Three Basic Rules to Forming a Business

If you have dreams of forming an LLC or other type of business startup, you might be wondering if you have what it takes to be a small business owner. Everybody has their own idea of what a successful entrepreneur and business looks like but there seem to be three traits that most people agree are essential to starting and maintaining a successful business.

The Ability to Sell

Mark Cuban says that if you have the ability to sell, you will always have a job. Every small business owner in the beginning stages of their growth must have sales ability. In the majority of cases, small businesses start with one employee—you, and because of that you’re not only running the business, you’re also the person selling your product. Without sales, your business will not grow which makes the ability to sell an essential task.

Some people believe that they don’t have the personality to sell but Cuban, known as one of the best salesman of the modern day, believes that everybody has the ability to sell if they believe in their product. By speaking truthfully and passionately about your product or service, people will trust you and that is what makes a great salesperson.

Selling what People Want

This seems obvious to many but the question becomes, do they know what people want? Before you started your business, did you conduct market studies? Did you go out in to your community and ask people if they would purchase your product or service and what they would be willing to pay? Did you talk to other people in the same business to see how they’re doing?

Regardless of what you think you know, if you haven’t done formal research, you run a high risk of putting your time and capital behind something with low to moderate demand and that’s a tough way to grow a business.

Cash Flow

Nothing is more important than cash flow. Some new business owners want to pour money in to expensive websites, big dollar advertising and swanky office space but your first priority should always be cash flow. Go out and find customers while running your business out of your home if that’s what it takes but keep a laser-like focus on bring in money.

Finally

Remember that you should never read articles like this and take an all or nothing approach. Businesses come in all shapes and sizes and your road to success may be different than others but use these three important points as something to consider as your business grows.