Facts That Good Entrepreneurs Know BUT Others Don’t

Business world has always been interesting. You cannot know what will happen in the business sphere unless you do the business. For example, while you expect that your product or service will be highly on-demand in the market for at least 10 years ahead, there are good chances that it will last only for 4 or 5 years. Unless you conduct a careful and thorough market analysis, you might not survive with your company. Not to mention, businesses are not only full of speculation and prediction, but it is also full of politics and negative behaviours such as deceit and money laundering.

“Many people want to be involved in a business, but only a little who stay and fight, and some just go with the flow.”

Frank Lively, a founder at Side Projects, commented that business world is somewhere in the middle between hell and heaven. Everything needs thorough research because “If you are not diligent, everything you build or anything you sign will get you nowhere but failures,” added Lively.

See also: Things to Remember When Starting a Business

For that reason, at all times, you should protect yourself, company, and employees because no one is going to stand up for you. It is nature of business when things go wrong, they go wrong, said Lively. And sometimes, it needs a decade to fix it. Yet, there are ways to prevent these tragedies from happening. According to Lively, here are rules “best” entrepreneur knows that others don’t.

If it is not written and signed then you cannot enforce it – You get your contract and a handshake. But a few months later, you find something wrong in the contract that you did not notice before. You want to bring it to a court but there is no proof. Remember, a handshake is not something you can take to the court. “People will take advantage of your in business. Not everyone is your friend and most of them will win your expense if you give them an opportunity to do so,” said Lively.

Therefore, you should be really careful before signing the contract. Read and ask if there is anything ambiguous that confuse you. Also, bring your lawyer to witness everything in your agreement.

Customer is not always right – Some customers are just a virus. They spread bad thing about your product, make use of your product in a wrong way, and are hard to talk. These kinds of customers need to be avoided. They are not worth it. You have to learn how to avoid people, even if they are customers, who drag your business down.

Cash is king in business, not account receivables – It is happy news that you have a million dollar coming to you. However, it is bad news when you receive an account receivable, instead. Account receivable is a balance of money due to services or goods delivered, but not yet paid by customers. This is probably okay for big business. But for a startup, you need to think again.

As a startup, you should always be looking for money to develop a new technology or service. If you are stuck in funding, you cannot run your business smoothly. While an investor can help bridge the gap, you should not fall into debt when you already have customers.

No one ever moves fast enough – One of tempting ideas in building a startup is to move fast. For example, you are working on your startup idea to working on a product. In two weeks later, you get a few customers. It is already a big win.

However, not everyone in the team can match your speed, sometimes. So, you might feel that they are slowing you down, instead. In this case, you should relax because throwing more money to your problem or people out of your business problem won’t help. Advice is, think carefully for every decision you make. Faster is not always wiser.

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