Entrepreneurship 101
Entrepreneurship is the science and art of discovering profitable solutions to problems. Every successful business owner has been able to observe problems existing and come up with solutions that when implemented will result in profits.
Bearing this in mind, let us now look at top three considerations when starting a business.
1. Imperfect world = Infinite problems = Uncountable business opportunities
We don’t live in a utopian society where every person needs and wants are satisfied, where there is no illness and other unpleasantness of life. As I mentioned in previous post, money is everywhere because problem is everywhere.
Do take note and take advantage of the fact that we live in a not so ideal world which means there will always be opportunities to make money, it is just that you have not see it. Although Friendster and Yahoo solved the problem of online social networking and online search, but Facebook and Google solve them better.
Remember the success of business is directly proportional to how many people face the problem and how well the business solve it. There are many retail businesses before Wal-mart, but only Wal-mart is able to supply products cheaper and at convenient locations.
2. Start to look around, discover problems, and then think to solve it.
As I mentioned before, money lies in widespread problems faced by many consumers. Sometimes, a million dollar problem is the one face by oneself as in the case of “Liquid Paper” which is invented by Bette Nesmith Graham.
Bette Nesmith Graham found work as a typist; she unfortunately wasn’t a very good one and developed a white tempura paint to hide her mistakes. Using her kitchen and garage as laboratory and factory, she gradually developed a product that other secretaries and office workers began to buy. While continuing to work as a secretary, she educated herself in business methods, promotion, and research until she was satisfied that the product she had developed was really worthwhile. She then offered Mistake Out to IBM which turned it down. Undaunted, Bette Graham changed the name from Mistake Out to Liquid Paper and kept selling it from her kitchen-garage for the next 17 years. By 1968 she was making a profit. And in 1979, the Gillette Corporation bought Liquid Paper for $47.5 million plus royalties.
Image Credits: Liquid Paper
With the new economy, there are problems faced by netizens online too and the volume of people facing a particular problem is high.
3. Customer is king
The key to success in business, to success in solving customer’s problems is of course focusing on customer.
“We all have one boss, and that’s the customer. And customer can fire us anytime he likes by simply taking his business somewhere else.”
Sam Walton
This does not mean focusing on customer’s boobs or his girlfriends, it means focusing on
a. Needs
b. Wants
c. Desires
d. Problems
e. How much the customer is willing to pay for?
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