Have you ever wondered why your business is not reaching the heights you envisaged? Do you feel that you need to improve something when it comes to implementation?
This is one of the biggest challenges that entrepreneurs face. No amount of lecture attendance, exams, or projects can prepare you for the reality that running a business entails. I recently read an article on the Harvard Business Review (HBR) website that provides further insight into this.
Pick a lane
The article points out that every entrepreneur dreams of success, but defining what that means for you is the key to making it a reality. This step is crucial as it empowers you to take control of your entrepreneurial journey. Reflect on what success looks like for you, considering your goals, risk tolerance, market dynamics, competition and more.
Assess your passions, skills, limitations and resources — and then follow a course that makes sense. Will this be your supplementary or primary source of income? How big do you want to grow? Are you seeking profits, impact or something else? Answering these questions thoroughly and honestly will allow you to lay a strong foundation for success.
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Identify an unmet need
The article adds that the most successful startups solve problems that haven’t been addressed yet, often by being disruptive or pioneering a new category. If your idea doesn’t solve an apparent problem, it’s time to return to the drawing board. Identifying a need goes beyond casual observations or gut feelings; extensive market research like interviews, focus groups and audience development is essential to uncover your potential customers’ needs, desires and pain points. Combine this research with networking and deep conversations with industry experts and investors to further validate your ideas. Only after thoroughly understanding your audience should you start building a proof of concept or minimum viable product (MVP) that brings your idea to life.
A prime example is Julia Haart, serial entrepreneur, fashion icon, author and Netflix reality star who founded +Body, a body-positive, technologically advanced shapewear brand in 2023, with a second collection debuting this Fall. A disruptor at her core, Julia revamped the first collection after conducting extensive market research and gave customers what they wanted — a lower price point, four levels of compression and “ready to wear” shapewear staples like t-shirts, tank tops and bodysuits. She continually welcomes feedback to refine her products and stay connected with customers.
Develop your product
The article points out that impatient and unseasoned entrepreneurs often rush to this step, but success requires a solid foundation and clear understanding of the need before moving forward. When it’s time to build, follow these vital steps to bring your idea to life:
- Select a name: Don’t rely on hunches. Draw on market research and focus on options that are short, memorable and SEO-friendly. For inspiration, consider using tools like ChatGPT or other generative tools.
- Choose a structure: Picking the proper business structure is critical, as it impacts everything from taxes to liability to daily operations. The four most common structures are sole proprietorships, Limited Liability Companies (LLC), corporations and partnerships. The simplest and most common is a sole proprietorship, where one person owns the business but is personally liable for its debts. An LLC offers more flexibility with liability protection and pass-through taxation. A corporation is a more complex structure where the business is a separate entity from its owners. S-corporations provide pass-through taxation with a cap of 100 shareholders, whereas C-corporations allow unlimited shareholders but face double taxation. A traditional corporation offers limited liability protection and the ability to raise capital through stock and bonds, but like C-Corps, it is also subject to double taxation. Lastly, partnerships involve two or more individuals sharing ownership and responsibilities, with options for general or limited partnerships.
- Protect your brand: Make sure you’re buttoned up: Compliance with all relevant federal and state laws, regulations and industry standards is essential. Obtain licenses and permits, study local labor laws, and prioritize data privacy. Safeguard your intellectual property through trademarks, patents and copyrights, and strongly consider using nondisclosure agreements (NDAs) to maintain confidentiality.
- Build the plan: A detailed business plan is indispensable for establishing structure, attracting investors and setting the stage for success. Carefully outline your topline goals and strategies to specific operational structures and financial projections. HR considerations like staffing, compensation and benefits are also integral to a business plan. And remember: Marketing and communications should never be an afterthought. These elements are vital to business success. If you are new to writing business plans, resources like SCORE and HubSpot offer excellent templates.
- Network like crazy: Building strong relationships is as important as having a solid product and business plan. A broader network opens doors to more resources, opportunities and support. Make it a priority to connect with mentors, peers and investors daily, both online and in person. Joining professional groups like Entrepreneurs’ Organization or Young Entrepreneur Council are great places to start.
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Blast off
The article adds that the moment has arrived to introduce your idea to the world. Now is the time to roll out your sales and PR strategies and acquire customers. Implement competitive yet profitable pricing, and establish key performance indicators (KPIs) to track progress.
Ensure you’re also cultivating a positive company culture by prioritizing values like collaboration, innovation and a customer-centric mindset. And don’t forget to celebrate! Host a grand opening event, and invite business leaders and local dignitaries to mark the occasion in style.
Business incubators
As pointed out earlier in the article, business ownership is not as easy as entrepreneurs think. Successful business owners never stop learning. They continuously push themselves to learn new things and adapt their business models.
Plenty of business incubators deal with specific issues that entrepreneurs face when trying to grow their businesses. The insights provided in the HBR article may provide food for thought.
