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Many people experience a career change at some point in their life. It’s not uncommon for people to pivot in their forties, fifties, or even sixties. With the “Great Reshuffle“Leading people of all generations (but especially millennials) to change jobs, or even quit work altogether for a sabbatical or a broader life change, it’s no surprise that this has become a subject of interest in recent months.
The pandemic, which has caused many people to work from home, has given people time to reflect on what they are passionate about and allowed them to reorient their work activities. It was the perfect time for a change, as entire industries were already changing and adapting. Many did not want to quit their jobs entirely, but found they had extra time while working from home to reflect on their goals and pursue those passions. This has given both time and space for many to jump head first into entrepreneurship.
Although entrepreneurship sounds exciting, starting a business can be intimidating, especially when uncertainty permeates our society. There’s a lot to consider: budgeting, developing and executing marketing strategies, and preparing for tax season, to name a few.
There are several tactical steps that entrepreneurs need to take to be successful in the long run. Here are two entrepreneurial strategies you should prioritize: understanding cash flow and building a great team.
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Understanding Cash Flow
Many entrepreneurs and business owners come up with amazing ideas that require effective cash flow strategies to survive. Whether it’s signing freelance contracts or selling products, understanding your business cash flow quickly is important to riding the waves that often come with a new business.
When preparing to start a business, it’s important to have enough savings set aside specifically to help you with the challenges of starting a business – or to be prepared to take a financial risk.
For some, that means saving a certain amount to make up for any cash flow problem or working to get out (and stay out of) personal debt. For others, it means reinvesting all profits back into the business within the first year. Whatever your cash flow strategy, make sure you’re keeping accurate records and paying attention to paperwork, not just tracking the next big idea.
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Know how to build your team
Building a good team is essential to building a successful business. If you are diving into a new industry, be sure to consult with industry experts on the type of people you should hire. Sometimes hiring the best resume with the most experienced people isn’t a linear path to success.
A person’s character and commitment are often just as important as their qualifications. Someone who is dedicated to seeing your business grow through all the ups and downs of a new business is just as valuable as hiring someone with an MBA – sometimes even more. Your team is your first line of defense. Be sure to consider the quality of their character and their dedication to your long-term mission, as your starting line often sets the direction of your business.
Passion, a good work ethic and a suitable culture are three key factors that I always consider when evaluating candidates. When someone exhibits these qualities along with a commitment to your business, you can often teach them the more specific skills needed to be successful.
Employees don’t want to sit at desks 40 hours a week. They want to feel like they’re part of something meaningful. Companies driven by a goal create a sense of pride and dedication in their employees. Creating processes for your business to thrive financially, along with finding and inspiring employees who care about your business, will help your business support long-term growth.
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