***Written By: Brian Balfour YE Forum ID: bbalfour***

Throughout my various ventures I have learned what should be priority in starting a new company. The items that I know are important today, are much different then what I thought when I was starting my first company. Many first time entrepreneurs tend to focus on the wrong things which often lead to a failure of launching.

This lack of focus is often the result of an entrepreneur not being mentally ready to take the big leap. To compensate, an entrepreneur will try to minimize the risks, i.e. money and a job, in order to build enough confidence.

TOP Priority

Action

Everyday you should be doing something that will directly move launch day one step closer. This could include forming a corporation or LLC, setting up a bank account, starting a website, searching for office space (if needed), assembling your team, etc. Before you know it, things will be falling into place and you will have yourself a business.

Too many great ideas get caught in the planning stages. While some amount of planning is necessary, there has to be a point where you just go for it. Meticulous planning will prove to be useless, because things never go according to plan.

People

In my opinion, the one thing that makes the largest difference between a business that becomes successful, and one that doesn’t, are the people behind the wheel. The first thing I do when I start moving an idea forward is identify what the core parts of the business will be, and the expertise that they require. From there I start assembling a team. Don’t always think you can do it all on your own. Everyone has their strengths and weaknesses, so use them wisely.

Furthermore, assembling a talented team takes time, which is something an entrepreneur doesn’t have a lot of. Finding team members should be one of the first things that you do. A great place to start is right here on the YoungEntrepreneur forums.

Feedback

Feedback is extremely valuable in helping you shape your idea. Talk to people about your concept and ask them what they think of it. Obvious people to ask are those in your target market, people in your specific industry, and other experienced entrepreneurs. But don’t stop there. Discuss the idea to anyone you come across. Even if they aren’t in your target market, they might be able to shed light on why they wouldn’t use your product/service which can lead to a new idea in itself.

Be prepared though. Not all feedback will be positive which can be very discouraging. The challenge is to absorb negative feedback and be honest with yourself. Ask yourself how you can use the feedback to make your concept better.

Least Priority

Experience

Too many times have I heard young entrepreneurs say they would like their own business but that they need more experience first. In reality, starting a business is how you gain the experience necessary to be a successful entrepreneur. Running a business and being an employee are two completely different things. The only way to gain experience on how to start a business is actually start a business. This same principal also applies to your age. Experience is not related to how old you are, it is related to your actions. If you can walk, talk, and color inside the lines, then you are old enough to start a company.

Money

It is common to think that Venture Capital, an SBA loan, or large sum of money is needed to start a business. Yet, the road to starting a business does not start with funding. Figure out a way to get your business going with out a large capital infusion. Once you have something established, even if it is a downgraded version of what you have in mind, you will have more leverage when trying to raise money. Any smart investor, loan officer, etc. will ask what you have done to this point. If your response is “Well, I need money in order to do anything,” your chances of obtaining it are slim to none.

Lawyers/Accountants

I will admit that one of the first things I did with my first venture was seek out an expensive lawyer. Seems logical, right? Every successful business has an expensive attorney and accountant. But the fact is that you don’t have a successful business yet. I recommend obtaining a lawyer’s opinion if you know someone in your network, however, it is not necessary. With the internet today, you can find the answers to many of your questions fairly easily. Lawyers and Accountants are large expenses that a startup can rarely afford. The money can be spent on much more useful things.

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Evan Carmichael
YoungEntrepreneur.com Blog Manager

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