You Should Have High-Income Skill Before Starting Your Own Business

Recent trends about startups and entrepreneurs made young people race to become one. Although there is nothing wrong with this mentality, you must know that to be successful as an entrepreneur is difficult. You have to learn a lot to be able to do business "correctly" which will increase your success rate. Therefore, doing business requires a variety of knowledge and skills that you must get in school, college, and practice in the field.

Doing business also requires capital in the form of human quality and money. No matter how great a businessman is, if he does not have enough capital, various things in his operational activities will often hamper him and could close his business. Having money alone is also not enough. Without expertise, you would find it difficult to get high returns from your investments. Money and human capital are like two sides of a coin that cannot be separated. But you do not need to worry. This short article will discuss how to implement a simple strategy that you can use to start your business.

By: Pexels | Pixabay

High-Income Skill

High-income skills are skills that enable you to earn a lot of money. These skills can vary in various fields that you choose, for example as a chef, salesman, baker, content creator, etc. Thus, the idea is to hone your skills while saving money to be used later when you are ready to open your own business. If you earn less, you will not be able to save your money, let alone to do business. And last, you can learn business operations in your workplace and understand the key success factors and the obstacles that present in day to day operations.

If your savings are not enough to start your own startup business, having a résumé in a good company could help you later if you want to apply for funds to angel investors or venture capitalists. With a good track record, investors would know that you have sufficient qualities to work in your new business, and would not hesitate to invest in your startup.

Beginner's Mistakes

In this topic, the main mistake of someone who wants to start a business is a high ego. A young person is indeed filled with high enthusiasm to start a business, but often not accompanied by adequate knowledge and skills. You might feel that you could conquer the world, smart, and creative, but the real world would often throw your high ego away. These probably the reasons why many successful entrepreneurs fall up early and often succumbed in their first few businesses.

From the aforementioned hints, you should not repeat the obvious mistakes made by most of these new entrepreneurs. Thus, it is better to prepare everything (i.e., something you can control) to minimize failure. When everything was prepared correctly, and you still fail, the lessons are so valuable that could bring you closer to the finish line.

And finally, don't underestimate the power of money. The idea of having high-income skills are also to accumulate capital in the form of savings. Your savings should support personal expenses and your new business for the next six months. A decent business plan generally provides a minimum of six months of operational cost (called working capital) before the profit (from the sale) can cover the operational costs.

Translated from: Kubisnis Indonesia