Are you thinking of starting your own business? I know how excited you can get when you finally decide to quit your job and start the business you always want and be your own boss. Along with the feeling of excitement, there are also fear, uncertainty and stress. Being an entrepreneur is stressful. You always have to think about how to grow your business. In this post, I will talk about the important questions every new entrepreneur should ask themselves when starting their first business. If you want to make your business idea viable and profitable, you should have the answers to these questions.
#1. What Problem Am I Solving?
What is a business really? Well, a business is a system that solves problems for other people and creates profit in the process. An entrepreneur is basically a problem solver. Every business is born because of an unsolved need, desire or problem. If you start your business just because you love it but there’s no need for it then your business will fail.
Let me give you a couple examples. Let’s say you live in an inland city and the nearest beach is 1,000 km away. You decide to start your own scuba diving shop which basically sells scuba diving equipment to divers, just because your passion is scuba diving. What’s the chance for your business to succeed? Very slim, if not impossible. Why? Because there’s no real need for it. However if your shop is located at a beach city, the chance of success is improved.
I can give you another example. You love hip-hop and you want to start a hip-hop studio. You live in a small town in the countryside and the majority of the population is over 30. What do you think the probability of success is? Again, it’s almost zero. Why? Because there’s no need for a hip-hop shop. Or you can say, the business doesn’t solve any problem. So from now on, whenever you have a brilliant business idea, ask yourself if it really can solve a problem and if people are willing to pay for it.
#2. What Are My Marketing Strategies?
Cash is king. Good marketing will generate more revenue and profit. The question is which marketing channel will work the best for your business? If you run a local shop, your marketing strategies might be billboard, street signs, words of mouth, or TV and local newspaper ads. If you run an ecommerce business, your marketing strategies can be search engine optimization, pay per click ads, social media and video marketing. Again the answer is different for every business and industry. Product-based business works differently from service-based business. You will have to find out which marketing strategies will work effectively for your business.
#3. How Do I Improve My Business?
96% of all businesses fail within 10 years. There is a reason for that. Your business will not succeed if you don’t go out and constantly look for the ways to improve every area of your business. Innovation and marketing are the things you must consistently do. You must find the way to learn from business experts and implement the cutting-edge strategies to grow your company. The way to do this is actively participate in networking and going to business events and seminars. Tony Robbins Business Mastery is one of the best business seminars that you can go to learn about business and network with like-minded entrepreneurial people.
Always remember, to stay on the top of your game, you need to think of growth every day and improve your business on a regular basis. Otherwise your competitors will take all your market share and get you out of business. Constant and never ending improvement is a great mindset you need to adapt to create massive business growth and success.
In this episode, business planning expert Julie Gordon White shares with you her advice how to start a service-based business. This type of business is different from product based business. You need to differentiate the difference to be able to build a sustainable business.