Do’s and Don’ts for Startup | Startup Ladder| Chapter 20
Entrepreneurship is a challenging venture which involves exploration and experimentation. The journey encompasses risks and uncertainties without any predictions of success or failure. With the outbreak of Covid19, the entire world has come down to standstill thus welcoming a severe recession in the post covid phase. With the loss of jobs, and lost opportunities to be employed in India as well as abroad, there would be an emerging opportunity of begin personal ventures thus stepping into the world of Entrepreneurship. The first-time entrepreneurs have to encounter many situations which they must have never imagined.
To guide the first-time entrepreneurs or startup owners, Dr Anand G Naik’s, the founder of Beginup Research Intelligence Private Limited, book ‘Startup Ladder is worthy to be read and followed. The chapter 20 of his book includes in detail the Do’s and Don’ts for the First Time Entrepreneurs. Here is a glimpse-
“Many dream to lift their ventures high without having any support or guidance. In such a situation, an individual may not be able to decide what ought to and what ought not to do.
Let us briefly know the do’s and don’ts in the entrepreneurial journey:
- Analyse your idea and your knowledge before you start.
- Get motivated from others’ success story but don’t begin your start-up just to follow any one; it has to be because you are ready for the start-up.
- Gain regular knowledge and other aspects of ENTREPRENEURSHIP before starting.
- Do not start a start-up by taking a loan.
- Develop healthy learning attitude.
- Stay motivated.
- Try to have a degree or graduation before you begin a serious business/start-up.
- Learn important skills before starting
- Self-evaluation is important before starting any venture.
- Start small with small team and small investment.
- Choose a right partner to begin your venture.
- Motivation your partner to contribute equally as you do.
- Be vigilant on activities of your business partner, blind trust may be dangerous.
- Divide share among you and other partners at initial stage as per scope of their contributions.
- Organisation growth and your personal growth should run hand in hand.
- keep yourself updates with latest technology and business trends.
- know your strengths and strengthen them more.
- Take your family into confidence
- Let your close ones know immediately if any problem or crisis surround you. Their advice and help may act as solution.
- Avoid unnecessary expenditure it may be personal or in business.
- Cultivate a habit of saving.
- Insure yourself with insurance and small investments.
- Avoid hiring more employees when not required.
- Maintain professional relationships with employed and encourage them to contribute to the growth of the organization.
- Get rid of negative people around you.
- Have track about day to day activity of your start-up.
- Be confidential about your work and plans. Do not reveal it before executing.
- Do not compromise with the quality of service or product development.
- Keep proper margins on every conversion.
- Avoid offering heavy discounts to please the customer.
- The execution is very important and it has to be done quickly and accurately.
- Data is important understand the customer behaviour based on data you have and make necessary enhancement accordingly.
- Always have agreement with customer even if it’s a small project.
- Learn saying no to a bad proposal or deal. It’s good to say no rather than getting disappointed at the later stage.
- Take feedback from your clients / customers.
- Stress management is very important. Stress drastically may decrease one’s productivity if it is not defeated.
- Take investment only when required and use investment money carefully.
- Read each and every document before signing. Having legal opinion is always good.
- Be patient, your start-up may take some time to show profit. Things may not turn in your favour overnight.
- Select your business location wisely
- Select a wise and experienced mentor.
- Do not really on one client or one source of income. Diversify your service or product range.
- Over friendliness with employees may prove adverse in long term.
- Have clear employee agreement.
- Try having vendors on your terms and put your terms clearly to them.
- Choose a stable vendor who can cooperate with you at the time of occasional delayed payment from your end.
- As a founder it’s important to know your client of key vendors personally. Do not let everything on employees.
- Have thorough background check of employees before you hire them.
- Do not easily dilute your stake in the company.
- Have a proper accounting system and file returns on time.
- As a founder you know better and understand the vision of yours towards your start-up. Do not expect your co-workers to read and be clear about your vision. Hence, drive them and motivate them in that direction.
- Try putting forward your opinion clearly in all forum in a proper way.
- Networking is important. Choose the right group of people you want to build your network with.
- Take all steps in cost cutting with cash flow get slow.
- Keep your professional circle and friend circle separate. Don’t try to introduce or mix them.
- Take calculated risk.
- Take confidentiality on priority.
- Do not hesitate to share your problem with your family.
- Try to bootstrap your start-up.
- Stay away from rumours and have basic legal knowledge.
- Keep exploring new opportunities.
- Do not spend money on luxury infrastructure rather the same can be spent on experiences, research and expansion.
- Do not offer fancy packages unless required and deserved.
- Avoid throwing success parties after every small success.
- Avoid unnecessary paid promotions and advertisements.
- Do not borrow money to run a business on heavy interest. Heavy interest is a trap and it kills an individual and business too.
- Have buffer amount saved to balance at the time of delayed payment from client.
- Avoid loans to purchase products or avail service which are not required on priority.
- Do not loan your colleagues or friends unless you are financially stable.
- Negotiate before getting into any deal. Negotiating doesn’t make you look small or cheap. It’s a best way to save.
- Do not make very risky investments at an early stage.
The above hints are to make you cautious while you step on to begin your start-up.”
Dr Anand G Naik in his book suggests all the new entrepreneurs to follow the above-mentioned tips for a smooth journey of entrepreneurship. His last lines are worth reading,
“An observant and careful aspirant will keep his eyes opened wide to check his steps and ears open to suggestions and advises. While, at the end of the game, it is the entrepreneur who plans the success story of the start-up.”
The post covid phase will bring a challenging period for all the aspiring entrepreneurs to begin their venture with the need of the year. Hence, it is very important to watch every step while grabbing the opportunity and achieve long term success.