Is it time to start a business? We’ve gathered 8 truths from 8 successful individuals who can give you the advice you won’t find at your local business advisor or at Almi.
Starting a business is a big step. It’s a whole world of rules, guides — both good and bad — and lots of things you’re told you *must* do or have. The secret is that some rules can be bent, some guides can be ignored, and some “musts” can be skipped altogether. That’s why we’ve collected 8 sharp pieces of advice that have been tested and proven successful. Here they are:
– Set up a porridge budget for the first two years, no matter how much you earn. Don’t spend money just because you have it — only when you actually need to.
Jesper Åström, Moment of Ruth.
The “porridge budget” was a hot topic among friends when I first started out as an entrepreneur — Jesper was one of them. A porridge budget is exactly what it sounds like: a budget for porridge. You need something to eat, and you need to know you can live cheaply if necessary. Jesper takes it even further and believes you should put your money where it makes the most impact — invested in your business.
– Launch first and adjust later. Perfect is never fast enough!
Rebecca Brodd, eValent Group AB
Rebecca makes a very important point. It’s incredibly easy to think you should build your product first and then go to market with it. Often that becomes an excuse to never launch, and in many cases the product actually develops better when you do it together with your customers.
– Keep it simple! I see far too many examples of companies getting lost in overly complex reasoning about this and that.
Bank Bergström, Nordic Nest.
It’s incredibly easy to fall into the trap of overcomplicating things. Making a product simple and accessible is what will drive sales — and that’s when the money starts coming in. If Bank, who runs such a large company as Nordic Nest, can keep things simple, surely a one-person business can too?
– Stay focused over time.
Michael Töråsen, Nelson Garden
The old saying “don’t dig where you stand” doesn’t hold up when it comes to entrepreneurship. In fact, that’s exactly what you should do. If you’ve found a model/service/product that works, your sales are growing, and everything feels on track, it’s very tempting to add something new. But what you should do instead is double down on what already works. Don’t chase the next shiny idea — hit the gas with the engine you’ve got.
– Don’t get stuck in the details. Meet customers and learn what really matters along the way.
Björn Andersson, BGA
Björn often says: Just go for it! I completely share his view that if you want to grow and reach your goals, you need momentum. Problems can be solved as they arise, and it’s your customers’ needs that should guide what you do. At any given moment, you’ll need to choose between writing an environmental policy or making a sale — and in most cases, you should probably choose to sell.
– If you think selling is beneath you, don’t start your own business.
Jonas Grenfeldt, Panang
Many people are afraid of sales. If you can’t overcome that fear, you can’t run a business. Personally, I feel that I’m doing my customers a service when I sell — because I’m firmly convinced that SEO or SEM from us will benefit them. If your product is something valuable, surely people should want to buy it?
– Sell first!
Claes Magnusson, Malmö Yrkeshögskola
Buying a fax machine, getting an office, printing business cards, wrapping your car, getting accounting software, signing agreements with occupational health services, finalizing your graphic profile, coming up with a slogan, defining your company’s core values — all of that is pointless if you don’t have a single customer. Even worse if you can’t actually get one. Without testing your service or product on real customers who have to open their wallets instead of just saying “that sounds like a good idea,” you don’t really have a business. I really want to emphasize Claes’s message here: sell first, do the rest later.
– Get started!
Robin Wingårdh, Aqua Nobel
This is a recurring theme throughout this article, but Robin pinpoints the crucial issue. Plans, strategies, and budgets are all well and good, but what really matters is starting to take action.
My own best tip for those who want to start a business
I’ve received a huge number of suggested tips for this post, and unfortunately, there isn’t room for them all. That’s why I’ve chosen these eight, which I think capture the essence of starting a business. Hopefully, you’ll find something truly useful here — I know I would have when I started my first company. I’d also like to end with one of my own favorite pieces of advice, which I’ve borrowed and twisted a bit, or at least sabotaged the original meaning.
Show me the money, Jerry!
Jerry Maguire
It might seem like a stretch to learn about business from Tom Cruise, but the line “Show me the money” really stuck with me. As an entrepreneur, it’s easy to think you should focus only on building a great product or solving a problem. And that’s true, to an extent. But very few of us get the luxury of funding that allows us to build a product without revenue for years. Most of us need to put food on the table — and for that, we need revenue. Revenue is also the ultimate test of your product’s value: if no one wants to buy it, is it really solving a problem?
Magnus Bråth
Consultant & Adviser
Magnus is one of the world's most prominent search marketing specialists and primarily works with management and strategy at his agency Brath AB.