“I don’t want to work for ‘the man’, it’s better to be independent and bring my own ideas to life.” Many students have such thoughts, but few move from plans to action. Basically, they are afraid of too many pitfalls and responsibilities. Plus, it’s rather hard to understand where to start and where to get the start-up capital.
To figure these issues out, we have compiled a detailed guide. Below, we will help you realize if you are ready to become an entrepreneur, where to look for business ideas and investments, how to compile a business plan, and how to avoid common beginner mistakes. Hurry up to “do my essay“ service, get yourself a cup of coffee, and dive into the topic together with us. While talented authors complete your homework for you, you can finally focus on what matters most to you right now!
Evaluate Your Personal Potential
To begin with, it’s essential to realize that entrepreneurship isn’t the only path to success. According to statistics, only 6% out of 100% become prosperous businesspeople. Psychologists say that most often, these are leaders with the following set of qualities:
- Courage and willingness to take risks;
- Passion for work;
- Strategic thinking and the ability to visualize ideas both globally and in detail;
- Ability to analyze competitors and a variety of customer groups;
- Leadership traits to assemble an effective team of specialists.
You can also find out if entrepreneurship is right for you with the help of a career guidance test. It will determine your strengths and weaknesses and show whether you have certain skills and which areas have more potential for you.
Formulate Your Business Idea
Some entrepreneurs distinguish two ways to find a business idea: an emotional one and an analytical one. In the first case, your hobby must become the basis for your company. In the second, you will move on to what’s in demand on the market.
Also, analyze what kind of expertise you currently have. It must be supported by your achievements and specific cases. For example, you are talented in sales, you cook really well, or your texts are engaging.
Next, you need to assess the demand for your expertise and observe the situation in the market. To do this, answer the following questions:
- Do people have some needs that only you can satisfy?
- Can you do something better, faster, cheaper, or cooler than others?
- Why would potential buyers want to pay for your products or services?
Also, pay attention to such spheres:
- Local tourism;
- Learning new skills, self-development;
- Delivery and logistics;
- Coaching and psychology;
- Sharing economy (joint consumption);
- Recycling / reusable things;
- Сhildren’s clubs and kindergartens;
- Creative studios (clay modeling, drawing, dancing).
It might be promising to sell things through Instagram or an online store, organize a team of freelancers, or create an educational project.
Make A Business Plan
A business plan is a tool that allows you to do many things. First, that’s how you test an idea and evaluate whether it is profitable or not. Second, you realize how long the investment will pay off (and whether it will pay off at all) and how many resources you need at the beginning.
Why do you need a business plan? To minimize risks and not invest in a project that doesn’t pay off, of course.
A typical business plan structure looks like this:
- Summary of the project (a brief description of the business idea, necessary resources, and investments);
- Market analysis (describe the problem you want to solve);
- Marketing plan;
- Production plan;
- Organization plan;
- Financial plan;
- Risk analysis.
A business plan is a simulation of how your idea can become a reality.
Find Financial Resources
Here are some of the time-tested variants:
- Your own savings. It’s the simplest option, as you don’t owe anything to anyone;
- Find an investor. It’s one of the most difficult ways, but if you have prepared a high-quality business plan and are passionate about your idea, it’s definitely worth a try;
- Take part in the competition and win a grant. Now, government organizations and international sponsors offer many grants;
- Crowdfunding. Post your business idea on one of the crowdfunding platforms, and if people support it, you will receive donations;
- Bootstrapping, that is, borrowing from friends, colleagues, and relatives. Be sure to discuss the conditions of your cooperation and fix them on paper;
- Get a loan from a bank. However, this might be risky, so better study the ways mentioned above.
Move On To Realization
Work on the implementation of your idea according to the business plan. After all, you wrote it to make your life easier, right? Also, follow these rules:
- Keep track of your progress. And be sure to make adjustments if the reality changes. You need to be aware of all the events and news in your field in order to be one step ahead of your competitors;
- Find an enthusiastic team. This is how you achieve your goal faster and more efficiently;
- Remember about the budget. Financial miscalculations are simply unforgivable at this stage. Get ready for the fact that you will need 20-30% more money than planned, and you will often have to look for ways to reduce costs.
Be prepared for the fact that reality can be very different from your dreams, plans, and goals.
The Bottom Line
In conclusion, we want to talk about the most common mistakes student entrepreneurs make.
The first and worst mistake is micromanagement. This is when an entrepreneur tries to control low-level tasks, losing focus on the strategic development of the project. Micromanagement negatively affects the team. It loses its sense of freedom, self-worth, and desire to initiate ideas. Solution: learn to delegate tasks.
The second is poor risk analysis. Something always goes wrong, and it’s your responsibility to predict it. Solution: when starting a new project, make a risk response plan.
The third is verbal agreementі. If the agreements aren’t fixed anywhere in writing, consider that they don’t exist. Verbal solutions are often forgotten, which is why the result can be unpredictable. Solution: Document all agreements.
Fourth is employing the wrong people. There are projects that are suitable for employees without experience. But some businesses simply cannot exist without middle/senior level specialists. Solution: recruit staff according to your needs.
Fifth is poor communication. This is the lack of feedback, motivation, and informal communication with the team. All this leads to a negative atmosphere where everyone doesn’t feel supported and heard. Solution: communicate your values to employees and implement them yourself. You can arrange short coffee calls, create a chat, and introduce other activities such as weekend getaways.