«

»

Jan
07

Top 7 Tips to be a Successful Entrepreneur

The Key to Entrepreneurial Success

Let’s face it, being an entrepreneur is tough. It’s a risky endeavor, but comes with the dream of big rewards. Below are seven tips to be a successful entrepreneur. I can’t guarantee your success, but I can help steer you in the right direction. The rest is up to you!


1. Get the Cash Flowing


We all know that cash is king. Without cash flow, your business will not be successful. The first step to generating income is to sell a product or service that people want to purchase. Entrepreneurs are known for being dreamers and trying to sell their new big ideas. However, if there’s no market for your product or service, you will not be able to generate the cash flow your business needs to survive.


2. You Need a Profitable Business Model


Great, you have a product or service that people want to buy. Now it’s time to figure out a business model that works. Can you make a profit? Will the income you generate selling your product or service be more than the costs of running a business? If not, your business won’t survive for long. When running these projections, a good rule of thumb is to always overestimate your costs and underestimate your income.


3. Marketing is More Important than Mastering


You have a product or service that people want to buy and a successful business model. Now get out there and market yourself! I’m guilty of this one, spending too much time planning. Fear settles in and I spend lots of time trying to feel more qualified. Be confident, get out there, and sell your product. Funny thing, you actually learn more while you work on a customer’s engagement and interact with your clients. Not to mention, this helps get the cash flowing sooner than later.


4. Spend Time on Revenue Generating Tasks


If you’re coming from Corporate America, you’re used to being paid for sitting at a desk from 9-5. Let’s face it, your paycheck was deposited into your bank account regardless of how much you created or the results of your work. Entrepreneurs need to change this mindset. Now, your paycheck is directly related to the value you add to your customers lives. Wasting Time = No Paycheck. You need to be focused and spend your time doing revenue generating tasks.


5. Continually Look For Ways to Keep Costs Low


You have your marketing strategy down, are closing more deals, and spending your time wisely doing revenue generating tasks. Congrats, you have cash is coming in the door. Don’t forget to keep track of where your money is going. Keep track of what you spend, where you spend it, and see if there are ways you can cut these costs. The more entrepreneurs make, the less frugal they tend to become. Keep in mind, the more money that goes out the door means less money in your pocket. So keep a close eye on those pennies!


6. Measure Your Results


Unless you measure and track the results, there is no way to tell if what you are doing is actually working. As business grows, you might add a new department, change your product line, try a new advertising campaign, etc. Did this new department increase your profit margin? Did the new product line help convert more leads to buyers? Did the new advertising campaign bring in new customers? Without tracking and measuring the results of these changes, you have no idea if these programs or strategies actually worked. Meaning you could be wasting money and not even know it. Or on the flip side, you could have stepped into a gold mine and not even know it!


7. Learn From Other Successful Entrepreneurs


Surround yourself with people who are where you want to be. No need to spend your time reinventing the wheel. You can learn from their mistakes and from their successes. Take that knowledge and move forward with your own business! Consider hiring a business coach or find a mentor. Find someone who has done what you want to do. They can give you tips and hold you accountable for your own goals.

____________________________________________________________

Michelle Edwards, CPA - QuickBooks Consultant Written by Michelle Edwards, CPA
Certified QuickBooks ProAdvisor

Michelle Edwards, CPA is the owner of Trailhead Accounting Solutions CPA, LLC, an Erie, CO based CPA firm focused on providing small and mid-sized businesses with day-to-day accounting, bookkeeping, and Virtual CFO solutions. Michelle is a CFO turned consultant who loves working with small businesses and entrepreneurs. When she’s not crunching numbers, she can be found hiking, remote camping, gardening, home brewing, quilting, and hanging out with her family.


7 comments

No ping yet

  1. Nilesh says:

    Hi Michelle,

    I absolutely agree with your tips, all very thought out and more people need to help the younger generation by giving sound advice like this. The main issue entrepreneurs have is guidance on starting up, I from my own experience can say that starting up a business is just as difficult as maintaining it.

    Secondly I can’t help but stress how important management is, not just your financial management but also your time! It’s as simple as you say, Time Wasting = No Paycheck.

    A very good blog, I am glad I stumbled upon it.

    1. Michelle Edwards, CPA says:

      Hi Nilesh,

      Thank you for the kind comment & for reading my blog, I appreciate it!

  2. Paul Smith says:

    I totally agree with points like cash flow, model of the business are profitable. In business, marketing is more important if it is not done correctly, and then there is minimum chance of running your business smoothly. Moreover, most important that we should always measure the result from last few years. It helps in knowing about the actually position of business. There information is helpful to run my business.

    1. Michelle Edwards, CPA says:

      Great tips Paul, thanks for sharing!

  3. Justin Cole says:

    Hello,

    I am studying an Entrepreneurship class and i was wondering if I could use your picture on this website.

    Thank you
    Justin Cole

    1. Michelle Edwards, CPA says:

      Hi Justin,

      Most of the photos are my website are stock photos purchased from istockphoto. Since I don’t own the picture, I can not authorize you to use it. Try contacting istockphoto to get their permission. Thanks!

  4. Masood says:

    Hi Michelle,

    I absolutely agree with your excellent tips, all very thought out and more people need to help the younger generation by giving sound advice like this. The main issue entrepreneurs have is guidance on starting up, I from my own experience can say that starting up a business is just as difficult as maintaining it.
    Thanking You
    Masood

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>