You’ve chosen your product or service and are ready to dive headfirst into starting your own business.
But simultaneously, negative thoughts swirl at the back of your head.
What if it flops? Is there enough demand for my product? How can I overcome hurdles and roadblocks to generate profit?
Being an entrepreneur means pushing through these what-ifs head-on. However, it doesn’t hurt to learn how good businesses run the show and manage these risks effectively.
Here are some things new entrepreneurs can learn from established businesses.
1. Your organizational structure is key to success
In a beehive, each worker bee has its task to complete within the hive.
The queen bee is at the top, ruling over the worker bees who do everything from collecting nectar to making honey. There is a clear hierarchy in this system, with every bee knowing its place.
The same goes for businesses—a company needs different teams to manage various aspects of the business, from operations and marketing to human resources and finance.
In large corporate structures, there is a senior management team that provides the company’s vision and overall strategy.
Then some middle managers develop plans to achieve these goals and ensure that different departments are working together efficiently.
At the bottom are front-line employees who carry out the day-to-day tasks.
When starting a business, you might be wearing all these hats yourself. You might even have a team of workers, but there is no real structure in place.
However, as your business grows, it becomes increasingly important to have a well-defined organizational structure.
Without it, your company will be less productive and efficient, and it will be more difficult to make long-term plans for growth. Therefore, it’s critical to create a structure that allows everyone to focus on their area of expertise.
2, Don’t underestimate the power of branding
Your brand is what makes you recognizable. Even if you enter a sea of competitors offering the same product, how you brand yourself will help you stand out.
For example, sports brand GymShark could have been your everyday second-rate dropshipping experiment by two university student buddies.
But through a combination of consistent social media marketing, strategic partnerships and influencer relations, they’ve managed to grow the business into a $1 billion company as of early 2022.
What they sell isn’t anything groundbreaking or unique. However, by pushing the right buttons, they were able to generate demand for their products and turn the company into a recognizable fitness name.
3. Watch your financing, but don’t be cheap!
All businesses need to be mindful of their finances, but this is especially true for startup founders who are bootstrapping or taking out loans.
You probably won’t have the same financial cushion as bigger businesses—and one misstep could mean the difference between success and failure. By doing a little research and being mindful of your spending, you can put your business on solid financial footing.
That said, being too risk-averse can also hold your business back.
Investing in the right areas is essential for growth, even if it means spending more money upfront.
For example, hiring a good marketing team can help you reach a wider audience and generate more leads.
Better tools – with an example being a virtual phone number – might even be able to save you tens or hundreds of monthly labor hours—freeing up employees’ time to take on more meaningful work.
In the end, it’s all about taking calculated risks that have the potential to pay off in the long run.
4. Solidify your business identity
Every business evolves differently, no matter how closely they resemble its competitors.
For example, competitors in the same industry like Uber and Lyft both offer the same basic product—a ride-sharing service. However, they each have their own unique strategy, challenges, structure, and story to tell.
The same goes for businesses in other industries. Take two corner-side cafes, for example. Both might sell fair-trade, organic coffee beans and boast a fair share of returning customers. But their appeal may be immensely different; one could have a chic and cozy interior while the other might be known for its fast and excellent service.
Above a good market offering, entrepreneurs must have a clear vision for their company. Unlike corporate executives, entrepreneurs can link the direction of their company to their values and beliefs.
And with this creative freedom, they can build a sustainable business with a strong identity, which can pave the way for an easier time scaling in the long run.
