Monday, August 8, 2016

Amateur Thinking About Entrepreneurship

I rarely feel the entrepreneurial fire in myself. But, that doesn’t mean I don’t support entrepreneurship. I’m a fan of this concept and deeply appreciate the contribution of the entrepreneurs in shaping our society over the centuries. One day, if I come across the Gini of Aladin’s lamp and he gives me 3 wishes, then my 1st one would be to become an entrepreneur. So, why am I not pursuing this now?

Okay, it didn’t rightly click with me yet. You can understand the importance of right click when your friend had taken a snap of you in your favorite place and on the way home you found out that your friend had a shaky hand and  the picture is blur. Many ideas have knocked my door but none of them have been strong enough to let me leave my couch and open the door.  I believe the inspiration would come like the feeling of love at first sight; you saw a boy or girl and decided you want him or her no matter what. I’m waiting for such call to fall in love with. But, in the mean time, I’m making myself a fertile ground by thinking about various aspects of entrepreneurship. These are some of my thoughts regarding entrepreneurship.

1.     It may not be your piece of cake: Everyone is preaching - entrepreneurship is good that doesn’t mean you should be an entrepreneur too. Milk is good for health but if you have problem with digesting lactose you better stay away from milk. I’m not discouraging you rather highlighting on the fact of self-awareness. You may prefer secured pay check at the end of the month, 40 working hours a week, and spending time with family and friends, in that case entrepreneurship may turn out to be a bad fit for you.

2.  Keep your stakes low: If you have a good business idea, don’t leave your job today to start the business tomorrow. You may have heard the story of the king who burnt all of his ships after reaching the land of enemy and said to the troop if we went back to our land it would be by the ships of enemy. By this you are burning the bridge behind and creating an emergency situation for yourself to put your best effort in work. I don’t say this technique doesn’t work. But, the successful one is more of an exception. We don’t have any statistics about how many people have broken down completely by such action. How can you think clearly when you know that your family would come in the street if you fail to make the next business deal? Always start small and keep your feet on solid ground. Keep your regular job and build your side business and when you feel like your business is good enough to support you and your family then leave your job. Another part of the low stake is to play with your pocket first. Don’t go for external funding at the beginning. If you have $10,000 start your business with that $10,000 in small scale. When you find your customer loving your product or services and you’ve developed a strong track record of performance then go for money from other party.

3.    You need not to be original: An entrepreneur needs not to come up with an original idea to start a venture. There were GeoCities, Friendster, MySpace, Second Life and many others social media networks before Facebook. But, why did Facebook top every one of them? It’s because Facebook  just added a little twist in previous idea by giving a real identity of the users. Look at the successful businesses around you, how many of those are totally original?  So, you need not to rush for an original idea rather look around and think how you can provide a better service to the customer of an existing business? What is the gap you can fill up?

4.    Good Idea is not a good business: An idea may hit you on the way and you may think this is the greatest idea of all time. You put your everything to launch the business and later, it turns out to be a total failure. What was the problem? Firstly, you should understand every entrepreneur thinks their idea is the single most important idea of this century. So, there is no doubt your idea is good. But, the success of a business is up to how much value you are giving to your customer. Until your customer likes your products or services, there is no business for you. Read the history of start-up failure like Take Eat Easy, Dinner Lab, SharpScholar, Healthspot and others like these which will help to understand the distinction of good idea and good business. One way to test the potential of your idea is to create an online presence and promote your product even before you spend a dollar for the idea and see how many response you get. If there is good hit for the product, then you may go for the idea.

5.    10% v/s 90%: Getting the opportunity to run your dream business doesn’t mean you will enjoy every part of it. You may enjoy 10% of the works you have to do and hate the other 90%. A business is not only about producing and selling a product. Multiple layers of works are associated with reaching a product to the door of a customer. There are meetings with potential investors, hiring employees, designing products, contracting with suppliers, public relation programs and there is the possibility that you hate doing all of these. You may love marketing stuff but hate accounting. But, you need to make yourself comfortable with the facts and figures of accounting to run the business successfully. You have to do the 90% boring tasks for doing the 10% you love and still at the end of the day you need to be happy with what you are doing. If you find that 10% which has the power to let you do the 90% mundane things than pursue that.

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