Most people presume starting a business is a rather risky and mysterious process, but let me be the first to tell you, that is far from the truth.
Recent studies and surveys reveal that there has never been a better time to be an entrepreneur than now. Creating a profitable business may not be easy but can be made simple if you follow and learn the skills and models of other successful entrepreneurs.
The world has become global
You can develop an idea on one end of the world, have it created and produced by a partner on the other end of the world and have it ready for shipment in no time. Plus with so many products and services being offered in digital format, this process can be shortened to a couple of clicks.
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For anyone wishing to turn their idea into a business operation, one of the stumbling blocks is getting over the fear of the risks involved. This is not to say the risk of being an entrepreneur should be ignored. But! Where there is a risk, you should soon learn how to work with it, work around it or work over it. It is all part of the risk management process of being a successful entrepreneur.
The marginal chances of Success in Business
A little over 600,000 start-ups are initiated each year in Canada and the United States alone, and about 90% of those start-ups will not make it more than the 1 to 5 years growth phase. On a global scale, this number grows even larger. So the question that every aspiring entrepreneur should ask themselves is, “How do I create a profitable business idea that will stand the test of time?”
The following tips should get you started:
PRINCIPLE #1: Start from a position of Strength
What you want to know first is, what are you good at that can give you a market advantage. The key to business success lies in your ability to provide a solution in a way that is better than the available competition. One way to do this is to find a problem that people are already paying to get solved and improve on that.
Think of Google, people were already paying for other people to search and index information, they just made it better. Ford, people were already buying cars and building locomotives, they just made it better. Your potentially profitable business idea doesn’t have to be new; it just has to offer a better solution.
PRINCIPLE #2: Know what your potential weaknesses are
Being an entrepreneur is a risky business. You want to know who and what to work with, who and what to work around and you also want to know who and what to work over.
Your weaknesses are your Achilles Heel. Your weaknesses can kill your potentially profitable business idea before it even gets off the ground. So write down 5 to 10 things that stand in the way of starting your business.
If it is funding, find out how much funding you need to get started and keep you going while you grow your business. If it is access to markets, keep a journal of the different ways you can get around that, be it through partnering, outsourcing or self-sourcing.
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PRINCIPLE #3: Take note and know your numbers
Business success is a numbers game. Profitability is only possible when you know business facts and numbers. This is not a monthly or yearly exercise. You need to manage your business’ facts and figures at least by the hour, by the day, by the week and the month will sort itself out.
No matter how unique your idea is, it can be transformed and translated into a profitable business idea only if the numbers add up. The more people you have willing to endorse or pay for your product or service, the more profitable your business will be.
In simple terms, to be successful in business, you need to follow three simple principles. Start from a position of strength, know your weaknesses and play the game by the numbers. From there determine who your target consumers are and just go for it.