The business world is the ultimate cut-throat environment. Every entrepreneur wants to be the market leader in their industry and it takes a ruthless streak to fend off competitors. Entrepreneurs live and die by their decisions; making the right calls could see the business thrive, while just a couple of bad decisions could send the dream crashing down around them.
Every entrepreneur, no matter how successful or world-famous they may subsequently become, makes plenty of mistakes in their first year in business. Misjudgments are part of the learning process; the differentiator is how you process them. By realizing mistakes and learning from them, they become mere footnotes in the tale of your company. If you fail to heed key lessons and fall into the same traps repeatedly, even making it to the end of Year One becomes unlikely.
To get through that difficult first year, an entrepreneur must be headstrong and shrewd. Tough days are inevitable, and it’s on such days that they should remember just why they set up their business in the first place. If an entrepreneur has even a slight doubt about his/her business idea, how can they expect others to believe in it? Successful leadership is about having the self-belief to take calculated risks and back yourself to overcome obstacles.
Entrepreneurs also need a sharp financial mindset. The likelihood of turning a profit in Year One is meager, so ensure to have at least a year’s worth of savings to call upon before setting up the company. It’s crucial to have something in reserve, as unexpected expenses will inevitably sprout at awkward times.
To learn more about making it through your first year in business, take a look at this infographic from All Finance Tax.
About the Author:
Colette Cassidy is the Director of All Finance Tax, a tax consultancy firm based in Cork, Ireland. She regularly writes about financial and business topics, bringing almost 15 years of first-hand entrepreneurial experience to her writing.