Nowadays, there are a lot of opportunities. A relevant one is, without a doubt, having the ability to create a business based on a single idea. Of course, this idea must be innovative, efficient, creative, and well-intentioned. Nowadays, with the technological developments our society is facing, running a business is becoming easier, and, above all, possible for practically everyone. Of course, it’s important to have a set of characteristics which will make you more fitting for this sort of job. You must be sensible, focused, motivated, creative, and many others. But if you have got an idea in mind, you will be surprised that creating a business might not be as hard as people think. So, if you’re interested in learning about business creation, its pros and cons, a few statistics, and more, this article is just right for you.
Entrepreneurship
Firstly, when talking about business it’s important to understand what entrepreneurship is. Entrepreneurship is the activity that revolves around creating a business, based on an idea, and assuming full responsibility for the decisions made and their risks.
It is evident that running a business makes your daily routine completely different, as opposed to having a regular employee job. When you’re responsible for a business, you must understand that your actions must be thoroughly analyzed and confidently executed. Therefore, both the pressure and the workload increase thoroughly when you become the owner of an enterprise. Whilst, as an employee, by working for a business, you are more focused on smaller tasks. Keep in mind, that the execution of those tasks is incredibly crucial for the success of any business. It’s a great team that makes a business a full phenomenon. Although an idea can be incredibly valuable, it goes nowhere without its multiple executors.
Therefore, the main differences between being the owner of the business, and running a business are:
- As an owner, the responsibility you have is, indeed, higher;
- Being the owner of the business, the remuneration you will obtain will be, indeed, higher;
- As a worker, you will not have independence when it comes to decision making, and project development;
- Being the owner, the workload will, most likely be, higher, when in comparison to a regular employee;
- As an owner, you’re the one who has the final decision. Therefore, the consequences gained from it will be fully under your behalf;
- As a worker, you’re scheduled will be fixed, and your hours of work will be monitored.
The hustle
You must understand that when you are the owner of the business you will have to work a lot. Of course, in the beginning you will have to work for long periods of time until you start to see results. It won’t be easy, but with persistence, a positive mindset, and motivation, it will all workout.
In the course of running a business you will learn a lot of things, such as:
- Learning how to balance your work and personal life;
- The energy and effort it will require out of you;
- You will start getting used to the tools and methods of running a business;
- And many more.
As you get used to the dynamic of this activity, you’ll be able to start understanding running a business is actually like. You will have to work hard, but if you’re willing make some sacrifices, success will come your way.
Sacrifices
Firstly, one of the most common things that people have to sacrifice when starting this activity is their social life and relationships. as a regular employee people tend to spend quite some time with their family and friends, but in this aspect will have to be slightly sacrificed. As you go along, you will start to be able to balance your work and personal life, but in the beginning, it will be hard.
Secondly, another thing that tends to be sacrificed is a bit of stability. as an employee, most of the time, you have a fixed salary. therefore, your pay rates will be consistent and stable, but as an entrepreneur, this will change. By being the owner of a business, your income will vary. consequently, you must learn to adapt to this instability. I would suggest having more than one source of income dot in order to reduce the stress you might be going through.
Furthermore, when people start to run a business managing sleep can be hard. Therefore, it is totally normal if you may experience going to bed at different hours. It is evident that this will make you more tired, but as you go along you will start adapting and regulating your sleep schedule.
As you can see, there will be a few sacrifices you will have to make. Although this might seem difficult, if you work persistently and attentively, you will have immense success. Therefore, if you keep a positive, and motivated mentality, the reward will be thoroughly fulfilling
Data
Besides learning and understanding all of this theoretical information, it is also important to have in mind the few statistics (simply as an indicator).
According to some data, around 20% of businesses fail during the first 24 months. Whilst around 50% of them fail during the first five years. Data shows that only around 30% of businesses have a lifetime of over 15 years.
Now, when it comes to being profitable, businesses very a lot, but generally this achievement takes usually around two years. Of course, this can vary, when it comes to the strategies used by the business, but when it comes to being profitable there are many ways you can go around it. Within its first year of existence, a small business makes around $75,000.
How you should monetize your business
It’s important for your business to gain exposure. Here are a few strategies that have a lot of success.
Social media
Social media is a phenomenal way to advertise your business. You can use, for example, Facebook ads, Instagram, YouTube, and others. By promoting your business on these platforms with billions of users, there is a good probability that it will start getting some eyeballs. Then, it’s important to make your exposure attractive to the clients, which will make them want to click and buy the product or service that your business is selling. This strategy has a very high success rate, while also not being very expensive, when in comparison to other platforms.
