What Does an Entrepreneur Need to Know?

If you’ve decided to venture into entrepreneurship, I have some useful advice for you (since I’ve also completed an entrepreneurship course – one is always learning). I read a piece of advice for startups somewhere: Tell your customers what you do, how it can help them, and why it is good for them! In other words: WHAT, HOW, and WHY! The most important trait of an entrepreneur is to devise solutions for new situations (changes, limitations…).

Many people can awaken the entrepreneur within them, even if they are not aware of it. Whether that entrepreneur will be successful depends on a number of factors. The most important thing is to thoroughly plan the entire concept. Before entering any business, analyze the market in detail, estimate all important parameters, and plan the entire workflow from start to finish. Of course, you can also take a different approach – start the business and discover what is needed and where you’re going wrong along the way, but that is a more uncertain and expensive option. Essentially, everything is uncertain, even when you prepare and plan everything in advance, but the first option minimizes risk.

You have a small test of your entrepreneurial spirit ahead of you. Try to answer the following questions:

WHAT Are You Offering – Product or Service?

Question Yourself: What do you want and love to do, and what are you good at? This is the vision and will determine the strategy moving forward. Remember: “Do what you love, and you’ll never work a day in your life.” – Question Your Environment: Find out what captures the most customer attention. Identify your biggest competitors. Gather and analyze all relevant data and cross-reference them for a final conclusion (sources can be professional literature, potential customers, the internet). Conduct a Strength Weakness Opportunities Threats (SWOT) analysis. – Define the Product: What is its utility value? What is its potential? What would be your Unique Selling Proposition (USP) compared to the competition? You don’t have to be the first in a field, just better than others. “Everything you can do, I can do better!” You must differentiate enough for customers to want to buy from you. Ideas and creativity are what set us apart and yield real results.

WHO Is Your Target Audience?

Who is Your Target Group? Who will buy your product? A successful and large business is based on having customers who are strangers to you, but you must know their profile (age, where they live, how they live…). Not only at the beginning but also during the process and after the consumption of the product or service, you should monitor customer satisfaction and continuously improve your activity. When you sell a product, it’s not the end – it’s a new beginning because for a sustainable business, repeat purchases and loyal customers are necessary. – Marketing Mix 4P (Product, Price, Place, Promotion): An optimal marketing mix is prepared for a specific target group. Depending on the target group, you can have a premium or basic product. In a sea of offers, you need to advertise and highlight what makes you better, at least at the beginning. Promotion is like a metro network. Your customers typically don’t have a single communication channel for getting information. People’s habits are different. Therefore, you need to combine various channels and check the effects. What gives you the best Return on Investment (ROI)?

HOW to Implement?

How Do You Plan to Distribute Your Goods/Services? Directly or through intermediaries? Is the intermediary willing to cooperate and under what conditions? Is it profitable for you? – How Will You Organize the Workflow? Can you ensure a continuous supply of raw materials? – How Will You Ensure Consistent Quality of Products and Services? Do you have sufficient capacity? – How to Plan Growth If the Idea Proves Successful? How to transform if the need for change arises, and what is the adaptability potential?

HOW MUCH Will It Cost?

How Much Money Will Be Needed? How much do you need to invest in equipment? Do you have the financial means to start (from your own or borrowed sources)? – How Much Money Do You Need for Living and Financing the Business Until You Become Liquid? When will you start making a profit (break-even point)? – How Many Potential Customers Have You Planned for on a Daily Basis? Is that enough revenue for short-term and long-term planning?

The final question is: Is it worth implementing this idea?

A successful business begins and ends with money. The most important thing is to stay liquid. When you embark on the adventure called “entrepreneur,” you must know that obligations and costs towards the state begin immediately. Whether you work or not, have customers or not, you will have to pay taxes. Here are a few key recommendations from people who have already tried private business and made mistakes we can learn from.

Key Recommendations:

Cash Flows: Planning and regularly monitoring inflows and outflows of funds are crucial. – First, pay debts to the state and suppliers, then invest. – Do not sell to customers on credit. – Do not pay suppliers in advance. – Extensive Sales Network: Try to have as many customers as possible, don’t rely only on the big ones – small ones are important too because they provide independence and security. – Inventory of Raw Materials and Finished Products: Monitor them and keep them at an optimum level, as excessive inventory ties up money, and insufficient inventory leads to missed sales or production delays. – Innovation: Always think about how you can improve the product, process, organization, marketing… – Be Fair to Everyone: It will come back to you when you least expect it.

Final Note:

Always respect the inviolable rule: do the job as best as you can. The truth is very simple – be honest in quality and in your relationship with the consumer/client, and they will be loyal to the brand.