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Sometimes an idea cannot be turned into a profitable business just by persistence alone.
Our readers have shared their thoughts on important considerations for entrepreneurs, such as which sphere to choose, how to avoid losing money, and how to effectively utilize available resources. We have compiled their advice into one article to assist future business owners.
ADVICE # 1 – Find and implement an idea that solves people’s problems
No one can really help you find a genius idea, but once you discover it, you can create an MVP (minimum viable product) for $5000, and that will suffice. For instance, Airbnb launched with an air mattress, breakfast, and a website, which cost them $300. If your MVP generates profit, you can confidently seek investors or take out a loan.
The key is not to compete directly; that is the primary mistake. You should discover ideas in the problems surrounding you, which you can often find at work. If there are none, continue searching by traveling, changing jobs, making more friends, and inquiring about their problems in life and at work. Once you find the problem, discover a solution — that is also an idea and will become your business!
Just do what you are good at, and continuously work on improving your skills while engaging in something that doesn’t deplete you, but interests you instead.
This can be referred to as “satisfying a need.” You should contemplate what you are missing or even listen to your neighbors. Your objective is to fulfill this need. This business will be fascinating to you since it satisfies your own needs as well. Trial and error is the approach to everything. Money may be expended, but it will lead to definite conclusions.
Projects arise simply; the primary step is to commence and comprehend it more than an average individual.
ADVICE #2 – If you don’t know what kind of business to start, acquire new knowledge and start with something simple.
If you are uncertain about your interests and what is in demand around you, advice on breeding carp or growing flowers will appear equally promising.
Invest in enhancing your skills, learn something more intricate, and attempt to market your newfound skills. You may need to work for experience after acquiring knowledge. A feasible option would be to become a photographer. I believe a small sum of money will suffice for classes, a camera, and launching your own page.
If your goal is to start a business and be regarded as an entrepreneur, then reselling small quantities of sought-after goods in your city could be appropriate. The source can be Chinese manufacturers or, for instance.
ADVICE #3 – Understand why you need a business and find a coach.
The most crucial factor is mindset, not knowledge. An entrepreneur’s mindset is the primary differentiator. Therefore, I recommend starting with consulting a reputable coach who will help identify your shortcomings and guide you in improving them. Only then can you initiate building your business. You can always turn to a specialist for calculations, business plans, and so on; there is no reason to spend six years studying.
The most significant element is motivation. Why precisely do you want to start a business? Ask yourself this question. Successful businesses always revolve around “how can I assist people” or “how can I improve the world.” Otherwise, everything will soon become tedious, and you will be disillusioned.
ADVICE #4 – Don’t be afraid to try yourself in entrepreneurship and make mistakes.
Drawing from my personal experience, possessing a higher education in economics and law, I can confidently state that all you need to start a business is your strong desire and determination to pursue its development. You will inevitably encounter trials and errors, and only after multiple attempts, you will discover what genuinely works and generates income.
Starting a business becomes simpler when you have less knowledge – there is nothing to intimidate you. The more you read and learn from books and courses, the more impediments you put in your way to initiating a business. Books and courses cannot entirely prepare you for every circumstance. You will have to endure numerous experiences and gather essential knowledge on the journey, specifically when it is necessary.
ADVICE #5 – Evaluate your capabilities and abilities before starting a business.
Establishing a successful business always requires an immense amount of hard work. Even “grown-up men” may struggle to identify new niches and often invest significant sums of money in conducting market analyses.
Do you have an idea of what people require? What needs can you fulfill? If not, start exploring and determining what people need. If you have an idea, look for ways to address the issue. When you have a specific question, you will find a specific solution.
Determine your financial capability. Perhaps you are excellent at making shawarma and can monetize it with a modest investment. Maybe you are knowledgeable about tourist spots, possess excellent guiding skills, and can easily occupy this niche with an investment of $1000 to $3000. On the other hand, if you lack knowledge about automobiles, it will be challenging to create an automotive repair business. Specify your skills and expertise.
ADVICE #6 – Study the sphere in which you will be opening a business and take marketing courses.
While it’s true that a higher education degree may not be necessary for starting a business, it can still provide valuable knowledge and skills in areas such as finance, management, and marketing. However, taking specialized courses or training programs can also be a good option for acquiring the specific skills needed for your business.
Marketing is indeed an essential aspect of any business, as it helps to promote and sell products or services to potential customers. Taking marketing courses or seeking advice from experts in the field can help you develop effective marketing strategies and tactics.
Choosing to open a business in an area that you know or have experience in can be beneficial, as you are likely to have a better understanding of the industry and potential customers. However, it’s also important to research and analyze the market demand and competition to ensure that your business has a viable opportunity for success.
To start a business, you should focus on one thing and study your chosen sphere inside and out. You should identify your future clients, as well as competitors and suppliers. Prepare a business project by putting all of this in writing. If you are unsure about doing this on your own, find someone who can help you professionally. It is better to overpay and invest in the initial stage than to lose large sums later on when there’s more at stake. Additionally, take the necessary courses.
Learning is crucial when it comes to entrepreneurship and business ownership. While it may seem easy to start a business, making it profitable, constantly developing it, effectively managing people, and achieving daily results are much more challenging.
