{"id":19266,"date":"2019-02-28T21:39:27","date_gmt":"2019-02-28T13:39:27","guid":{"rendered":"https:\/\/www.hongkiat.com\/blog\/?p=19266"},"modified":"2019-02-27T20:10:42","modified_gmt":"2019-02-27T12:10:42","slug":"principles-startup-should-follow","status":"publish","type":"post","link":"https:\/\/www.hongkiat.com\/blog\/principles-startup-should-follow\/","title":{"rendered":"7 Principles Every Startup Entrepreneur Should Follow"},"content":{"rendered":"

Are you a real entrepreneur<\/a>? Everybody dreams<\/em> of being an entrepreneur, owning a successful business, working on their own terms and not having to answer to a boss<\/a>. The more courageous types go ahead and quit their job to <\/strong>pursue a startup<\/a>, and possibly carrying a hope that they could reinvent the world (in 3 easy steps)<\/a>.<\/p>\n

If you\u2019re not afraid to fail in your startup<\/a>, like how the greats have failed<\/a> in their time, then you\u2019ve taken the first step into entrepreneurship. The journey ahead will be long and arduous, and you will make plenty of mistakes<\/a> along the way. But if this is what you are destined for, then take with you these 7 principles to aid you in your journey!<\/p>\n

Recommended Reading: <\/strong>Freelancers Vs Entrepreneurs \u2013 The Jedi Edition<\/a><\/p>\n

1. Don\u2019t Look For Approval<\/h2>\n

Creating a business from scratch takes a monumental effort. Praise to you my friend for choosing to do this, but you must understand, not all people want you to succeed<\/strong>. Not even your family or friends. Not because they don\u2019t like you. They might even love you. And exactly because of that, they want you to stay the same.<\/strong><\/p>\n

\"don't<\/figure>\n

Your parents or spouse might not want you to succeed just because you\u2019ll be gone on business more of the time, and at a subconscious level they know that will be detrimental to the relationship<\/strong>.<\/p>\n

Your friends might be scared that you\u2019ll change as a person<\/strong> (which will surely happen). They might think of what other people will say about themselves, considering that you all come from the same place, but yet you\u2019ll probably end up richer than them.<\/p>\n

Approval, schmapproval<\/h2>\n

You\u2019re better off taking a break from friend\u2019s opinions and family advice for the time being and focusing on your new venture. Don\u2019t seek approval, you don\u2019t need any<\/strong>. This is a crucial step, which most often is overlooked. The ability to isolate yourself from other people\u2019s approval<\/strong> will determine if you\u2019re a winner or a loser.<\/p>\n

\u201cPeople who want the most approval get the least and people who need approval the least get the most.\u201d \u2013 Wayne Dyer<\/strong><\/p>\n

2. Leave Investments For Later<\/h2>\n

Looking for money at an early stage in your company\u2019s life is a really, really bad idea. You\u2019ll only get part of the money you\u2019re looking for and you\u2019ll end up giving away too much of your company assets or even worse, you\u2019ll give away shares.<\/p>\n

\"leave<\/figure>\n

Shares are your company\u2019s soul. Be gentle with it and always remember that, when and if the time for an exit comes, those shares will determine the amount you get paid. So you should only look for outside investments once you\u2019ve proven the concept of your startup<\/strong>, when you already have a decent revenue with at least a 3-6 month track record.<\/p>\n

3. Business Incubators, Angel Investors Or Venture Capital?<\/h2>\n

This one is really tough. I would always advise against partnerships too early on, as already stated. The business world is much like the animal kingdom. Usually, the small fish gets eaten by the giant shark, no matter how good the deal you\u2019re offering. That\u2019s just because of this early in the game, you don\u2019t really have that much leverage in order to negotiate an advantageous deal<\/strong>.<\/p>\n

If you do decide to partner with somebody, by all means, try to go for somebody in the same industry. That is, if you\u2019re in the online space, you don\u2019t want to partner with venture capitalists who just care about a quarter or yearly profits.<\/p>\n

You\u2019ll want to do business with somebody who can actually add value<\/strong>, who can actually spend some time with you at least once a week and who knows his stuff in your startup\u2019s niche<\/strong>.<\/p>\n

And The Answer Is\u2026<\/h2>\n

Business incubators and local angel investors are the best way to go. You\u2019ll have more freedom, as opposed to working with a big investment fund. The term local<\/strong> is key, here.<\/p>\n

You\u2019ll want to go looking for these people at your local university<\/strong>. According to Bob Tosterud, <\/strong>Freeman Chair for Entrepreneurial Studies at the University of South Dakota, angel investors are usually looking to invest in businesses started by bright young students<\/strong>. Approach the teachers, they usually either are personally involved in business endeavors, or they know somebody who is.<\/p>\n

You might also try and find angel investors by asking:<\/p>\n