Enthusiastic new entrepreneurs often enter the business scene with very high expectations that could result in a lot of disappointment in the first year or two of doing business. The resulting demoralization can cause them to become demotivated and actually back off or completely let go of their longer term goals. This is why managing business expectations is a key factor in keeping the business going beyond the initial period of investment and losses.
In this article, we’re sharing with you the 4 expectations you shouldn’t have in your first phase of business:
Expectation -1- Immediate Money
Your company will probably take a year and a half or even two to break even and start making profit. Expecting money immediately is the first downfall any entrepreneur could fall in.
Expectation -2- Final Form
If you’re expecting your company’s concept to stay as you planned it before you hit the market, then you should be letting go of this assumption. The market will impose itself on your business and you will start modifying your own concept to fit your market.
Expectation -3- Market Share
If you’re expecting to come down the market and swallow a huge market share of it upfront, then you’re in for a huge surprise. You will hit the market with a 0 market share unless you are providing an innovation. Market share takes time to build especially for new companies going head to head against older competitors with their loyal clientele.
Expectation -4- Business Reputation
A company or brand’s reputation takes time and proven success to build, without mentioning the big marketing and PR budgets. So the next time you feel no one ever heard of you in your first months of business, don’t fret about it. The only exception here is for those who are already influential at the start of their new businesses (such as celebrities and public figures building on their existing exposure).
Expectation management is one of the most important things you can do for your business and self during your first phase of operations. It will help you stay on top of things and away from stress, until the business cycle turns in your favor. And while at it, do your best to make sure the tide turns as quickly as possible.
The Luxury Makers