Every startup founder expects that their business will succeed. In reality, startups fail all the time for avoidable reasons.
This is one of the reasons that experts advise entrepreneurs to find a mentor. Mentors can offer important startup advice that helps you dodge avoidable mistakes.
Keep reading and we’ll take you through some advice every entrepreneur should hear.
1. Embrace Passion
Is passion an absolute necessity for entrepreneurs? No. You can run a successful startup without it.
Will passion make it easier? Yes.
Passion acts as a driving force in the business. It works even better when your passion is for the product or service you offer.
Think of it this way. Do you ever visit a business and see dull-eyed employees phoning it in? That’s what happens when people lack passion for the business or product.
2. Decide on a Business Structure
It’s not the most exciting topic, but you should decide very early what structure your startup will take. A few of your options include:
- Sole proprietorship
Each offers different pros and cons.
Incorporating lets you issue stock, but it requires more annual paperwork. LLCs support multiple owners, but you can’t issue stock. You keep absolute control in a sole proprietorship but remain personally liable for business debts.
3. Recruit for Experience
Youthful enthusiasm has a place, but successful startups also need experienced employees.
Let’s say your startup offers custom software solutions for medium-sized businesses. You get an inquiry about developing an inventory control system. You know your team possesses the right cross-section of skills for the job.
Those skills matter, but does anyone on your staff know anything about project management? How will you break down the deliverables and estimate completion time? Figuring those things out takes experience.
4. Learn to Delegate
Entrepreneurs often take personal responsibility for every detail of their startups. That sense of responsibility often makes the difference between successful and unsuccessful startups. That same tendency transforms into a problem when the demands outstrip your time and energy.
As painful as you might find it, start building delegation into your startup early.
If you hate bookkeeping, outsource it as soon as possible. Hire a part-time assistant to manage your schedule.
Get things off your plate that other people can do. It leaves you free for responsibilities no one else can manage
5. Spend with Care
An influx of venture capital can put you in a spending frame of mind. It’s tempting to upgrade all your equipment or move into a nicer space. The problem here is that the money runs out.
You shouldn’t hesitate when it comes to necessary purchases, but set a high bar for necessity. If you need more customers, a data-driven lead generation campaign makes sense. Plush office chairs for every employee does not.
Parting Thoughts on Startup Advice
Entrepreneurs must make the best decisions they can for their businesses. That said, they can also benefit from some key bits of startup advice.
The best advice is often practical, like delegate mundane tasks, spend on necessities, and recruit experienced staff. The same goes for picking a business structure. Settling on a business structure defines future operations.
Don’t forget about intangibles, though. Passion helps carry a startup when cold-blooded determination won’t.
WiFi Entrepreneur focuses on advice and resources that help entrepreneurs launch a business. To learn more, check out our step-by-step guide for starting an online business.