40 Important Tips for Starting Your Own Business - Part 1
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| Photo by Adam Winger on Unsplash |
I would certainly do some things differently or at least more effectively today.
For today's article, I have simply summarized a lot of these experiences and tips for starting your own business.
Since there are a total of 40 tips, I have divided the article into 2 parts. More than 3,000 words for an article would be a little too much. :-)
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| 40 Important Tips for Starting Your Own Business |
Tips for Starting Your Own Business
The following tips come from my own experience and are of course a bit subjective. But I have tried to formulate the experiences and tips in a more general way so that self-employed people from other industries can also do something with them.
And of course, the following list is not exhaustive either, because of course, I have not yet experienced anything.
So if you can contribute useful experiences and tips yourself, you should write them in the comments.
Incidentally, the individual points are arranged alphabetically.
1: 1
Many self-employed and freelancers work as service providers in a 1: 1 relationship with customers. The best example is web designers. You work on projects with a customer and when the project is over, the (at least intensive) business relationship is often over.
Over time I noticed that a business that is based exclusively on 1: 1 customer relationships is not as effective. Of course, there are also 1: 1 service providers who can make a very good living from it, but it is advisable to take care of 1: n deals as well.
This could be a website, for example, through which you can also sell something. Or you create content and work results that can be reused. It is also a good idea if, as a web designer, you also sell the webspace as a reseller. Or you can publish a book on your topic. Etc.
If you build exclusively on 1: 1 service, then it will be difficult to let your own company grow. After all, you can't divide.
80/20
The 80/20 principle is very important to me. There is a tendency to make certain things as precise and perfect as possible. But that's ineffective and you don't usually get paid for it.
Instead, you should “only” do your work a little better than the customer expects (ie not deliver a bad job, but also not perfect something unpaid forever) and only take on the jobs that can be effectively and profitably implemented.
Backup
If you work a lot with your computer, you should always make backups. Most don't think about it until the hard drive is defective. This can threaten the existence of many self-employed or freelancers who work digitally.
I use an external hard drive and DVDs that are burned regularly.
Benefits Not Features
Again and again, I see self-employed people making mistakes themselves. And I did it in the beginning too. Features are advertised there. But most customers don't care. They want benefits (advantages, benefits, results).
For example, if an entrepreneur wants a website, it is not because he loves PHP or MySQL or because he wants a certain bandwidth. But because he wants to win customers with it. And that also applies to all other industries.
So you should put the customer benefit in the foreground and not the features. Then you win new customers and make sure that they are satisfied.
Consultation
Not everything in Germany costs money. For example, you can get information and advice from the Chamber of Industry and Commerce (German Chamber of Industry and Commerce) or the ZHK (Central Association of German Crafts) and also receive a lot of free information material.
Training for prospective self-employed people is also carried out there. Just call and inform.
Bureaucracy
There is a lot of complaint about the bureaucracy and sometimes there is something to it. Nevertheless, you should always be aware that only people work there and if you are friendly, they usually are too.
But there are some paths that you have to go as a business start-up. Here is an overview of the most important ways to be done.
Attitude
The right attitude towards independence is very important. You are now responsible for your success and you should familiarize yourself with the idea that you now want to make money. Many people who just enjoy doing their job have problems with this.
But as a self-employed person, you also have to develop a certain mentality for earning money, otherwise, you will never find a green branch.
Feedback
No matter how much you can plan and refine your business plan when you start your own business, in reality, it usually works differently. It is therefore important to pay attention to customer feedback and not take criticism personally. Instead, it is an opportunity to improve your offer and tailor it even better to customer needs.
Customer feedback is worth its weight in gold.
Tax Office
The tax office is relentless. Therefore, at this point, you should either really have a good idea yourself or use an accounting office or tax advisor.
Even if you can do it yourself with the help of software, etc., many self-employed people give away a lot of money precisely at this point because they have no real background knowledge.
In addition, you can make better use of your own working time by making money.
