May 11, 2016 08:45 AM EDT

Top Tips For First-Time Entrepreneurs

Starting a business is hard especially if you don't know where to start. Before becoming an entrepreneur, it is important to assess whether this is what you truly want to do and if you are ready to face the challenges that accompany your chosen career.

In Gary Vaynerchuk's post on LinkedIn, the investor and CEO of VaynerMedia shared his advice for first-time entrepreneurs. Vaynerchuk is also the co-founder of VaynerRSE and has invested in companies such as Facebook, Twitter, Tumblr, Uber and Birchbox.

First, he noted that first-time entrepreneurs should be practical about their money. Figure out how much money is needed for your business to stay afloat for a period of time.

Having six months' worth of money may not be enough. You also would need to raise your own funds and venture capital. Another problem would be having too much funds that you don't know how to generate revenue.

Second, first-time entrepreneurs need to understand that a business is a demanding mistress. You have to be prepared to give more than the regular 9-to-5 in order to succeed with your chosen path. Investing most of your time and money on your business is a hefty sacrifice.

Third, always honor your word. "One of best pieces of business advice I've ever received (and one that I try to impart on anyone entering the business world) is that your word is bond," Vaynerchuk wrote.

Once you commit to something, you better push through - regardless of the circumstances. This will help you build not only your business's brand but your personal reputation as well.

According to studies, most businesses fail within the first year and a half. Vaynerchuk speculated that one reason why these businesses fail is because first-time entrepreneurs are unprepared of how hard it is to building a startup.

Entrepreneur added that setting attainable goals and investing heavily in marketing will also help the growth of your business. The publication also noted that first-time entrepreneurs need to have a customer-first mentality.

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