Starting your business and becoming an entrepreneur is no easy feat. Here are some missteps to avoid:
- Neglecting the support of loved ones : Before embarking on a project that aims to make you become an entrepreneur, it is important to carefully gauge the support of your family and your partner. Your success as an entrepreneur will be greatly facilitated with the help of their support, advice and feedback;
- Going into business too quickly : Evaluating your business model, seeking financing, finding your first clients, these are all important steps that should not be neglected. These steps can take up to 12 months, hence the importance of preparing well and having a solid financial base to support this major change in your new life as an entrepreneur;
- Not determining the break-even point : It is important to evaluate fixed costs, variable costs and revenues. You need to know when your business will start generating income in order to support your lifestyle. Becoming an entrepreneur is completely different from being an employee. When you are employed, we suggest planning savings equivalent to 3 months to compensate for the lack of money coming in during the transition. In the case of starting a business, it is advisable to provide working capital for 12 months;
- Neglecting to have your own office : It is important to devote a lot of effort to starting a business and to isolate yourself from daily family life. It is possible to have your own home office, but as long as you provide a dedicated space and ideally, isolated from any distractions. There are also spaces (shared premises) which can allow you to isolate yourself in order to carry out activities related to your business. The cost may seem high, but the use of shared premises will also make it possible to create new contacts, thus facilitating your business start-up;
- Being undisciplined : Becoming an entrepreneur means learning just one word: Discipline, discipline, discipline. Working alone requires iron discipline. It is essential to set daily goals (10 most important things to accomplish in my day) in order to move your project forward. Maintain a well-balanced agenda (business development, administration, preparation of quotes, etc.) in order to advance your project in all areas of your company's essential activity. Identify priorities daily and address them before other scheduled tasks;
- Forget yourself : It is necessary to make time for yourself after a hard day/week of work. Consider adding periods to your calendar to do activities that will allow you to think about something other than work (physical activities, family time, reading, meditation, etc.);
- Delay in invoicing : In business, “ cash flow ” is important. The faster you generate revenue, the easier it will be to make your business profitable. Along the same lines, the longer you delay invoicing your customers, the more your business finances may suffer. For someone starting out in business, getting paid quickly can be difficult, even embarrassing. It's important to understand that all work pays for itself and you don't have to feel bad about asking your clients to pay you. There are several ways to get paid: weekly, based on objectives, with a deposit, fixed price, etc. Never neglect the invoicing aspect, because the tax, suppliers and subcontractors will not forget you;
- Master and control administration : Avoid accumulating delays in paperwork, financial management, etc. Waiting until the last minute will cause you to forget important things. Becoming an entrepreneur also means having good management. Good management allows you, among other things, to avoid penalties or interest. If you want to spend more time managing your business, spending more time with family, or with friends, do not hesitate to do business with an accounting professional;
- Neglecting your pension fund : Have a good retirement plan on hand. Methodically set aside money to ensure a comfortable retirement. When in doubt, do not hesitate to contact your accountant to establish realistic and achievable financial and retirement goals;
- Become intellectually poor : Continue to keep yourself informed, participate in continuing education programs, participate in conferences, and inform yourself about the economy in general. Being a member of an order (which requires training) can be an interesting avenue for those who have access to it;
- Emphasize prospecting : In the start-up phase, devote 50% of your time to prospecting. Subsequently, never neglect this important aspect. You should devote at least 20% of your time to it (with follow-up meetings). Participate in activities where there are a large number of people, which allows you to have access to a greater number of contacts;
- Negotiate your price : It often happens that you are told by a prospect that another supplier offers the same service at a lower price. In this type of situation, it is strongly recommended not to negotiate, because it is too difficult to return to the market price afterwards. If the prospect does not want to pay for the fair value of your services, and is looking for a price, they are not a client for you, because they will negotiate everything repeatedly. On the other hand, if you want to get a good prospect and the price is reasonable, you can always offer an introductory discount.
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