|
For awhile now I have always wanted to start a business. Just the idea of being a self made man and managing your own "shop" appeals to me. Just thinking about it invigorates me and I just can't help but feel that I would be successful too. If I was to start one, I know I would put in all of my dedication into this project and make sure that it succeeds.
Of course almost everyone that has the same inspiration as I probably feel the same way...
I was having a sincere conversation with my friend last night about starting one up discussing about ideas,principles (location is key, appeal to what customers, creativity/innovative etc...) and business models... Hell we have even made plans to go about and talk to a couple of successful entrepenuers that we know and see if we can gain some more insight. Being ignorant and naive will kill us at least that is how I feel.
The only problem with starting a business...a successful business is finding the right idea. The perfect model. And that is the only thing preventing us from going out and following it out all the way. Hell I don't even know what particular advance skills or expertise I posses that I can pitch off from or contribute to our project. It is so hard to start...I have the ambition and drive but what can I do with that if I don't even know what the foundation is gonna be...and the fact that I cannot proceed is frustrating as heck. Because once I know that awesome model/idea, then I will make sure I will do the necessary research and work to make it survive and thrive. That is what I do. Whatever I am passionate about I will make it the best.
As of now, I decided the best course of action would be to just run a small shop. Something small that won't require a shit ton of investment. Running something that will hopefully generate revenue but ultimately give us invaluable experience in the field. Later on I would hope that gained enough exp. and utilize it to an idea that I can pitch off and try to invest into it more heavily.
Some of the ideas that we have discussed was running a Hookah Lounge in Tampa, FL (god forbid all the lounges are far as hell and majority of them suck i.e dirty, unprofessional etc...). This idea seems legit considering that once we can get a good location then customers shouldn't be a problem considering it is popular around my area and we know people who can help advertise us. Of course the legal issues like having a license and the initial monetary investment to run such a shop will be something we will have to address...
Another idea is crafting and selling longboards on the internet. This idea is a bit iffy because of having to compete within an already small marketplace against other established companies. However this idea seems to have the least amount of investment and risks but less rewards in the end.
And lastly, another idea would be running a leaflet distributing company. Small investment and not very risky.
In the end I want to run a respectable business. I don't want to be known as that guy who invented the pet rock or the next snuggie... Ultimately I would like to run something that makes a positive impact, no matter how small, in society (leaving a small legacy would be nice). I just don't know where to go or where to start...
|
I'm no entrepeneur, but I think a good way to get into the business is from the ground floor. Like if you work at a bar as a bartender, then become manager. You get to see the inner workings of the bar and what it takes. You learn things like payroll, marketing, whatever else. Then after years of experience, you try to establish a bar.
The most important thing is the logistics of it. Find a job that you like doing and get a feel for the business. This is a safe way to do so because you are not risking anything by working (at a hookah lounge for instance), and even getting paid for it. Then after you know about the business (I'm talking like 10 years here), try it for yourself.
If you want to open up something and have no idea how to do it (or even what you want to do), you will most likely fail. Just my 2 cents.
|
I think the bar example is a very good example.
You work in a bar, maybe you work your way up or maybe you just pay really good attention to the inner workings.
After getting some experience you take the leap.
To start most companies, you will need to take out a loan. If you have worked in that particular sector for a while then you have some starting capital and some experience.
If you walk into a bank and say "i want to start a bar" the bank is gonna ask you why they should take a chance on you. If you can show them you know the industry then that inspires faith and that makes it more likely to get that loan.
Being a "self-made man" sounds like a lot of fun, but remember, most companies can't afford to really pay the owner until like 2 years in.
A good test (i find anyway) is to ask yourself, would i still like to run my own company if it wasn't succesfull? It's easy to imagine how fun it would be to be the boss of a succesfull company and roll in the money, but what if you are working yet another 18 hour day and you still aren't sure if it's all gonna work out?
All of that said, being your own boss is one of the most liberating things there is. It is a worthwhile goal and it's people like that that make the economy work. Just realise that it's a painfull road there and you will need more then an idea to get people to invest and get you started.
(In practice a bar is a very risky investment. It's high initial investment due to the importance of location and the expensive permits that are often required. It's incredibly reliant on factors that are hard to control for small companies, like public perception. Succesfull bars turn an obscene ammount of profit but most new bars have trouble finding their ground)
|
Hi there, while I do not consider myself a true entrepreneur yet but I'm aspiring to be one. I'm more into internet and I've spent 10kUSD equivalent ( due to diff currency) to start a website. And the main thing you are worried about when you start something is whether people will actually use/come to your business. And guess what? In the end, no one wanted to use the website. I've spent money, lots and lots of time and effort. But this failure taught me a lot of things as well and the most important lesson I've learned is to validate the idea.
