5 Tips For Starting a Business
Picture this: Two people are both creating a startup for an idea they found. John* has no idea how to manage a business, have a leadership role, or even manage the business’s revenue.
He had just inherited $2 million from his middle-class parents, (who never taught him how to start a business and always told him to focus on getting a degree and a good job), but recently saw on the internet that starting a business can make you a lot of money, so he decided to give it a shot.
Jeff* on the other hand, who has a father who had a successful business in his mid-30s, passed down all the information he had learned throughout his life to his son. And, Although John bought the best equipment, hired a lot of people he failed to launch his business to an array of wrong decisions making him lose all of his money
In contrast, Jeff went on to create a small business, working countless hours towards it and reinvesting every bit of profit into his business. He would soon turn the start-up into a million-dollar business and eventually hire John to be his employee.
So even though John had the advantage of wealth, Jeff came out on top because he had access to information John didn’t.
Now that you have an idea of how important it is to know how to properly turn your idea into a startup and a profitable business. So, here are five tips on how to start a business
1. Find a good niche
if your niche is selling smartphones, you probably won’t make any profit as there’s already an existing and very competitive market
So, try and find a niche where there is high enough demand and not much competition, or find something that makes life easier that nobody has ever done before. For example, kodezi is a tool that code enthusiasts can use in order to auto-correct code whenever the programmer makes a mistake just as Grammarly is for writing
So before you start pursuing that business idea you thought about in the shower, stop and think if anybody is going to be interested in the product or service you offer.
And if you want to test if your business idea is good check out this video
2. Find money
Though having money and not knowing anything about business as John did is bad, you’re eventually going to need money (a lot of it) in order to cover your various business expenses such as employees developers marketing, and more most of the time
this money is either made from your from you saving up money, an inheritance, borrowing money from the bank, or investments from friends family, and high-risk high reward investors, whichever one you choose to get your money from.
First, launch it as a one-person business while minimizing costs, and then if you see potential start dumping money into it; don’t just dump all of your life savings into a business that is only on paper for now.
3. Find great employees
One of the greatest mistakes people who are near to business make is hiring bad employees Those employees are only in for the money and usually don’t have the amount of experience required but ask for a lower hourly rate in compensation
Those should be avoided at all costs because they usually don’t know how to get the job done and resolve they take almost three times the amount of time two times worse than a professional would.
This means that there will be almost six times worse in a professional and usually even drug your business because they provide less value than the bought you’re paying him for s
4. Advertise your business
How would a person get to know your business and its functions if not presented to them? This is one of the main reasons a lot of businesses fail and is something all business owners should take into account
Now, to properly advertise your business you should first find the right audience to advertise it to, as it won’t be effective for you to advertise (for example) Gym supplements to Nicocado Avocado subscribers.
Once you find your audience, there are three main advertising tools: Buying ads/sponsorships, affiliate marketing, and billboards. If you use these advertising tools properly and with caution, you might be able to launch your business to the moon!
5. Expand with caution
Though scaling your business is the most reasonable thing to do, once it reaches its maximum potential, There’s a lot to take into account before you go on with expanding certain parts of it
For one he should consider doing some research on what to expand as some parts of the business would benefit more than others. For instance, if you have a service like Fiver that connects buyers to sellers And you want to scale it, you should find what change brings the most value.
In this example, you need to improve the ease of access to great creators by putting the algorithm in their favor and by bringing more of them in. In contrast, if you leave it as is and instead focus on promoting the service, the bad quality of the website will draw people away.
Also, if you don’t establish it as a safe website that punishes scammers people will get scammed and they will leave bad reviews, further damaging your reputation.
Bonus tip: Try to find problematic parts of your business.
This could be employees having nothing to do, a feature that’s making the website lag other similar things, just eliminating them will generally help your business progress as there won’t be those things holding you back.
All in all, starting as well is probably maintaining a business is a really difficult task that requires tons of work power but it all going to be worth it in the end.
*These are just random names used for the example
