All startups need to learn that in order to have a success business, they need to dream BIG but start small. I have seen many businesses that have started BIG but find themselves struggling to sustain itself and hence they close down. Here are some of the reasons why you should start small.
Reason #1 – Avoid the Temptation of Getting a Large Office
I know some entrepreneurs would like to show off to people that they are running a successful business by spending unwisely on luxury items. What you don’t know is that you are putting your business at risks. You need to consider that your business is still young and needs to be able to sustain itself. The first 3 years of running a business is crucial. According to statistics, 80% of startups fail within 3 years, so don’t expose your business to be part of that statistics.
Reason #2 – Write a Budget & Keep to it
Before you start a business, you need to write a budget. This should be in your financial plan when creating a business plan. You need to access what assets you already have in your possession. If you already have a mobile phone and a computer then you can start with that from your home. Limit your spending based on your income that you are receiving from your business. I usually make sure that 60% of business profit is injected back into the business for growth and the remaining 40% of profit is what I can afford to use for anything I want.
Reason #3 – Avoid Quitting Your Job For Quick Money In Business
If you are still in employment, then you don’t need to quit just yet. You can start your business on a part-time basis. What many people don’t know is that, it takes time for the business to generate sustainable income that will take care of the business operations at the same time take care of the entrepreneuer. So don’t rush to business because you want to make quick money in the short term, you will be hit with a reality that you won’t like.
Here is to your Success in Dreaming BIG but starting small!
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