Starting a Business and How to Start a Successful Business
But in recent years, you can hear the phrase ‘starting a business everywhere. From radio, newspapers, radio, VTV even from students of a specific school.
What is a business startup?
Starting a business is the process by which an individual or a group of individuals exploits a commercial opportunity with an innovative idea such as: Bringing a new product or service to market, or improving an existing process or production method. . This process is usually done through a new organization (founding a company), but can also occur within an established business that is undergoing a significant product or strategy change.
Why entrepreneurship is important to the economy
Entrepreneurship is important for several reasons, from driving social change to driving innovation. Entrepreneurs are considered a national asset to be nurtured, motivated, and paid to the highest possible extent. Some countries like the United States lead the world thanks to forward-thinking individuals, research, and business. Here are the benefits of starting a business.
Start a business that creates jobs
Without entrepreneurs, jobs would not exist. Entrepreneurs are people who take risks when starting a business. Starting a new business will create new jobs. At the same time, new products and services can create a cascade effect. They stimulate businesses or related fields that need to support new business activities, promoting economic development.
For example, technology companies laid the foundation for the information technology industry in India in the 1990s. The industry rapidly expanded and many other sectors benefited from it. Businesses in related industries – such as call centers, network maintenance companies, hardware vendors, etc. Education and training academies nurture a new generation of IT workers who get better and better-paid jobs.
Similarly, future development efforts in other countries require strong logistical support, capital investment, and a qualified workforce. From highly qualified programmers to construction workers. In the US alone, small businesses created 1.6 million jobs in 2019.
Start a business to increase national income
Business ventures help create new wealth. Existing businesses may be limited in the current market and reach their income limits. New products, services, or technologies allow businesses to develop new markets and create new wealth.
Starting a business creates social change
By offering unique goods and services, businesses reduce their reliance on outdated systems and technologies. This leads to improved quality of life, morale,, and economic freedom.
For example, smartphones and app marketplaces have revolutionized work and play globally. Phones in general and smartphones, in particular, are no longer a device reserved for countries or rich people. More than 5 billion people worldwide are already using mobile devices. As the smartphone market continues to grow, tech entrepreneurship could have a profound and lasting impact on the world.
Globalization of technology helps businesses in developing countries have access to the same tools as their counterparts in developed countries. However, they have the advantage of lower labor costs. So a product from a startup in a developing country still has a chance to compete with an existing multi-million dollar product in a developed country.
Start a business to help develop the community
Entrepreneurs regularly nurture the entrepreneurial ventures of like-minded individuals. They also invest in community projects and provide financial support to local charities. Some famous entrepreneurs, such as Bill Gates, have used the money to fund projects ranging from education to public health. This allows their business to make a mark and build credibility in the community. Also, create new connections outside the company.
You can read the previous article here: Professional Office Manager Skills
5 principles to know before starting a business
Bird in hand
You must have heard the adage: one bird in the hand is better than two in the bush. The bird in hand principle implies: Start with what you have. That means when you start to come up with a business idea, review your future relationships, and background knowledge, and find your strengths. Then visualize the scenarios that come from those things. With the above principle, you will start from your strengths & passions. These will lay the foundation for you to take better control of the future.
This principle focuses on the downside risks. Risk is limited by understanding what can be lost at each stage, instead of going in a win-win or zero-sum fashion. To apply this principle, you simply choose an action goal where gain and loss co-exist, but gain outweighs the loss.
Everything complements each other. Instead of focusing on competitive analysis & thinking that competitors are enemies. In this principle, startups let employees focus on their work instead of caring about competitors. They turn customers and competitors into strategic partners.
Building customer relationships in the first place forms the basis of many businesses. Don’t spend a lot of time collecting a lot of customer data. Focus on target customers that you understand very well. From there, it will be a basis to build your custom segment and find your blue ocean.
“If life throws you lemons, make yourself a glass of lemonade.” The Lemonade Principle refers to being able to turn unexpected difficulties or misfortunes into opportunities. This principle is considered the core mindset leading to the success of entrepreneurs. Instead of creating situations (if – then) to face the worst situations in life. Take surprises as an opportunity to create new markets.
The typical person for this mindset is Steve Jobs. Failing to compete for power at the company he founded, Jobs had to leave Apple, then return to Apple 10 years later in an executive role; When Steve Jobs ran Pixar, he failed to negotiate with Disney to co-produce some animated blockbusters, but then the acquisition of Pixar by Disney made him Disney’s largest shareholder. The ups and downs and unexpected events in business Steve Jobs always surprised others when he turned the tide and became the winner.
Pilot in the plane
This principle says that entrepreneurs should take action instead of predicting the future. Because the future (market) is up to us to decide. By focusing on the things he can control, the entrepreneur knows that his actions will lead to the desired results.
When you are the pilot of the plane of your life and the company you founded, that is to say, you can control the future without predicting what will happen. The question is, how can I control what I don’t know? Does the answer come from where your beliefs about the future come from? The traditional approach is that we control the future only as long as we can predict it. Efficiency-oriented entrepreneurs think this way: the future is not there to be discovered but is created from the strategies of those in the business game.
Starting a business is when an individual or an organization dares to commit to creating something new in an environment of extreme uncertainty & uncertainty. The startup business is like a roller coaster, up – down and at breakneck speed. Sometimes there is not enough information but still, have to choose the best option to make a decision. Therefore, if you embark on the path of starting a business, you need to know the 5 principles and always keep your own “fire” to be able to create a successful business.