Stages of Business Every Business Owner Needs to Know
Everyone dreams of starting a new business. Many people always quote idea that can bring “millions” of gains. In reality, ideas is dime a dozen. Starting and growing a business is a hard work, but there are some things that can simplify, break tasks into small chunks, and highlight things that truly important.
Starting the business is the most exciting and fun time. Who does not like a birthday, new baby, or cute little puppy. It is the same thing that happen with business. Everyone is over optimistic, everyone is expecting to earn tons of money. Everything looks pink and fluffy. But a serious businessman knows the thorny road ahead. Seasoned leader would turn down over optimistic outlooks. Spending money on new office furniture, renovating the newly rented office space. Spending money on new fancy locks, putting trendy doors. Those are things that don’t make or break business. Instead of superficial things concentrate on designing tasks and projects to be done. Do the market research about product or service you about to start. Concentrate on defining parameters of the core products. Make sure that desires of the customers correlate with the ability of technical stuff to deliver. At this point almost every business requires a lot of money.
There are many ways to get money. If the leadership have good connections and great standing with the banks, borrowing from the bank is the best and cheapest venue. If the leadership have network of proven angel investors, or venture capitalists, one needs to be very clear what your business willing to give up to get money from them. The best way is to get one of the venture capitalists in the leadership of the company. Their business connections and expertise will help business not only getting money but in marketing and penetration of markets. As a rule: don’t borrow money from friends or family. Also, don’t get your friends get involved into business. It is a business, not social club
Well, your business overcame all your growing pains and you are finally releasing the product. You already scaled up your marketing. Your website done fantastic SEO. You have hired your first saleswoman. Don’t forget to do one thing: shoot the designers and engineers. No, I am not telling you to physically eliminate them. You have to get them to stop working on the product. See, the big secret from the high tech, no product appear on market fully functioning. If you make a perfect product, you are too late to the market. Designers and engineers who have spend considerable time, emotions, and sweat on the product, have feeling that is their baby. They will continue working on improving it forever. You have to freeze the design and send it into production. There will be issues that need to be addressed, but the product have to start flowing to the customers. You do a short celebration of releasing the first product, make sure to give a lot of praise and recognition to the people who were involved. But the product is in the hands of marketing and sales now. You have to push sales, and finally get positive cash flow into your company.