21 Business Laws Every Entrepreneur Should Obey

10 commandments

Some entrepreneurs have all the luck. But most are just good business people.

Having success in business is not just about doing things the way you want, it’s also about obeying certain entrepreneurial laws.

Successful business people have many things in common.  In particular, they do these 21 things to progress their ideas and turn them into companies.

Have a target

One of the first and most important laws of business is having a target; you shouldn't set up a business and just expect success to come.

Having a target/goal/vision is crucial to because it provides direction and helps you work towards achieving that target. When starting your business, try to define one for your business, and make sure you know what you want to achieve in the next 5-10 years.

Most successful businesses we have now didn't get there as a result of luck; they knew what they wanted from the beginning. If you already have a business and you don't know your target, redefine and make your purpose clear. Not only will this help you work harder towards getting things done but it will also serve as future motivation.

Have a plan

Failure to plan might as well be planning to fail. Successful business people don't do things on a whim, so before you do anything else, make sure you have a plan and know what all the pros and cons are.

As you grow your business your plan will inevitably change, but it's still a necessary starting point, if only to organise your thoughts and direction.

Get Started

I have seen a lot of people with great business ideas, and if nurtured, they could be the next big thing. One reason why many of them can't get past where they are is because they're all talk.

You don't need to keep talking about your business ideas, goals and plans. That isn't what will bring results! Taking action is the best step you will ever take in your business.

Be different

In all likelihood, some version of your business idea already exists. So what will make consumers pick your company over a pre-existing, competing business?

Come up with a unique angle that makes you stand out. Be clear about how your business is different, even if your product resembles anothers'.

Take a look at other companies with the same business model as yours, look at what they could be doing better, and make it your mission to beat them.

utilise the power of others

Successful business people don't waste time doing what others could do for them. If you are the manager of your business as well as the the sales rep, you are probably spreading yourself too thin and leaving a lot of money on the table.

Try to get as many people to help with your business within your budget. Do what you know how to do best and leave the rest for others. If you want to be planning and marketing your business, you don't need to waste time developing products too. Think about the best use of your time and lean on others when you can.

Take risks

Every great business we have now was a product of risk. There is no assurance that your business will make it, but you also don't know what will happen until you try.

You have to spend for your business, employ that best talent, and make tough decisions if you really want your idea to take off. Sure, you're putting a lot out there, but the rewards, if you're successful, will more than make up for it. Plus you'll learn a lot.

With that said, take wise risks. Every risk should be well thought out and calculated.

Be prepared for change

Nothing is static and there will always be a need for change.

Try to anticipate what's ahead and prepare your business for it so you're not always playing catch-up.

Be predictable

Being predictable has a lot of benefits. If you're predictable, people will consider you dependable. And once you have a customer's trust, then they'll recommend your business to others.

But mess this up, and you'll not only lose current customers, you'll also lose potential customers in their networks.

Be a man of your word

In the business world, having a great reputation is very important and some silly mistakes on your part can destroy it.

Before promising anybody (employees, customers or other companies) anything, try to make sure you are up to the task and do whatever you can to fulfil your promises.

Don't promise today and give excuses tomorrow. If you're true to your word, others will respect you for it.

Have solid customer support

Your customers make your business. Without them, you're nothing.

If you neglect the customer support aspect of your business, you are preparing your business for failure. Try to have the best customer support possible, and make sure you do everything possible to satisfy your users.

No matter how great your business is, if customer's don't respect and trust your service, it can taint everything.


Oftentimes we see other businesses doing something that is working and think, if I just do what they're doing, I'll be successful. But great results don't come from doing the norm.

To get great results you have to come up with something new. Try to be as innovative as possible. Always come up with new ways to help people solve their problems.

Be frugal

Another great business law is frugality. Don't spend money because you have -- think deeply before spending your money and make sure you are spending it in the right places.

Make sure every purchase is necessary for the growth of your business, especially when you're in the early stages.

Have records

Some people's businesses cripple because they lack records. Don't fall into this trap.

Make sure every aspect of your company has records, know everything that comes in and out of your business, and try to be on top of every little detail along the way.

It is very easy to assume your business is in good shape when it's not. Having a record will help you see everything in a timely manner and avoid possible pitfalls well in advance.

Test, test, and test

You will constantly find new ideas and tools that can help simplify your business. And it will be very tempting to use these tools without testing them out first, because that's the easy thing to do.

But you should always try new things out before you pour resources into something foreign. It is always better to avoid problems before they come than to deal with problems after they have settled.

Be as fast as you can

We are in a world where people want everything immediately. Getting things done fast can triple your sales and you shouldn't neglect this important aspect of business.

While being fast is essential, it shouldn't come at the expense of your product's quality. Make sure you find the right balance.

Don't take your reputation lightly

Successful businesses know the power of a great reputation and they don't take it lightly. Your reputation can mean more sales and opportunities for your business, so make it a priority.

Building a great reputation can take a long time, but ruining it only takes one wrong move. Make sure you avoid anything that could destroy the reputation you already have, and always make sure you leave smiles on the faces of your customers.

Be organised

Make sure everything has a sequence, don't just let things come and go.

Know what comes first, set your priorities, and keep things in order. And always know why you are doing what you're doing.

Focus on building a great brand

You'll notice that most long-standing businesses have well-known brand names and associations. People identify with brands, and once they begin to establish experiences with your company, they'll become partial to your business.

Always make sure you spend on branding your business and products; there is a lot of power in a great brand.

Be patient

Don't rush everything; let time have its place.

It is much easier to quit a business than it is to start one. realise there is no such thing as overnight success, and that businesses only thrive after years of hard work.

Learn always

Always be ready to learn and make sure you spend on training yourself and your staff.

What you know can make the difference between the success and failure of your business, so make sure you are always learning.

Market, market, market

It doesn't matter how great your business is already, you have to make sure you get the word out there.

Always make sure you have the right marketing campaign in place and spread the word as far as you can. Try to gain publicity from every angle, from the media, and from every source possible.

Now that you're ready to start a business, check out:

NOW WATCH: Ideas videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.

Tagged In

features warroom-us