This question is particularly close to my heart. When I started my very first business venture at the age of 17 in Communist Hungary – where at that time 'entrepreneurship' was virtually unrecognized – some of the points you will read below were key to my survival. Now, 22 years later, having set up numerous enterprises and working with various entrepreneurs - I often ask the same question to my clients – what is the key to surviving your first year in business?
The points below are the result of my own experiences and those of others. I hope it will be of some value to you. So what is the key to survival?
1 Cashflow – nobody mentioned this when I started out, even nowadays when there is much more awareness of cashflow, people still focus too much on profit. Potentially, this could be a big mistake, especially in your first year of trading.
2 Determination – well, this is something I’ve always had, even as a child. In the first year some people around you will often say: “It will never work”. If your business idea is viable – go for it – and keep going until you succeed!
3 Resilience – I often say to my clients you have to be like a 'bouncy ball' when you are an entrepreneur… There will be ups and downs, but the resilience you have to bounce back will determine your success
4 Support by a coach/mentor – back in early ‘90s I didn’t have a mentor or coach – I do now. This is something I hear very often from my clients: lack of experience and clear goals are where a coach/mentor can help and save you lots of money by encouraging you to make the right decisions and helping you to grow with your business while reaching your own potential.
5 Ability to identify and focus on priorities – an entrepreneur’s life is a very busy one. In your first year of trading you’ll be particularly overwhelmed by opportunities and offers, which are very tempting. At times, you’ll find there aren’t enough hours in the day. That is the time when you need to consider what are the priorities and focus your energy on the most important ones.
6 Sense of humour – probably among the most important things you’ll need to survive your first year in business. There will be lots of happy, funny moments, but also slightly scary and stressful ones. This is when putting things into perspective and having a sense of humour is vital. It’s certainly helped to keep me going for the past 22 years!
Agnes Cserhati, entrepreneur, mentor, CEO and founder of AC PowerCoaching