Three key factors for becoming a successful entrepreneur
Being an entrepreneur is challenging, exciting, fun and a lot of hard work. The process of defining what Your business should be all about is important and it always starts with the big WHY. Defining the problem, you’re solving, presenting the solution, and develop a plan to reach your target audience are steps in your journey of becoming a successful entrepreneur.
Define Your WHY!
The big Why is not about making money, it´s about your reason to be, your purpose. In order to be successful You need to have a clear purpose, a mission You really belief in. The business and the purpose have to be true and heartfelt. Not many companies have a clear understanding of the big WHY, so You can actually achieve a competitive advantage by defining your true purpose and communicating it to your stakeholders. To become a successful entrepreneur, there are three important factors You need to be aware off.
Firstly, you need to define what problem Your business is solving. People are concerned about solving their problems or fulfilling their needs. And when you´re company has the solution it´s a potential success story. And remember, focus on the solution. Companies tend to communicate what a product or service is, rather than focusing on the problem they solve.
Secondly, check if the primary target audience actually have this problem and therefore need You. Get to know you´re target audience, what are their needs, desires, concerns and ambitions, rather than just focusing on demographic characteristics. You need to earn their trust in order to become the problem solver they need.
Maintain logical order
When you defined the problem you´re solving and you´re getting familiar with the target audience, first then You can start making Your business plan. Many entrepreneurs start at the wrong end and start planning before they have formulated the big WHY and what problem they are solving. They often start with questions like:
How can I reach, acquire, and keep customers?
How do I best define and differentiate my product/service?
How can I generate revenue?
What's your cost structure?
What's your profit margin?
Those are important questions, but should be a part of your plan, not you´re initial concerns.
So, to sum it all up, three key factors of a successful entrepreneur are:
- Defining the problem your solving
- Checking if the target audience needs your product or service
- Making a good plan
Ask for feedback!
And a good piece of advice always is – talk to others, ask for advice and second opinions. Present Your business ideas to people You know and listen to their feedback. Testing can help you adjusting your business idea. Getting different perspectives on your story, your mission and your ideas, will help you to design the best and most relevant business plan. You can use the elevator pitch technique. That is a short, pre-prepared speech that explains what your company does, clearly and easy to understand. And You should do it in 30-60 seconds. It’s not a lot of time, so keep it short, define the problem you’re solving and the solution You offer. Present it as the auditor is your target audience.
It´s also a good idea to check opportunities regarding entrepreneurship trainings or programs. Many entrepreneurs think they need to solve all the challenges themselves, but together we´re stronger.
Good luck of becoming a successful entrepreneur!
Byline; Lotte Frost
How to build a market position for the future? It’s easy, be human.
The most human company wins, said Mark Schaeffer, successful author of the book carrying the same title. Whether you´re an entrepreneur starting a new business or a well-established company, local, regional or international, being human applies for all of them. And why is this important? Because people have a stronger impact than companies, strategies, plans and other non-personal issues – people trust people.
To build a brand for the future You need to be human. To succeed, your product or service need to be close, relevant and for the target audience; «a part of me». So, we need to act and be ourselves. Being ourselves is after all the most unique about us. People need to relate to Your business and to You – talking to the heart and the head. And If you in addition to that can act and operate local, you have a clear competitive advantage. If it’s not local it’s over, as Schaeffer says.
People trust people
The importance of being human and local applies whether You’re a local, regional, national or an international business. People do not do business with company, brands and strategies, they do business with You, because people have a stronger impact and people trust people. It’s actually quite simple, but still very difficult to build the trust You need in order to build a relationship with your existing and potential clients.
And the size of the company doesn’t matter. Big international companies also try to build a close relationship with their clients. They are searching for ideas to get closer to the heart of the client. Brands like Apple, Coca Cola and Unilever are examples of this.
Building a strategy for the future
So, what can You do in order to apply this human touch in Your business model and plan? Schaeffer give us some guidelines:
- Be clear on Your values:
- This is all about the big WHY and your value proposition. Why does your business exist, what problem are you solving and why should the target audience choose You?
- Create a rock-solid alliance
- Deliver what You have promised and be true to your values.
- Make a calculated risk
- Be true to the position You have chosen, and don’t change direction. Sometimes that means taking a risk staying in the position you have chosen.
- Involve in local society and be a “localvist”
- Show You care, and get involved in the local life and your local stakeholders. Be visible and helpful.
- Give up control and let the client be the hero
- It’s the client that rules the communication and they are in control. Social media has a strong voice and the clients know how to use them. So, it’s not about You telling the clients the story, it’s about You and the client creating and making the good story together.
Win the battle of attention
It’s a continuous battle for attention and in order to win that battle, you need to differentiate both yourself and your business. And perhaps the easiest way of doing so is just being Yourself? We live in challenging times and the margins are narrow. Establishing a business for the future is challenging. But no matter what business you have or is trying to build, it’s important to keep focus on being human. That will in the end differentiate you and your business.