The first year of a business can be challenging, but with the right tools and the right attitude, every challenge can be overcome. Generally, there are very few businesses that make much profit in the first year. Even with low-start up costs, you will eventually need to invest money into your business in order to grow it, which is why it is more achievable to look at a 2-3 year plan.
Business failures within the first year are well document which is why it is important to evaluate a business opportunity prior to buying into it. So, here’s some tips before you start;
Are you ready?
Ensure you have the necessary time, resources, vision and commitment to make this business a success. Success is something all career-driven individuals desire yet why are some business people successful and others not? It has everything to do with habits, beliefs, passion, flexibility and attitude. Often there’s nothing different between one entrepreneur and another in terms of ability, as each person can do whatever he or she wants. What it all comes down to is having the frame of mind to set practical habits and keep a balance between attachment and commitment and letting things happen.
Passion + Product = Profit
More than half the battle of starting a successful online store involves finding the right products to sell online. The main priority is finding a product that you can personally engage with. The most successful entrepreneurs built their business with belief, passion and determination. If you do not have these traits towards the product you are looking at then this is the wrong business for you.
Tip: Are the products consumable? Consumable products lead to repeat customers, repeat customers lead to ongoing income.
What is their business plan?
A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. If they don’t provide one – then walk I mean run away. A legitimate, long-term successful business will provide you with a business plan to help you achieve your goals. A business without structure can be destined to fail, as there is no evidence of success. You must research what steps you can take to be successful in this company by confirming if they have a proven business plan. The importance of a proven business plan? Crucial – it dictates how you can run the business successfully.
The Compensation Plan
This determines what the payment structure is for the business. You must research the compensation plan to know how you can make money from the business. Be sure to check is there only one avenue to make money? Or multiple? Understand the payment structure and know that there should always be an ‘exchange’ of money. For example; you hand over money – you get goods or services in return. Any company that requires payments with no return is running illegally.
Beware of ‘get quick rich’ Schemes
A get-rich-quick scheme creates the impression that participants can obtain a high rate of return with little risk, and with little skill, effort, or time. Whereas successful businesses as stated previously generally take years of hard work and determination. And let’s face it – if there was a get quick rich option, we would all be a part of it.
And finally – remember; success does not come from what you do occasionally, but from what you do consistently.