Around the world, countless individuals have aspirations to start a business. Still, the task poses challenges, difficulties, and risks when it comes to starting, funding, and running a new company. Many new entrepreneurs lack experience, which may lead to financial errors or missteps.
1. For inexperienced entrepreneurs, consider taking business and financial management classes
For those who lack education or experience in business and finance, before starting your entrepreneurial journey, it might be beneficial to invest in a business and financial management class. The knowledge will pay off long-term.
2. Eliminate any personal debt to start saving
The life of an entrepreneur can be filled with twists and turns, along with the stress of wearing many hats. To eliminate any additional weight on an already heavy plate, work towards getting rid of personal debt to have savings for financial backing.
3. Consider finding a mentor
A great way to avoid any major mistakes as a novice entrepreneur is to find a wise and experienced business mentor. They can be an excellent resource for any part of building an organization.
4. Research various funding options
Startup companies typically require financial backing of some kind, like crowdfunding, angel investors, venture capital firms, bank loans, or even family and friends. Entrepreneurs that want to set themselves and their new business up for financial success should research all avenues.
5. Identify what problem your business will solve
Good entrepreneurs who are ready to be their own boss start a business that fills a need. They identify an issue that others are experiencing and provide an impactful solution through their business model.
6. Develop a capturing story
Once an entrepreneur has identified what problem the business will address, it is recommended that they spend time developing the ‘why’ behind the business’s existence. The story should communicate to consumers the more emotional side to the organization’s story.
7. Cut the story to create an elevator pitch
Unfortunately, when selling the idea of a new company, not everyone has the time to listen to the full story or background. That is why an eleven-second elevator pitch is essential.
8. Start talking
After mastering an elevator pitch, it is time to get out and start talking to people. Entrepreneurs must learn how to get outside of their comfort zone to grow awareness of their new brand through networking and pulling the trigger on funding options.
9. Do not ignore the follow-up
One conversation with an investor or potential partner does not always cut it in the business world. Follow-up after any discussion regarding a startup is crucial to make things happen.
10. Build a reliable team of advisors
Building a team of business advisors helps keep an entrepreneur accountable for responsibilities, but it is also an opportunity to gain resources for weak points in the business. For example, entrepreneurs who lack skill in finance should find an advisor with this skillset.
About Adam Ferrari
Adam Ferrari is the CEO and founder of the Denver-based mineral acquisitions company, Ferrari Energy. Adam Ferrari, a chemical engineer by degree and an accomplished petroleum engineer by profession, also has experience in the financial sector through his work at an investment banking firm. Under his leadership, Ferrari Energy has supported numerous charitable organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago.