We have written a great many articles on this subject, and I think it is time to sum up that “medley” in a very basic, unconventional guide, linking to some of those articles for more information (recommended reading for newer readers).
The thing is, once we are clear that there is a need to start a business (for whatever reason), we run into the obvious questions: “What business could I start? What business would be profitable? How do I come up with a business idea?” and so on.
And the truth is that it is as easy, or as hard, as following these steps:
1. Find a problem to solve, a need in an industry or, failing that, a problem in an existing industry. The latter is Richard Branson’s speciality.
2. Think about how to solve the problem.
3. Turn the solution to that problem into a product or service.
4. Sell that solution.
Expanding on the points
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Your business idea doesn’t have to be innovative and original. In fact, the simpler and easier to explain it is, the better its chances of success.
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It doesn’t have to be in a sector you are passionate about, as long as you are passionate about doing business.
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Even so, passion for what you do will give you strength along the entrepreneurial journey.
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How do you know what kind of business would suit you best? When we choose a profession or a business, above all we must be sure we are doing what we want to do, something we enjoy. Otherwise, there’s no point. In the same way, when you think about a business:
A) It shouldn’t just be something you are passionate about. You also need to be good at what you do.
B) What you offer must have a broad market.
C) And people must be willing to pay the price of whatever it is you sell.
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That said, you can always turn to brainstorming.
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Do this simple exercise to validate your business idea in less than 5 minutes. It will give you an idea of how easy or hard it will be to get your company off the ground, and all you need to find out is a sheet of paper and a pen.
And now for the money
Once we are clear about the problem, the solution and even the strategy, we reach the “Oh, crap!” moment: you don’t have the money to start the business.
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Start the business now. Right away. Start taking the steps you can take without having to invest.
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Don’t waste too much time looking for funding when you don’t have a company yet, just an idea or a project that you don’t know will work. Remember that when it comes to raising money, it will be much easier to approach investors with something you have already built than with just a project in your head. That is worth zero.
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These are some of the companies now worth millions that started out with no money at all and managed to grow solidly. Altucher explains how he did it. For some people, lack of money to start a business is more of an excuse than a problem. You don’t need it.
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If, on the other hand, you have a job, this is how to start your business little by little without having to invest.
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Think about whether you really need a partner, but remember that entrepreneurs often look for a partner to share their fears, not because they need one. In other words, they don’t feel alone on the journey if someone else is taking the risk with them.
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Although partners are not usually needed at the start, in some cases they really are essential. We look for a partner to create synergies and to complement us. Here are 10 tips to avoid some mistakes when choosing your partner.
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10 tips for starting a business successfully. Some points are repeated, but they are covered in more depth.
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Remember that starting a new business probably won’t be fun at first, so you must be mentally and emotionally prepared for difficulties and stress you can’t even imagine right now. Always keep in mind the secret price of starting your own business.
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Avoid the mistakes other entrepreneurs made at the start, which you will probably make even though you know about them. Likewise, always keep in mind the main reasons small businesses fail.
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Focus on the customer from day one. A happy customer will be your greatest source of motivation, while an unhappy customer will be your greatest source of learning.
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Forget the previous point. Focus on being profitable. If you have to lose money to keep a customer happy, that’s bad business. Make sure you have the right profit margins. Products are often sold below the profit threshold the business needs in order to survive. Obviously, companies like that don’t usually stay open for long, and it is a more common mistake than people think.
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But don’t be too greedy when it comes to squeezing the maximum profit out of your products or services.
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Recommended: The 32 rules for being a successful entrepreneur.
Featured image: Joe Mabel, CC BY 4.0, via Wikimedia Commons.
