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Published on November 6, 2018

How to Start a Successful Business and Increase Your Profits

How to Start a Successful Business and Increase Your Profits

It’s Sunday evening and you’re not looking forward to the start of the week. You’re not a pessimist but you can help to feel a sinking notion in your stomach–it’s the feeling of torture of another work week. You’ll attend boring meetings, dispute unimportant ideas, and desperately stare at the clock–hoping to see 5:00 pm.

You’ve dreamed of starting a successful business but you didn’t feel capable. After all, you’re not a computer nerd or have any business experience. So, you’ve kept your head down and crossed this dream of your list.

But, what if you were wrong? What if there was a better way to start a business? Not only that but you’d generate a higher income than your current job.

The good news is that it’s possible, but you need to change your approach. I’ve also been in this dark place–not believing I was worthy of building a successful business. But after 3 years of experimenting, I’m finally seeing some success.

I’ve made countless mistakes and learned which strategies work from other successful entrepreneurs. My hope is that you avoid the long road I took and to learn from my mistakes. More importantly, adopt proven strategies from other successful entrepreneurs and avoid wasting time.

Here’s how to start a successful business–one that you’ll be proud of:

1. Build your business around your lifestyle

“If you fail to plan, you are planning to fail!” – Benjamin Franklin

Don’t fantasize about starting a business so much that you forget why you’d wanted to start one. Sure, you want the freedom to choose which types of projects you’ll work on–but don’t create another job for yourself.

Take for example an entrepreneur who decides to start their own pie business. This person commits and quits her job to work on her business. After a few months, she’s earning a sustainable income. The only problem is that she’s no busier than ever.

She works 60 to 80 hours each week and doesn’t know how long she’ll be able to sustain her business. This is the case for many entrepreneurs who fail to plan. Before brainstorming business ideas, decide why you want to become an entrepreneur.

Do you want to spend more times with your family? Or travel the world? Whatever your reason, be clear on why you’re starting your business.

Once you know your reason, start building your business around your desired lifestyle, not the other way around.

2. Don’t wait for all the green lights to pick your business idea

You’re clear on why you’re starting your business, now what?

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Decide what type of business you want to create. Some examples include opening a restaurant or selling online products and services. Brainstorm a few business niches you’d like to explore (i.e. health, finance, and fashion.)

A few years ago, I was clueless about which business idea to choose. After stumbling upon blogging, I failed miserably along the way. My biggest mistake was spending months designing my blog.

The truth is building a blog is one of the most important things you can create for any business. It allows you to deepen the relationship with your customers by providing value. But it’s also time-consuming, making you prone to waste time as I did.

Instead, skip creating a blog and provide valuable content on an existing platform. This will help you determine if your business idea is something you’d like to pursue long-term while getting audience feedback. The best platform to do this is Medium for written content.

But if you love to speak, start a Podcast. You also have the option to create your own Youtube channel if you enjoy being on camera. Your goal is to produce quality content as soon as possible.

Jot down a few ideas and narrow your list down to 1 to 3, then focus on producing quality content. Once you’re confident about your idea, brainstorm how you’ll monetize it.

3. You don’t need business experience to get started

The best part about building a business is that the market doesn’t care about your experience.

If you can solve a problem, the market doesn’t care about a college degree or your business experience. Many entrepreneurs have built successful businesses without the help of their degree.

For example, Richard Branson quit school at age 16. Today he’s the founder of the Virgin group and worth billions. Bill Gates received his degree from Harvard 30+ after dropping out.

I share these examples to show that a college degree doesn’t make or break a successful business.

Instead, start a business on a niche that interests you the most.[1] Chances are that you’ll have some knowledge in this area. Eventually, you’ll become an expert on the topic you choose.

4. Don’t invest any money in legal

Investing money in your business is great only if you’re investing in the right areas.

An issue many entrepreneurs face early on their journey is spending money on legal fees. For example, when they have an idea they start registering their business or pay for patents. This may have been the route a while back, but it no longer is the case.

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Unless you’re creating medicine, there’s no need to spend any money on legal fees. Here’s why many times you’ll change your mind about an idea. You might discover that the type of business you’ve created isn’t one that you enjoy working in.

Wait until you’ve built a proven idea that you enjoy working in before you consider legal fees.

