How to reduce the risk when establishing your own business
Most people, at one time or another, have a job, their time and effort being rewarded with wages or salaries. An increasing number of people, however, are becoming dissatisfied with that time-and-effort economy and seek the greater rewards that a results-economy can provide. This change inevitably means establishing their own businesses, working for themselves, and - if necessary - employing others. This transition from a time-and-effort to a results-economy is a major personal growth experience that can occur with the minimum of risk if you heed this important advice...
1. Know what it takes to succeed.
People who succeed in a results-economy believe two things - that they are prepared to rely only on their own ability to achieve financial security; and that they will never get any opportunity in life unless they have first created value for someone else. Those two considerations identify entrepreneurial behaviour, which applies to any structure - sole trader, partnership, franchise, or limited company.
2. Try to be different.
Most business strategy comes down to one of two things: either doing things differently or doing different things. Few businesses have the luxury of being the only player in a market, so doing things differently will be the only way to differentiate themselves from others in the field. Identifying that area of uniqueness leads to planning and strategic action. Most people recall first and second placegetters in a class and, after that, only those that differ in some way. Few people starting out in business can be number one or two: most have to rely on being recognised for their differences.
3. Investigate your market.
Market and competitor intelligence is vital if you are going to differ meaningfully from the opposition. So get to know as much as you can about those competing in your market. This process must be reviewed constantly: competitors quickly match those characteristics that previously differentiated your product or service from theirs. Change, therefore, is a constant for any business that realises the need to stand out from the rest.
