunity presented itself.[2] So it’s up to you to set aside time and energy to create a work environment that benefits every one of your employees.

    These seven strategies will help you motivate your people to consistently deliver quality work and, more importantly, to stick around for the long term.

    1. Be Someone They Can Rely On

    You rely on your people to turn up to work each day, to come to you when they have a problem they can’t solve, to be honest, and to always engage professionally with customers.

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    But this is not a one-way street. You, too, need to be someone your team can rely on. They trust you to have their backs when a client is unreasonable, to know that the decisions they make are in your best interest, and to make good on your promises.

    If you say you’ll attend an important meeting, be there. If your company makes a profit and you’ve said you’ll pay a bonus, pay it. The goodwill of your people is something you never want to test, let alone lose.

    Be reliable; it’s astounding how much this motivates your people.

    2. Create an Awesome Company Culture

    There’s no denying that company culture trickles down from the top. Your leadership and attitude massively influences the attitudes, work ethic, and happiness of your staff. If you’re always stressed-out, overly demanding, and unreasonable, it’ll create tension in your office which will adversely affect your employees’ motivation levels.

    In fact, the HAYS “US What People Want Survey” found that 47 percent of staff who are actively looking for a new job, pinpoint company culture as the driving force behind their reason to leave.

    So if you have high staff turnover, you need to determine whether your company culture might be the motivating factor behind your churn rate.

    Here are four ways to build a culture that keeps your employees highly motivated.

    • Be conscious of the image you present. Your body language and attitude can positively or negatively impact your employees. So come to work energized. Be optimistic, friendly, and engaging—this enthusiasm will spill over to your people and motivate them to be more productive and efficient.
    • Appreciate your people and be reasonable. Celebrate your team’s achievements. If they’re doing a good job, tell them. Encourage them to challenge themselves and try new things. And reward when deserved. If they’re struggling, help them. Work together to find solutions and be a sounding board for their ideas.
    • Be flexible. Give your people opportunities to work remotely—this is highly motivating to staff, particularly millennials. They don’t want to be battling traffic each day on their way to work. They don’t want to miss their kids’ baseball games or ballet rehearsals. Stats show that companies that offer flextime and the ability to work from home or a coffee shop have happier and more productive employees.
    • Create employee-friendly work environments. These are spaces that inspire and ignite the imagination. Have you ever been to Google’s offices? No headquarter is the same. From indoor slides and food trucks, to hammocks, and funky work pods on the wall, gaming rooms, and tranquil interior gardens, there’s something for everyone. It’s a space where people want to be, catering to their need for creativity, quiet, or team building; you name it.

    So take a look at your company culture and ask yourself, Is my business an attractive workplace for talented professionals? Does it inspire commitment and motivate my people? What could I do to improve my company culture?

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    3. Touch Base with Your Team Weekly

    Make time for your people, whether you run a remote business or work in an office, set aside time each week to talk to your people one-on-one. It’s non-negotiable.

    When there’s an open line of communication between staff members, work gets done. Don’t believe me? A study by Gallup found that 26 percent of employees said feedback from their leaders helps them to do a better job.[3]

    Your people want to feel trusted. They want to take ownership of their work, but they also need to know that when they have a question, they can reach out and get answers. If you’re unwilling to make yourself available, your team will quickly become unmotivated, work will stagnate, and your business will stop growing.

    So block off time on your calendar each week to touch base with your people, even if only to let them know that what they’re working on matters.

    4. Give Them the Tools They Need to Do Their Jobs Well

    Imagine trying to run your business without electricity. How would you contact your clients? What would happen when your phone or computer battery died?

    Technology is super critical to the success of your businesses. It allows you to work more efficiently, to be more productive, and to handle matters on-the-go. That’s why you need to give your people tools that will make their jobs easier.

    Make sure their equipment is in good working condition. There’s nothing more frustrating than a laptop that takes ages to boot up. It’s got to go. Replace outdated software with new software. Don’t make your designer work in Coreldraw; give them access to the most up-to-date version of Adobe Creative Suite. Take it a step further and buy them a subscription to Shutterstock or Getty Images.

    Make working for you a pleasure, not a pain; and watch your employees’ motivation levels rise.

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    5. Provide Opportunities to Learn and Upskill

    Would you believe me if I told you that 33 percent of people cite boredom and a need for new challenges as the top reason for leaving their job?[4] If you want to retain your talent, you need to upskill.

    Thanks to technology, we live in a rapidly evolving world that demands we change with it. A copywriter is no longer just a writer; they now need to be experts in SEO, Google Adwords, CRMs, and so much more.

    A pastry chef needs to be a food stylist, photographer, and social media manager. An entrepreneur needs to be a marketer—or at least take ownership of the marketing message for their business—if they hope to scale.

    Technology makes all of this possible. No matter your location, your people can continuously expand their knowledge and gain new skill sets—something that’s highly motivating to employees. They want to know that there are opportunities to grow and develop themselves.

    If you won’t invest in your people, then your business becomes just another job to tide them over until they find where they truly belong. So be the company that sees value in developing its people.

    6. Monitor Their Workload

    Overworked employees tend to be unproductive and unhappy. Your people cannot be at full capacity every day, month to month. Something’s got to give. They’ll become deflated and their work will eventually suffer, which will negatively impact your business.

    What I like to do is implement a traffic light system. It helps me to keep a finger on the pulse of my business. So there’s red, yellow, and green:

    • Red means they’re fully loaded.
    • Yellow means they’re busy, but they can potentially take on more.
    • Green means they haven’t got enough to do.

    I use this traffic light system because I don’t want my team members to be stressed out of their brains all the time. If they are, they won’t make good decisions and they won’t do good work.

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    If my people are regularly overloaded, I have things to think about. Perhaps I need to hire a new person to help ease the load or take a closer look at what projects are good to go, and which can take a back seat.

    And this is why #3 is essential. If I’m regularly engaging with my people, I’ll know that while they’re coping with their workload, it is impacting their performance and health, and I’ll take action.

    7. Don’t Mess Around with Your Employees’ Pay

    Never mess around with your people’s salary. As a business owner or high-level manager, it’s easy to forget that most people live from paycheck to paycheck. Delayed compensation can mean a missed bill payment, which could result in costly penalties they can’t afford or hits to their credit score.

    So it’s your job to ensure that you pay your people on time.

    The Bottom Line

    A motivated team is an asset to any business. These people never give up. They get excited about coming to work each day and can’t wait to test a new theory or tackle a particularly tricky challenge. They’re proud of the work they do. And more importantly, they have no reason to leave.

    Wouldn’t you rather be part of their success story than the business that drove them away?

    More to Motivate Your Team

    Featured photo credit: Emma Dau via unsplash.com

    Reference

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