15 Must-Read Do’s and Don’ts of Entrepreneurship
A few years ago, I seriously considered starting my own business.
It was going to be a platform for startup ideation.
But ultimately, I was scared away by the risks involved with entrepreneurship.
Plus, college kind of got in the way too.
Entrepreneurs are different from the rest of us.
Although we all have great ideas from time to time, most of us don’t take action.
It’s an understandably daunting thing.
But by following the 15 do’s and don’ts of entrepreneurship spelled out in this article, your journey will be a little less scary.
The benefits of following these best practices are:
- Increased Confidence: By learning the best courses of action to take as an entrepreneur, you’ll gain a newfound confidence moving forward.
- Optimistic Attitude: Understand how to use the power of positive thinking to stay motivated.
- No More Panic: When things don’t go your way, you’ll keep a cool head and make the right power moves.
Before we get to the first do and don’t of entrepreneurship, let’s see what the state of entrepreneurship looks like.
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The State of Entrepreneurship
That strong ambition that you, as an entrepreneur, possess is a very human trait.
We all strive to see the best version of ourselves.
From the research I’ve seen, the consensus is that there’s nearly 600 million entrepreneurs worldwide. So you’re definitely not alone.
Yet that’s still a tiny fraction of the overall working-age population.
In turn, that suggests that most people are afraid of taking that step into a business venture.
Because it’s a lot easier to play it safe and stick to what you know.
In the regard of your bravery, you’re certainly unique.
Whether you realize it or not, you’re someone that’s likely sitting at the very top of Abraham Maslow’s Hierarchy of Needs Pyramid — aiming to conquer your self-actualization needs.
But once you decide to start a business or even if you’re already running an early stage startup, you could always use a helping hand.
Wilbur Labs carried out a useful survey asking 156 startup founders what advice they’d give to aspiring entrepreneurs.
And the results indicated that 58.3% of founders suggest learning from the mistakes that you’ll inevitably make — making it the most common tip.
The fact of the matter is, the overwhelming majority of businesses fail.
And that could happen after a few months or after 10 years. It’s almost like most startups come with a self-destruct feature.
However, there are diamonds in the rough.
After all, there are millions of very profitable businesses, both big and small.
With the right skills and attitude, the sky’s the limit for your entrepreneurial aspirations.
Having said that, there are some mounting challenges that you’ll face. Maybe you’ve already run into some of them.
Going forward, the top challenge that entrepreneurs face is implementing new technology, according to a survey from Angela Yurchenko.
But not too far behind is HR strategy and a COVID hangover.
The truth is, there’s a gazillion other things that can hinder your business’s success.
And it’s your job to respond to obstacles in a way that sustains growth for your business.
Although, it would be easier to just try and avoid as many of them altogether.
So to do that, let’s look at some of the best do’s and don’ts as an entrepreneur.
Do’s and Don’ts of Entrepreneurship #1: Do Have a Plan Before Beginning
As an entrepreneur, you do need to carefully build your business plans and lay out ideas such as:
- How your company is going to position itself
- What products or services the company will offer
- Who you should partner with for your supply chain
- The marketing strategies you’ll use to generate demand
By formulating a game plan, you’ll have a better estimation of how much capital you’ll need to raise.
And that way, you’ll be better prepared for your pitch to the venture capitalists who invested over $600 billion in 2021, according to Crunchbase.
Do’s and Don’ts of Entrepreneurship #2: Don’t Let Others’ Opinions Get to You
Many people have new ideas that they think will be great, but many times these ideas are seen as silly or not fruitful by others.
For example, the great and famous Colonel Sanders was turned down by over 1,000 restaurants. Nevertheless, he went on to establish KFC, which has over 24,000 outlets in more than 145 countries, as per the KFC website.
You see, if you’re going to realize your entrepreneurial dream, then don’t get discouraged when others cast their doubts. Not everyone’s going to have the same faith in your vision as you, even some of the closest people in your life.
Since you’re putting everything you have into making your business aspirations a reality, unuseful comments don’t need to be taken seriously.
Do’s and Don’ts of Entrepreneurship #3: Do Set Goals
In virtually any aspect of life, it’s a good idea to set goals.
But even more so when you’re an entrepreneur and have your eyes set on success.
Because when it feels like you’re running around crazy trying to run a business, it’s easy to lose focus.
However, sticking to your goals will give you stability.