5. You don’t need to invest a fortune to start a successful business

A few decades ago, starting a business was an option only for those with enough money–this isn’t the case anymore.

The internet has removed most barriers, creating low entry business costs. For example, you don’t need to waste money on paying rent if your business is online based. You also have the opportunity to create profitable products (courses, and books) at a low cost.

You can build a website for less than $100 or spend a few hundred hiring a professional developer. Gary Vaynerchuk says that these are some of the best years to start an online business. Not only do you have low business costs, but you’re now able to reach more customers.

How?

By using Facebook Ads to target your customers at a low cost. The internet is making it easier to do business for online and offline businesses. Get practical and spend only on what’s necessary for your business.

6. Surround yourself with all types of people

“You are the average of the five people you spend the most time with.”

If you’re an entrepreneur, you should only be around other entrepreneurs, right?

Wrong.

Entrepreneurship is a long and lonely journey. The truth is you’ll benefit being around other entrepreneurs and learning from others.

For example, your friends and family can potentially be your customers. Use this knowledge to test your product or create new features. Be willing to learn from everyone but also be careful with who you spend most of your time with.

Take my case, for example, when I was in high school, I began hanging around the wrong crowd. Being a good student, I didn’t imagine this would have any effect on me. Eventually, my grades dropped and I began caring less about school.

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As an entrepreneur, similar instances can happen to you. Surround yourself with supportive people who’ll help you in your lowest points. Spend less time with those who don’t believe in your goals.

7. Learn more about other things besides business

It’s not uncommon for entrepreneurs to read.

Bill Gates claims to read 50 books per year, and Warren Buffet recommends reading 500 pages per day. So you should only read business books, right? Yes and no.

Business books will teach you more about running a business effectively but these shouldn’t be the only types of books you read. You’ll limit your growth in other important areas for your business.

For example, human psychology is important to better understand how your customers think. Reading fiction can spark creativity for you to innovate in your business. The truth is expanding the type of books you read will only benefit you.

Mix it up by creating a reading list in a variety of categories. Also, join book clubs to become inspired to read different types of books with others.

8. You don’t need to wait 10 years to see profits

It’s true, building a successful business takes time. But this doesn’t need to take 10 years.

To be clear, there are no shortcuts to building a successful business. But you can save time by avoiding common mistakes. The best way is by learning from entrepreneurs who’ve built successful businesses.

Listen to their podcast, buy their products, and stalk them on social media (not in a creepy way.) Master being a student and you’ll spot patterns that contribute to their success.

If you have extra money available, hire a business coach. Your other options are joining masterminds or business groups. It’ll be easier to succeed when you have a strong support system. One that challenges you to grow and helps you avoid common mistakes.

9. Focus on value instead of money

“Serve a million people—and serve them incredibly well—and the money will follow.” – Dharmesh Shah

Focusing only on making money can be toxic.

Many people have ended their life after losing their entire wealth. This doesn’t mean that wanting to build large wealth is bad; but putting money on a pedestal is. Instead, focus on a higher purpose.

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When you focus on giving more, you’re more likely to build more wealth.

Gary Vaynerchuk shared a story of a time when he delivered a low-end wine to one of his customers during a snowstorm. He didn’t expect anything, but this customer’s wealthy son later placed a large order with Gary.

This doesn’t mean that you should give for the sake of receiving something. Give out of the intent to help others and experience the positive benefits. Studies have shown that people who give money away experience happier moods.[2]

Focus on increasing profits for your business but remember to have a higher purpose.

10. Be fulfilled running a profitable business

Entrepreneurship is a lonely journey. It’s a journey where you’ll fail dozens of times. But if you want to live your dream life and impact other people’s lives, it’s a journey you’ll need to take. Imagine not dreading Monday’s anymore, every day’s a Friday.

You still have challenging days but you’re now more in control of your life. Although your income is increasing, that’s no longer your motive. You’re motivated by the positive impact you’re making to other people’s lives.

You’d started this journey wanting to build a successful business. Now you’re looking for more ways to impact people’s lives. To others, you look the same, but you know you’re a better person than before.

Wouldn’t this be amazing?

Final thoughts

Stop letting your fear take over and begin taking action towards your dream lifestyle. You now have a mini-blueprint on how to get started.

