{"id":3071,"date":"2015-07-07T16:37:58","date_gmt":"2015-07-07T13:37:58","guid":{"rendered":"http:\/\/secretformulaforwealth.com\/blog\/?p=3071"},"modified":"2018-06-06T13:24:25","modified_gmt":"2018-06-06T10:24:25","slug":"4-business-startup-secrets-every-aspiring-entrepreneur-needs-to-know","status":"publish","type":"post","link":"https:\/\/secretformulaforwealth.com\/blog\/business\/4-business-startup-secrets-every-aspiring-entrepreneur-needs-to-know.html","title":{"rendered":"4 Business Start-up Secrets Every Aspiring Entrepreneur Needs To Know"},"content":{"rendered":"<p><a href=\"http:\/\/secretformulaforwealth.com\/blog\/wp-content\/uploads\/2015\/07\/business-startup.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-3073\" src=\"http:\/\/secretformulaforwealth.com\/blog\/wp-content\/uploads\/2015\/07\/business-startup.png\" alt=\"business-startup\" width=\"200\" height=\"133\" srcset=\"https:\/\/secretformulaforwealth.com\/blog\/wp-content\/uploads\/2015\/07\/business-startup.png 200w, https:\/\/secretformulaforwealth.com\/blog\/wp-content\/uploads\/2015\/07\/business-startup-100x67.png 100w, https:\/\/secretformulaforwealth.com\/blog\/wp-content\/uploads\/2015\/07\/business-startup-150x100.png 150w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a><span style=\"float: left; font-family: Georgia; font-size: 300%; line-height: 0.8em; padding-right: 6px;\">T<\/span>he statistics are usually staggering and very similar; a <em>very<\/em> small number of start-up businesses make it beyond the twelve-month mark.<\/p>\n<p>More often than not, the failure of a business in its first year of operation stems from pursuing a business idea that is not financially viable.<\/p>\n<p>For the feasible business ideas, the inexperience of the entrepreneur in the field of business turns out to be the hurdle.<\/p>\n<p>In this article, we are going to cover four things you should know before you even embark on starting a business of your own, based on my experience and observation.<\/p>\n<p><strong>1.\u00a0 Focus on sales right from the onset<\/strong><\/p>\n<p>The main idea behind operating a business is to <em>sell<\/em> something of value to your target market in the form of a product or service.<\/p>\n<p>Unfortunately, many start-up entrepreneurs spend a lot of time and money on activities and things that do not generate sales in the short run.<\/p>\n<p>Without sales, you do not have a business. All you have is an expensive, glorified hobby.<\/p>\n<p>The sooner you focus on sales, the higher your chances of creating a successful business for as long as you can generate repeat sales and retain customers.<\/p>\n<p><strong> 2.\u00a0 Know how to calculate the cost of money<\/strong><\/p>\n<p>All too often, budding entrepreneurs find themselves facing an <em>urgent<\/em> need for cash to fund various aspects of their businesses.<\/p>\n<p>This sometimes causes them to lose sight of the cost of money.<\/p>\n<p>It only starts to bite when the cash flow situation of the business makes it difficult to cover the loan repayments.<\/p>\n<p>As a rule of thumb, you should only borrow money on repayment terms that <em>your business<\/em> can handle.<\/p>\n<p><strong> 3.\u00a0 Distinguish between revenue and profit<\/strong><\/p>\n<p>As simple as it sounds, failing to distinguish between revenue and profit can kill a would-be successful business in no time.<\/p>\n<p>Let me explain the difference by the use of an example.<\/p>\n<p>If I buy 10 widgets at $100 each and sell them for $150 dollars apiece, I will end up with $1,500 in cash.<\/p>\n<p>That $1,500 dollars has a <em>cost<\/em> aspect and a <em>profit<\/em> aspect.<\/p>\n<p>Since I bought the widgets at $100 dollars each, my initial cash outlay was $1,000.<\/p>\n<p>Therefore, my cost price for all the widgets was $1,000. After the sale, the proceeds amounting to $1500 represent <em>revenue<\/em>.<\/p>\n<p>The difference between my cost price for all the widgets and the sales proceeds ($1,500 \u2013 $1,000) is my <em>gross <\/em>profit, in this case $500.<\/p>\n<p>Taking the entire $1,500 out of the business and spending it frivolously is a common trap that ensnares most novice entrepreneurs.<\/p>\n<p><strong>4.\u00a0 Starting with credit sales in a bid to attract clients is a futile strategy<\/strong><\/p>\n<p>This business start-up strategy is doomed from the start because the type of bait you use to attract clients or customers will affect the quality of customers you get.<\/p>\n<p>Shortening the gap between the sale and receipt of cash is of vital importance, especially in the nascent stages of a business.<\/p>\n<p>The point is not to offer your products or services with the hope of being paid at the convenience of the customer or client.<\/p>\n<p>There are many ways to compete with already existing businesses.<\/p>\n<p>Deliberately starting with credit sales should never be one of them.<\/p>\n<p>It is important to get a good understanding of how to start your business on the right footing from the onset, as opposed to mistakenly thinking business is common sense.<\/p>\n<p>Having the right information can save you time, money and a lot of aggravation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The statistics are usually staggering and very similar; a very small number of start-up businesses make it beyond the twelve-month mark. More often than not, the failure of a business in its first year of operation stems from pursuing a &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"more-link\" href=\"https:\/\/secretformulaforwealth.com\/blog\/business\/4-business-startup-secrets-every-aspiring-entrepreneur-needs-to-know.html\"> <span class=\"screen-reader-text\">4 Business Start-up Secrets Every Aspiring Entrepreneur Needs To Know<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[345,347,346,348],"class_list":["post-3071","post","type-post","status-publish","format-standard","hentry","category-business","tag-bsuiness-startup-secrets","tag-business-startup-checklist","tag-business-startup-help","tag-business-startup-ideas"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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