As Entrepreneurs, we are often eternal optimists who plan for the best-case scenario. This allows us to create change in the world. However, as you embark on your startup journey, it is critical to understand and be aware of the potential challenges that may arise. In order to increase your chances of success, it's important to understand "What Must an Entrepreneur Assume When Starting a Business."
Here are three critical assumptions that entrepreneurs must make when starting a business:
Your First Idea May Not Work
It's important to note that the idea you first have when starting your business, may not be the one that ultimately leads to success. Instagram started off as Burbn, an app that allowed users to check in at their favorite places. Twitter began as Odeo, a network where people could sign up for podcasts.
My cookie company, Nui, started off as a protein bar. Even after we pivoted towards cookies it took many versions of the recipe until we found the right fit.
The key is to be flexible and willing to pivot toward your customer's needs.
It Will Cost More Than You Think
Unexpected expenses happen during the course of starting a business. Your product development costs may be higher than expected. Your cost to acquire customers may be more expensive than projected in the early stages of your marketing. Whatever it is, be sure to budget at least 30%-50% more than you're projecting.
This buffer of cash will directly impact how you run your business too. When you know you don't have to worry about covering the bills, you'll make better-informed, longer-term decisions. You'll switch from a scarcity mentality to one of abundance.
It Will Take Longer Than You Think
As entrepreneurs, it's easy to fall into the trap of false expectations. I know I did, by hoping for a big exit (selling the company), I sacrificed a lot of my short-term mental well-being. I missed critical time with loved ones and burned out.
Instead, ask yourself, "What would your business look like if there was no 'pot of gold at the end of the rainbow'?" Would you run your business differently? Would you start enjoying the journey more? By answering these questions, you'll be able to shift your perspective and will have the stamina to keep going.
Learn to Love The Journey
By being aware of these three assumptions you'll learn to be flexible, prepared, and patient. All of these things will increase your chance of success. Remember, business is a marathon, not a sprint. Learn to love the journey!