Donald Trump once told us about the mindset an entrepreneur needs, and it was excellent advice, no doubt. But passion without clarity is like speed without control.
That’s why five simple questions can tell us whether we are properly focused and whether our project is viable. That way we can avoid some unpleasant surprises.
1. Why would anyone buy my product or service?
You should be able to explain it without rambling, without jargon or complicated phrases, and ideally in under 60 seconds. If you can’t convince one of those people you call “ignorant” because they don’t understand your product, you probably don’t have a business, or you may have aimed it at too select an audience. Put yourself in the shoes of a future customer and ask yourself: “Why do I need this product? Why this one and not another?“
2. Can you aim your product at a viable market?
As we explained in our article “The 3 keys to business success“, we need something as basic as a product, a market and the ability to get the product into that market. Your product can be aimed at different markets. What you need to ask yourself is which one is your target market. Imagine opening a bakery opposite a large supermarket. You probably couldn’t beat them on price, and you’d also be at the disadvantage that whoever goes to the “big store” wants to leave with the bread, the fruit, the toothpaste…
Differentiating yourself is another matter (back to point 1). If your bread is homemade (better quality), you might not even need to compete on price, because the quality is different and customers would make the effort to skip those chewy supermarket baguettes and buy from your shop instead. You need to do market research so you don’t make the mistake of selling bikinis in the mountains or coats on the coast.
3. What sets my product apart from the competition?
This isn’t one of the most important points. Although we often talk about innovation and originality, the truth is that sometimes, by selling the same thing as someone else but from a better location or with better advertising, we end up grabbing a slice of the pie and even overtaking the competition. Of course, if you manage to stand out in quality, price or service, it will always be easier. And if you can combine all three, success is practically guaranteed.
4. What is, and will be, your level of commitment to making your business idea happen?
Now you shouldn’t analyse the business but yourself. Are you a long-distance runner or a sprinter?
A sprinter in business gets off to a very fast start, has lots of energy and even draws people’s attention. This is the typical entrepreneur people think will conquer the world. The downside of this “sprinter” type is that they usually only have enough energy for 100 metres.
The long-distance runner isn’t fast, but is very consistent, and even plans a strategy to save the last burst of energy for the final straight. Business is a very long race, with obstacles and plenty of uphill stretches, so sooner or later the long-distance runner catches the sprinter.
Are you ready for the race you’re about to start? Are you sure?
When we think of great business people, holidays, luxury yachts and private jets come to mind. Nothing is achieved without hard work, effort and sacrifice. The moment you start your own business, you’ll have to accept that working 8 hours a day is over. Your job is full-time; you’ll even be working when you’re not working.
This is the point many young entrepreneurs find hardest to accept (older people perhaps have it more clearly in mind). You will never build a business working 8 hours a day during the first 2 or 3 years. That’s exactly why we always advise looking for something you’re passionate about. That way, the hours won’t weigh on you. Someone used to say:
Do what you love and you’ll never work a day in your life
5. When the time comes… will you know how to delegate?
This brings us back to the difference in mindset between Hispanic and American business owners. In point 4 we talked about the level of commitment and the need to work hard and make sacrifices. But all of that has to be temporary, because keeping it up indefinitely wouldn’t be healthy.
Spanish business owners often have serious trouble delegating. In fact, they start from the assumption that if they aren’t in the business, the business won’t work. Sadly, this is why small businesses always stay small: this kind of owner usually ends up wondering how on earth they could be in three businesses at once, and concludes that they will only grow as far as they can personally cover.
Years later, a big player comes along and swallows the small fish. Why? First, because it could, and second, because the fish was small. At the pace business moves today, ambition is necessary and you can’t stand still.
Remember that an entrepreneur’s success doesn’t lie only in their own qualities as an entrepreneur, but in knowing how to surround themselves with competent people who make up for their shortcomings and to whom they can delegate responsibility.
See also: 18 business lessons you’ll learn sooner or later
“Don’t train workers, train professionals.”
Further reading
- What the Mafia teaches us about business
- Entrepreneurs: when plan B fails
- Steps to reach your goals in life and in business
- 15 commandments for entrepreneurs that lead to business success
Featured image: Bread ovens inside Honey's Bakery by Vieve Forward, CC BY-SA 2.0, via Wikimedia Commons.
