If you want to run your own business, you are reading the right page. Being an entrepreneur is high risk, but high returns. Full of pressure of course, but also full of rewards and accomplishments. It's not as difficult as it seems – as long as you're diligent, patient, and of course, have a brilliant idea, you'll be your own boss sooner than you think!
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Method 1 of 5: Testing Your Personality
Step 1. Think about your priorities
Ask yourself a few questions about what you want, as well as what business. What does achieving goals in life mean to you? What is important to you? What are you willing to sacrifice?
Consider what you need to sacrifice to make those priorities and goals a reality. Is it some money? Is it time with friends and family?
Step 2. Determine if your personality is suitable for entrepreneurship
Being your own boss is a dream for many, but some people are more suited to this lifestyle than others. Knowing how you will react to events will help you achieve your goals.
- Are you comfortable with multiple responsibilities? Entrepreneurs are often unsupported and responsible for the success or failure of their business.
- Do you enjoy interacting with other people? Almost all entrepreneurs have to deal with customer service a lot, especially in the beginning. If you're not good at dealing with people, you'll have a hard time running a business.
- Are you able to accept uncertainty and even failure? Even the most successful entrepreneurs, such as Bill Gates, Steve Jobs, and Richard Branson – have failed in business, often failing several times, before they found a formula that worked.
- Did you grow in problem solving and creative solutions? Entrepreneurs at all levels face many problems that need creative solutions. A high tolerance for frustration and an ability to think inside and out will benefit you as an entrepreneur.
Step 3. List your strengths
Be honest with yourself about your strengths and weaknesses. When you talk to potential investors or sell to clients, you need a very clear idea of your strengths so you can communicate them to them.
Step 4. Be determined to succeed
Energy and determination will take you through many obstacles as a novice entrepreneur. Be idealistic enough to believe in yourself, but pragmatic enough to embrace the reality of circumstances.
Method 2 of 5: Setting Your Foundation
Step 1. Come up with a brilliant idea
Most businesses start with one compelling idea – whether it's a service people need, a product that makes life easier, or a combination of the two. The business world is full of great (and many not-so-brilliant) ideas. What will set you apart is whether you can find a niche to fill.
- You don't have to create something revolutionary or brand new to be successful. You just need to be better at one thing than your competitors.
- You are more likely to be successful when you do something you know and love. Getting into the world of computer programming may make your business very profitable, but if your heart isn't there, you won't have the passion to keep pushing yourself.
- If you're having trouble coming up with ideas, make a list of things about your target market, such as where they shop and what they buy. Shrink the list into three types, storage cost, build time, and popularity. Find the easiest, most realistic product you can offer.
Step 2. Research your market
The key to starting a business is knowing if there is a demand for your product or service. Is what you're offering something that isn't as good as it should be? Is it a need whose supply (supply) does not meet the demand (demand)?
- There are many sources of free industry information. Search the internet for industry and trade associations related to your target market and read the articles and press statements they publish. You can also get valuable demographic information from census data.
- Ciputra Entrepreneurship has a site with great advice on how to get business ideas, do market research, how to write a business plan, and how to recruit investors. It is a reliable source of invaluable information if you are starting a business.
Step 3. Talk to potential customers/clients
You may have the best product or service in the world, but if no one is willing to pay for it, your business will go bankrupt. Talking to other people will also help you to be ready to convince investors.
Ask for honest feedback when talking to potential customers. Friends may try to be polite when you propose your ideas, but critical feedback that points to weaknesses or problems will be much more useful, even if not always pleasant to hear
Step 4. Determine what you can bet
Entrepreneurship is always a game of risk and profit, but often the risks are greater (especially in the beginning). Count all your assets and find out how much money (as well as time and effort) you really need to invest.
In addition to considering savings, credit, and other sources of capital, consider how long you can last without a profit. Small businesses rarely turn a profit immediately; can you afford not to take a paycheck for a few months or even years?
Step 5. Understand the idea of “acceptable loss”
According to “Forbes”, “acceptable loss” is an idea where you must first determine the possible losses in the business and only invest as much as you can afford to in case your business doesn't go as expected. This limits the scale of losses if your business does not go well.