Short-term goals involve plans for the next few months or upcoming year while long-term goals usually set their sights out somewhere around 3 years in the future or more.
It’s crucial that entrepreneurs have a timeline on how their company is going to progress.
By setting a clear agenda and measurable goals, you and your team will stay focused and motivated.
And better yet, research says it’ll help you make more money too.
According to a study from Group & Organization Management, organizations that have measures for their goals see significantly higher profits than organizations that neglect goal-setting.
Do’s and Don’ts of Entrepreneurship #4: Don’t Give In to Fear
Although Failory.com finds that more than 9 out of 10 startups fail, you can’t give in to fear.
Successful entrepreneurs are not afraid of failure.
Rather, they embrace it, as they know failing won’t hurt their overall progress in life or business.
As cliche as it sounds, failing only helps you grow as an entrepreneur. It’s important to fail because it helps you learn how to improve your company, even if there are minor setbacks along the way.
And in the event that you do fail completely, get right back on the horse and try again.
Take comfort in this fact: According to a joint study between Harvard Business School and the Federal Reserve Bank, entrepreneurs that previously failed with a business venture have a 20% higher chance of succeeding the next time compared to entrepreneurs who don’t have any experience.
Do’s and Don’ts of Entrepreneurship #5: Do Analyze the Market Constantly
Not to scare you but even if your business is successful for the first few years, there’s no guarantee that you’re safe.
In fact, most startups fail after 3 years, according to research from Tech.co.
What this means is that you must always be analyzing the market.
Some market factors you should keep top of mind are:
- Consumer trends and preferences
- Technological innovation
- Competition
All these factors can affect the demand for your products or services.
And as found by CB Insights, problems in these key areas are attributed to the demise of 55% of new businesses.
Do’s and Don’ts of Entrepreneurship #6: Do Give Back
No matter where you are in your entrepreneurial journey, it’s always important to give back.
According to Sprout Social’s survey results, 72% of consumers want brands to be positive contributors to society.
For example, if you have built a successful company and you’re financially sound, consider putting some of that profit into a charity or a program that helps communities prosper.
Alternatively, you could start offering a checkout option that donates a portion of each customer’s proceeds to a charity of their choosing. That way, customers can feel their contribution to bettering the world.
Do’s and Don’ts of Entrepreneurship #7: Don’t Assume You Can Do Everything on Your Own
Building a successful business isn’t easy.
A lot of blood, sweat and tears are poured into running your own business.
So regardless of how talented you are, don’t be afraid to reach out to other people.
That can be anyone from a trusted family member to other entrepreneurs that you know. Take the time to blow off some steam and discuss your plans.
There’s no written rule that says entrepreneurs have to isolate themselves.
And you should also consider getting a mentor.
As revealed in a survey report from Kabbage, 89% of small business owners that don’t have a mentor wish they did.
Not to mention, 91% of small business owners agree that mentors positively influence the growth and survival of their companies.
Do’s and Don’ts of Entrepreneurship #8: Do Take Human Resources Seriously
One common mistake small business owners make is not realizing the value of human resources.
You see, to acquire top talent, you need to offer benefits and perks.
Nowadays, you should even be providing remote work options wherever possible.
In one report from GoodHire, it was found that 61% of Americans would take a pay cut if it meant they could work remotely.
Besides hiring, you also need to ensure a great employee onboarding experience.
Fortunately, there’s a lot of HR software out there that can automate the onboarding process for you.
With a solid onboarding experience, new hires will feel more engaged with the company and they can get caught up with ongoing operations swiftly.
Then there’s training and development.
If you don’t invest in your employees, they could very well walk out on you.
According to an IBM white paper, employees are 12 times more likely to quit if their career goals can’t be realized at their organization.
Moreover, PWC finds that upskilling can save companies 43% to 66% in layoff costs.
Do’s and Don’ts of Entrepreneurship #9: Don’t Disregard Legal Matters
If you don’t keep a close eye on legal factors, you could end up with a dead business.
For example, you need to know which business structure works best for your company and ensure that all the proper paperwork is filed.
You also have to consider what kind of insurance coverage you need in case someone falls sick or has an accident at work.
Adding to that, governmental regulations change every so often, so you have to monitor your local laws every now and then. Or you could just hire a legal expert to take care of these matters for you.
According to ZenBusiness, as much as 53% of small businesses are sued every year.
