When an individual begins to stoke the internal fires of entrepreneurism, there is little that can be done to snuff it out. Family, friends, or a few good sales can absolutely spur on the feeling of wanting to dive headfirst into building a business. To be sure, that fire burning inside of an entrepreneur will sustain them for years to come (in the biz, we call it passion), but what are some other things that can help a small business owner master the art of day-to-day operations if their passion begins to wane? Here are a few good tips that anyone with a glowing ember of a business idea should consider integrating into their long-term business plans.
Put your thoughts to pen and paper. It can be a jumbled mess of enthusiasm, numbers, new concepts, customers, marketing and more inside of a new entrepreneur’s brain. The best way to chart your course forward is to create a business plan. It can be equally exciting and rewarding to organize your dreams into a well-structured plan. A business plan acts as a living document, like a road map for your business, that can evolve with your business over time. Most importantly, it sets out several really important things, like your mission, values, and your goals for who will run your business and how. There is space to incorporate your pricing model, your company culture, and an analysis of your competitors. All of these things help to distinguish your business from the rest.
Create a budget. In this step, entrepreneurs unlock the key to success. Numbers can be overwhelming and scary, but understanding your budget is an absolute game-changer for any entrepreneur. The first step to creating a budget for your business is to understand your inputs and outputs. How much does it cost you to make your product or service? How much will someone reasonably pay you for that service or product? If you have a revenue goal in mind, a budget will help you work backward to find out how many units to manufacture or how much to charge for an hourly service. A budget can even help you identify additional revenue streams that you may not have otherwise considered. Any business will have a set of fixed costs and variable costs. While it’s harder to change your fixed costs, often your variable costs will fluctuate based on productivity, sales, seasonality, or other factors. Understanding both the fixed and variable costs helps you determine at what price point your product or service should enter the marketplace. So much power in a spreadsheet full of numbers!
Build a network. Cultivating a robust network of professionals to surround you in the early stages of business ownership is integral to growth and success. As a new entrepreneur, one fact to internalize sooner rather than later is that you just don’t know what you don’t know. And — I can’t stress this enough — that’s OK! Learn from others around you. Attend meetings at a local business development support group. Treat your small business buddies to a coffee. Go to business mingling events as often as possible. Introduce yourself to everyone all the time. In all my years of being an entrepreneur and helping others find success with their small business, I still go to these types of events, and I learn something new every single time. Remember that there is value within each sector of our society, whether it’s from a government connection, for-profit, or non-profit organization. Building a network can start off looking like your relatives or neighbors, who have a specific area of expertise and whose judgment and advice you value. Identify your mentors and check in with them often. Your network should include people who care about you as the individual as well as your business, and they’re likely not trying to sell you something.
If you feel the need to fan the flames of the business dream burning inside you, do it! But do so thoughtfully, by following these basic steps, and you will find a groundswell of support ready to pour gasoline on that fire and watch you soar to success.
Julie Parisi is executive director of NewBo City Market.
