You’re probably familiar with the phrase “trust your gut.” But is trusting your gut good for your business?
The answer is – sometimes! But it’s not always that simple.
Trust Your Gut – Then What?
Did you start your business because you had a gut feeling that YOU could provide the best version of your service or product? Did you see an empty space in the market and just KNOW that you could fill that gap?
Often business owners pursue their business based on instinct – and that’s okay! But what comes next?
Trust Your Gut – But do a Gut Check
You have an idea, but next you need a plan. Believing that your business is going to be a success is part one – part two is the tactical planning that will make that success a reality. Think of it as calculated risk taking.
- Create an actionable plan. This will look different for each business, depending on the industry and business model. For instance, a brick-and-mortar business will need to research the yearly cost of renting or purchasing a space whereas an online shop would need to look into the projected cost of shipping their product. Or maybe there isn’t a product at all! Regardless of the type of business, you need to create a realistic plan with an understanding of the logistics of your business.
- Have a reasonable budget. Once you research your market, you should be able to create a budget with your plan in mind. Your budget should make sense for the reality of your business and consider every aspect from location to payroll and everything in between.
- Establish profit margins. Hand-in-hand with your budget is knowing what margins you need for your business to be profitable.
- Have a realistic time frame. The moment of inspiration for your business may be months or more likely years from the reality of that business. Creating a self-sustaining business takes long-term dedication and effort.
Partnership Can Be Key
Sometimes doing the necessary legwork and research to plan for your business is complicated. For some, it can be totally overwhelming. That’s when having a partner comes in handy.
Partnership comes in different forms. Maybe your partner is a friend who thrives on analytics. Maybe you have a mentor who can help guide you.
You can also seek out a professional who knows how to help. At Encurio, our goal is to be your thought partner. Whether your business is new or established, we can help you understand your margins, projections, and plan for your return on investment. Basically, how are you going to financially make this work?
It’s About Instinct and Analytics
You should trust your gut as you develop your business. Your instincts are what brought you to the creation of your business. Those instincts can continue to serve as a valuable tool throughout the development of your brand, from helping you decide the direction you want your business to go and who to work with along the way. It just shouldn’t be the only driving force behind your decisions.
Use your instinct for inspiration and analytics for your strategy.
If you’ve got the instincts handle but need help finding direction, set a meeting with us to see if we are the team to help you with your financial strategy.
