1. Don't start a service business during the summer months
In our early days, we didn't take into account that potential clients and partners may be on vacation in the summer. For us, it became the first stumbling block: We couldn't get a reply other than "out of office," not to mention an appointment. Given that some companies have lengthy decision-making processes, vacations made our sales cycle nearly deadly for us.
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Starting a new business seems like an exciting journey filled with potential and promise. But when it comes to real challenges, it's far from excitement. No wonder one in five U.S. startups don't survive their first year.
What saved us was switching to short-term projects. Yet such short-sighted focus was almost another killer -- in a few months, all these projects finished and we had to look for new ones again.
Here's the takeaway: Consider a launch date in early fall or late spring when the business world is buzzing with activity.
2. Secure your first sale before diving into business operations
Believe me, you don't need to have an ideal process or team to get started. You'll have enough time to build and polish them when you succeed. Focus on securing that first sale before investing significant time and resources into an operational routine. This not only validates your business concept but also provides crucial cash flow. It's the cornerstone of your business's sustainability.
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For example, instead of hiring developers to build a website, we created it ourselves on Wix. Now we have a website and even a team of internal developers to support it. But when we started, it would have been an irrational investment to hire people to build it for us.
3. Set clear common goals and KPIs
A unified vision is the bedrock of a successful business. Make sure every team member understands their role and how it contributes to the larger goals. Setting clear key performance indicators (KPIs) aligns everyone's efforts and helps measure progress effectively.
Here's an example of some common objectives:
Company-wide goal: Generate $10 million in annual recurring revenue in five years
Marketing team goals: Generate X sales-qualified leads monthly. Reduce customer acquisition cost to $X per contact
Sales team goals: Convert X leads to opportunities. Achieve X-percent deal closing rate
Joint marketing and sales team goals: Reach $X in new monthly recurring revenue
Overall, ensure every team member has a clear key performance indicator, aligned with the company's goals.
4. Track your vital business metrics
Even though you can sacrifice fancy processes, you should maintain detailed records of profit and loss (P&L), income, and expenses from day one.
Rigorous record keeping eliminates ambiguity and builds transparency and trust with stakeholders -- especially if you have external investors. This practice also allows for informed decision making, crucial in the early stages of any business.
5. Just do it, don't plan how
I'll be short here: While planning has its place, over-analysis can hold you back. Action is where true progress happens. Embrace experiments and get ready to adapt. And don't fear failures: Mistakes are your best teachers if you derive the right conclusions from those mistakes.
6. Invest in marketing and content creation
Without a robust online presence, you're invisible. So allocate resources to create quality content and try out different marketing strategies.
What saved us was switching to short-term projects. Yet such short-sighted focus was almost another killer in a few months, all these projects finished and we had to look for new ones again.
Here's the takeaway: Consider a launch date in early fall or late spring when the business world is buzzing with activity.
2. Secure your first sale before diving into business operations
Believe me, you don't need to have an ideal process or team to get started. You'll have enough time to build and polish them when you succeed. Focus on securing that first sale before investing significant time and resources into an operational routine. This not only validates your business concept but also provides crucial cash flow. It's the cornerstone of your business's sustainability.
For example, instead of hiring developers to build a website, we created it ourselves on Wix. Now we have a website and even a team of internal developers to support it. But when we started, it would have been an irrational investment to hire people to build it for us.
3. Set clear common goals and KPIs
A unified vision is the bedrock of a successful business. Make sure every team member understands their role and how it contributes to the larger goals. Setting clear key performance indicators (KPIs) aligns everyone's efforts and helps measure progress effectively.
Here's an example of some common objectives:
Company-wide goal: Generate $10 million in annual recurring revenue in five years
Marketing team goals: Generate X sales-qualified leads monthly. Reduce customer acquisition cost to $X per contact
Sales team goals: Convert X leads to opportunities. Achieve X-percent deal closing rate
Joint marketing and sales team goals: Reach $X in new monthly recurring revenue
Overall, ensure every team member has a clear key performance indicator, aligned with the company's goals.
4. Track your vital business metrics
Even though you can sacrifice fancy processes, you should maintain detailed records of profit and loss (P&L), income, and expenses from day one.
Rigorous record keeping eliminates ambiguity and builds transparency and trust with stakeholders -- especially if you have external investors. This practice also allows for informed decision making, crucial in the early stages of any business.
5. Just do it, don't plan how
I'll be short here: While planning has its place, over-analysis can hold you back. Action is where true progress happens. Embrace experiments and get ready to adapt. And don't fear failures: Mistakes are your best teachers if you derive the right conclusions from those mistakes.
6. Invest in marketing and content creation
Without a robust online presence, you're invisible. So allocate resources to create quality content and try out different marketing strategies.
Grab multiple channels: social media, top-tier media outlets, blogging, etc. This not only showcases your expertise but also draws potential customers to your business. And don't forget about case studies and review platforms. The latter bring us two to five closed deals each month.
7. Build relationships with your team
I'd also state it as: Regularly exchange feedback with your team, being honest and empathetic.
Communication is the lifeblood of any successful enterprise. Foster an environment where open and honest feedback is valued. Be empathetic in your interactions, understanding that each team member contributes uniquely to the collective effort.
You'll be amazed at how healthy relationships and a good atmosphere can impact your business results.
8. Don't play the "I'm the boss here" game
Forget about your personal founder-only offices, private desks, or individual bonuses. Stand united with your team as one entity.
To promote a culture of unity and collaboration, you should lead by example. Discard hierarchies that stifle creativity and growth. Encourage a shared sense of ownership and celebrate successes as a team.
I believe that by keeping these eight lessons in mind, you'll be better equipped to navigate the challenges and seize the opportunities that come your way. Remember, simplicity, transparency, and a united team are the cornerstones of a successful business.
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