Did you know that almost 90% of new business startups don’t survive beyond their first five years?
The failure rate is scarring, right?
Who want to go into business when the chances of winning are slim? Instead of dwelling on the negative?
Here is what you need to know about the 10% surviving startups.
Most of the 10% surviving business do what many skips-they take their entrepreneurship process stages serious.
Here is the bitter pill you have to swallow.
Going through these entrepreneur process stages are like climbing the mountain.
You just started from ground zero with a lot of zeal and enthusiasm but realize you still have days of climbing to reach anywhere, that zeal and enthusiasm often turn into something really overwhelming.
No one can see you as doing anything serious and can’t offer to help you-you’re completely on your own.
That really rule out the help that will come from within.
This fact is nothing new.
No new business whether small or big that has note gone through these entrepreneurship process stages without feeling the burn.
Sometimes you feel like you’re just wasting your time.
Those who stick to the processes, they saw the result.
But the advice many entrepreneurs receive is what is making the entrepreneurship process stages not important.
You only hear advice like this is the fastest way to build a successful business or how to increase your earnings.
They’re not wrong, just that they are forgetting another thing that is important.
In this article am going to show you five entrepreneurship process stages specifically tailored to new businesses.
Even existing business can learn one or two things that can help you improve your business.
Before then let’s look at the definition of entrepreneurship process stages.
What is entrepreneurship process stages?
The entrepreneurship process stages, help the entrepreneur to generate the right ideas, recognize opportunities, resourcing, attracting the right customer and evaluating your chances of winning or failure.
The rule of thumb is not to miss any of the entrepreneurship process stages. Follow each process as it’s vital for the business success.
There is no need to run into anything you’re not clear of.
These are what entrepreneurs need to follow to plan and launch a successful business.
Sound good? Let’s get to it.
5 important entrepreneurship process stages
Avoiding cracks in your business is what you can strive to do. Building a solid foundation lays a healthy way to avoid these cracks.
Even when cracks come it becomes easier to spot and seal.
In a time of increased change, it’s businesses with a solid foundation that will make the difference between success and failure.
There is no better time to utilize these entrepreneurship process than now.
How does an entrepreneur go from the stage of an idea to a stage of starting to something real that will be sustainable?
Here are the five entrepreneurship process stages that will make the difference. The secret the 10% of surviving business have employed that’s keeping them in business.
Finding the right idea
This is the basis for all business. All product and service started from an idea. The entrepreneur sees the need (you can call it a problem, neccesity or opportunity) and tries to fill the gap.
The person that invented the shoe realize that the use of shoes, will prevent thorn piercing the leg.
The person who invented the airplane wanted travellers to get to there destination faster.
The person that created a blog knew he can reach and educate people about how to be better in a niche.
So all that was someone idea.
Not all ideas are created the same but have the same purpose which is to ease the way things are done.
In his book rich dad guide to investing, Robert Kiyosaki said an idea is the new money.
What he was saying in essence is, when you find the right idea, it became somebodies solution which you can exchange it with cash.
The question is: how do you find a brilliant idea?
Here are some steps you can use to find an idea
Look at your immediate environment
Your first point will be from your environment. You look around and notice there is a need that needs to improve or a solution.
Yet no one is available to create that. This is an opportunity to sit and decide to develop your idea.
Sometimes you have to start by looking at you. Your passion, your purpose. Anthony Tjan, during a book research as a co-author in heart, smarts, guts and luck, realizes that 70% of the business journey starts from the heart.
clarity of passion and purpose helps in carving out an ideal business idea that works.
For that to happen, you have to clearly know:
- Know your passion
- Understand your niche
- Understand the business model
Improve an existing idea
But sometimes is not just about the steps above.
According to Betty Liu the host and editor-at-large, advice that you should forget about a brilliant idea, you only need to be ten times better to win.
In other words, you don’t need to reinvent the wheel, you just take an existing wheel and improve on it
The notion of thinking that your idea is not groundbreaking should not come to mind.
Remember google started as a terrible idea and yet manage to build a global brand.
Remember before Microsoft, there where other operating systems from IBM, but Microsoft created something better.
There were burger shops before McDonalds, Ray Kroc created something better, by frnchising.
Blackberry where creating great phones, iPhone created something better.
Before amazon.com, there was Walmart, amazon took there idea to the internet and today amazon is a global brand.
No matter how good business product or service is, there is a way you can take advantage of it and create something better.
You need to be creative. Look at the loopholes in existing business and develop your idea.
This works irrespective of the niche you intend to focus.
You only need to create something better and people will appreciate it.
Caution: Don’t compete at these level with the sharks.
Quick tip: Your idea must not be perfect, but must be good enough that customers will appreciate.
2. Creating a business plan
By now, you should have a business idea, it’s time to plan your business.
Creating a business plan is a much debated in the business world.
