As a business owner with a new company, it is inevitable that you will have to make a lot of important and tough decisions. If your business is to grow and become something worthwhile, you will have to start making the right decisions from the get-go. Over time, business owners come to realize that what they deem as big decisions are sometimes huge opportunities that could drastically impact the trajectory of the business if they are taken. However, as a business owner, you will also come to realize that some of the decisions will have little if any impact on your new business.
Take a Plunge into the World of Business
One of the hardest decisions to make which will decide if you will become an entrepreneur or not. If you are like many business owners out there, this may involve having to give up a full-time income, scaling back on expenses and a whole lot of sacrifices so that you can build a business. Another decision in the startup phase is what type of business to go into. The best decision is to take the plunge only when you have done thorough research on the business you are getting into.
Should You Expand or Wait
Staying small is one of those decisions that a business owner will have to face sooner rather than later. New business owners often make the mistake of staying small continuing to oversee the day to day operations as they believe this gives them more control and reduces risk. On the flip side is the desire to expand so that one can venture into new and exciting domains where there are better opportunities to increase the bottom line. While expanding too fast is bad, the decision to stay small is usually the cause of death of many small businesses. If you stay small it means that you never have the chance to increase revenue and hire employees which ultimately turns a business into a job. On the other hand, expanding too fast could ruin the business if it runs out of cash or capacity for operations. As such it is critical to weigh both sides of the equation before making that all important decision.
The Decision to Persevere
Businesses as compared to jobs are hard work especially ones that are just starting. When you start you may feel like you are just spinning wheels with much of your effort seemingly going to waste. At this stage, it can be very tempting to just give up and go find a job. The decision of whether to give up or persevere is a make or break decision that could determine your success as an entrepreneur. Most entrepreneurs that do survive the startup phase to become successful in business persevere and finally come out of the other end having dealt with all the frustration. Nonetheless, there are times where the decision has to be made to give up or change direction. Sometimes changing from one area of business (giving up on it) to another can be a good decision.
Hiring in House or Outsourcing
For every business, you will have to make a decision on whether you should outsource some of your work or hire in-house. Should you outsource those business directory submissions or should you hire in-house personnel to do them for you? No one is better placed to make that important decision than you as you have all the information. You are best placed to know if it will be more cost effective to hire specialist contractors or train in-house staff to deliver the same tasks. Some of the important considerations include the type of role or job, nature of the industry and the competitive landscape, company culture among several others.
Service or Product Pricing
When starting your business you have to decide if you will price your deliverables in product or service models or a combination of the two. Right from the start the way you price your services or products will communicate the perceived value of your brand. At this stage, you need to do the research on your target market, cost of entering the market, how you will position your product in the market, and how the product or service compares to competitor products already in the marketplace.
As a new entrepreneur, you will always have to make hard decisions. These five are just a tip of the iceberg that you will have to navigate as you develop your business savvy. Most of these decisions involve some kind of risk. If you are to become a successful business owner, you have to embrace risk or at the very least ensure that it does not impede the growth of your new business.
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