With budgets still stretched tight in 2023, more and more individuals are seeking secondary or self-driven revenue streams to support their families and lifestyles. Though this trend peaked during the COVID-10 pandemic, when lockdowns and layoffs inspired workers to take their employment into their own hands, it’s showing no signs of abating.
Speaking with UML, DifferenceMaker Director Holly Lalos explained, “When you start your own company or work for a start-up, you feel important and in charge…You can see your impact and progress.”
With the ability to set your own schedule, work from home and see the impact of your work, entrepreneurship might seem like a cushy way to make a living, but the reality is far more complex. Statistics indicate that up to 25% of new businesses fail within their first year, usually due to a combination of inadequate funding, poor management and ineffective marketing.
Entrepreneurship is not an easy road. However, you can drastically improve your chances of succeeding on the path to entrepreneurial success by following a few simple steps. Here are our 5 top tips.
1. Follow Through
Often, we get our best ideas on a night out with friends or when we’re daydreaming in line at the grocery store. We earnestly promise ourselves that we will explore these disruptive, potential game-changing ideas, only to convince ourselves that they would never work, or that we don’t have the time outside of a 9 to 5 to explore them.
Many seasoned entrepreneurs, like the one in this interview, seasoned entrepreneurs cite failure to act as the biggest killer of success. Countless brilliant ideas are lost to the weight of indecision. Although starting your venture doesn’t guarantee it will succeed, choosing not to pursue your idea will guarantee failure.
2. Understand The Market
Before diving into any business venture, it’s vital to develop a strong understanding of the economic landscape. Set aside a few minutes every morning to read up on the latest financial news from reputable websites, like Forbes or Bloomberg. Staying abreast of current financial events, market conditions and other industry happenings can help you develop a relevant business strategy for your company.
Another key step in understanding the market is analyzing your direct competitors. For example, if your startup offers an online tutoring service for students, you need to know who the big players in this space are. American education company Chegg is a top performer in digital tutoring, so you should evaluate its marketing strategies. Determine the greatest strengths and weaknesses of Chegg’s branding and use this to inform your own marketing tactics. Also take note of your competitors’ pricing strategies to set your own baseline.
3. Find Your Niche
A vital part of achieving entrepreneurial success is finding your niche. In the crowded marketplace, your goal is to identify a problem your ideal customer is facing and develop a method to solve it. This can be achieved in several ways, from traditional focus groups to polls on social media. Your method should be informed by the type of product you’re looking to develop. If you’re hoping to enter the online baking class niche, Facebook users on a cupcake decorating fan page may be an appropriate audience to sample. However, if fitness is your chosen field, setting up outside your local gym and surveying patrons may be more effective.
Once you’ve located your audience, ask targeted questions about consumer pain points and budgets to find gaps in the marketplace. For example, your research may identify that people just taking up exercise are longing for a budget friendly smartwatch without the bells and whistles provided by Fitbit, Garmin, or Apple. Conversely, you may also find that consumers are frustrated by the number of products on the market and disinterested in new offerings. It’s important to establish your target market before getting too far along in the development of your product or service, as your company will not succeed if the niche is too small to be viable.
4. Embrace Setbacks
Being a successful entrepreneur doesn’t mean never making mistakes. In fact, all the world’s most famous entrepreneurs have faced significant setbacks in their careers, from Bill Gates to Steve Jobs. The trait that separates successful businesspeople from the average person is how they choose to navigate failure. An entrepreneurial mindset involves reframing setbacks as challenges and an opportunity to improve.
Next time you experience a hurdle, actively work to replace shame and frustration with curiosity and excitement. Maybe your supply chain fell through, and your shipments have been delayed. This is your opportunity to find a supplier that will be more reliable and better able to meet the needs of your growing business going forward. Poor initial reception to your project? No problem – this is an opportunity to really iron out the kinks and improve your product before you hit the big time.
5. Build Your Network
Savvy entrepreneurs understand the importance of building strong strategic partnerships. Especially in the early stages of building your brand, it’s less about what you know and more about WHO you know. For instance, one of your connections may be able to introduce you to a more affordable shipping partner in your area or help you find a higher quality production facility to work with.
To build your network, attend as many industry events as possible, from conferences to expos. Online platforms, like LinkedIn, are also a great way to socialize with like-minded business people and establish yourself as a dynamic force and thought leader within your field. Don’t be afraid to reach out to key players in your industry, as many seasoned entrepreneurs jump at the opportunity to provide mentorship and guidance to fresh faces.
For new businesses, building meaningful collections in the local community can also be vital for securing initial sales and establishing cost-effective supply chains. Make your presence felt locally by manning stalls at local events and volunteering your services within the community.
Entrepreneurial success isn’t something that can be achieved overnight. However, with patience, perseverance, and strong understanding of the market, you can turn your dream into a reality.