Things Entrepreneurs Should Know About Business
Before starting a business, there are things entrepreneurs should know. You do not jump into a business before thinking of what you want to create.
We have millions of businesses online and offline. It is either you are ready to claim your space or fade away because of competition or lack of business operation.
While we have many things to consider before we start a business, we would not consider all these factors here.
What are the Things Entrepreneurs Should Know?
Some of the things entrepreneurs should know to include considering what to use and motivate their employees.
Here are some of the factors to consider:
Adopting a Stock Option Plan
The Stock Option Plans are very important if you want to retain, motivate, and attract the best hands in your business.
This is one of the ways to keep your business running effectively if you cannot pay high salaries.
The Stock Option Plan offers your company a flexible way of rewarding your employees with stock options when they exercise the option.
This option is among the things entrepreneurs should know when setting up their businesses.
The Stock Option Plan allows your employee to enjoy the success of your business without spending a lot of money on paying them.
It can contribute your business capital as your employees pay this exercise fee for options. However, this option might come with a disadvantage.
There is a possible dilution of the shareholders’ equity when your employees exercise their options.
For your workers, the disadvantage may include a lack of liquidity because it is a private company. Except your company goes public, their options might not be translated into cash.
If the company does not grow or expand, the stock might not become valuable and end up worthless.
Thousands of employees have ended up as millionaires because of stock options. This makes the option an appealing benefit to prospective employees.
Offering Exceptional Customer Service
Offering your customers an exceptional service is among the things entrepreneurs should know before they launch their businesses.
You must have heard it repeatedly that the customers are king. You cannot hurt these customers if you must succeed in your business.
Most companies have learned this trick and used it to their advantage. Focus on providing excellent customer support and service.
If you want customers to bring in more customers to your business without asking, create a customer-friendly service.
Things Entrepreneurs Should Know to Stay From Trouble
Hire an Experienced Attorney
Things entrepreneurs should know when starting a business should include hiring an experienced attorney.
You should find a good lawyer that will represent your company. This will save you from entering trouble with local law.
When you hire a startup lawyer, the person can help you do the following:
- Incorporate your business
- Create contracts with co-founders
- Prepare your key agreements for the brand
- Establish a stock option plan for your employees
- Help through potential HR landmines
- Create protective offer letters to your prospective employees
- Help you negotiate terms with your prospective investors
- The lawyer helps limit your potential legal liabilities
- The lawyer protect your inventions and ideas (through non-disclosure agreements, copyrights, and patents)
One of the things entrepreneurs should know is that they should never hire an inexperienced lawyer because they want to save on expenses.
You should spend money to hire an experienced and competent lawyer to save you from challenges.
Get Comfortable With Public Speaking
There is one aspect of the things entrepreneurs should know that most people do not remember. The ease of speaking in the public is necessary.
If you cannot speak in public, make sure you have someone who can be a public spokesperson. This will inspire your employees and even pitch your business ideas to your investors for capital.
If you own a business, you must learn to overcome public speaking fear. You can get a business coach to help you through this process.
You have to show the people that you are in charge. You are the face of your business and must be able to sell your ideas perfectly to the public.
A company with a poor speaking representative might burn the chances of succeeding in its niche.