And some of the common legal issues small businesses deal with are:
- Employee hiring and firing
- Business structure
- Breach of contract
- Licensing
- Trademarks
- Misclassifying employees
- Internet security
Do’s and Don’ts of Entrepreneurship #10: Do Know When To Say No
Entrepreneurs should know when to say no because saying yes to every opportunity doesn’t help the company and it can lead to a lot of wasted time and resources.
For example, you shouldn’t get attracted to every opportunity that comes your way. Instead, you have to be selective.
And if you start expanding too fast, you could end up like home-cleaning startup Homejoy, which received $38 million in funding from investors.
Having such a hefty backing came with higher expectations, which led to Homejoy’s demise as they tried growing quicker than the market demanded.
Do’s and Don’ts of Entrepreneurship #11: Don’t Ignore Your Customers
To build a successful business, you need to keep tabs on consumers.
After all, they’re the ones who will give you feedback on how to improve and will ultimately decide if the business thrives or fails.
For starters, you could email your customers and ask them to complete a quick survey.
Another cheap yet effective option is to poll your social media followers.
If you want to invest a little more in market research, you could also use focus groups and conduct interviews with members of your target audience.
Also, you could even try to gain feedback from people who aren’t in your target audience so you can understand how to tap into new markets.
Do’s and Don’ts of Entrepreneurship #12: Do Be Patient
To be successful in the long run, you have to be patient.
According to Forbes, it takes most businesses 18 to 24 months before turning a profit.
With that said, it’s crucial you keep plugging along despite feeling dissatisfied with your results.
And you must keep believing it will all pay off in the end when you see what your hard work brought to life.
Reality is, unicorn status doesn’t happen overnight.
The chances of reaching that precious $1 billion valuation is estimated to be .00006%, according to First Round Review. But still, it does happen.
And if you’re successful enough to accomplish this tremendous feat, you can expect it to take roughly 6 years, as per Business Insider.
Do’s and Don’ts of Entrepreneurship #13. Don’t Neglect Your Mental Health
As one study from multiple Northern California universities has shown, 72% of entrepreneurs suffer from a mental health problem — much higher than the comparison group tested.
Look, it doesn’t take a rocket scientist to figure out why entrepreneurs like yourself are more likely to experience mental health issues … you have a lot on your plate.
And because of your responsibilities, entrepreneurship can be mentally draining.
To take care of your mental health, try:
- Taking regular breaks
- Not working crazy-long shifts
- Eating healthy
- Relaxing with mediation and yoga sessions
Do’s and Don’ts of Entrepreneurship #14: Do Create a Culture for Your Company
Being really busy with day-to-day dealings of running a business, it’s easy to forget about creating a company culture.
It doesn’t matter if you’re a small or large business because establishing your company’s mission and values will boost employee morale and overall productivity.
Additionally, you have to give your employees the freedom to express their creativity and ideas, as these are key ingredients for a positive company culture.
By empowering your employees and giving your brand a personality, your company can stand out from competitors.
According to TeamStage, 94% of entrepreneurs and 88% of job seekers think a strong work culture is integral to company success.
Do’s and Don’ts of Entrepreneurship #15: Don’t Resist Change
As consumer tastes shift and technology evolves, you need to embrace change.
Or else, you’ll go the way of the dinosaurs.
So do your research and make moves when necessary.
Yes, even if it means breaking out of your comfort zone.
Failing to make a pivot can leave your business in the dust.
However, if you recognize the need for a pivot, there’s hope.
According to TechRepublic, 3 out of 4 startups that make a pivot to avoid business failure are successful.
And the most common pivots are:
- Improving/changing business plans
- Improving existing products
- Launching new products
- Rebranding
- Changing the team
- Securing more funds
Conclusion
Download the “15 Do’s and Don’ts To Make You a Better Entrepreneur ” so you won’t forget to take action on it later. Click here to download it now.
Entrepreneurship can be an exhilarating journey.
But it also requires a great deal of hard work and preparation to ensure that your business is thriving in the long run.
With that, I hope these 15 do’s and don’ts of entrepreneurship will help you navigate the ups and downs along the way so that you’re better prepared for future growth.
In addition to that, you’ll avoid some of the common pitfalls that entrepreneurs often find themselves trapped in.
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Before you go, tell me one thing …
Which do’s and don’ts of entrepreneurship are you keeping a close eye on?
Let me know in the comments below.
Keep Growin’, stay focused.
Mark
