10 Basic Business Rules for Young Entrepreneurs

10 Basic Business Rules for Young Entrepreneurs

by Nicholas Tart

No matter the size of the business or the age the entrepreneur, there are some rules that can be applied to every new venture. Similar to how Newton developed the 3 laws of physics, I’ve developed 10 rules of business.

Alright, maybe there are exceptions. But generally these rules are accurate.

  1. Without increasing your prices there are only three ways to make more money as a business owner. 1) Find new clients. 2) Sell more things to existing clients. 3) Sell more often to existing clients. Numbers 2 and 3 are often the easiest.
  2. New customers are 5 times more expensive to find than selling to existing customers. You should sell to people who already trust you and use your services.
  3. The 80-20 rule says that 80% of your revenue will come from 20% of your customers. In short, this means that you should take good care of your loyal, long-term customers because they will provide you most of your business.
  4. Saving 10-12 minutes per day saves 1 hour per week or about 50 hours per year. Spend most of your time on activities that are productive and you will not have to work as much.
  5. Time management of employees is also critical to your bottom line. If you have a crew of 4 people and they waste 15 minutes getting ready, you just paid for an hour of unproductive labor that didn’t generate any revenue.
  6. The only place you will find success before work is in the dictionary.
  7. Always do more than your customers expect and they will always be happy.
  8. A customer and a client are the same thing. Typically a customer is someone who pays as a consumer and a client is someone who purchases as a business.
  9. Your name is your personal brand. My name is Nicholas Tart. You have to build it and protect it by always providing a quality service.
  10. On average, 4 out of 5 new businesses will fail. So when you succeed, you’re already in the top 20%. Congrats!

Now how do you get your first customers?

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Photo by: Frederic Poirot