My 15 Golden Rules for Startup Entrepreneurs
Are you wondering why most startup businesses seem to fail? Perhaps that they are built on an unstable platform or around an unsustainable basis.
Based on 27 years of my own experiences as an entrepreneur, here are my 15 Golden Rules for startups to avoid some of the greatest pitfalls when starting a business.
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Rule #1: Start your business with a REAL purpose in mind: Do something you love and are good at, that people need and you can make money from, then passion will be your driver. The Japanese call it “Ikigai”
Rule #2: Your business MUST create wealth for you and your family. Otherwise, it can ultimately lead to heartache, headache, and opportunity cost.
Rule #3: Don’t JUST focus on making money: Aim to become the best in the world at what you do, then the money will come.
Rule #4: Trust and credibility are cornerstones for a successful business: No trust, no credibility, no business! So, build yourself into an expert!
Rule #5: Listen to your market (carefully): Having the right customer insights can save you a lot of time, effort, and money!
Rule #6: Learn to solve a complex problem: The more complex it is, the more money you can make!
Rule #7: Timing is the MOST important factor in business success, your team is second, then factors such as business model, idea, funding arrangement, etc.
Rule #8: Forget about writing a business plan: Instead spend that time and effort finding a customer, learning to understand their needs, and creating a solution for them. (The plan comes when you have worked out what you are doing).
Rule #9: No money to start? Then you have to “hustle”. Become a “deal maker”, broker, or help someone solve his or her problem.
Rule #10: Learn the rules of the “Industry Game”: Who are the major players and your competitors in your industry, who are the ones to watch out for, and who are the “400-pound Gorillas?” Then go develop a profitable niche. Who knows? They may need you one day!
Rule #11: Learn to form alliances and partnerships: having trust and credibility is a starting point, but having something to offer them, (such as a way to make or save money), will be the decisive factor.
Rule #12: “Traditional” marketing does not work for Startups as: “nobody cares about your business”. Instead, find someone that will, by providing them a solution to their problem.
Rule #13: Learn to delight your customers: Give them a reason to talk about your business (in a good way of course): by under-promising and delivering above their expectations.
Rule #14: Get to market as soon as possible: Don’t wait for your product or service to be “perfect”. Customers aren’t looking for perfection, but rather function; 80% is near enough. Launch your product, get their feedback, and improve along the way.
Rule #15: Always begin with the “exit” in mind: Understanding how you will “exit” the business will ultimately determine your path and long-term strategies.
I hope that has given you some insight into the challenges of starting a business as an entrepreneur.
The main takeaway is: start with a purpose and get to market as quickly as possible; 80% is near enough (as long as it works and is not crappy), the customer’s feedback will steer you in the right direction. So, listen, learn, and repeat until you are able to reach excellence!
Educate Your Customers
Educate them about what, you may be thinking. Well, consider this, many businesses focus solely on attracting new customers, but you NEED to spend a good chunk of your time retaining current and former customers. These are people you already know to be a good sales potential…they’ve already bought from you!
Take the time to market and sell new products to your old customers and less time trying to sell old products to new customers and you will see a drastic change in your sales, customer quality and branding position.
Here are a couple of key elements to use to retain your current customers:
- Stay in contact: This means by phone, email, e-newsletter, in person-by pigeon if you have too!
- Post-Purchase Assurance: This means you need to follow up with customers. Your customers need to feel like they are being supported for their purchase and with the item they purchased. How many times have you purchased a product, then felt completely abandoned? Something as simple as a Thank You note with your contact or customer service information can go along way in retaining a great customer.
- Deals & Guarantees: Always offer your current customers the best deals and guarantees you have. Show them you appreciate their business or even come up with a club specifically to reward loyal customers. You can also do this with a preferred pricing option.
- Integrity: Using good business practices and simply upholding integrity, dignity and honesty go along way with customers. Let’s face it, there’s a lot of swindling and crap out there and the safer and more confident you make your customers feel, the more they will trust you and that makes for an amazingly supportive and loyal customer.
There are three cornerstone ideas to a successful business:
- Quality product/service
- Offering useful products/services that solve a problem for or enhance the life of a customer
- Offer subjects your customers find interesting
Use this approach of educating your customers and offering them real information and insight and you will be rewarded with loyalty and success.
Stop wasting all your time on new prospects while your current customers fall by the wayside!
As Jay Abraham says, “Your best prospects are your existing customers. If you’ve been putting all your marketing efforts into acquiring new customers, stop and diverts some of your resources into reselling, upselling, cross-selling to those same customers. In every ways possible – through package inserts, regular mailings, special offers – stay in touch with those customers and get them used to buying from you.”
So, there it is! Remember, our FREE test drive can help you put together the resources and tools to do exactly that. We can help you educate your customers and you can watch the benefits pay offer many-fold.