You don’t necessarily have to do something revolutionary or brand-new to be successful. You just have to be better at something than your competitors. [2] X Research source You will likely be more successful if you do something you know and love. Going into computer programming might make your business very marketable, but if your heart’s not in it you won’t have the energy to keep yourself going. [3] X Research source If you’re having trouble thinking of an idea, create a list of things about your target market, such as places they shop and things they purchase. Narrow the list down to about three items, keeping cost, manufacturing time, and popularity in mind. Find the easiest, most realistic product you can offer.
There are many sources of free industry information. Search online for industry and trade associations in your target market and read the articles and press releases they post. You can also get valuable demographic information from census data. [5] X Research source The U. S. Small Business Administration has a website with excellent suggestions on how to come up with venture ideas, conduct market research, how to write a business plan, and how to recruit investors. It is an invaluable source of reliable information if you’re starting a business.
Ask for honest feedback when you talk to potential customers. Your friends may try to be nice to you when you propose your idea, but critical feedback that points out weaknesses or problems will be much more useful, even if it isn’t always easy to hear.
In addition to considering your savings, credit, and other sources of capital, consider how long you can afford to go without making a profit. Small businesses are rarely profitable immediately; can you afford to not draw a salary for perhaps several months or even a few years?
One of the mistakes many beginning entrepreneurs make is failing to narrow their target market and trying to sell to too wide an audience. While it’s tempting to believe that everyone needs and will love your product or service, the reality is that they won’t. It’s okay to start small. [13] X Research source
Provide details from potential customers’ point of view. If you have already talked to potential customers, you should have a good idea what their opinions of your service or product are. If you are planning to sell a proprietary good or service, include any patent information or other ways you plan to protect your intellectual property. Investors don’t want to invest in a business only to have their product scooped by a competitor.
Investors like specifics. [19] X Expert Source Keila Hill-Trawick, CPACertified Public Accountant Expert Interview. 30 July 2020. A funding request that just says “I need a million dollars” is less likely to be persuasive than a requests that breaks down costs and expenditures.
You should also include information on prospective financial data. This may seem like simply making up numbers, but it should incorporate the data from your market analysis. [21] X Expert Source Keila Hill-Trawick, CPACertified Public Accountant Expert Interview. 30 July 2020. How well are your competitors doing? What do their expenditures and cash flows look like? You can use these to help you make projections for your company. Make sure that your financial projections match the figures in your funding request. If your projections show that you will need $500,000 but you’ve only asked for $200,000, this could suggest to investors that you haven’t done your homework.
First, consider the problem or need that your venture addresses. This is often effectively stated as a question, which is why TV advertisements often begin with questions such as “Did you know that…. ” or “Are you tired of…” or “Have you ever had a problem doing…”. Second, consider how your product or service fixes the issue you’ve identified. This should be no more than 1 or 2 sentences, but should be as specific as possible without getting into jargon. Third, describe the main benefit of your product or service. This could be a description of how it achieves something for the customer, or how it outperforms your competition. Finally, consider what you need from investors to get your venture going. This part can be longer, because it needs to express your basic needs, your experience and credentials, and why your investors can trust you to succeed. Keep your elevator pitch short! Many experts suggest that it should not be longer than one minute. Remember: attention spans are short. Hook your audience quickly, or you may not hook them at all. [24] X Research source
Attending networking events such as local fairs hosted by your chamber of commerce is a great way to connect with other entrepreneurs in your area. These connections can provide you with support, ideas, and opportunities. Be generous to others. Don’t consider networking with other entrepreneurs only in terms of what they can give you. If you offer advice, ideas, and support to others, they will be more likely to want to help you as well. Nobody likes to feel exploited. Pay attention to others’ ideas. Even if you’re in direct competition with someone, you can probably still learn from them. You can learn from others’ mistakes as well as their successes, but only if you listen to them.
Look at the websites and branding of some successful companies. See what they have in common, what they do that’s interesting, and try to emulate that formula with your own brand. (Never steal or copy someone else’s intellectual property, though. ) Consider starting a professional blog, especially if you are in a service field. This can be an excellent way to show off your experience and ideas and help investors and customers get to know you.
Remember to return this favor whenever possible. People are more likely to want to help you if they feel that you will help them when and if you can. Goodwill is essential for an entrepreneur to have.
Keep in mind that venture capitalists (often referred to in the business world as “VCs”) are focused on two things: how much money investing in your business will make them, and how soon that profit will happen. While hundreds of thousands of businesses are started every year, only about 500 a year get VCs as investors. [28] X Research source If you are providing a professional service, such as consulting, accounting, law, or medicine, consider forming a partnership with someone who is already established in that profession. Someone who is familiar with your field (and your knowledge of it) may be more likely to invest in your success. Starting small and pleasing a small number of customers at first is a high-probability way to get there. If you can get your business started without spending a lot of money, that might be your best route.
Don’t just follow the same routines the most successful people adhere to. Create your personal routines. Make time for yourself and your routines, especially when you are busy.
Evaluate if your personal goals are still compatible with your business goals. If yes, and you are energized and motivated, then keep going! If not, try to find ways to make your business fit into your life better.
For instance, it’s a typical mistake that stock investors make. After buying a stock, investors are likely to hold on to their stocks even though they may have lost a tremendous amount of money. People just hate to sell something at loss. They hold on to the stock although the most rational action would be to sell their loosing stocks and invest what’s left of their money in a more promising stock. Cut your losses and reboot. Come up with a better strategy and do not focus on what you have lost but focus on what you can win with your changes.
Try to obtain a part-time position, where you can learn valuable lessons for your own business in a related industry, learn a transferrable skill (like marketing and SEO) or where you could network in your business area. Don’t expect to build your empire overnight, it is totally normal to start out small.
Consider what you need to make these priorities and goals happen. Is it a certain amount of money? A certain amount of free time to spend with friends and family?
Are you comfortable with a lot of responsibility? Entrepreneurs often have no backup and are responsible for the success or failure of their business. Do you enjoy interacting with people? Almost all entrepreneurs have to do a lot of customer service, particularly at first. If you aren’t good with people, you may have difficulty getting your business off the ground. Are you able to accept uncertainty and even failure? Even the most successful entrepreneurs – for example, Bill Gates, Steve Jobs, and Richard Branson – have had businesses fail on them, often several times, before they found a formula that worked. [31] X Research source Do you thrive on problem-solving and creative solutions? Entrepreneurs at all levels face many problems that they need to find creative solutions for. A high tolerance for frustration and the ability to think through problems will serve you well as an entrepreneur. Meet other entrepreneurs to assess whether being one yourself is a good fit.
