Some of the most profitable and famous businesses in the world were initiated by students. For instance, Google was started as a project by Larry Page and Sergey Brin for their computer science doctorate and Microsoft was conceptualized by Bill Gates when he was in Harvard. Here are some tips that can help you be on the list of successful young entrepreneurs.
Design Your Product with the Customer in Mind
Often people start a business selling products and services that they feel will be successful, as opposed to something for which there is demand in the market. Although monopoly is a powerful tool, remember that selling something that already has its established place in the market has better prospects from a business perspective. It will be more beneficial to have a part of a large market than to have all of no market.
Keep on Top of the Cash Flow
Cash flow is necessary for any business to function. It is critical to feed profits. You can get money by taking advances or deposits and accepting the balance once the product or service is delivered. You can even add value by promising a delivery date and other such benefits. Value can be added by making private labels and creating continuity programs. Aim at maintaining a minimum gap between the money that flows out and comes into the business. Try and get paid up front, as this will help create the smallest cash gap.
Cut Costs – Improve Efficiency
There is no point in maintaining cash flow if it isn’t positive, meaning that the incoming cash should be more than the outbound cash. The first step towards achieving this balance is keeping expenses and costs low. Don’t pay retail prices, but look for wholesalers or items that you already own. Paying money up front to vendors gives you the advantage of negotiation. Methods by which vendors and owners deal change daily. So, perform enough research and find the best suited method for your business.
Underestimate Revenues and Overestimate Expenses
While planning your budget and finances, always expect to spend a little more than expected. Overestimating expenses will help you be prepared and never fall short. On the other hand, never overestimate revenue as if these expectations are not met, you could find yourself short of cash. It is vital to gauge your activities and efforts correctly in order to plan your sales and marketing activities.
Concentrate on Sales and Marketing
Business begins and ends with sales. From the time you take the leap, you need to find good leads and know how to convert them into sales. Try and keep your clients coming back. This can be done by creating a good system that can be tested, measured and worked upon. Entrepreneurs often make the mistake of perfecting their brand without even attempting to check if it sells. Leads are very important for any product, so begin by creating a market and testing your product before wasting time and money on perfecting it. As long as your product has a market it will perform.