What do I mean by validating the idea is to quickly bring out the product/website/wtv business you are doing and see whether there is actually demand by using the least amount of money possible. People call it the '' lean startup''. I recommend you try reading more about it. Here is a good read : http://www.fourhourworkweek.com/blog/2011/09/24/how-to-create-a-million-dollar-business-this-weekend-examples-appsumo-mint-chihuahuas/
|
Business can be explained as a very simplified form as follows
need -> monetization -> traffic -> conversion
Need:
#1 concept of starting a successful business is that you need to find a "need" that you can fill. If you discover an area where there is a need, everything else is fixable. EVERYTHING in a business can be done from the ground up besides creating need(aside from rare circumstances).
So what qualifies a need in terms of business?
Monetization:
You have to have the ability to fill the persons need in terms of money. There can be thousands of people every day searching for "fun starcraft 2 custom maps" but if none of them are willing to pay and/or you have no ability to monetize their need then there is no business to be created.
So you have a need that you can fill and a way you can monetize it, whats the next step?
Traffic:
You need some way to get traffic to whatever your business. This is completely different in so many aspects depending on your specific business. Word of mouth is the best form of traffic and also applies to every type of business, however it is also the most difficult to create and measure. Locations are really important with regards to traffic, if you are running a physical storefront you want to ideally pick an area that will make generating traffic easier. If you are opening an alternative healthfood store in the middle of nowhere, Oklahoma, you probably arent going to get as much traffic than if you opened it in socal or nyc. Even with internet businesses its still important with regards to domain name. You have to think about how you are going to get people to your site. Naming your site "www.heroyi.com" and selling dining room tables is going to make it more difficult to rank in search engines and makes listing your website in advertisements less relevant. Going for a name like "DiningRoomTables.com" makes it easier to rank for your keywords and also sounds better to the average customer
So you got people in the door, but how do you get their money in your pocket?
Conversion:
Conversion can be the toughest or easiest part of a business depending on your product and business model. It also differs depending on your product. If you run a store that sells "LCD TVs", your average customer knows what a tv is and if they are at your store/website they are interested in buying - so your conversion is going to mainly focus on price and convenience. If you are selling something more abstract/not well known product like "bee pollen capsules" then you the conversion process is going to be more about why the product is good for them and why it will fill the need. Remember, just because someone has a need and you have the monetization of their need doesn't mean they know it. If they are looking for a dietary supplement and you sell "bee pollen capsules", they'll need to know why your product can fill their need. The simplest and most effective method of conversion is simply researching your customer base and understanding their need and telling them you have the solution. "are you looking for a health supplement for improving energy and muscle strength but you don't want to risk using unnatural substances that may be harmful and damaging to your body? Try organic deer antler extract!"
hopefully this is relevant info i ended up just kind of rambling
|
Hmm good luck with your ideas. But whatever business you end up doing, make sure you know your accounting. Many small business fail from bad accounting practices.
|
The most important attribute that entrepreneurial people have, in my opnion, is being incredibly outgoing and arrogant. It's the one place in life where arrogance benefits you, because people will constantly tell you that you're going to fail, and you need to be tenacious (or stupid) enough to ignore their comments and press forward. Get ready to have a lot of doors slammed in your face, it's a rough world out there!
|
Thanks a lot guys for the info
But yes the bar example is a good example of how to start a business while minimizing much risks. I also agree that blindly choosing a..."project" is also dumb.
But for me, if I can figure out what a good business would be I WILL do the necessary research in order to ensure it does not fail...or at least make sure I don't make any noobie mistakes...or at least minimize it.
edit:
On January 14 2012 05:41 petzergling wrote:Business can be explained as a very simplified form as follows need -> monetization -> traffic -> conversion + Show Spoiler +Need:
#1 concept of starting a successful business is that you need to find a "need" that you can fill. If you discover an area where there is a need, everything else is fixable. EVERYTHING in a business can be done from the ground up besides creating need(aside from rare circumstances).
So what qualifies a need in terms of business?
Monetization:
You have to have the ability to fill the persons need in terms of money. There can be thousands of people every day searching for "fun starcraft 2 custom maps" but if none of them are willing to pay and/or you have no ability to monetize their need then there is no business to be created.
