On Starting a Business
Media and internet gurus aiming to sell a course have written a lot about beginning a business or "startup"
This is my advice to someone who wants to create a business and earn a lot of money but doesn't know how or where to begin.
I won't be concentrating on the strategies in this essay, but rather the foundations of what makes a successful company and the various business models that are available. I'll also concentrate on how to start from scratch with little money.
Disclaimer: As of the date this post was written (12 June 2021), I had not yet established a profitable business. Nevertheless, I have made a few attempts to start. These are some of the things I've learned by failing and observing how others handle it.
Startup vs a Business
Startups are incredibly innovative businesses that expand quickly. A startup's only goal is to increase its user base as quickly as possible. These businesses frequently outperform their current rivals or counterparts by a factor of a hundred.
Since they offer such a significant return on investment, these are particularly appealing to venture capitalists.
On the other side, a business that expands slowly is frequently not very innovative and is just marginally superior to the options already available.
Although these definitions are fairly broad, this is how I see each of them.
Some business models to generate revenue
You can earn a commission by selling someone else's product; examples include real estate, software, debt, advertising, physical goods, and services. In essence, you make an agreement with the business that owns the goods that you will receive a share of the profits from each sale you make. Depending on the type of product, this can range from 10% to 50%, however it is typically lower for physical goods.
Given that you frequently don't need to make a significant upfront capital expenditure, this is by far the simplest business strategy to implement.
Total margins, however, continue to be smaller than your own product or service
Consulting / Service Provider / Agency:
You can give your knowledge in a variety of fields here, including marketing, product development, law, and medicine. You have the option of selling a done-for-you project or a one-on-one consultation.
When you first start out, this is more difficult than affiliate marketing because you frequently lack the necessary knowledge or experience.
You can use this business strategy to offer software or physical products. This is the most difficult part for someone just starting out and is also where fortunes are created. In order to execute the product, you not only need to identify a market need, but you also need the necessary resources (skills, money, time, or a team). If you are working alone and your main priority is to make money as soon as possible, avoid creating a product.
Although this belongs in the product category, it deserves individual notice. Like the markets for actresses, musicians, etc., this one frequently favours the victor. Thus, avoid attempting to be an entertainer unless you are certain that you possess some sort of talent (beautiful appearance, acting, or filmmaking). despite being a good plan. If you want to make money quickly, it's probably not the best choice.
This group includes all social media entertainers.
Please take note that coaches and "guru" YouTubers aren't included in this because their main source of income is from their courses or books, even though they also receive advertising revenue.
When you first start a business the very first step you should take is to research your competitors. And answer some fundamental questions which will make the process a whole lot easier.
- What service or product do I sell ?
- Who are my competitors ?
- How do they acquire their customers ?
- What marketing channels do they use ?
- What are the services or products they offer ?
- What are their strengths ?
- What are their weaknesses ?
- Who are their customers ?
- How do they talk about themselves on their website ?
- Once you have this information you must find out where the gaps are .
- What markets are they not catering to ?
- What do they suck at ?
- What do the negative reviews say about them ?
- What geographic locations are they focussed on ?
Finding your positioning / differentiation
Now you must differentiate yourself from your competitors.
Some ways to differentiate:
- Sell the same service / product in a geographic location they are not catering to.
- Sell to a customer type (Doctor,Lawyer,Dentist etc.) that has been missed.
- Offer a service that is not being served.
- Offer a product with new features.
- Use a marketing channel that is not being used.
- Pitch to the customers that gave them a negative review.
- If everything else fails sell value added services (Do more work for same price)
When you actively talk about how you are different. The customers that feel the pain you solve start seeing you differently so you occupy a distinct position in their mind.
Examples of Positioning from real life:
- Cars: Volvo focuses on making its cars the safest , maruti provides the cheapest and best after sales service.
- FMCG: Colgate is toothpaste for family, Patanjali focuses on ayurvedic ingredients.
Opportunity and Luck
There are numerous factors in business that you have no control over yet which will ultimately determine how successful your business is.
Among them are: the size of the market you are operating in; The market's expansion rate (ie how many new people are buying that particular kind of product or service), if the people have sufficient funds.
so as to increase your chances of success. Pick a market that is expanding or where there is innovation. Looking at startup news makes this task simple. It will offer you a clear picture of the issues people are attempting to address as well as the "gaps" they are focusing on.
In order to maximise your chances of success, it is crucial to identify your edge or unfair advantage before starting a firm.
Edge comes in a variety of shapes, and you frequently need more than one.
It might involve your contacts, your knowledge, or your market experience.
You'll probably fail without an advantage. The edge may be developed in the majority of situations, nevertheless.
Go to market
This part calls for patience and expertise. Taking your good or service to potential customers is the last step. You can use Ads, forum posts, cold emails, cold calls, influencer marketing, and other methods to achieve this.
Sales will happen if you have positioned your product well. After that, it's all about expanding your team and bringing on new clients.
Tips for Beginners:
- Pick a B2B product or service to launch with. As long as it adds value, corporations are willing to spend their money.
- As your first business, focus on affiliate marketing or consulting because they both demand very minimal startup money and provide income right away.
- Your level of success will be greatly influenced by luck and timing. Therefore, your task is to maximise your chances of being fortunate. by promoting your goods or services continuously and improving as more knowledge becomes available.
- If you truly want to build a product, start by providing consultancy or other services and use the money it brings in to fund your endeavour.