Don’t go into business thinking you know exactly what that business is going to do. The fact is that once you start trading and getting feedback from customers and seeing how your sector really operates odds are you will see signs of where you’d best fit.
Don’t ignore signs to change
Go where the market leads you – within reason of course. You may start a greeting card company, and then find that people really want local photos and content. Go with it. Odds are your ideas at the start were formed by little practical experience. Once you start getting orders in, look for patterns. See where you are making money that maybe costs you less (selling cheaper items or selling few big ticket items with great mark up). Focus on those areas.
CFIMITYM
Cash Flow Is More Important Than Your Mother
The best businesses can stand on their own two feet, at a small level, fairly early on. Venture Capitalists will like businesses that got a long way on bootstrapping (read: your money). Don’t go for big investment too early. The longer you go, and prove you can stay afloat, the more your company is worth.
Now, this step may appear to be NOT a start-up step, but something for later on. It is, in a way, but, the thing I want to get across is that from the start you have to be flexible. Don’t stick to your original idea if it is being proven to be flawed.
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