Step 6. Commit to goals, not plans
One of the most important things about being an entrepreneur is flexibility. You can't control everything about your business, and adaptation is essential to survival. If you are too committed to the plan, you can do yourself a disservice.
Method 3 of 5: Writing Your Business Plan
Step 1. Create a business plan
A business plan specifically describes what your company will look like (Who is served? What does it provide?), provides market analysis, including a detailed description of the product or service, and financial projections for the company in the next 3-5 years. If you intend to attract investors, they will want to see a detailed and thorough business plan.
Step 2. Write a company description
This is a brief summary of your business, what needs it serves, and what are its advantages over other similar businesses. Be concrete and specific, but brief – think of it as an elevator pitch (short and compelling sales pitch).
Step 3. Present your market analysis
When you have done good market research, you should be able to tell specifics about your chosen industry or field, target market, and projected market share.
One mistake that many novice entrepreneurs make is failing to narrow the target market and trying to sell to a market that is too broad. While it's easy to be tempted to believe that everyone needs and will like your product or service, the truth is that they don't. It's okay to start small
Step 4. Enter a section on organization and management
Even if your company consists of only yourself at this time, include this section to provide information on who owns the company, what its responsibilities are, and how you will structure your business as it grows (will you have a board of directors? What's the lineup?). Investors want to see if you have thought about the future of the company.
Step 5. Provide information about your product or service
This is the section where you can be specific about what exactly your business provides customers. Where will you sell? What needs does it serve? What competitive advantage does it have over other similar products?
- Provide details from the customer's point of view. When you've spoken to potential customers, you should have a good idea of what they think of your product or service.
- If you plan to sell copyrighted products or services, include any patent information or ways you plan to protect your intellectual property. Investors don't want to invest in a business just to see its products usurped by competitors.
Step 6. Describe your marketing and sales strategy
This section will focus on how the business plans to attract and retain customers. How do you plan to reach your target customers? How will you use marketing to grow your business? Do you already have potential customers or are you going to start at random?
Step 7. Describe the funding request
If you are looking for an investor or bank loan, you must state exactly what you need to start a business. You should enter the amount you invested yourself, how much money you need from other investors, and (most importantly) how you plan to use the funds.
Investors like specifics. Funding requests that simply say “I need ten billion rupiah” tend to be less convincing than requests that outline costs and expenses
Step 8. Outline your financial projections
If you're just starting out, you don't have much history of financial transactions to include. You must include any collateral you have to guarantee your loan, but only include those that you are really prepared to bet on.
- You must also include information on prospective financial data. This looks like just making numbers, but it actually has to incorporate data from market analysis. How well are competitors performing? What are their expenses and cash flow like? This can be used to help make projections for your company.
- Make sure your financial projections match the amount in your funding application. If your projections show that you need 5 billion rupiah but you only ask for 2 billion, this investor may seem like you didn't plan well.
Step 9. Include attachments, if needed
If you are just starting out, it is better to include other documents to boost your credibility. Attachments such as reference letters that can tell you about your qualifications and abilities or credit history may be useful.
Step 10. Write an executive summary
This section actually exists at its earliest, but you'll have to wait until all the plans come to mind before writing this. The executive summary is a “portrait” of your business as a whole: its goals, mission, and an introduction to yourself and the company. As a new entrepreneur, you should highlight your background and experience with the product or service of your choice. No more than one page.
Method 4 of 5: Preparing Your Promotion
Step 1. Develop an elevator pitch
This type of promotion is called an elevator pitch because it should be concise and informative enough to tell who you are, what your business is, and why they should be interested – all in as little time as it takes to get on an elevator.
- First, consider the problem or need your business addresses. This is often effectively expressed as a question, this is why television commercials often begin with questions such as “Did you know…” or “Are you tired of…” or “Have you ever had trouble with…”
- Second, consider how your product or service addresses the issues you've identified. This should not be more than 1 or 2 sentences, but should be as specific as possible without becoming jargon.
- Third, describe the main benefits of your product or service. This may be a description of how this product or service accomplishes something for the customer, or how it performs over competing products.
