You might think that becoming a successful entrepreneur is a piece of cake. It’s understandable why you would be under this illusion. After all, not a day seems to go by without the story of another billionaire at 21.
You start to think that anyone can achieve this lifestyle and you might be right. But before you set off to become the next billionaire entrepreneur, you need to learn a few hard life lessons.
Number 1: It’s Always A Risky Venture
You might have heard that you can become an entrepreneur with no money in the bank. Technically, this is true but don’t get carried away. You’ll still need to get money from somewhere to get setup, and that means you’ll have to borrow. Borrowing isn’t necessarily the worst thing that you could do, but you have to be aware it’s a gamble. You’ll be taking out a business loan, probably with very little knowledge of what this means. Essentially, it’s a big sum of money that will gain in interest for every month that you don’t pay it back. Your costs will grow quickly, and this is something that you must be prepared for.
Number 2: People Won’t Trust You
If you don’t have any experience as a business owner, you’ll be seen as a high risk to investors and business partners. They won’t want to get in bed with someone who they can’t trust will still be financially viable the next morning. For instance, if you’re selling expensive products you may want to allow customers to buy on credit. For this to happen, you need the help of a credit processor. Typical credit processors may not be willing to provide this service to a new business owner. Instead, you’ll have to invest in a high risk merchant account. Basically, this is a service that recognises that you could fail and will still provide the service that you’ll need.
You have to accept that people won’t trust you and that includes customers. You will need to build up trust, and this isn’t going to happen overnight. It could take years for you to get the full support and loyalty of a customer base.
Number 3: You Need To be The Exception Not The Rule
You have to understand that the chances of you making it as an entrepreneur are incredibly slim. It’s not quite the same odds as winning the lottery, but it’s a lot closer than most people admit. Don’t let this deter you, though, you just need to know what you’re up against. You will need determination and perseverance if you are going to pull through and claim the level of success you want.
Number 4: Quality Is Everything
The final lesson that you need to learn is that quality is crucial. If you don’t sell a quality product, your business isn’t going to make it past the first year.
It recently emerged that Donald Trump claimed hundred of millions in debt for bad businesses. The reason these businesses failed was that the quality of the product or service sold was found to be poor. This type of behaviour will always catch up with you on the market.
This post has been contributed by Ryan Gatt, it may contain affiliate links.