Welcome to 21st century where making $10k monthly by virtually anyone has become as easy as applying bread to butter. Now everyone wants to build an empire without understanding of the basic rules of wealth generation.
The idea of being self employed get a lot of young people excited and they just want to start building an imaginary project, get funded and in the end they just crash everything down due to their lack of knowledge and duel diligence.
Founders are now in a rush to call whatever they have in their hands a startup, even when it is just an idea or a project still manifesting. It takes a lot from an entrepreneur to get from an idea to a project before the business call get a stronghold and be called a startup. But being a startup doesn't still qualify the project for growth.
Some of the under looked factors that greatly impact the success of a project are listed below.
Budgeting: this is a crucial aspect of planning a project most people neglect because they feel they have enough money to fund everything. Without budgeting, whatever money you are spending is as good as you laying your foundation on a swampy ground. You won't know when you will start dabbling into customers funds like FTX and bring everything down crashing on you.
Taxes: this is one of the ways most people kill their own businesses, most people complain that the rich people are not taxed, but in actual sense some people are rich because they know how to avoid tax. Take for example, Elon Musk, when he bought Twitter, he could have liquidated some of his shares in Tesla and foot the bill, but no, he didn't do that because he will have to pay taxes.
He decided to borrow money from his rich friends (lesser interests if at all there will be any) and staked his shares in Tesla as collateral to acquire Twitter.
Tax evasion can be properly done with a clear thinking mindset and without actually breaking the laws.
You don't have to choke yourself acquiring taxes when you can keep your assets liquid.
Systems building: building your systems of operation is crucial to how well your business will go. Systems are the bedrock of your day to day operations.
Scaling: When you build a system, you should always consider scaling it in the long term. This is why companies like Nokia, blackberry failed. Once people start getting a better solution to their problems, they will definitely leave yours behind, you don't expect customers to be loyal to your products.
Human resources and inventory management: without human resources you can work and with inventory you are just not going to do anything. Proper human resources management is key to achieving greatest in any business. This is one of the reasons why apple has been very successful. They are not the company with the best products, but their workforce is fully backing any product it launches. Right from the garage where it all started with Steve jobs, he has been very keen with capital, human and resources management.
The last thing you want to be is someone that pumps cash into a business and cannot retain it. These are very boring parts of startups that nobody is taking seriously that is why many startups fail after a few months of successful launch.
