There has rarely been a more challenging time to work for a large corporation. Layoffs, pay freezes and the elimination of retirement and other benefits are daily occurrences. More and more people are deciding to start their own businesses. Unfortunately most of them fail within two years. While there is no one secret to success as an entrepreneur, there are step that every entrepreneur should follow to increase their potential for success.
Focus. It is easily for entrepreneurs to lose focus. Make sure that your new business has a mission statement. Print it and post it on your office wall and even on your bathroom mirror. Everything you do must directly support your mission.
Strengths. Focus on doing what you do best and what you are passionate about. Just because there may be a market opportunity for something does not mean you should peruse it. Follow your strengths.
Strategy and Business Development. While early stage companies are built with one or two people doing all the work, focus on the strategy and on business development as much as you can early on. Do not delegate these to contractors or employees once you have them.
Branding. Develop a brand, stick with it and build on it. Many new companies jump from brand to brand to brand and never have an identity to build on for marketing and name recognition.
Resources. Do everything you can yourself initially to reduce expenses. But if there are areas where you have no skills or experience contract it out to the best people you can afford.
Partnerships. Businesses – even new businesses – can grow quickly thought partnerships. Take advantage of those who have established distribution networks that you can build utilize. But remembers, partnerships should be entered into carefully (due diligence to establish that there are common values, goals, a business win/win).
Value. Even new businesses should not undervalue their services and products. Everyone wants something for nothing. It is important to establish a rule of thumb regarding when to walk away from potential clients and deals.
Metrics (or scorecard). All new businesses, even one person start-up operations, must establish clear business objectives. Performance needs to be tracked against those goals on at least a monthly basis. Metrics are essential to the success of the business.
Starting a new business is tough. By following these rules combined with a customer focus and persistence, any new business can grow and become successful over time.
George F. Franks, III is the President of Franks Consulting Group, a Bethesda, Maryland management consulting and leadership mentoring practice. George has over twenty-five years of experience working with companies of all sizes plus not-for-profit organizations and individual leaders. He is a member of the Institute of Management Consultants (USA) and many other professional and non-profit organizations. Franks Consulting Group is on the web at: http://franksconsultinggroup.com
George can be contacted at: gfranks@franksconsultinggroup.com
