What type or kind of foundation should you possess in order to be a successful entrepreneur?
As basic principles, the fundamentals of entrepreneurship include the following:
- Team building and leadership
- Strategy and management
- Marketing and market research
- Finance
- Manufacturing or production
- Oral business presentations
With this definition in mind, if you’re seriously thinking of starting, or if you have already taken the plunge and started a business of your own, here are 5 fundamentals of entrepreneurship to keep in mind and, most importantly, adapt and integrate into your business practices.
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5 Fundamentals of Entrepreneurship
1. Set Realistic Expectations
While enthusiasm is needed when planning out your business, you also need to manage those feelings with practicality. The plans and projections you develop for your business shouldn’t be wildly optimistic. By following this approach, you’ll be able to manage the expectations of all who are invested in the success of your business.
First, consider the type of business you operate and the industry you represent.
For example, are you selling lower margin products that take time to gain traction? Or maybe you’ve launched an app that might be a dud, or might attract 100,000 downloads a month? Plan for a realistic amount of sales and interest so you can manage your finances.
You’ll need some kind of advertising to bring in customers. If your potential customers don’t know that you exist, you’ll never be able to sell your products or services to them. You don’t have to start producing big TV commercials or start spending eye-watering amounts of money. There are many low budget marketing techniques that you can use to get your business in front of your potential customers.
2. Present Clear Value
Your product or service should offer true value. The value assessment has to go beyond your own biased opinion. You’re invested in the business, so of course, you’ll feel it has value for your customers.
Gather opinions from other people. Be sure the value is clear and easily explained to your targeted audience. Think of someone talking about your product or service and saying, “You need to get Service X because it will help you do A, give you B, and offer you opportunities to achieve C.”
If your value proposition is unclear, then you’re likely setting up the business for failure. In today’s business environment, companies that offer consumers a fair price and exemplary service are able to really stand out and are perceived as valuable by consumers.
3. Be Unique
Ask yourself, why your products or services are unique, different or better than your competitors?
If what you’re offering is fairly close in quality or value to that of your competition, perhaps your level of service is superior. Maybe you offer a money-back guarantee that others don’t. Is your pricing lower, higher or about the same?
If it’s higher, you’ll have to promote your goods and service as having more value than those offered by your competitors.
4. Create A Solid Business Model
As an entrepreneur, you can have the most unique product offering that has tremendous value, but if your fundamental business plan isn’t sound, you’ll in essence have nothing.
A solid business plan is a blueprint that shows you how you’re going to move forward with your business while keeping your costs down and under control.
It should also talk about how you’ll ensure there will be a demand for your product that can be reasonably sustained over the long term. Also, it will detail how you’ll market your product or service to the intended audience on a reasonable budget.
The hard truth is that most businesses fail, and not always because the idea itself was not sound. A well-constructed business plan does not of course guarantee success. But a plan is necessary and can turn a failure into a learning experience instead of a catalyst for personal financial ruin.
5. Attract Customers Cost-Effectively
Once you have your product or service and a solid plan that will guide you as you launch and move forward, you’ll need to attract customers in order to generate sales and revenue.
The best way is to look at inexpensive promotions or contests and develop a social media strategy, which is a cost-effective way to attract customers. Encourage conversations about your brand. Ask for reviews or find ways for consumer-created content to talk about your product’s unique features and benefits.
Your Mindset And The Fundamentals of Entrepreneurship
Do you sometimes feel like you just don’t have the bold confidence necessary to be an entrepreneur? Do you need a boost in your business confidence? Perhaps you’re just getting started and need some extra confidence to take that first step? Download the free checklist, Cultivating A Success Mindset and start taking steps today to embrace the fundamentals of entrepreneurship and watch how your business, and your life, change.