Being the boss of your own business, doing the work you love; So being an entrepreneur is the dream of many people.However, as nice as it sounds, doing your own thing is very difficult.
If we say that 75% of startups go bankrupt in a very short time, you will understand how difficult it is.
Contrary to popular belief, entrepreneurs experience more stress than 9-5 salaried employees. Because the entrepreneur is responsible for everything in a company. His area of responsibility is not as limited as that of a salaried employee.
However, starting one's own business is one of the greatest privileges a person can have in the context of business life. In other words, it is possible to get many benefits from this process if we act by considering the risks offered by entrepreneurship.
First of all, a solid idea is required to start a business and become an entrepreneur.
Now, we will first touch on the basic elements of entrepreneurship and explain the basic logic of entrepreneurship. In this process, you do not need to have a large capital for what we will tell.
Here are the ways to become an entrepreneur for people with no money or experience:
1. Find a Lucrative Business Idea
a. Ask questions around you
Entrepreneurs are inspired by the problems people experience. Travis Kalanick and Garret Camp, for example, founded Uber because of their disappointment over the lack of a taxi they called.
Venmo, purchased by Paypal, was established due to the problems faced by Andrew Kortina and Iqram Magdon-Ismail in the payment method.
In other words, you can start to find a business idea by identifying the problems experienced by the people around you. You can ask your friends, family and social media followers about the problems they face in their daily life and prepare a list from it.
b. Do your research on the internet.
Looking at what people are doing online, researching products and services offered by companies around the world can inspire you to find brand new business ideas.
You can check out the latest apps, websites, and games by visiting the Product Hunt website.
Or you can browse crowdfunding sites like Kickstarter and Ingiegogo to see what types of business ideas people are developing.
We also recommend you to examine websites such as Wirecutter, Werd, Uncrate.
c. Make something better or cheaper
You may not need to come up with a brand new idea to start entrepreneurship. You can also start entrepreneurship by making various improvements in an existing product or service, and producing 8x something whose market price is usually 10x.
So you can start your own business by making a product better or cheaper. The most important aspect of this is that there is a certain demand for the current product or service. You can get a share from the market more easily by bringing a new product to the established market.
It is also extremely important to brainstorm to develop a better or cheaper product or service. You can get together with a few people with an entrepreneurial spirit and try to develop ideas.
What is your favorite type of furniture?
Why do you love this item more than others?
What are your favorite and dislikes of this item?
Is it possible to make this item from Y material?
With questions like these, you can train on various ideas.
D. Focus on emerging industries
Intellectual property expert lawyer Stephen Key states that the competition is not so hot yet and you should turn to the sectors that affect you.
“For example, I would not recommend you to enter the sectors where competition is extremely high, such as the toy industry. If you develop a business idea in an industry that is open to innovation and where competition is not yet hot, it will be easier to get the intellectual property and patent of this idea. "
After choosing a specific sector, you should examine the products and services in this sector in detail. What makes product X special? Why is product Y sold more than others? Why is brand Z's marketing strategy more successful than others?
You should investigate such questions and clarify what kind of contribution you are going to make.
You should consider how you can develop product A in the new market, with which other materials you can produce this product, and how you can reduce the price of this product.
So you should identify the features that will make you different from your potential competitors.
e. Try to catch the market open.
You don't have to reinvent the wheel. There are many large companies that succeed by identifying a gap in an established market. For example, you want to establish a platform where freelance workers can find a job. Media such as Fiverr and Upwork meet exactly this demand. If you want to build a freelancer site with a useful feature that these platforms do not do, you are in a good place.
f. Meet New People
The more people you know as a person who wants to start his own business, the better. Especially when you meet entrepreneurs who have the same goals and motivations as you, you will have a good environment and you can get useful information and advice from these people.
2. Test Your Mind
Let's say you found a business idea in the section up to here. Now it's time to learn whether this business idea is valid.
You can test your opinion by learning how people think about this product or service idea.
For this, you need to create a product or service that works at a minimum level (the most viable product).
Minimum working product; it is the simplest and most basic version of your product or service idea. In other words, while telling people about your product idea, you should give this product to them, "It will basically serve this function, but we will make many more improvements on it." you should say. It's meant for people to have a basic idea of your product idea.
For example, you will develop a mobile application. Let it be a platform that brings together high school students and teachers who teach online.
Develop a basic application and sign up 10 math, 10 English, 5 chemistry and 5 physics teachers to this mobile app. Then share your mobile app's ad on the pages that high school students use heavily. If a reasonable number of high school students subscribe to your mobile app and take private lessons online, that means that the idea is valid. However, if you do not show enough interest in your application despite all your marketing and advertising work for 3 months, you should reconsider this business idea or focus on a different one.
Interviews and surveys with potential customers is another option. Show them a working demo of your product and ask what they like and don't like. Ask how much they can pay for such a product or service and how often they can use it.
Before going into production, create a website or page that explains the product's features to test the market interest. Ask people to enter their email address on this page in return for earlier access to the product, to get a discount, or for a similar attractive opportunity. Then advertise this page for a fee and see how many people have left their e-mail addresses on this page. In other words, observe how much interest people are in the product idea when the product is out of sight.
