A business idea generally crosses a person’s mind at least once in their lifetime. Some ideas see the light of day, and some never even reach the planning stage.
Furthermore, Fundera reports that approximately 20% of small businesses fail within the first year, with the number only increasing to 50% by the end of the fifth year—A discouraging revelation that could extinguish the confidence of an entrepreneur’s start-up.
However, failure is subjective, especially when there are life factors that entrepreneurs encounter every day. An Entrepreneur article reminds us that although data statistics are credible, it still depends on how an entrepreneur wields statistics as a weapon. It is only discouraging if you let it be discouraging. Knowledge implores you to adapt, after all.
Realistically, having a business idea is only the tip of the iceberg. There is a tremendous amount of self-discovery and planning a would-be entrepreneur has to face before they can even start breaking ground. Here are six self-discovery pointers upcoming entrepreneurs should ponder.
Your Business Is a Limb
Your business is an extension of yourself. It is work. It is sacrifice.
Owning a small business is a 24/7 job. Even when you return home, you will always concern yourself about your business. Inventory management, administrative tasks, invoicing, shipping, and customer service management are just a few of the tasks you will face, especially when you’re just starting out.
So, consider whether there are factors that could impede your progress. It is important to set grounded expectations, especially when you have commitments you can’t quickly abandon.
Carefully Pick Your Poison
Numerous articles list and report business trends and ideas nowadays. They usually showcase successful businesses that “click” in the current market. Although following trends is a good idea statistically, it does not automatically apply to business longevity.
Remember how you always hear, “Pick a job you love”? The same can be true for businesses as well. Small businesses demand your blood, sweat, and tears.
It is vital to find a business niche that you at least mildly enjoy or are interested in. Genuine interest can be a compelling tool for surviving and pushing through hard times.
Being a home baker but hating baking ten cakes in a row is a sure way to burn out within two years.
Do what you love; do what you like because owning a business will wring you dry. Choose a niche you can tolerate and grow with.
Half-Believe Your Market, Half-Doubt Your Brand
Conceit is the enemy of progress. Blind trust leads to grim consequences.
Surely, you’ve heard about believing your market–that they will always come to find and support your small business. This belief is patriotic at best and destructive at worst.
Half-believing your market is just you not fully trusting its organic support. The consumer and services market is saturated; it is an intractable fact no one can argue. You, as an entrepreneur, will never be inherently unique. Competition is tight; the market is volatile.
Half-believing your market and half-doubting your brand forces you to be flexible, adept, and engaging. Half-doubting your business pushes you to take calculated risks and well-researched investments.
To Err Is Human; To Concede, Divine
Businesses will always find feedback and criticism no matter what.
Customers will either like or dislike your product/service; a wise entrepreneur understands and accepts customer input.
A business only thrives when it has customers. Unfortunately, not every customer is created equal. You will face temperamental, unreasonable, and obnoxious people. They will tell you to shut down and even intend to ruin your reputation. Such negative energy can occasionally affect your level-headedness.
Hence, you should treat criticism as a stepping stone to betterment. Regardless of the criticism’s intent, accepting that your product or service is imperfect—with the intention to upgrade—is an attractive characteristic of a small business owner.
Networking: Get Out There!
Let a friend of a friend tell a friend you’re a friend!
Business networking is a primary factor in growing your business. There is only so much your small business can do with organic growth. Eventually, you will be at a standstill, especially when you have limited resources for marketing.
So, get out there and let other businesses know you exist! Join bazaars, conventions, and online events to exhibit your products or expertise. Other businesses may like partnerships, which are mutual and respectful relationships between two distinct business niches.
A small florist might want to do Valentine’s sets and partner with a home baker for a flower and cake arrangement.
The possibilities are endless; let other small business owners perceive you.
Building strategic local partnerships is what helped my business, a bachelorette party planning agency in San Diego, build trustworthiness and get customers in the first years after launching, and it still helps to this day.
Trends Are Double-Edge Swords
Owning a small business is all about studying and waiting to strike.
Once you’ve researched your market and solidified your brand, digital and physical trends can help you expand your customer community. However, you should pick the trends you’ll participate in carefully.
Being a small business owner forces you to have a social media presence. You must study the current market trend and the type of generation participating while protecting your brand identity, voice, and purpose.
Not doing your research and jumping into trends might harm your business and cause you to lose the community you’ve built.
So, tread carefully. Trends may make or break your small business.
Final Thoughts
Business is just a love-hate relationship. It will be difficult, but it will also be rewarding. Thus, knowing your limits and interests is essential in building your business.
You are not required to lead, but you are also not required to follow. Find the perfect balance between idealism and realism. Know that everything you do in your business requires your time and money. Less mistakes happen when you view yourself as an employee in the business planning process.
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