5 Things I Wish I Knew Before I Started My First Business
This article is posted under Business, Mindsetting.
Starting a business can be tough, but I think nothing will ever be more difficult than putting up your very first venture.
Without the advantage of experience, your tools are usually just textbook knowledge, observed wisdom and generous advise.
So let me help you today by giving you one of those… generous advise.
It was in 2004 when I registered my very first business – a computer network gaming station in Makati.
Unfortunately, after almost a year, me and my partners decided to close it down. Our reasons are not important, but the lessons I learned in that small venture are certainly something worth sharing today.
Here are 5 things I wish I knew before I started that very first business.
Your business plan can turn out to be useless.
Read any business book and they’ll tell you that a business plan is essential when starting a business. What many people tend to skip or miss reading is the part written in the end that you may have to ditch your business plan along the way. I was one of those people.
Don’t get me wrong, having a business plan BEFORE starting is important, after all – it is your roadmap to success. But understand that unexpected things are bound to happen and you will need to adjust your business plan, or make a new one at worst.
When the map becomes irrelevant or unworkable, don’t hesitate to find alternative routes that will get you to your destination.
Self-employment is a necessary initial cost.
Several months before I started that venture, I learned from a book the difference between the self-employed and the business owner – one works for the business, while the other lets the business work for him.
I wanted to be the business owner.
But I learned later on that one cannot be a business owner without being self-employed first. Businesses are like children, you have to nurture and take care of them until they become independent.
Good employees are REALLY hard to find.
I thought since a lot of people are unemployed, then it will be easy to find someone to work for you.
I was partly right… what I didn’t know was that it will NOT be easy to find someone who will do a good job. People working in Human Resources will agree – a person’s resume cannot guarantee his work ethics. And from experience, even those who shine in their interview can be quite sloppy at work.
So again, take some time to work on your business so you’ll know exactly what it demands from a person. This will help you screen applicants better – and you’ll be able to hire the right people fit for the job.
Marketing is essential in every business – big and small.
My first business was just a rented space in a small barangay. Being the first and only computer gaming shop in the area, I was confident that I wouldn’t need to do marketing and advertising after the grand opening.
“It’s just a small and simple business,” I thought. But then I learned that some of “my kids” are going somewhere across town because there’s a new shop that’s cheaper but with faster computers.
Relying simply on walk-in customers and word-of-mouth can be risky. And when business is good, expect competition to appear. A continuous marketing campaign will not only allow you to reach new customers, but it will also establish your brand and keep the trust and loyalty of your clientele.
It’s more than just about the money.
My primary reason for starting my first business was because I wanted passive income. Who wouldn’t want to “make money while sleeping” right? And one of the reasons why we decided to close it down was because it wasn’t making enough.
Then several months after, I realized that one of the reasons why we really closed down the business was because we were only after the profits – we were in it for the wrong reason.
It’s true that your business should make money, but more importantly, it should be able to take you closer to a noble goal – a mission and a vision that becomes the prime motivation for starting any business.
Learn more life and business lessons from a real entrepreneur, subscribe to Ready To Be Rich.
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Photo credits: doug88888 and Harald Groven
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Welcome to my blog, Ready To Be Rich.
Hi, my name is Fitz and this is my blog.
Good article fitz, just learned few lessons from it and actually I have the same first business as you had but mine went down for other reasons different from yours that might be worth writing and sharing with my blog.
Thanks.
Nice post Fitz… Share more
I never dream to do local business but I had one it was an Internet Cafe. There was no formal plan, just everything goes. I stopped the business when I moved to another country. Now, that I am back, I am planning to have one….. Thanks for posting.
The part where your kids go someplace else was kinda funny.
Indeed Fitz! Especially the number 5. That’s were we fail most of the time. One good thing also is to do a business where your heart is. If you’re passionate enough to do one thing, and you hold on to that regardless if it’s a rocky road in the beginning… eventually the passion will not stop you until you reach the goal.
This is a great help for those people who started their own business to grow and not to fail.
It is true that despite the unemployment rate, its difficult to find quality employees who will have the same work ethics as we do. I’ve had my fair share of bad experiences with hiring employees. One actually put up the same online business and pirated my team and clients. But experience is really the best teacher. So I am hopeful that I will not have the same problem in the future.
Before I started my college life, my dream is to be a successful businessman sooner. I want to create my own corporation in the food industry particularly but the problem is I don’t how, when, and where to start. Thanks for sharing this. I will noted it so that when the time come I will start my own business I can apply your tips. Thanks Fitz. Cheers!
This inspires me to put up my own business…
Very Well Said. These are some of the things on my mind the time i heard business especially Management Information System is my major subject. You have nice points here.
Thanks for the tips, I actually started as home-based and so far the market has its highs and lows. Since high school I wanted my own T-shirt line but I think its kinda hard to beat sir Fitz’ as competitor
This post greatly reminds of the general rule that in any endeavor or mission, there should be a backup plan, or plans as needed.
I so love this article! And may I just add that the mindset of achieving a noble goal – a mission and a vision – doesn’t only apply in business, but in all aspects of life, the workplace being one of them.
Mission and Vision, very essential indeed.
I encountered your blog way back when I was still in London way back 2010 and read some of your posts but I never saw this post and it would have been really helpful if I was able to read this before I actually jumped ahead into starting my own business here in the Philippines from a Franchising company whom I don’t know if I should still mention. Looks like same lessons learned from a failed business venture but I am grateful for the new insights I have learned into making a business successful especially with the mission and vision!
Having a business plan is not a guarantee that you will succeed in your business. but still, there’s a Plan B, Plan C…Plan Z