It takes extraordinary effort, time and patience to build a profitable business. Those who choose to run their own operation as opposed to working for someone else are few in number, and even fewer are actually successful. The path of the entrepreneur is one of the hardest, most arduous lifestyles an individual can lead, but the rewards for those that win are beyond words.
Go Where The Money Is
While it is essential to start a business doing something you’re passionate about, it should also be a product or service people are willing to pay for. The best markets are those which are competitive, as that is a sign there is money to be made. Look for emerging markets rich in opportunities that you can fill, or look for gaps in existing markets that your business can exploit.
Be Prepared To Self Finance
It has been said that “no smart businessman uses his own money.” However, many first time entrepreneurs have no choice. Unless you’re already wealthy or well-connected few banks or lenders will lend you the money needed to launch your business due to the risks associated with it. Most banks will play it safe and only lend to you after your business is successful. Only billionaires, millionaires and well-connected people have the luxury of using other people’s money because the lenders know they are good for it.
This creates a classical dilemma for the entrepreneur. The only solution for those who are starting out on the absolute bottom with no connections whatsoever is to scrape, claw and save every dollar they can until they’ve raised enough money to finance their own business. This could mean going years without owning a car, living in a studio apartment, eating noodles or having roommates.
There are absolutely no shortcuts for low income people that want to build a profitable business from scratch, and if you lack the discipline or toughness necessary to raise the needed capital you’re probably better off working for someone else.
Don’t Follow The Crowd
To build a successful business you must offer a product or service which stands out from everyone else. Too many entrepreneurs launch their companies with a “me to” mentality. They see what the industry leader does and then follow them. However, the most successful business owners in history have always been those that thought differently from everyone else, who approached problems in unique and unorthodox ways.
Sell Products or Services That Sell Themselves
Unfortunately, many people lack the affable, outgoing, and extroverted personality that is so often necessary in the business world. However, even if this is the case it is still possible to launch a successful business. The solution is to sell products that tend to sell themselves. Examples of such products or services could be real estate, food or commodities. People need a place to stay and they need food to eat. If you can provide either you won’t have much difficulty selling it. Partnering up with an outsourced partner that is a natural salesman is another great way to succeed.