Don’t waste time fumbling on bad ideas, building unnecessary websites, and learning alone. Instead, surround yourself around amazing people and invest in you’re personal growth.

It took me years to learn from my mistakes. It doesn’t have to be the same for you. Your business idea is waiting–will you have the courage to pursue it?

Featured photo credit: Tim Mossholder via unsplash.com

Reference

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Christopher Alarcon

Content Marketer and Finance Analyst

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Last Updated on May 15, 2019

10 Most Successful Entrepreneurs and What We Can Learn from Them

10 Most Successful Entrepreneurs and What We Can Learn from Them

Apart from making crucial decisions for their own businesses, entrepreneurs innovate and grow their ideas. Albeit there being no cookie-cutter answer that fits everyone’s experiences, taking a look at some of the most successful entrepreneurs today, you might spot some similar traits and characteristics.

Starting and nurturing a business entails a great amount of hard work and commitment. However, for aspiring entrepreneurs who are prepared to dedicate themselves to their vision, here are 10 most successful entrepreneurs you can learn from:

1. Melanie Perkins: Know Your Worth and Keep Trying

    Melanie Perkins founded Canva, a Sydney-based business valued at $1Billion having successfully raised a number of rounds of successful funding and boasting more than 10 Million users in 179 countries.[1]

    She told BBC that one of the biggest challenges she faced getting into the business was talking about her company’s accomplishments when she first got to Silicon Valley. She attributed this difficulty to a cultural difference where Australians tend to ‘talk down’ their achievements and this would slow down her fundraising progress for a few years.

    Despite hundreds of rejections, Melanie emerged three years later with a much clearer strategy and stronger investor pitch that prompted a series of fundraising rounds netting the company $82Million of funding in total.[2]

    2. Bill Gates: Keep Learning and Exploring

      If you don’t know Bill Gates, you likely know the company he founded – Microsoft.

      Bill Gates’ story is a prime example of nurturing an idea that might seem out of this world but make sense in the future. One of the most successful entrepreneurs in history did not complete his degree at Harvard University to pursue a vision that the technology would soon become the future.

      He told a white lie to Altair, saying that he had made a computer program for them, therefore pushing himself to create a system that would change modern history.

      “The most important speed issue is convincing everyone that the company’s survival depends on moving as fast as possible.”

      Gates’ success is built on self-improvement and the seeds of an idea.

      3. Elon Musk: Never Stop Innovating

        Traditional thinking suggests that in order to become a successful entrepreneur, one must focus in a single field or industry.

        Elon Musk, however, breaks that rule.

        Today, the multifaceted tech entrepreneur, investor, and engineer advocates for the diversification of skills and businesses by delving into various fields of interest.

        When done right, skills in a single domain can be carried over then applied into contrasting industries to create something new the world might need. Musk owes his accomplishments to a constant thirst for knowledge.

        Having birthed Tesla and a myriad of products across the arenas of aeronautics and software design, Musk continues to evolve as an entrepreneur and plans to innovate for the long haul.

        4. Richard Branson: Develop People First

          British entrepreneur Richard Branson founded Virgin Records in the early 1970s. Virgin Records has since grown into the Virgin Group, today responsible for over 400 companies.

          The billionaire is strongly particular about working with a team that shares his core values and aspirations.

          Branson believes that managing a business can become taxing, thus he acknowledges his employees for putting in the effort that they have.

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          A good leader knows how to raise morale for positive productivity. Utilising emotional intelligence and compassion is a game changer in seeing results within a team.

          Branson’s supports the idea of nurturing a positive work environment, with the belief that credentials must go hand-in-hand with an enthusiasm for work.

          5. Jeff Bezos: A Relentless Focus on Customer Satisfaction

            Having founded Amazon, Jeff Bezos is known to be one of America’s most successful entrepreneurs. The e-commerce pioneer fixates himself on angry customers with the belief that a business’s loopholes are found in the experiences of unsatisfied customers.

            For the 8th year in a row, customers have ranked Amazon as the number one in customer service (according to the American Customer Satisfaction Index).

            While numerous companies ignore unhappy customers, Bezos found success in learning from reviews and surveys. By focusing on customer service, Amazon shows they care, both for their customers and for rising above their competitors.

