5 Things to Consider When Starting Your Business

I have worked with many startup companies and there are a few common themes among each of the new CEOs and I think it is worth mentioning for the vast majority of entrepreneurs.

1) Planning

If you don't plan then you are doomed to fail. Planning however is more than just, "This is my business idea, and I will operate as an LLC, these are the positions in the company." The idea of a business plan is twofold: The first is an internal business plan that will be used for your business planning. The planning stages of a business plan are what I dub the "contingency planning".
Contingency planning, is planning for everything that could go wrong, because everything will go wrong. So, the best way to plan is betting that everything will go wrong. Always have an alternate way of achieving your goals.
The second comes later and is an investors business plan- the plan where you pitch your business to investors in hope of obtaining revered venture capital.

2) Launch the organization with as few people as possible.

Launching an organization with 10 to 20 people sounds wonderful. It actually clogs up the system. It would be much easier for you as a business owner to have a partner and yourself build the organization and then bring in other employees.

The problem starting with 10 to 20 people is that they will all have their own input on how they think the business should be ran. This can create feuds between you and the employees of your business, because at the end of the day your name is on the articles of incorporation not theirs. So, it would be best to bring people in after you have established the ground rules instead of while establishing the ground rules.

3) Screw Venture Capital

I am wanting to eventually make venture capital and entrepreneurship my career, but I will be the first to tell you that if your business does not need venture capital then don't use it! Venture capital can be very strategic or it can be very stupid. If you can launch a business without venture capital why on earth would you want to give away 10-30% of your business to a venture capitalist that you don't need to succeed.

4) Baby Steps

Break your actual business development into baby steps. So, plan out the weeks agenda, "I want to complete these 5 things by Friday." Then systematically work to check them off your list. Working on your business in this manner will keep you organized and on the right track for success.

5) Network

If you are not networking then your business will be lackluster. Networking the where business deals are made and a customer base is formed. If you make friends within your market it will benefit you in numerous ways. One point of contention with almost all the startups I have worked with is that they believe they are "fraternizing with the enemy" this couldn't be further from the truth.
Building friendships in business goes a long way. They could provide that one connection you need to make your business more profitable and because you thought they were an enemy you might never make that connection and your business would be robbed of growth. So, not networking is shooting your business in the foot... so to speak.

Thanks for reading and good luck with your business ventures,
- Mayo