I’ve been self-employed for a decade, and I’ve failed more times than I can count...
...But I've also built businesses that generate millions.
Here are some of the most important principles I’ve learned along the way.
🧵
...But I've also built businesses that generate millions.
Here are some of the most important principles I’ve learned along the way.
🧵
Fear of Failure
The greatest mistake a business owner can make is to be afraid of failure. Failure is both necessary and inevitable. The ability to pick yourself up after defeat and learn from your mistakes is what will ultimately determine your success.
The greatest mistake a business owner can make is to be afraid of failure. Failure is both necessary and inevitable. The ability to pick yourself up after defeat and learn from your mistakes is what will ultimately determine your success.
Have a Business Plan
Too many people fail to do this, and failing to plan is planning to fail. Your business plan should include how much it costs to run the business, how much you expect to sell, who will buy your product, and why.
Also: lay out your key objectives and goals!
Too many people fail to do this, and failing to plan is planning to fail. Your business plan should include how much it costs to run the business, how much you expect to sell, who will buy your product, and why.
Also: lay out your key objectives and goals!
Evaluate Your Costs
The nature of your business and the resources required to operate successfully will determine how much capital you need for your startup.
Carefully evaluate your overhead costs, operational expenses, and unforeseen circumstances in your business plan.
The nature of your business and the resources required to operate successfully will determine how much capital you need for your startup.
Carefully evaluate your overhead costs, operational expenses, and unforeseen circumstances in your business plan.
Establish a Business Structure
The structure of a business affects the safety of personal assets, taxation, and continuation of the company if ownership changes.
Do your research or hire a consultant to determine the best legal entity for your business, then register it.
The structure of a business affects the safety of personal assets, taxation, and continuation of the company if ownership changes.
Do your research or hire a consultant to determine the best legal entity for your business, then register it.
Protect Your Property (IP)
Protect your company's assets, such as its name, logo, and slogan, by trademarking them. This ensures that no one else can steal and use them without your permission or punishment.
USPTO provides the best legal protection for your trademarks.
Protect your company's assets, such as its name, logo, and slogan, by trademarking them. This ensures that no one else can steal and use them without your permission or punishment.
USPTO provides the best legal protection for your trademarks.
Understand Your Audience
A target audience is a collection of people identified by shared qualities, such as demographics and behavior.
Four great ways to determine your audience:
• Conduct Market Research
• Identify Industry Trends
• Analyze Competitors
• Create Personas
A target audience is a collection of people identified by shared qualities, such as demographics and behavior.
Four great ways to determine your audience:
• Conduct Market Research
• Identify Industry Trends
• Analyze Competitors
• Create Personas
Stay Lean
Don’t equate hiring more people with creating more value. Salaries are expensive.
In a startup with limited access to financing, mismanaging money and being careless with cash flow is a death sentence.
Work hard, stay lean, and outsource as long as possible.
Don’t equate hiring more people with creating more value. Salaries are expensive.
In a startup with limited access to financing, mismanaging money and being careless with cash flow is a death sentence.
Work hard, stay lean, and outsource as long as possible.
Delegate or Suffocate
Focus on the critical areas of the business that require your attention by delegating mundane tasks to members of your team, freelancers, or virtual assistants.
Scheduling, accounting, and customer support are some of the first tasks you should delegate.
Focus on the critical areas of the business that require your attention by delegating mundane tasks to members of your team, freelancers, or virtual assistants.
Scheduling, accounting, and customer support are some of the first tasks you should delegate.
Execution is Everything
Implementing a plan to achieve business goals is known as strategy execution. It includes the everyday structures, methods, and operational objectives that will help your organization succeed.
Implementing a plan to achieve business goals is known as strategy execution. It includes the everyday structures, methods, and operational objectives that will help your organization succeed.
5 Keys to Successful Strategy Execution:
1. Stick to the Plan
2. Let Strategy Inspire Hires
3. Communicate Clearly to Empower Employees
4. Measure and Monitor Performance
5. Innovate Responsibly
1. Stick to the Plan
2. Let Strategy Inspire Hires
3. Communicate Clearly to Empower Employees
4. Measure and Monitor Performance
5. Innovate Responsibly
Marketing Strategy
Market research is critical in identifying the target market, how to reach them, at what price point to market the product or service, and how to measure the business' success.
It identifies how to reach prospective consumers and convert them to customers.
Market research is critical in identifying the target market, how to reach them, at what price point to market the product or service, and how to measure the business' success.
It identifies how to reach prospective consumers and convert them to customers.
Accounting, Budgeting, and Taxes
Establishing an effective accounting structure during the early stages of your business is paramount. How will you track and manage your money effectively? What accounting tasks should you outsource, and which can you handle yourself? Taxes?!
Establishing an effective accounting structure during the early stages of your business is paramount. How will you track and manage your money effectively? What accounting tasks should you outsource, and which can you handle yourself? Taxes?!
Accounting & Bookkeeping
Accounting is the process of analyzing your business's financial health and strategic direction using data from your books.
Bookkeeping tracks business transactions (money coming in, money going out) and categorizes them.
Get familiar with both.
Accounting is the process of analyzing your business's financial health and strategic direction using data from your books.
Bookkeeping tracks business transactions (money coming in, money going out) and categorizes them.
Get familiar with both.
Build Within Budget
I can't stress this enough: you have to know your numbers to grow your numbers. Create a budget that includes Revenue, Fixed Costs, Variable Costs, Cash Flow, and Profit. Use a budget calculator for this.
Tip: Always account for unforeseen circumstances.
I can't stress this enough: you have to know your numbers to grow your numbers. Create a budget that includes Revenue, Fixed Costs, Variable Costs, Cash Flow, and Profit. Use a budget calculator for this.
Tip: Always account for unforeseen circumstances.
Pay Your Taxes
You don't own your money until you've paid taxes on it.
Your business structure will determine what taxes you'll pay and how you'll pay them. It's essential to understand federal, state, and local tax requirements, so you can file your taxes properly and on time.
You don't own your money until you've paid taxes on it.
Your business structure will determine what taxes you'll pay and how you'll pay them. It's essential to understand federal, state, and local tax requirements, so you can file your taxes properly and on time.
Execute Contracts
Handshakes and verbal agreements are not a logical approach to doing business. Contracts are more accessible to execute than ever before. They act as a record of commitment, mitigate risks, ensure compliance, and, ultimately, prevent conflicts for all parties.
Handshakes and verbal agreements are not a logical approach to doing business. Contracts are more accessible to execute than ever before. They act as a record of commitment, mitigate risks, ensure compliance, and, ultimately, prevent conflicts for all parties.
Choosing a Partner
If you bring on a partner, be sure their values and ambitions for the company align with yours. A good business partner should have skills that support and complement your resources and add credibility to your mission. Be sure of this commitment.
If you bring on a partner, be sure their values and ambitions for the company align with yours. A good business partner should have skills that support and complement your resources and add credibility to your mission. Be sure of this commitment.
That's all from me! If there's something you'd add to this list, drop it in a reply to the first tweet!
Looking forward to seeing what insights you have to share!
For more tips on entrepreneurship and self-growth, follow me @johnnyxbrown 🤝
Looking forward to seeing what insights you have to share!
For more tips on entrepreneurship and self-growth, follow me @johnnyxbrown 🤝
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Have a great weekend 💪
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