- Finally, consider what you need from investors for your business to work. This section can be longer, as it needs to express your basic needs, experience and credibility, and why investors should believe you can be successful.
- Make a short elevator pitch! Many experts suggest no more than a minute. Remember: people's attention spans are short. Win over your listeners fast, or you won't win them at all.
Step 2. Create a PowerPoint that summarizes your business plan
It should summarize all the information in the business plan. You should be able to present it, without rushing, about 15 minutes.
Step 3. Practice your (promotional) pitch
You may be nervous about promoting your business at first, so practice. You can practice presenting your elevator pitch and discussing your business plan with friends, coworkers, and other colleagues.
Step 4. Ask for feedback
Maybe at first you made a mistake. Ask for honest feedback from the people you train with. Do you express your ideas clearly? Do you sound nervous? Are you talking too fast or too slow? Where do you need to explain more, and is there an explanation that should be shortened?
Method 5 of 5: Talking About Your Ideas to Others
Step 1. Network, network, network
Attend trade and industry shows about your field and talk to organizers. Join relevant professional associations. Build a strong social network with other entrepreneurs, both online (using social media and professional sites like Linkedin) and in person.
- Attending networking events such as fairs hosted by chambers of commerce is a great way to connect with other entrepreneurs in your area. Those relationships can give you support, ideas, and opportunities.
- Generous towards others. Don't think that networking with other entrepreneurs is just about what they can provide for you. When you offer advice, ideas, and support to others, they are more likely to want to help you too. No one likes to feel exploited.
- Pay attention to other people's ideas. Even if you are in direct competition with someone, you can still learn from them. You can learn from other people's mistakes as well as their successes, but only if you listen to them.
Step 2. Develop a strong brand
You need to be able to effectively communicate your business to others both in person and online, and that means having a strong brand. A professional business card, a website, and social media accounts (Twitter, Facebook, Pinterest, YouTube, etc.) that provide information about your business in an attractive and coherent way will show that you are serious about your business. It also provides an opportunity for others to see and learn about you.
- Check out the sites and brands of a number of successful companies. See what they have in common, what interesting things they do, and try matching that formula with your own brand. But never steal or copy other people's intellectual property.
- Consider starting a professional blog, especially if you are in the service sector. This can be an excellent way to showcase your experience and ideas and help investors and customers get to know you.
Step 3. Request contacts from the network to direct you to investors
Chances are, you know people who know someone looking to invest. Many investors don't look at blind submissions (business plans sent without an invitation) but love to hear promotions from entrepreneurs who are recommended by someone they know and trust.
Remember to return this kindness whenever possible. Others will be more willing to help you if they feel you will help them when you can. Good intentions are important for entrepreneurs to have
Step 4. Get investors
Promote your idea to potential investors to earn money to start your company. The type of business you start will determine who is willing to invest in it. Networking is a great way to hear investment tips and opportunities.
- Keep in mind that venture capitalists (often referred to in the business world as VCs) are focused on two things: how much money they can make by investing in your business, and how long those profits will last. Even though hundreds of thousands of businesses are started each year, only about 500 find VC investors.
- If you provide professional services such as consulting, accounting, law, or medicine, consider forming a partnership with someone who is already established in that profession. Someone who is familiar with your field (and your knowledge of it) is more likely to invest in your success.
- Starting small and satisfying a few customers in the first place is a very likely path to success. If you can start your business without spending a lot of money, this is probably your best bet.
Step 5. Sell
Sell and distribute your products. When you earn, you are in business! You're testing your theory of the market, you're figuring out what really works and what doesn't, and you get fuel for more ideas and development. Stay flexible and work hard!
Tips
- Entrepreneurship is hard, even when you're already successful. Try to maintain healthy relationships with friends and family so you have the emotional support you need.
- You don't have to do it alone. Especially for a new business such as a law firm or restaurant, having a team of experienced and skilled people will increase your chances of success.
- Don't be complacent once you're successful. Businesses must continue to adapt to changing market needs and consumer demands, even when business is doing well. Continue to expand networks, connect with customers, and innovate.