SEO
SEO, which stands for Search Engine Optimization, is also a great way to make your business visible to people. This tool targets specific words that are being searched by users online. Therefore, there will be a higher probability of people clicking on your website or blog, which makes your success probability very high. If you’re able to master this tool, it can be a great asset to your business.
Email Marketing
Another great strategy to use is email marketing. Aweber is a great platform to use this technique that allows your current customers to be aware of the updates on your business. This can be your new product, your new services, and many more. Therefore, customers will feel integrated within your brand, which will make them more familiarized with your business. Consequently, you will be building your customer’s trust, while also increasing the sales of your business.
These are a few strategies that tend to have a lot of success for businesses. Thereby, if you’re interested in the expansion of your brand, then you must keep these techniques in mind. They will make a very big difference.
Ways to collect money for your business
When it comes to raising money for your business there are a lot of options available. You must, however, be aware that some of these may include a few disadvantages. Here are the top three ways to collect money for your business.
Investors
If you know how to start a business, you should know when it comes to raising money for your business there are a lot of options available. you must, however, be aware that some of these may include a few disadvantages. Here are the top three ways to collect money for your business. Using investors is a common way that businesses use to collect money. This strategy can have a lot of advantages, but it also has a few drawbacks. it’s important for you to measure the pros and cons, and then make a final decision.
Pros
- By using investors, you will have professionals accompanying you. Therefore, they can detect mistakes, and warn you of possible opportunities, and risks;
- The money you risk losing is not entirely yours, which reduces the stress;
- By using an investor, you have a wider network, which can help your business get to the next level.
Cons
- By having an investor, the income your business has will have to be distributed respectively for both parties;
- By having an investor, you may lose some control when it comes to decision making and ownership of the business;
- When using an investor, the expectations for your business are higher, which increases your stress and responsibility.
Crowdfunding
If you believe your idea is well-intended and will increase our society’s quality of life, you can always try crowdfunding. If your idea is, indeed, a success, the people can have a colossal impact on your business, when it comes to collecting money. You must make sure that your idea ticks a few boxes, such as it must be innovative, interesting, efficient, sensible, and well-intended. If it does, then it is quite probable that people will invest a small portion into the funding.
Microloans
If your business is struggling or you want to obtain a small portion of money, using microloans can be a solution. These small loans can go up to $15,000, which helps small entrepreneurs, either invest, or help save their businesses. Therefore, if you don’t want to get investors in your business, but you’re also don’t want people to fund it, then the microloan might be just right for you. If your business is struggling and you want to obtain a small portion of money, using microloans can be a solution.
Main trendy fields
Besides answering the question about “How to start a business”, its important to understand that its success can also be very dependent on the field it’s being created in. Therefore, you must try to create one in the sector that is popular. Here are a few good fields.
- The energy industry can be a good option to create a business in. Although it requires a bit more capital from the get go, the remunerations can be absolutely remarkable;
- A food factory can also be a good option. If you are able to create a specific product that is unique, and appealing, it can have tremendous success, like, for example, Coca Cola, Milka, and many others.
- The technological sector can be great to create a business in, but you must understand you need to have a reasonably large amount of capital to create these sorts of products. Besides, it is quite probable that your business will take some time to become known, due to the heavy competition.
- The transportation sector can also be a very rewarding field when it comes to creating a business. Although it might have a lot of competition, if you’re able to use these strategies efficiently, and uniquely, you might very well succeed. And if you do, the income will be remarkable.
Covid changes
It is evident that the appearance of COVID-19 slowed down a lot of businesses while bankrupting others. In regards to the business being inserted in the field of online retailing, many enterprises skyrocketed their sales. Video conferencing businesses also increased their sales tremendously. As for most of the medium to small businesses, the impact of the pandemic was detrimental. By closing doors for such a long time, and not having an online presence, many businesses saw themselves in a spiral of catastrophe.
In regards to customer behavior, the tendency of wanting to shop and buy services online has increased tremendously, thereby, a lot of businesses scaled their online presence, which increased their sales. Consequently, the pandemic brought a forced digitalization in many sectors.
Final thoughts on How to start a business idea
In conclusion, when it comes to creating a successful business you must have a stellar idea. After this creation, it’s important to take relevant actions that will help your business get to the next level. In the beginning it might seem hard, but as you go along this journey you will see that it gets easier and more dynamic. Therefore, keep a positive mentality and motivated spirit. Look at these phenomenal companies, such as Amazon, Tesla, etc. They all had to start somewhere.
If you’ve got a great idea, go for it.
