If you’ve had your light bulb moment and think you are ready to launch your own company, there are crucial factors you need to understand first. Choosing to become an entrepreneur is an admirable pursuit, but it is not without its challenges. To have any chance of a successful outcome, there are formidable factors you will need to consider. Contemplate the following five factors before you quit your day job to pursue your entrepreneurial passion.
1) If you want to build a business that survives over the long-haul, the ability to identify your core customer market is critical. Not knowing where your target customers can be found is like a farmer randomly throwing seeds into the wind. Know where your most profitable customers can be found and identify ways you can introduce them to your product/service offering.
2) An entrepreneur needs to be able to outline the business solution they are offering clearly. Long-winded explanations and graphs and charts shouldn’t be required to make someone outside your company understand your core business. If you can’t enunciate your business solution in a sentence or two, it’s time to rethink your company tagline.
3) In the same way, you should be able to narrow down the essence of your business solution, and you also need to be able to advise others of the need for your company. You have to be able to convince others your company’s offering is required, otherwise, they’ll never invest in your services. Whether you’re operating an online e-commerce venture from your home or building a company that will eventually seek investor funding, the ability to convince others of the need for your business is crucial.
4) Another vital component of building an active business is the ability to understand the competitive landscape. Just because another business doesn’t offer precisely the same product as you, that doesn’t mean they’re not competition. Consumers will investigate other companies within your sector; you need to be able to do the same. Understanding competitors’ strong suits and weak points is also an excellent way to discover growth opportunities for your business.
5) Depending on your growth goals, team building needs to be part of your long-term strategy. Running a single enterprise out of your home is one thing; developing a business that scales is quite another. The sooner you understand the importance of building a profit-focused team, the stronger your company will be. It’s not enough to focus on customer acquisition; you need to be focused on revenue per customer and the lifetime value of each of your customers.
Entrepreneurs who build businesses that survive don’t just focus on one component of their business at a time. They are constantly juggling multiple tasks and attending to a variety of priorities at once. If you have any hope of turning your entrepreneurial endeavor into a revenue-generating business, you need to be able to do the same. From introducing new customers to your company to hiring team members to help your business growth, your challenges as an entrepreneur are going to be many.
Jeff Shuford is president of Tech From Vets, an award winning veteran-owned technology company. Tech From Vets merges NFL veterans and military veterans in the tech industry and develops innovative websites and mobile applications for their clients nationwide.