As our economy changes, more people are starting businesses, developing and marketing product that will make a difference for the world, and reaping the rewards of being an entrepreneur. All entrepreneurs have the drive and passion but many lack the preparation. Without preparation, the largest hurdle for most entrepreneurs is the financial success. Many people start with great ideas only to crash and burn nine or eighteen months down the road. Here are five things that every entrepreneur must do before he or she charges down the leadership path of entrepreneurship.
1. Take care of your personal finances.
The key here is to pay down your personal debt. If you are carrying more debt than you can handle with your current employment, it is time to downsize and pay off or eliminate debt before you follow your entrepreneurial spirit. Develop a monthly budget that you can stick to and takes into consideration emergencies such as car repairs, medical bills, and extra household expenses. Make certain you have at least a 12-month reserve of money to pay your bills. As an entrepreneur, you might not get your first paycheck for many months so be prepared to pay your bills from savings.
2. Make certain any of your contractual obligations will not affect your focus.
Look over previous employment contracts and make certain what you are deciding to pursue will not be in violation of that agreement. Review all current agreements you are involved with and if you plan on working part or full time as you follow this dream, make certain you can explain to your current employer how this will not affect your work performance.
3. Limit your distractions.
We all need to have our “fun” and have time for family but it is critical that anything outside of family time be evaluated for how it may take away from your focus on entrepreneurial activities. Keep in mind that you need a few diversions to help you balance your health and mental welfare but you just might have to give up a few of the extra-curricular activities. As a good way of planning your time, limit those extra activities to no more than 90 minutes a day on average.
4. Clean up your social media look.
You are going to be meeting with investors, bankers, potential partners, and of course, those who will purchase your product/idea/service and you need to look professional. Of course, you will dress the part but many of the people you will meet might check out your Facebook or Linked-In profiles, stop by your Instagram or Twitter accounts, and even read your blog. Sometimes when we are having fun, we might post pictures or say things we do not want to share as an entrepreneur. Clean up that image and show your best side.
5. Have a 12-month plan.
This plan needs to include your personal as well as entrepreneurial/business budget. Write, rewrite, edit, review, and seek counsel from trusted friends, colleagues, or professionals on the business plan. Include your vacation, medical appointments, and important events on the calendar portion of your 12-month plan. All of these ideas are very important for people setting off on entrepreneurial projects. The important thing to note is that these ideas also apply to anyone wanting to apply for a new job, write that first book, or set out on any new adventure.