So you have a need that you can fill and a way you can monetize it, whats the next step?
Traffic:
You need some way to get traffic to whatever your business. This is completely different in so many aspects depending on your specific business. Word of mouth is the best form of traffic and also applies to every type of business, however it is also the most difficult to create and measure. Locations are really important with regards to traffic, if you are running a physical storefront you want to ideally pick an area that will make generating traffic easier. If you are opening an alternative healthfood store in the middle of nowhere, Oklahoma, you probably arent going to get as much traffic than if you opened it in socal or nyc. Even with internet businesses its still important with regards to domain name. You have to think about how you are going to get people to your site. Naming your site "www.heroyi.com" and selling dining room tables is going to make it more difficult to rank in search engines and makes listing your website in advertisements less relevant. Going for a name like "DiningRoomTables.com" makes it easier to rank for your keywords and also sounds better to the average customer
So you got people in the door, but how do you get their money in your pocket?
Conversion:
Conversion can be the toughest or easiest part of a business depending on your product and business model. It also differs depending on your product. If you run a store that sells "LCD TVs", your average customer knows what a tv is and if they are at your store/website they are interested in buying - so your conversion is going to mainly focus on price and convenience. If you are selling something more abstract/not well known product like "bee pollen capsules" then you the conversion process is going to be more about why the product is good for them and why it will fill the need. Remember, just because someone has a need and you have the monetization of their need doesn't mean they know it. If they are looking for a dietary supplement and you sell "bee pollen capsules", they'll need to know why your product can fill their need. The simplest and most effective method of conversion is simply researching your customer base and understanding their need and telling them you have the solution. "are you looking for a health supplement for improving energy and muscle strength but you don't want to risk using unnatural substances that may be harmful and damaging to your body? Try organic deer antler extract!"
hopefully this is relevant info i ended up just kind of rambling
good read although I am well aware most of this xD. I agree again that the hardest part is filling in that "need." Well if someone's goal was to create a need then that would be the hardest xD[spoiler]
|
1) Small Companys
I got 50% of my little company i work in, what u need is to be or have at least 1 Guy with Know-How and Experience, some Money and Customers willing to pay u.
If u dont feed from parents or u are willing to pay the Banks or an Investor an lot of ur income, if they let u :D, u have to get a decent job in the profession u would like to start a company in, save money and take the step when ur ready.
In Germany that means hardship for at least 1-4 years.
2) Longboards
I craft Longboards for fun in my free Time.
2 are Sold to people i know with a small revenue, but the Time and Skill needed to make a really good One is about 10-20hrs.
Sold for 120€.
Material used about 40€, Tools for free, they are worth about ~ 1500€ .
People only pay for Good Longboards, if u sell anything unprofessional prepare for a shitstorm.
P.S.
Its really easy to ruin ur financial existence, be careful and do ur Books !!!
A Guy who tried it (in Germany) ended up with 70.000 € debt to the State and Medical Insurance, after 4 years of hard work and hardship.
|
On January 14 2012 07:54 Birnd wrote:
1) Small Companys
I got 50% of my little company i work in, what u need is to be or have at least 1 Guy with Know-How and Experience, some Money and Customers willing to pay u.
If u dont feed from parents or u are willing to pay the Banks or an Investor an lot of ur income, if they let u :D, u have to get a decent job in the profession u would like to start a company in, save money and take the step when ur ready.
In Germany that means hardship for at least 1-4 years.
2) Longboards
I craft Longboards for fun in my free Time.
2 are Sold to people i know with a small revenue, but the Time and Skill needed to make a really good One is about 10-20hrs.
Sold for 120€.
Material used about 40€, Tools for free, they are worth about ~ 1500€ .
People only pay for Good Longboards, if u sell anything unprofessional prepare for a shitstorm.
P.S.
Its really easy to ruin ur financial existence, be careful and do ur Books !!!
A Guy who tried it (in Germany) ended up with 70.000 € debt to the State and Medical Insurance, after 4 years of hard work and hardship.
Yea, the loan part makes me sad considering that a large portion of the revenue will have to go to it...
but interesting tale on the longboard. I have two friends who already have press machines to make boards and love it as their hobby. I was thinking of getting them to craft it, design it with nice artwork (we know some creative artists) and try to pitch that out online. Sell it somewhat cheap but good quality so that way we stay competitive (of course this is meant to just "test the water out.")
|
|
|
|
|
|
EPT
