Five Things To Know In Creating A Business
Businesses that provide value win. Businesses that solve problems win profits. People care about what your business can do for them. How will it help them. Will it solve their problem? The correct foundation is externally based on needs in the marketplace.
Beware of the "Do what you love" phrase. Your love must solve a need and you must be exceptional at it. Think about what you love and then think will someone pay for it? Is it going to solve a need? Are you good enough to make money doing it?
Have you ever wondered why the sari-sari stores in your neighborhood are beside each other? Sometimes you don't know to whom to buy. Or did you notice when you started a carinderia, suddenly your neighbor also opened his/her carinderia? These are examples of low-entry barriers. If getting into the business is as easy as having a few peso capital, then expect for more competition and be sure you are ready for it.
When it comes to entry, your business should not be available to everyone, because if it is, you must be prepared to be exceptional.
If you have watched Shark Tank, you will be able to understand control. The sharks (investors) usually don't invest to companies if ownership is minimal. Why? Because the owner no longer has control over his business. Like driving a car, if you have no control, you can't reach your desired destination.
Scale is about numbers and leverage. Can the net income scale from hundreds to thousands then thousands to millions? Who are its customers? Is it the world or just a small community?
If you want to break the barricade of scale, you have to get your product out to thousands, if not millions.
Owning a business doesn't guarantee wealth or detachment from time. Some business owners are married to their business because they have no time. Are you ready for it?
When putting up a business, you have to make sure that it will soon be automated. It can operate when you're absent. Because if it can't, then it is like a job rather than "being the boss".
Starting a business is a big decision. If you have an idea but doesn't have the NECST, better think about it. Have you ever wondered why most businesses fail? We seldom hear people talk about their failed business venture. If you know one, try asking them and think whether his/her company has satisfied NECST.
Source: Millionaire Fastlane