Company Account
There is no requirement for a business account for sole proprietorships and micro-entrepreneurs, but it is highly recommended. In addition to the better overview of the transactions for yourself (and the accounting office ...), most banks simply do not allow you to use a private account for business purposes. This can then go up to the exercise of the special right of termination.
In addition, company accounts also have one or the other additional functionality that some companies need.
Company Name
The choice of your company name should be carefully considered. On the one hand, you want to describe the services you offer as precisely as possible so that customers know immediately what you are offering. On the other hand, there should be scope for adjustments to the range of services. Anyway, I got off better with a more general formulation.
I had already written extensively on the subject of “ finding company names ”.
Focus
Here, too, I keep seeing the same mistakes. There is just too much on offer. Some self-employed look after the computer technology, set up networks, design business documents and also create the website.
In the beginning, I offered other services myself due to too few web design assignments. But then I left that again very quickly. Offering too many things is ineffective, you never become a specialist, and it just takes too long.
Instead, you should focus on a niche and offer a very good service there. Since there is usually much less competition, you can usually achieve significantly better profit margins.
Of course, this requires an intensive market analysis in advance. You have to find services that customers want, but have so far only been suboptimal or not offered at all on the market.
Just don't make the mistake of offering MeToo products/services. The typical saying of business start-ups that I hear again and again: “There are already 5 providers, so there has to be a market”. This is often not a good basis.
Funding
I've been out of the start-up phase for a long time now and have no current insight into the funding of business start-ups, but as far as I have noticed, this has already been cut in recent years.
Nevertheless, you should find out whether and which funding opportunities are available. At that time I benefited from several grants, without which I probably would not have survived the first 6-12 months.
Contact points are the employment office, the KFW bank, and the IHK. Often there are also regional funding pots.
Leisure
In the beginning, I worked almost continuously for 12 hours, 7 days a week. It was fun and in the beginning, you have to build something up. But you shouldn't forget that a good balance between work and leisure is important for your relationship or family.
You just work better when you take time off and you protect your health. In addition, permanent work stress can take revenge at some point.
Patience
One does not become successful overnight, even if examples of such cases are spread in the media over and over again.
To be successful as a self-employed person you need a lot of stamina and perseverance.
Business Records
To arrive professionally with potential, but also existing customers, you should at least have the basic business documents.
Business cards and stationery are simply part of it. And please do not use these free clipart business card offers, as this has more of a negative effect.
A uniform and professional appearance are also important with the documents.
Investments
You shouldn't be too generous when starting your own business. Do you need a new car, a large office, or a new facility?
You don't have to earn every euro you don't spend. Therefore, in the beginning, you should only invest in the things that ensure that you win customers and make money.
Concept
Even if you have not applied for funding, you should draw up a business plan. This helps to analyze your business model in detail and to plan the measures and liquidity for the first months and years.
Of course, a business never develops exactly as it was written down in the business plan, but it gives you a basis that also helps not to lose sight of the big picture in the daily stress of work.
The offer of the Federal Ministry of Economics and Technology (BMWi) helps with the creation of a business plan.
Know-How
Most of them have very good know-how in a certain topic. However, you want to save costs especially at the beginning, and therefore do everything yourself.
But this is then ineffective and you will never achieve such good results as in your main subject area.
That's why you shouldn't do everything yourself, but also outsource certain activities. For example, if you are a good programmer but a bad designer, you should team up with a design specialist and then issue partial orders.
You can't be an expert in everything. And you shouldn't try.
Customer Loyalty
You shouldn't just be out for new customers. Existing customers are often neglected, but they have a great advantage. You already know your achievements and have a certain amount of trust.
That is why you should also contact your existing customers regularly and talk to them. This often results in new orders.
In addition, you should cherish and look after existing customers, as this is a very important asset for the self-employed and freelancers.
It Goes on
Those were the first 20 tips and experiences that I put together.
Tomorrow there will be part 2 with 20 more tips.
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