Factors To Consider When Starting A Business or Branching Into A New Industry
It’s often said that entrepreneurs are the bravest of them all. If you’ve ever considered starting a business or transitioning into a new industry, this is for you. There are several factors you must take into account to make your new endeavor successful. These factors include the learning curve, networking contacts, client needs, market trends, marketing budgets, profit per transaction, the degree of business dependence on the owner, and last but not least – passion.
In light of these factors, our hosts discuss in-depth, drawing from their personal experiences and the lessons they have learned over the years. This article is a summary of key points from the transcription:
1. Consider the Learning Curve
We are not all born experts. Every new venture comes with its share of new things to learn. Whether it’s getting the hang of the ins and outs of your new industry or understanding how to serve your target market best – the learning curve can sometimes be steep. Overcoming this learning curve is your first battle on the path to success.
2. The Power of Connections
Starting a business, especially a new one, can be daunting. However, you don’t have to walk this path alone. One of the key points emphasized by the hosts is the need to utilize your connections. Your network can be a source of advice and potential clients. With limited marketing budgets, these relationships can be a cost-effective way of getting your feet off the ground, especially in the early days of business operations.
3. Unearth the Golden Geese
The hosts also advised focusing on repeat clients, often referred to as “golden geese”. These are individuals or businesses that provide repetitive business or refer other clients to you.
4. Business Dependence on Owner
Another essential factor to consider is the degree of dependence that the business has on the owner. Some service businesses, such as law or medicine, heavily rely on the reputation of the founders. This inevitably makes them harder to sell if you ever decide to exit. However, product or brand-based businesses are less reliant on a single owner and can potentially be easier to manage in the long-term.
5. Money vs Passion Dilemma
A rather unpopular opinion shared during the discussion was about passion. While many believe that you must be passionate about your business, the hosts opined that you don’t necessarily need to love the core business. As long as it generates enough revenue to support your other passion projects or causes, it can be enough.
6. Quick Payment Times
The ability to receive quick payments was also a key consideration. Quick payment times ensure that you can meet your daily needs and plough back profits for the growth of your business.
7. Hard-earned Experiences
Moreover, the hosts shared examples from their own law and marketing businesses. They spoke about dealing with challenges like competitive pricing, slow payments, and learning curves. They also talked about how they leveraged their contacts to navigate through these challenges.
In conclusion, starting a business or breaking into a new industry can be exciting yet challenging. However, a firm grasp of these factors – learning curve, networking, client “golden geese”, owner dependence, passion and revenue balance, and quick payments – can set you on the journey to success. Always remember, every challenge is an opportunity to learn and grow.