What Every Entrepreneur Should Know Before Starting a Business

For a lot of people, bringing your creative ideas to life, setting your own schedule and being your own boss is a dream scenario. And I experienced this first-hand.

Before becoming CEO of SkillPath, I worked for a consulting firm, conducting training sessions for Six Sigma, manufacturing and inventory, and statistical process control. It wasn’t long before I realized that I could do the same thing, operating under my own name and writing my own training materials. What I learned during my time as a small business owner is that many first-time entrepreneurs underestimate what it takes to create something that lasts.

According to the Bureau of Labor Statistics, nearly half of all private businesses fail within five years. So how can entrepreneurs avoid becoming a statistic? While it does take a little bit of luck, you can still make sure you do the right things to help ensure that your business sticks around for the long run.

Top Considerations Before Going on Your Own

As an entrepreneur, there were many things I learned along the way that would’ve been helpful to know before starting my business. Here are some of my top considerations you need before striking out on your own.

1. Define your target audience: This is the first thing I think every entrepreneur should consider. Your idea may be great, but it’s unlikely that everyone else will agree. Who will your product or idea appeal to? Create a feasibility study so that you can understand the weaknesses, as well as the strengths, of what you offer. The more you can define your target audience, the better chance you have of your business gaining traction.
2. Work backwards: A lot of people are so enamored with their idea that they forget about what it takes to run a successful business. Focus on the little things – marketing, finances, customer acquisition – and use those to make your big idea work. At the start, you’ll wear all the hats, but as your business grows, you can hire people to help you run the day-to-day operations, so you can focus more on the big picture.
3. Pay attention to everything: Don’t expect some aspects of your business to “take care of themselves.” The No. 1 thing I’ve found is that entrepreneurs often avoid the financial aspects of their business. As a business owner, you’ll likely spend half your time servicing clients, and the other half will be spent managing your operations.
4. Remember that expectations change: When you first start out, you may be limited on what you’re able to deliver. But as your business grows, your customers are going to start expecting more from you. Think about virtual meetings five years ago – spotty connections, low-definition cameras and unprofessional backgrounds may have been acceptable then, but that no longer flies post-pandemic. It’s now expected that you have a solid WiFi connection, hi-resolution cameras and a background that doesn’t detract from your meeting.
5. Have a mindset for growth: Continued entrepreneurial success takes constant innovation. Much like expectations, market demands will change too. What are they looking for? How can you adapt? There’s a big difference between customer acquisition and customer retention; how is the growth of your business helping your customers grow too?
6. Find your own work: As intuitive as this might be, finding your own work can be more difficult than you might realize. When I first started my business, I was still in that employee mindset where I expected all customers dictate my work for me. You have to get out of that mindset. Create your own work and set your own schedule.
7. Write a business plan: Some people disagree on whether a business plan is worthy of your time, but I believe it’s crucial. Sometimes the entrepreneur’s “big idea” can be blinding. There is so much to consider when starting a business, and your business plan can help bring you back down to Earth. What are your pricing and marketing strategies? Should you be an S corp or LLC? What are your goals and when do you hope to achieve them? I believe a business plan will help entrepreneurs focus on the small things that are necessary to make their big idea successful.
8. Training is important: It’s paramount to have a strong foundation of knowledge. Whether you’re a current or prospective business owner, you can sign up to receive training in areas that you feel you could expand your knowledge. If you are unfamiliar or uncomfortable with the customer acquisition or financial aspects of your business, find a training program so you can feel more confident marketing your company or balancing your budgets.

It’s daunting to think about everything you need to do to build your business to last. Be careful not to become your own roadblock. Be formal in your approach. Show your customers that you’re consistent and reliable, and they’ll be more likely to become repeat customers. Remember you’re not just selling yourself; you’re selling your business.

Being an entrepreneur is simultaneously exciting and nerve-wracking. It’s empowering and intimidating knowing that you’re responsible for your own success, and eventually, the success of others. Be confident and diligent, and your business will find long-term success.

Ready to learn more? Check out some of SkillPath's live virtual training programs, on-demand video training or get it all with our unlimited eLearning platform.