[This article was written by Lizzie Weakley.]
Most businesses fail. But no matter the risks, it’s worth starting one, especially when you know how to do it.
It’s not surprising beginners don’t know what a business is. You can create one but making it profitable is different. When you think about business, it may be a website, a service, a sales funnel, or a product.
But that surface isn’t what business is: market demand is. If you can solve a problem for many people, you have a working business.
It’s easier said than done. That’s why we’ll share with you the four foundations of a successful company. The sector is irrelevant.
Is There A Problem to Solve?
If you were a client, what would make you buy from one business and not another one? You choose the best offer based on price and value.
When the problem is big, common, and hard to solve, businesses can raise prices on demand. If another company solves the same problem, however, you should get in because there’s no value to add.
Although it sounds basic, it’s the no.1 reason businesses fail. Is there a need? Has someone already satisfied it? If so, could you make a product ten times better? If not, it’s smarter to keep researching.
Despite what you may hear, starting businesses isn’t free and for a good reason. The entry barrier reduces competition and ensures a stable market.
We create an inventory of what we will need. Include the cost of time, money, and skills needed. Imagine we offer, say, a food trailer for sale. You would estimate the costs and come prepared.
Remember, expenses are always underestimated. If you can’t afford a business, you could fund it with side income as an employee or freelancer.
Scale and Automation
How much do you want to grow? Even if you can manage all by yourself, you will lose the moment you compete with an organized company. What if they have staff, software, and outsource their tasks?
You can outsource an online store completely, but a local business may be a challenge. When it comes to scaling, the Internet can reach clients worldwide, but locations only reach local customers.
Control: Be Your Own Boss
A business without control is no different than being an employee. Do you rely on other people to keep working? Who hosts your website? Who gets you clients? Who determines the cost of your product? If it’s not you, then who is it?
Success is only possible with control. An autonomous entrepreneur can solve any problem with his resources. Unless you take responsibility for every problem, you’re inviting others to decide your business future.
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.