Starting a business is not for everyone. Some people possess a particular set of traits that fit better with the entrepreneurial template.
You can be happy and successful working for someone else. It all depends on who you are as a person. If you believe you're destined to be an entrepreneur and are looking to start a business, this post will help you figure out both a game plan and double-check your existing beliefs.
When people talk about this stuff, they usually avoid the hard-to-swallow truths. So, we structured this for everyone in the beginning stages of their company, but we're not giving you false hope. With that said, here are 15 things you should know when starting a business. Welcome to CashWisdom, the place where future billionaires come to get inspired.
1. Talk is cheap
Nobody cares about what you're planning to do until you do it. We get hundreds of emails from people who say they plan on launching a company. But how many do you think actually did anything about it? Actually, we can answer that. 1 in 60. For every 60 people who say they're planning on starting a business, only 1 actually does it. The rest find excuses and say it's not the right time for whatever reason they find. The result is always the same. The world doesn't care about what you plan on doing. The world doesn't run on wishful thinking.
Talk is cheap. Let your work speak for you.
2. An idea isn't worth anything before it yields results
An idea is worth 1 million dollars only after it makes 1 million dollars. Newsflash: ideas are free.
Everyone has ideas, tons of them actually, and they're not that special. Talk to anyone around you, and they'll immediately bring up five ideas or businesses or projects. But as we've mentioned, since everyone has multiple ideas, there's an abundance of them. Most of them are actually pretty good ideas, but that doesn't mean they're worth anything. Ideas are worthless unless they're paired with the right execution. Let’s put it this way: A good idea with poor execution not only will not yield any positive results, it will consume resources and time. Meanwhile, a mediocre idea with great execution will become a viable business.
You start off with a simple idea, which over time could evolve into a good one, but execution is everything. Just because an idea sounds great to you doesn’t mean the world will think so too. We recommend unbiased opinions. Don’t listen to your friends and family because they care about you and will sing your praises. If you want real feedback, ask people to front you the money. You’ll find out everyone says your idea is good until they have to put their money where their mouth is.
Don’t be protective of your idea; it’s not that special. It all depends on your ability to execute. Also, you don’t need a revolutionary idea to get rich either.
You don’t have to reinvent sliced bread to have a successful bakery. Facebook wasn’t the first social network, and delivering food is not revolutionary. You just need to execute it better than your competitors.
3. Nobody cares about your business more than you do
And they never will. You might inspire people to join your cause, but no one will ever want your business to succeed as much as you do. This is something important to consider, especially if your business has multiple founders.
If you partner with others, every member needs to want it as badly as you do. Many times, we see best friends teaming up to start a business, only to realize 6 months later that one of them isn’t passionate about the idea anymore and wants to move on to something else. Partners can be great, especially if they fill a skill gap. But every person you bring in means slicing the pie more. Rarely do businesses get started by a single founder. The upside is you get to keep all the rewards, but it’s going to be much more exhausting than you think.
Think of your team as a chess set. You want as many pieces around you when you win, but don’t be afraid to sacrifice some if it means the whole game will be lost otherwise.
4. You don't need money to start a business
Not even those with a lot of money use their own funds to start a business. Use credit. That's a story for another time, but it's worth mentioning.
In the beginning, you are the business. Most people think you need a ton of money to get started because they’re looking at the final stage of the company, with employees, marketing teams, multiple products, and intellectual property. But businesses start with one person hustling hard. You can start a business with under $100. What you need to understand is that in the beginning, you have a lot of time, and that is your main resource.
If you can’t convert your time into money through your business, then having an influx of capital will only sink your boat faster.
5. Be ready to make sacrifices
Something most people don't realize when starting a business is the amount of work and sacrifice that is needed to turn it into a success. Most start a business because they don’t want to work for a boss—they want to be the boss. They despise the 9 to 5 and take action. But soon, they realize that instead of working 8 hours a day, they're now working 16 hours a day, every day, including weekends.
You’ll barely sleep at night because you worry about the future. Yes, creating a successful company leads to a better life than you'd otherwise have, but those rewards do not come for free. The moment you start a business, it needs to become priority number 1 if you want to succeed. Your social circle will shrink, your family will see you less, and your health (mental and physical) will take a toll.
And that’s just the beginning.
6. Build smart from the start
If the foundation of a company is fractured, it doesn’t matter how high you plan to go—it’s bound to fail. Here’s what a smart business will have:
1. No demand ceiling, meaning as you grow, you will always have customers.
2. Every part of your business is replaceable, meaning it can survive if an employee or supplier leaves.
3. Your business can scale, with a clear plan to increase production as demand increases.
4. Clear direction, so both you and your employees know what you’re working toward.
7. People should free up your time so you can focus on your strengths
Don’t be an employee in your own business. One common mistake is that people trade their job for another one within their own company. When you start, you are the first employee, and you need to get your hands dirty to understand, optimize, and perfect your system. Afterward, break your process into smaller systems and hire people to take care of them.
Your job as the founder is innovation and business growth, not micromanaging everything. Your employees should manage the day-to-day while you focus on growing the business. Identify your strengths and use them to get the biggest return on your time.
8. Fail fast and adapt quickly
Be ready for things to not go according to plan. You’re a novice, and there’s a lot you haven’t learned yet. There will be plenty of bumps, but if you're serious about this, you need to keep going. Rethink how you look at failure. Failure is not achieving your dream life—everything else is just part of the game.
Think of your journey as gathering data to make more informed decisions about the future. 8 out of 10 businesses fail in the first 18 months. Why? Because they either quit after a big setback or failed to adapt.
9. Long term success depends on your ability to manage resources
Life is like a strategy game. You’ve got resources like time, willpower, money, and connections. Your challenge is to make the most of them. Time is a resource, and the best entrepreneurs are strategic about how they use everything at their disposal.
10. The right mentor is worth 10 years of struggles
They’ve walked the path you’re on. They know where the potholes are and can help you avoid them. Find someone who has been where you are and leverage their knowledge. If you’re lucky enough and prove you're serious, you may gain a mentor. Think of mentors as power-ups that make things easier.
11. There are no shortcuts to any place worth going
Don’t try to cheat the game by jumping from business to business looking for a quick fix. Real value comes from building a solid foundation and working diligently to bring your dream life together.
12. Keeping your head down and grinding is what will make or break you
The only thing you can control is yourself. Celebrate small wins but stay humble and keep grinding. Success is a series of small actions repeated over time.
13. Sales solve all of your problems
Sales are the gas that powers your business. Without them, your company is just a pile of scrap metal. Your job is to bring money in from the marketplace, which allows you to grow. If you need anything—better equipment, marketing, or an accountant—sales will solve it.
14. Raise capital from investors only when you can't do it by yourself
Raising money should not be your main focus. Do it yourself, bootstrap, and get creative. It will teach you more about business than anything else.
15. A business without an endgame is headed nowhere
Why are you building this? What is the goal? Having a clear endgame will help focus your actions and give you a better shot at success. Without it, you’ll be shooting in the dark.
