Do you have a great tech company idea but you’re a bit new to entrepreneurship? Working at your company but want to break off to start your own? I’ve been there and I can tell you right now that while it’s great, there are a few things that you need to keep in mind. Please don’t get discouraged by these difficulties, starting a business is always hard, but it can be one of the most rewarding things you ever do.
1. You Will Work More Hours Than Usual At First
This is something that may seem obvious to some, but you would be surprised at how many people start up businesses because their end goal is to work less. Whether it’s in-house logistics or making sense of your data, you can anticipate your inital efforts to be considered your largest investment. Many entrepreneurs on the rise see their CEO and figure that he works less hours than they do and obviously makes much more money. What they don’t see is that the CEO generally has worked more than 60 hours a week for years before they saw the fruits of their labors. Now this isn’t always bad as usually it’s something that they have a passion for, but it’s still something that you’ll want to keep in mind. Putting in this work will get stressful, and almost any business owner will tell you that they reached a point where they felt like they could not go any further. If this is the case just keep pushing through, the work will pay off, it just takes time to get there.
2. Get A Business License and Business Insurance
This is big, and something that young entrepreneurs often overlook. In order to be an official business you’ll need a license, fortunately having a license is going to get you into a lot of doors as well as keep you out of trouble. Getting a business license may sound scary if you are just starting out, but trust me when I say that local governments want more businesses not less, it’s actually easier than it seems. While looking to get business insurance I would recommend calling around to various companies such as Geico or Progressive. The quotes that they will give you will differ depending on your current business size as well as the type of business your in. If you skimp on these kinds of things at the beginning you will run into problems later on.
3. Wait to Hire
Wait as long as possible to hire anyone for your company. Instead use your money to invest in contracted experts to do the work for you. This is important in the beginning since it will cut down on costs as well as get you better talent than you would normally be able to hire. Take the extra money you have saved and invest it back into the company in order to foster growth and expansion. Good work is usually expensive, contracting it out will save you money as well as time spent managing employees.
There are of course many other lessons on things that you should know if you want to start your own company. In fact there are whole books written on the subject as well as entire courses of study at universities. Start to do your own research and get to work, in the end the best way to learn is by taking action.