MN Business Tip Of The Day: Rev Up Your StartUp
Thinking about starting a new business in 2014? These four tips can give you the boost you need to put your dream into action:
Don’t look for approval. Creating a business from scratch takes a huge amount of effort. While you may expect friends and family to eagerly jump on board your rocket to success, not all people want you to succeed. Not because they don’t like you of course, but because they want you to stay the same. When getting ready to jump into something new it’s better to take a break from the opinions of friends and family in order to focus on your venture. Remember that you don’t need approval. Keep your end goal in mind in order to drown out the voices around you. If your instincts tell you to do it, go for it!
Leave investments for later. Looking for money at an early stage in your company’s life is a surprisingly bad idea. Funding — a loan, for instance — is probably necessary. But an investor who wants a return on their money is different. Only look for outside investments once you’ve proven the concept of your startup. Have a decent revenue stream with at least a three-to-six month track record.
Make a profits and loss (PNL) spreadsheet. The importance of managing your finances early (and for the continuation of your business) can’t be stressed enough. List all your expenditures and be honest. Although it may be hard to see that you’re working 18 hours a day and still running at a loss, this honesty will make the difference between winning or losing in the long-run.
Share your vision daily. Let’s face it, your early employees (if you have any) will probably be underpaid. You’ll need to motivate them by other means. Seek to inspire them by sharing your vision and having frequent meetings in which to talk about your company’s goals. Avoid talking profit or trashing your competition. Instead take the time to breathe life into your company’s soul. Highlight how the work you all are doing is adding value to people’s lives. Having a simple, yet memorable slogan is another great way to keep everyone on the same page.