Entrepreneurs do not die

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Many people think that the first step after starting a business is to make a profit. That is not true.

The first step after starting a business is ensuring you don’t make a loss. Making losses = going out of business = death (metaphorically speaking). Once you’re sure you can’t die, then you start thinking about making a profit.

“Not dying” is all about being sure you can pay the overheads. Find a customer that can pay you enough money so you don’t worry about going out of business.

Sometimes that means doing work you don’t want to do. Sometimes that means going to places you don’t want to go to. Sometimes that means discounting your retail prices and cannibalising future revenues.

Suck it up. Especially your fears of cannibalisation.

You can’t cannibalise future revenues if you have no future revenues. And you won’t have future revenues if you go out of business next month because you couldn’t pay salaries.

When you start a business park your dreams of making a profit. Start thinking about making enough money to make sure you cannot die. Once you’re safe from death you can chase the upside.

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