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Starting a business is often a challenging task. And it’s even more challenging when you have no idea what to do. Worse, you also don’t know what industry you want to enter. This is not uncommon! Honestly, a large number of businesses start just on a whim, and later take shape when opportunities arrive.
If you think you’re in the same league, then this post is definitely for you. First of all, Congratulations! You have decided to start a business when the majority of people are trying to find a job. You’re ready, just a little push and you’ll fly…
Hence, in this post I’ll share the 5 best ways to start a business when you have no idea what to do. Of course there are more ways, but these 5 are the root of any business’ future.
(1) Identify Personal Interests
First of all, answer me this question: What does a business do? Sell products? Make investors happy? Improve the bottom line? No! These are just the byproducts of a successful business. A successful business always focuses on making complex things easier. A mundane calculator has helps millions of people since the time of invention. The best example would be a calculator. A calculator is the classical example of a successful business model.
Now, whenever thinking about a business idea thing about this: Would you buy products of a company you want to start? Do you feel the connect? Most people buy products because they have an emotional connect with the company. Apple and Nike are experts in establishing an emotional connection with their customers. This is why, no matter what Apple do, their products sell like crazy.
Let’s not dive deeper into single-time products and products you’ll have to buy repeatedly. A single-time purchase can be your car. You won’t buy a car every week, but you sure would buy a facewash pack every month. It’s better to keep things simple in the beginning. You can proceed further once you’re clear what you want to do.
(2) Businesses Solve Problems
Businesses Solve Problems. Ingrain this sentence in your mind and you’ll have 50% less stress in your business journey. Pick any successful company in the world and try to learn the core of their business. Eventually, you’ll learn that they solve problems. Doesn’t matter whether it’s a mundane or a complex one. They solve it faster and better than anyone.
Pick any idea that is hovering in your mind lately and ask these questions:
(a) Would you invest your time and money in that product?
(b) Will that business solve any long-impending problem?
It’s easier to answer the second question, but there’s a high chance you’ll be delusional about the first one. Better ask the first question to people who aren’t related to your new idea. Don’t let them know that it’s your idea and not a product of an already established business. Ask 10 people and see how many of them would actually spend money on that product. If five people answer with a Yes, make it half and you have an approximate of how many people can spend their hard-earned money.
Earning recognition in the market is brutal, especially in this market when there’s a business for almost anything. But, if your business is cost-effective, easy to use, marketed well and solves a complex problem, there’s no power in the world that can stop your business from flying.
(3) Check Market Trends
You might have a rough idea by now. You have thought enough that your subconscious has answered with a suggestion. Let’s say, you want to start a toothbrush manufacturing small business. Great idea! Then what? Would you just approach to bank for a loan and just set up a business?
I would say Bad Idea! Check market trends. Does the market really need another toothbrush manufacturer? There are already plenty. How will your business be special than other manufacturers? Do you have enough expertise to finance research and compete with bigger brands like Colgate?
You should not always trust your intuition. Establish a balance between intuition, hard & smart work, and perseverance. Check market trends. If you see a uptick in toothbrush demand because a well-known company has stopped manufacturing toothbrush, then this is a green signal.
Knowing market trends and analysis of your closest competitor are the two most essential and complex task for any business. Be it new or old. You can be successful big time if you follow the right market trends and take decisions accordingly.
(4) Competitor Analysis
As I briefly mentioned in the above section, Competitor Analysis is insanely important. You cannot sit tight and let your competition take all the market share. You’ll have to closely analyze what your closest competitor is doing. Are they aggressively developing new products and releasing them at affordable prices? If yes, then you know they are aggressive and want to gobble up all the market share.
Try to learn what techniques your competitor use to stay ahead of the game. How can you topple their dominance and be at the top? Learn about their history. What did they do to reach the top position? Was only luck involved or was it something else?
Or, you can take a different route and make the competition irrelevant. Read the book Blue Ocean Strategy. It’s a great book that takes a different approach about starting and running a business. Trust me, if you want to do something really unique in the business-world, read this book.
(5) Talk To People (Networking)
There’s a debate going on the business world whether networking is important. Whether extroverts perform better than introverts in business. If personally feel that its doesn’t matter if someone is introvert or extrovert, a business is successful if all the systems are applied well. Networking is one of them.
Networking is not gossiping and partying! It’s about making connections with people who will help you in your business journey. It’s a mutually beneficial relationship with people who are full of enthusiasm for the next big thing.
Sharing your ideas with like-minded people can offer you surprises. You can get help in the most unexpected way possible. Be it through finance, a million-dollar business deal or anything you can thing of. Talk to people. Ask suggestions about your new idea and whether it would spend money for your product.
Trust, me people who are least emotionally inclined towards your will offer you the best business suggestions. Why? Because they care less what you’ll think of their criticism. Honestly, talking to people have helped me a lot. I’m sort-of an introvert, but I push myself to talk to people who are worthy and have proved themselves.
(6) Determine Entry Barrier
Does the business require too much financing right from the beginning? If so, then you should keep that aside for now. Go small in the beginning, especially you have very little idea. The truth is that you should not believe everything you think. You subconscious throws a lot of things when you ask it to. You’ll end up taking bad decisions if you listen to it every time.
Hence, the best option is to take some time and choose a business with the lowest initial investment. That way even if it fails, it won’t burn through your savings. Don’t hire people right from the beginning. Do everything by yourself at first, and start hiring people when your business grows.
Finally, I want to end this with a real-life experience. My friend, who has a business, is friends with a millionaire. As it’s with most wealthy people, he loves to diversify investments into multiple active and passive businesses. Out of nowhere he decided to start an aluminum smelting factory. I don’t know the exact cost, but it takes millions to set up such factory. He invested every bit of his money with a business partner and started the business.
Can you guess what happened? Even though the business was picking up pace, it soon had to file for bankruptcy. Why? Because he couldn’t bear the running cost. It was too high and he didn’t have enough money.
This is the best example of what happens when someone tries to enter an insanely high entry barrier business. Yes, the profit is sweet, but the risks are high. I hope you won’t make such mistake and grow gradually.
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