Many think a business plan is a waste of time, especially when you read articles like 10 billion dollar companies that didn’t start with business plan
They may be right, but what they didn’t tell you is the way they keep a business plan that will help the business in future growth and expansion.
Another thing is if only you once built a business and have sold it for $500 million, you may not need one.
Even the conservative venture capitalist and the investor will not bother to see the business plan for your next business.
The truth is, if you’re just starting out, you’ll definitely need one.
Else no investor will line up to give you money.
According to a study, business plan doubles chances for success.
Lucinda Cross said without a business plan, you have no direction
It’s easy to get distracted and forget the little details or deviate from your main aim.
With a business plan, you have the direction and focus in building your business.
Your business plan is your business on paper.
Writing a realistic plan is important.
A poorly written one ruins your credibility and integrity.
Writing a great business plan does not require you to write 200 pages or more.
Your business plan should answer:
- Who the idea will benefit
- Who will you market these benefit
- How you will create an effective brand company idea and building something recognizable in the marketplace.
- Do you stand the chance among industry competitors
- Can your idea be profitable
3. Raising your seed funding
Your business is becoming clearer. The funds required to start the business is known you have to go all out to raise the fund.
Raising the required funds can be an uphill task for many entrepreneurs.
Without funding, the business will still be at the idea stage.
When you have an actionable business plan, finding investors to invest in your business will be a little bit easy.
That is why you should not neglect to have a business plan.
There are other sources you can us to raise funds for your business.
Here are some few ways you can try to get the funding for your business.
Friends and family
That should be your first point of call. Even when they don’t agree with your idea, out of sympathy they might decide to help you.
Reaching out to them especially during a special dinner will help you to secure the required funding.
Crowdsourcing or crowdfunding has been around for some time. This is a form of funding by persuading individuals to give you a small donation which will be used to finance your business.
With the internet, you can find a lot of crowd funding websites that will help you achieve your funding need.
One vital place to check is indiegogo.com the world’s largest crowdfunding and fundraisers for individuals, groups, and non-profits.
Visit facilities who can give you loan to finance your business. One major requirement is the business plan. Look for business opportunities in your area.
Don’t just apply for a loan without knowing what the interest rate.
The lower interest, the better.
Not all investors will listen to you when all you have is what you say, no business experience or have not sold a business they know.
They will not take that risk.
Even amidst risk, an investor needs you to prove that your idea is achievable.
This is where your business plan will bail you out.
The business plan gives the investor all they need to know and what you can do.
Your idea becomes clearer to them.
The bottom line is, finding the required funding stirs the drive of action.
4. Getting paying customers
Getting paying customers to happen when people begin to trust your business as truly it can provide the solution to their problem.
These will require a sales process that will help find and grow your customer base regularly.
You can have a sales technique that works and plans your sales flow.
Those with an effective sales process have seen an increase in their revenue.
Business grows with time and it’s ultimately important to grow your customers.
Without the required customers, there will be little sales.
There are many ways you can use to develop an effective sales process.
The sales process happens when you have profitable audiences.
One way of building your audience is using social media.
You only need to use the platform to build your audience who will later become your paying customers.
The reason for social media is this:
- When trying to get paying customers, you have to target the next generation of customers and using the social media, you stand the chance of that.
For instance, if your business will be for people from 40 and above, you have the chance to capture the next customers even before they get to that age.
- Your paying customers will help you in advertising your business when they’re happy with your product or service.
- You have the chance to build a relationship on a one on one basis.
- You can do a split testing or conduct surveys to know which method will work find.
Another method of finding paying customers can be done through offline advertising, printing and give out stickers flyers.
Success or failure
Success or failure will all depend on the way you approach the top four things mentioned above. But it’s important you go with an open mind. Take the little steps and you can be sure to learn all the way until you’re successful.
To make sure your business is one of the 10% remainings means you should strive to avoid some of the common business pitfalls.
Don’t underestimate startup costs
Underestimating the money that will take your business from the grown up can overwhelm the business.
Some startup cost is predictable, such as new building, raw material, rent and price of equipment.
But another cost can be less easy to account for and that’s where the surprise may arise you run short of cash just when you need it the most.
To fight this mistakes, it’s essential to budget more, for startup costs such challenges may not arise.
Depending too much on others
When a key employee leaves the business the business becomes in a sorry state. Except if the business owner has the knowledge of all aspect of the business.
Relying on a key employer with a tendency of leaving any time could be a remedy for failure.
No matter the business, it’s essential for the owner to understand the variety of the jobs, marketing, and functions within the organization.
This allows the business owner to step in when the need arises.
Taking note of these things effectively guarantee success.
Becoming an entrepreneur has it challenges at every stage of the process.
These entrepreneurship process stages are not meant to wash your time. Rather, it’s a way to help reposition your business before there is the business.
In an increased time of change, only business with a strong foundation will be able to stand and still maintain their stand.
Better planning clear vision of the business is what will make the difference.
What can you add to the entrepreneurship process stages? We love to hear from you.