If
you want to run your own business, this write-up is meant for you. Being an
entrepreneur is a high-risk, high-reward position. It's full of stressful
situations, sure, but it's also chock full of rewards and a sense of
accomplishment. It's not as hard as it seems -- as long as you have some
diligence, patience, and, of course, a good idea, you'll be your own boss
sooner than you think!
1. Brainstorm
a great idea.
Most businesses start with one compelling idea — whether it's a service people
need, a product that would make life easier, or something that combines both. The
business world is full of great ideas (and many not-so-great ones). What will
set yours apart is whether you can find a niche need to fill.
- 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.
- 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.
- 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.
2. Research
your market.
The key to starting a business is to know whether there is a demand for your
product or service. Is what you can offer something that is not being done as
well as it could be? Is it a need that doesn’t have enough supply to support
demand?
- 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.
- 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.
3. Talk to
potential customers/clients. You can have the greatest product
or service in the world, but if nobody wants to pay you for it, your business
will crash and burn. Talking to others will also help you prepare to persuade
investors.
- 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.
4. Determine
what you can risk.
Entrepreneurship is always a game of risk and reward, but often the risk is
greater (especially in the beginning). Take stock of all your assets and figure
out how much money (and time and energy) you actually have to invest.
- 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?
5. Understand
the idea of “acceptable loss.” According to ‘’Forbes’’,
“acceptable loss” is the idea that you should first determine the possible
downside of your business venture and then invest only what you can actually
afford to lose should your business turn out differently than you’d hoped. This
limits the scale of failure if your venture doesn’t work out.
6. Commit to
a goal, not a plan.
One of the most important things in becoming an entrepreneur is flexibility.
You can’t control everything about your business, and adaptation is vital to
survival. If you’re overly committed to a plan, you may sabotage yourself.
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