Many people love the idea of being a boss and being in charge of many people, however, it is not that fun to own a company and manage people. There are many things I wish I knew before starting a company and I only got to know after starting a company.
The cost of starting a company is high, you could double or triple the cost you predicted after doing your best research. So many people do their research based on the basic information given to them on internet or even if they find exact cost, there is always something extra comes up. You will be able to reduce the cost in your second project or when you expand your business, that#s because you will have proper contacts and better resources to reduce your cost. The second biggest cost is trusting others with the cost. Do it your self, other do not care if the cost is high or low.
Documentation takes really long, when someone tells you all the required documents, it is still not the end of it. Getting all the documents done is costly, therefore, try to take the delayed time in to consideration before starting your business. You will definitely tell your self that there is no end of the process, it feels like there is always something knew comes up.
Hiring and managing the employees is one of the hardest part of starting a company, I always have the mentality of every employee should be able to bring in monetary value to the company, because every employee has a high cost. When you hire a staff, how are they going to earn their salary and also earn extra for the company, and also ask them how long will it take for them to cover their salary. These questions are so important for hiring an employees for your company. Few things about cost in hiring an employees: The cost of legal contract, the cost of registering them to health insurance, national insurance, and contribution towards the pension fund. The cost of paying a lawyer to prepare the contract and making your employee a legal employee of your company. The cost firing the employee also needs to be considered because most likely you will fire employees withing 3 to 6 months of your operation of your company. If your employees do not know how to communicate with customers, then I suggest that you fire them. Why do I say this in a rude way? That is because you don't want and employee that does not have the same goal as you. The good and loyal employees with the same goal as you, will figure out the best ways to increase the growth of the company. This employee will contribute to your business, the employee that contributes to your business is the employee that things for their future. How to identify the employee during a hiring process? Ask them for their 2 weeks activity when they start working for your company, ask them how are they going to contribute for your company and how long will it take, ask them where do they seem them self in 5 years. It is so hard to find the right employee, and if you do find the right one, my advise is do not let them go, because one person can make bigger difference compared to 100 useless employees that will talk and not achieve anything. They will not achieve anything because they are not the type of people that will do what ever it takes to achieve the goals. I love employees that does not wait for the order but instead they take matters to their own hands. I love employees that saves for the company, I love employees with smart actions, but these employees are one in a thousand.
Customers are the most important people of your company, the are the people that brings money to your business, I would suggest that you focus on your loyal customers before the new customers. The loyal customers are the best, and they are the hope for the growth of your company. The customers and employees are the most important thing to understand before you start a company. The employees will not care about your customers, and customers will not care about your company. What is the best way to increase customers? It depends on your business, but the best way is to focus on your employees, because employees are the people that has to communicate with your customers. Customers do not care about you or your business, that is because they have more important things to focus on other than your business. They also feel that they have right to intervene in your business.
Basic thing you need to understand the mentality of customers, the customers do not care and they do not think about you, your product and your business. They will be your customer based on their needs and convenience. Make sure you understand the difference between ''doing a public favor or the needs of the majority of the people''. If you consider in doing a business that only few people are interested then you will be doing a favor to a public. The customers don't care about the effort you have to put to open that shop or offer certain products, they don't care about your risk. But, if you do close your business due to lack of customers, the customers will understand only when you close your business on how convenient it was for them when you were operating your business. But the few customers that had the demands cannot also support you forever, therefore, do a business that majority of the people needs.