By | Danish Maniyar
Many business ideas and start-ups disappear as quickly as they came. But what qualities must a good business model and an entrepreneur have to get started properly? Find the top six properties on how to become a successful entrepreneur here.
What makes one person fail and the other successful? Is there an explanation or even a link between these two? At first glance, it is difficult to say why one business idea fails, and the other quickly turns the founders into millionaires. Successful founders or entrepreneurs are, therefore, often asked in interviews about their recipes for success. Usually, only they can guess. These answers are very different. We have compiled the ten top properties for you here.
1. Meet the needs of others!
Your company will only be successful if it fulfills a customer need. These can be problems that have not yet been solved or services that do not exist. Chances for a successful business thought are hidden everywhere. When somebody complains or gets angry regarding somewhat, it is mostly a symbol of an unfulfilled requirement. Listen carefully and learn to recognize these situations. This is where the best business ideas are hidden.
Founders are often advised to do what they love. Of course, the idea of turning your hobby into a profession is excellent. However, you will only earn millions if you satisfy a small demand for millions of people or a big one for a few thousand people.
2. Be brave and a visionary!
How to become an entrepreneur? How can you achieve something if you don’t know exactly where you want to go? This goal is the vision of an entrepreneur. History shows us that only those founders who had an exact idea of what they wanted to achieve or change with their design were successful in the long term. Whether Johannes Gutenberg, Carl Benz, or Richard Branson – they all had or have goals in mind that they have worked continuously towards. Perhaps as a visionary, one is initially viewed critically since visions often break with the tried and tested and want to create something new, but without them, you will not get very far as an entrepreneur.
3. Barriers to entry are part of it!
If getting into your business model is too easy, you will face tremendous levels of competition. Most people are lazy. If a business attracts big profits with little work, many will jump for it. So getting started has to be a particular hurdle. This hurdle can be, for example, the know-how or the preparatory work that has to be invested to start the business at all. Skills that not everyone has, such as programming complex software, are a hurdle that only allows entry for those who work hard for success and acquire new knowledge. If the difficulty is too low to get started, you should listen carefully. If getting started is too easy, an enormous oversupply quickly arises.
4. Show perseverance and be persistent!
To be successful overnight? Only very few people succeed in doing this and it was only possible with a tremendous amount of luck. The rule is instead that things don’t go well at first, and you have to cope with setbacks – success takes time. If you get discouraged too quickly, you may miss out on great opportunities, but they will only open up if you have held out a little longer. And maybe you fail, perhaps even several times. But there are examples such as that of entrepreneur Max Levchin, who only had his big breakthrough with his fifth company – PayPal. Persistence also pays off at some point.
5. Keep control!
Some business ideas are dependent on other companies. It would help if you avoided that. For example, if you build your business on affiliate marketing, you are dependent on working with the leading company. Let us make this unambiguous using the case of Amazon. Let’s say you sell products through Amazon’s partner network and can live off the commission. Your entire cash flow will be gone if Amazon decides to kick you out of the program for whatever reason it is. You also have no control over the business in network marketing or multilevel marketing.
6. Be passionate!
In addition to perseverance, passion for your idea and independence is particularly important. Especially in the early days and in the first years, entrepreneurs have to do without a lot before they can reap the fruits of their work. If you cannot motivate yourself to do this and thus do not bridge difficult phases with the necessary passion, then you will soon lose faith in your project, and as a result, you will probably throw everything away. Love is indispensable when it comes to dealing with the challenges and the high volume of work that entrepreneurship brings with it. There are many youngest CEO in the world who has achieved success in a short period of time.
7. A scalable business is essential
Your product has to be scalable from 200 to 2000 or even 2,000,000 pieces without significant problems. One aspect of scalability can be seen on platforms such as eBay, Uber, or Airbnb. These companies have developed into the largest providers in their field without offering similar service themselves. Airbnb, for example, provides more beds than any hotel chain in the world without renting a single bed itself. Uber is the largest taxi company and does not own any of the cars itself and does not employ only taxi drivers directly. The platform enables companies to add new rooms or drivers without additional costs or manual labor. As long as the web server is running and the data volume can be operated, the offer scales completely independently without much effort on the part of the company. This platform business model is the next generation gold mine.
Danish Maniyar is a computer engineer by profession and a professional digital marketer by choice. He loves writing content for business, tech, start-ups, and digital marketing topics. An author on Techieus and MyCapitalCo.