When seeking education for business ownership, focus on specific areas such as personnel management, financial planning, and strategic development. Look for serious courses, including mini-MBA programs. Becoming a manager should be your top priority.
Additionally, consider taking short courses on marketing and sales systems. Although it may be challenging and time-consuming, the results will be astounding, and you can avoid accumulating debts in just six months. As a businessman with six years of experience, I can responsibly attest to this.
ADVICE #7 – Test demand for service or product before starting work
Try Catch is of the opinion that hiring someone is more beneficial for their business. Through my personal experience of trying out various small businesses after completing my studies, I have come to realize one crucial thing: having a good higher education and being a highly qualified specialist with a social package, bonuses, and a fixed salary is the best way to build a successful business. It’s essential to learn and work in a field first, gain an understanding of how it operates from within, and then venture into entrepreneurship.
On the other hand, MLM or network marketing is the worst type of business, in my opinion. Though I have never tried it myself, it appears awful from an outsider’s perspective.
In my opinion, the most critical aspect of starting a business is testing demand before investing any money. For instance, if you plan to open a new pick-up point, observe how many people go to the nearest pick-up point every day to assess the customer flow and calculate the potential profitability. Similarly, if you plan to rent out an apartment for a day, post an advertisement on Avito and gauge the number of responses.
I don’t consider reselling anything as a viable business option since there is always a high likelihood of cheaper competitors appearing quickly, which can lead to failure.
Running a business requires a significant investment of time and responsibility. If it is more comfortable and more profitable to work as an employee, then pursuing that option might be the right decision.
ADVICE #8 – Be prepared that business is not a job, it’s a way of life.
Running your own business involves a way of life that extends beyond solely generating large profits. In some countries, although salaried employees earn $3,000, many entrepreneurs earn less than this amount. People choose to become entrepreneurs not only for monetary gain, but also because they enjoy the lifestyle.
As an entrepreneur, you will have direct involvement in business operations, utilizing either your physical or mental abilities for up to 18 hours a day with only one day off per month, and potentially no vacation time at all. Ultimately, small business owners may have a heavier workload compared to employees. Additionally, you will bear all the risks, and the income may not necessarily be significantly higher.
Those who view the entrepreneurial lifestyle as natural as breathing are the only ones destined for success. As with any endeavor, if you have a passion for it and put forth your utmost effort, it will yield positive outcomes.
World champions have not achieved their titles by only working two hours per day. Many individuals mistakenly believe that the primary objective is to establish a business and hastily hire personnel and then travel to Bali.
Nevertheless, if you possess the aspiration to fully devote yourself to your business, regardless of its nature, working diligently will lead to success in all areas.
Individuals typically commence their entrepreneurial endeavors in their area of expertise. For instance, if you intend to establish a sushi delivery service, it is advisable to work for a competing company for a month and note the benefits and drawbacks daily. Failing to do so may result in learning from errors during the process, and business errors can be costly.
Assume someone possesses expertise in the sewing industry, knowing where to purchase fabric, locating a skilled designer, producing quality products, and advertising them. However, you lack knowledge in this field. You can acquire this knowledge by working as a salaried employee or paying a consultant for guidance or pay for your errors by initiating a business based on enthusiasm instead of knowledge.
Additionally, a small piece of advice is to begin with 50% of your own funds. This is because your budget may be insufficient for a new business, prompting you to use the remaining half during operations. Conversely, acquiring a loan to launch a new business may lead to financial ruin. Loans should be utilized for development when the business is functional and has a predictable income.
ADVICE #9 – If you’re not passionate about your business idea, it’s better to work for someone else or become a freelancer.
In my opinion, business involves having an intense desire and passion to bring your vision to fruition, or investing funds, forming a team, and making strategic decisions for growth.
If you lack enthusiasm for your idea or do not have a capitalist mindset, it is more practical and straightforward to pursue education, acquire skills, and search for employment. Alternatively, freelancing is an option if you desire to work for yourself.
If you perceive business as lounging on a beach with a cocktail while others labor for you, I regret to inform you that this is not the case. Business entails hard work, and it is much more challenging than working for someone else. Earning profits in the initial year is highly improbable. Furthermore, the amount of knowledge you must acquire and maintain is staggering.
Forget about weekends, and even sleep is a luxury when you’re running a business. Your work will demand your attention, even during your free time, if your goal is to expand and evolve your business. If your approach is to say, “It’s working, so let it be,” you’ll soon be out of business and losing money.
It’s crucial to consider why you want to start a business, whether you can give it your all, and whether you’re prepared for the challenges it will entail. If the answer is no, then don’t create problems for yourself.
Business is a way of life. A successful business is driven by passion and enthusiasm, and it will continue to flourish. It’s a hobby that has grown into a business. Control is required around the clock, so you must be prepared for that too.
Advice #10 – Do not manage a business on your own if you have no management experience.
The book “How to Ruin Your Own Business” highlights a common mistake made by inexperienced entrepreneurs: failing to budget for an executive or operational director and assuming they can manage everything on their own. However, this often leads to failure.
You can create a business with a chance of success by meeting at least one of two conditions:
- Having knowledge on how to own a business and understanding the role of a director who is responsible for adjusting processes and other aspects.
- Having expertise in the processes of the field in which you want to invest.
If you lack both of these conditions, even having a director won’t save your business from failure and investment loss.
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