3. Find a Founding Partner
When starting a new business, it would be more reasonable to take this process with a partner. There are basically 3 benefits of having a founding partner.
Funding is easier. The fact that more than one person takes responsibility for the success of a company leaves investors the impression that this business is given importance. Investors may be a little reluctant to give money to a single person.
You will also receive emotional support when someone else is with you. Running a company is a stressful and exciting thing. So starting a company is something that has high tides. In this case, you need a person to take control of things by staying calm during your stressful moments. So you manage each other and feel less alone the whole process.
When you have a founding partner, you also benefit from that person's knowledge, equipment, experience and environment. So let's say you are an inexperienced name in sales, but you are experts in technical matters. When you establish a company with an expert in sales, this person completes your shortcoming. In other words, starting a business with a qualified person is an important factor for the success of this business.
However, there may be some disadvantages to having a partner.
It will be inevitable that you will have disagreement on some issues with your partner once. A healthy conflict pays off, but if the dosage of the argument goes beyond respect, things get mixed up. The morale of your employees is also reset at such moments.
If you set up the company alone, all the assets of the company will belong to you. If you get a job with a founding partner, you will share half of your rights with this person from the very first moment.
Finally, you need to find a founding partner. Perhaps this is the hardest part of the job. Finding a person with the same business ethics and vision as you is a very difficult task.
According to the researches, 46% of successful startups have a single founder, while 54% have more than one founder. It would be better for you to make a decision based on this data.
How To Find A Founding Partner?
If you are looking for a founding partner to take your business idea together, you should first look into your own environment. Someone you already know and worked with before would be less risky. You might have a friend from university, for example, this person.
However, connecting the founding partners online; You can also benefit from platforms such as Co-foundersLAB, Founder2be, FounderNation.
In addition, entrepreneurship-related events and conferences are ideal places to find your potential business partner.
4. Find an Investor for Your Business Idea
And here we come to the investment, which is the subject that entrepreneur candidates have the most difficulty or think they will have difficulty in realizing brilliant business ideas.
In fact, there are many different people and institutions that you can ask for money in the context of your business idea.
a. Seek support from your family.
Many entrepreneurs get support from family and friends to start their own business. You can also borrow your mother's bracelets during this period. Or, you can use the debts you get from your friends, provided that you pay a certain percentage of the company's annual earnings. In other words, you can pay this debt to a friend who gives you 30.000 lira by giving 10% of the annual earnings.
b. Apply to Big Companies.
Show your entrepreneurial ideas to big companies. Make a good presentation and show that your idea is really useful. Do not give up and meet with all the big business people and companies.
c. Apply for crowdfunding platforms.
You tell your business idea on platforms such as Kickstarter, Indiegogo, Gofundme. You can ask people to support you by explaining the prototype and benefits of the product you will produce. Or, if you are going to produce a mobile application, you specify the main purpose of this application and the budget required to develop the application. People also help you to a certain extent.
In a sense, you pay your debt by offering various benefits such as early access and free samples to the people who support you.
D. Tell angel investors your opinion
Angel investors invest in new business ideas that they see bright future. These people will invest in you if they think your idea will generate a solid financial return. In other words, an angel investor wants to give $ 25,000 and get $ 100,000.
In this context, you should have a good business plan to convince your investor. You should directly tell the angel investor your target customer audience, the place of production, how much budget you need, how much profit you are aiming for.
Also, if you get support from an angel investor, you can use their expertise and connections, which would be a great thing.
e. Take advantage of your credit card
It's not a good idea to use your credit card to start a business. However, if you could not find any money, you can use a credit card within your limits. But if you make such expenses that you cannot afford, you may be able to pull your waist straight.
f. Research venture capital.
Firms offering venture capital invest in young and private companies. Just like angel investors, venture capital firms invest in ideas and companies with high returns.
g. Fund from your own pocket.
If you haven't found any money, you can also start a business using your own savings. Selling your house, your car; A method such as using the savings account at the bank can be followed. But if you invest all your financial assurances in a job that you do not research well, you will be squeezing yourself. In this context, it is necessary to be more careful while spending your own money.
5. Set up a company
At some point, you'll want to incorporate your business. In the process up to now, your business and you have been in question as a single entity.
After you incorporate your business, the company becomes a separate entity from you. It gains a legal status. Your company can trade, become a taxpayer, file a lawsuit and be the subject of a lawsuit. So now your company gains a legal personality.
Advantages of establishing a company
When you establish a company, the debts and liabilities of the company are removed from you. Borrowers collect their debts from the company's assets, not from your personal account.
In addition, you are not personally responsible for the actions of the company, the responsibility lies with the legal entity of the company.
Company status gives you more competence, investors are more willing to invest in a company-level business. Of course, you will also be able to deduct company expenses from tax.
Disadvantages of starting a company
Once the tax issue arises. You pay taxes to the state regularly. This may be a bit tiring in a country like Turkey, where high tax rates. You should notice this fact now.More Business Posts: Business ideas