            While praise and recognition are signs that a business is accelerating, criticism is an opportunity to improve a product or a service.

            6. Mark Zuckerberg: Start Small, Think Big

              Valued at over 55 billion dollars today, Mark Zuckerberg built the first version of what would become a social networking giant in his Harvard University dorm room. As one of the world’s youngest entrepreneurs, Zuckerberg undoubtedly took countless calculated risks to get his brilliant idea to its current status with 2.38 billion active monthly users.

              “The biggest risk is not taking any risk.”

              He’s always daring to explore with a fearless mindset.

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              The young tech entrepreneur never shied away from innovating outside of the box. Soon after Facebook became a hit to users and advertisers, big corporations took interest in buying Facebook from Zuckerberg.

              However, he took the risk and decided to stay with his creation. Turning down billions of dollars offered by Yahoo CEO, Terry Semel, he envisioned turning his brainchild into something much bigger than what it already was then.

              7. Steve Jobs: Live Your Own Dreams

                Steve Jobs lived a rocky path all his life and an aspect of which is a tumultuous career.

                The founder of Apple endorsed his beliefs on the temporality of life and limitations of time. He preached about the importance of working on the very legacies people wish to leave behind, an achievement he’s undoubtedly etched into the the archives of human history.

                Never one to hide under someone’s shadow, Jobs did not live by anybody else’s principles so he formed his own. He tirelessly dedicated himself to building a unique brand of products that became the benchmark for contemporary technology.

                After his highs and lows through his brief battle with cancer, Jobs concludes with yet another lesson to takeaway from his remarkable life. “No matter how much money you have, even the richest man can’t buy time.”

                8. Warren Buffett: Balance is Essential to Success

                  Despite being the third wealthiest person in the world, Warrant Buffett sported a frugal lifestyle for most of his life.

                  After buying a house in Omaha, Nebraska for just above 31,000 dollars, he has lived there since 1958. As a leading investor and a founder at Berkshire Hathaway, Buffett believes in setting aside an amount to save and spend only on necessities.

                  With a long term goal as a top priority in mind always, treating oneself can be sustainable once in a while. He advices to save money by deciding first and foremost what aspects to scrimp on and what aspects to splurge on to ensure a happy and balanced lifestyle.

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                  9. Jack Ma: Never Give up

                    On every journey to success, everybody stumbles and arrives at roadblocks. Some more than most, like Jack Ma, who survived countless rejections and failures only to get back up and brave every storm.

                    Ma is the founder of multinational technology conglomerate Alibaba Group. Despite being rejected to Harvard after every one of his 10 applications, Ma was never defeated.

                    His grit and tenacity is a fine testament to the fact that grades do not determine a future. While qualifications on paper are important, the development of skills and an attitude is just as helpful in making a recipe for success.

                    Despite finding himself in the verge of bankruptcy in the 1990s, Jack Ma possessed the resilience to put one foot in front of the other until he finally made it. “It’s important to have patience,” he says.

                    10. Tan Min Liang: Passion Can Pay Off

                      Tan Min Liang is the founder of the leading high-performance gaming hardware, Razer. Always on the look out for new opportunities to connect and scale his business, Tan has been bold in making many of his life’s decisions.

                      Having deviated from a traditional path set by a family that consists of doctors and lawyers, Tan was to find his life’s work and passion while gaming with his older brother.

                      The idea was simple: there were so many games out there to play, however, there were hardly any gaming equipment to match this.

                      So he dropped out of law and began going a different direction, into creating solutions in the gaming industry. At the start of 2019, Tan wrote to tech luminary Elon Musk to which Musk’s reply suggested of a joint venture between two of the most successful entrepreneurs today.

                      Final Thoughts

                      In today’s cutthroat world, the road to becoming a successful entrepreneur is a long and arduous process trailed with ups and downs. A valuable lesson that a good hand of entrepreneurs would love to convey to aspiring entrepreneurs is to keep the spirit of innovation and to explore uncharted waters.

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                      Learning from experience and failure is one direction to a desired end goal. Exhibiting the same dedication and grit so many entrepreneurs have through their unexpected careers – today’s budding visionaries ought to hang on their dreams and leave room for improvement along the way.

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                      Featured photo credit: Patrick Tomasso via unsplash.com

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