If
you want to run your own business, you've come to the right page. 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
Think of 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. Remember that ideas
don't matter, it's what you do with them that counts!
·
If a great idea comes
to you, evaluate if it is realistic. Think of cost, manufacturing time, and
popularity.
·
Always be open to
different ideas. Ask and record if people would actually buy the product.
·
If you don't have an
idea yet, it is a good start to think of your target market first. Then
brainstorm a list of things like places they shop, and things they might really
like. 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
Write a business plan. Include details and
descriptions, and plan everything out realistically. Take your time and
evaluate your product at each section. The sections of a good business plan
include:
·
Product description:
develop your product. What will it look like? What materials will you need?
Make your product eye-catching.
·
Market Analysis: Who
is your market? Where do they shop? Where are they located?
·
Competition: Who is
your competition? What are their strengths? How will you beat them?
·
Marketing: How will
you market your product? What kind of image do you want to display? Where will
you advertise? What is your tagline? What is your packaging like?
·
Sales: Where will you
sell? How will you get your customers to buy? When will you sell? What is your
estimated sales forecast?
·
Manufacturing: How do
you make your product? Explain this in detailed steps. What materials do you
need to make your product? When and where will you manufacture? What is your
COGS (cost of goods sold)?
·
Finance: how much
money do you need to start your business? What is your gross profit?
3
Or, don't write a
business plan. A
business plan is a work of fiction, anyway. If you don't have much experience
in business, or the market is new and unknown, a business plan might be a waste
of time, or, worse, a path to self-delusion. Plan just enough to make your
first sale.
·
The main thing is to
make at least one customer happy, and complete the entire cycle of "make
product, sell product" as quickly as possible. Then you will have a
business, and then you might be in a position to understand some problems of
the sort that extensive planning can help solve.
4
Get investors. Pitch your idea to any potential
investor to get money to start your company. If you have a good idea, they will
love to invest their money in your company.
·
Make a PowerPoint
presentation (or something of the sort) explaining why your product is the
best, including each part of your business plan in the presentation.
·
Tell them how much
your estimated gross profit is and how much percentage of that they will earn
in interest. Many VCs (venture capitalists are not set up to make you
successful. A wonderful success for you might be to earn $80,000 a year doing
work you love.
·
Starting small and
pleasing a small number of customers at first is a high-probability way to get
there. A VC will not allow such a success to happen, because a VC's strategy is
to become a billionaire by rolling the dice on many low-probability but
potentially gigantic-returning businesses. The price you pay for taking on a VC
is control: control of your dream. If you can get the business
started without spending a lot of money that might be your best route.
5
Sell. Sell
and distribute your product. If you're getting revenue, then you're in
business. You're testing your theories about the market, you're finding out
what really works and what doesn't, and you're getting fuel for more ideas and
improvements. If you're not getting revenue, then it's all in your head.
6
Network. Hang out with
entrepreneurs. By meeting entrepreneurs socially, you gain contacts and hear
about opportunities.
·
More importantly, you
learn how entrepreneurs think. You pick up their attitudes, their nose for
opportunity, their willingness to explore every idea and its opposite (they
know that often both work), the great diversity
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