5 things every entrepreneur should know from the beginning

It's common to think that someone is either born to be an entrepreneur or not, and that any advice that could possibly be given would therefore simply be common sense to any capable businessperson. 

In truth, however, entrepreneurialism is a set of skills that can be learned much like any other. As a starting point, it is vital that budding business owners equip themselves with knowledge like the five below points.  

1. Whether there is actual market demand 

You may have a hunch that a certain product or service idea could make money, but what evidence do you have that there will actually be demand for it? 

Have you conducted surveys or run focus groups, for example? Have you interviewed potential customers and undertaken test runs for your product? There's much that you can do to assess market demand for a particular product or service idea before taking the plunge. 

2. The importance of hiring the very best people 

With Oxford Economics estimating that it costs an average of £30,000 to replace a member of staff, entrepreneurs really can't afford to take on the wrong people at the start of their business journey. 

It's not just a case of seeking the most talented people - you also need to ensure that you will get along well with this person even during periods of high stress and time pressure, as well as that they believe in what your business stands for and are therefore motivated to work hard for you. 

3. Money must be spent well  

Too many entrepreneurs have the wrong priorities when it comes to money, spending lots of cash on impressive-looking office furniture or flashy company merchandise, when there are rather more mundane things that would add much more to their bottom line. 

Have you investigated, for example, how your business can make cheap international calls? What about investing in your company website or the design of the perfect logo that communicates your brand's values? Or maybe you could enlist the best outsourced accountancy services? There's a long list of possibilities. 

4. Listening to others is vital 

There's a saying that human beings are given two ears, but only one mouth for a reason - you need to spend twice as much time listening as you do speaking. 

Of course, there are obvious benefits for inexperienced entrepreneurs of listening carefully to feedback from mentors, advisors, employees, suppliers and customers alike - but the learning process never stops, and nor should your listening process. 

5. Where the business will be based  

Entrepreneurs have a habit of starting their businesses from home, but while this may save a decent amount of money, it can have a fair few drawbacks. 

The biggest difficulty in basing your business at home is in effectively separating your personal life from your professional life - if you are in the middle of a row with your husband or wife when a client calls, you will still need to project the same professional manner. 

Remember that you aren't necessarily forced to work from home if you are short of cash when starting out - a quick look at Rightmove may reveal the availability of surprisingly cheap commercial property in your locality. 

Starting a business is an endeavour fraught with both amazing highs and devastating lows for many entrepreneurs, so to ensure that your own start-up survives its early challenges, we would always urge you to seek the most informed business advice from experienced professionals.