Small Business

Intro:

Is there anything more exciting than starting a small business? Maybe. Nonetheless, it’s a thrilling venture. 

Some entrepreneurs focus on their business idea 100%. They don’t realize that it takes several steps for a business idea to become a product or service that reaches the hands of their intended market. 

Entrepreneurship is a series of trials and errors. Some have the financial runway to test the market and pivot a few times until they get it right. The majority do not.

It’s possible to stumble toward success. Thomas Edison, Abraham Lincoln, and Walt Disney are entrepreneurs who failed several times before succeeding. 

In 2022, several tools exist that make the entrepreneurial road easier. Plus, you can lean on veteran entrepreneurs for guidance.

Although the numbers look better than some believed, a significant number of companies don’t make it to their fifth year. 

The data shows that:

  • About 21% of startups fail in the first year
  • Around 30% of startups fail in the second year
  • An estimated 50% fail in the fifth year
  • Almost 70% fail in the tenth year

People learn important lessons through failure. However, failure is also expensive. 

What if you could learn from the failure of others instead?

We outline five reasons why it’s okay to ask for help when starting a small business.

1. No Need to Reinvent the Wheel

The process for starting a business in 2022 is far different from 100 years ago. Nonetheless, you don’t need to reinvent the wheel.

Starting any small business requires the same basic steps including:

  • Obtaining financing
  • Procuring raw materials or inventory
  • Acquiring clients
  • Positioning the company for growth

The next steps that the owners must take depend on their industry. For example, B2B companies will market their products and services differently than boutique retail stores. 

Entrepreneurs before you have left a roadmap for overcoming trials and tribulations. Several technology companies that sprouted after the dot com crash rose from the ashes. The collapse of the tech sector left behind several valuable lessons for today’s entrepreneurs.

Even if you do hope to reinvent the wheel, it’s OK to ask for guidance from veterans.  

For example, Gigly offers more tips on how to start a freelance business.

2. Navigate the Bureaucracy

The main difference between starting a business in 2022 and 100 years ago is the amount of bureaucracy that entrepreneurs must navigate. 

Entrepreneurs must:

  • Obtain a business license
  • Register their business with the state
  • Procure insurance
  • Pick a tax structure
  • Pay taxes

Then, they must renew their licenses in regular increments.

Navigating the bureaucracy takes time. Instead of focusing on creating cash flow, entrepreneurs spend time becoming adept at researching various rules, regulations, and mandates.

Knowing where to apply, register, and pay your fees right off the bat becomes a game-changer for entrepreneurs. To obtain this information, ask for help.

3. Avoid Costly Mistakes

It takes three to four years for a small business to turn a meaningful profit. Therefore, entrepreneurs must navigate the first two years with care. 

All entrepreneurs make mistakes. Some are more expensive than others. 

Many freelancers don’t realize that the IRS sees them as business owners. Therefore, they don’t know that they must send quarterly estimated taxes, a costly mistake. The IRS applies a penalty when small business owners and freelancers miss their payments. 

Failure to understand the market is one reason why startups fail. Entrepreneurs who overestimate demand can end up with a warehouse full of unsold merchandise. 

The flip side is not having enough merchandise when demand is high. Both scenarios become costly mistakes that entrepreneurs can avoid. 

4. Network

Entrepreneurs benefit from networking. You’ll meet your peers, potential business partners, and clients. 

Plus, networking allows you to ask for help and find a mentor. 

Sometimes entrepreneurs need to bounce ideas around. Other times, you want reassurance that you picked the right path. 

5. Find the Right Tools

Technology allows individuals to start businesses in 2022 with low overhead costs. If you plan to start a retail company or a manufacturing startup, you will need an infusion of capital. 

You can test several tools; you can also obtain reviews from entrepreneurs who have already gone through that process.  

Conclusion

Post-dot com crash startups championed changes to the existing building cultures. Among them is reciprocity. Dotcom crash veterans know what it’s like to struggle as an entrepreneur. Asking them and others for help is Okay. Moreover, it’s recommended. 

Check Out Our Blog: 5 Things To Prioritize When Trying To Grow Your Business

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