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This post was written by Athan Slotkin, CEO of The shadow CEO.
Corporations are having a hard time filling jobs after the global health crisis left millions unemployed, as well as completely redefining the idea of workers about job security and, ultimately, what it means to live and work. Instead of working for large company contracts, many want to launch their business dreams or venture into the freelance world. Parallel to the uncertain economy that is driving people towards self-employment, young graduates unable to find work We also have a unique opportunity to dive directly from student to entrepreneur or business owner. Where do start-up businesses start and what businesses are needed right now?
Tip 1: Choose a company that has large profit margins.
Margins translate into profits. Profit is the reason you run your business, although of course you want happy customers as part of that. However, as business owners, things always happen: a surprise cost, a price increase from a dealer, a change in the cost of goods or services. Likewise, overheads are always part of all businesses, including employees, contractors’ rent, and other expenses. As a startup, you can’t afford to have a high-volume, low-margin business. It will take time to get to scale and even then you may not be in a volume-focused industry. So before you do anything, make sure each unit you sell has more than enough margin for your business to achieve overall profitability.
Tip 2: Pick a business that you are an expert in or are willing to become an expert in.
Core competencies are what will drive your business. However, as a leader, it is extremely valuable to you to understand the nuances of your business operations. Therefore, you must have the knowledge of your business or be willing to become an expert in the business. In the beginning, you will have to do a lot of things yourself. There will be fewer people and you will have to take on more as a leader and fill those gaps in the team. But even as you grow up and have more team members, people may drift away and you will once again have to step in. You need to be able to do this and avoid missed opportunities, unhappy customers, or sleepless nights. However, the most important thing about all of this is that it will make you a more effective leader. Whether it’s a tech business or an auto shop, knowing the technical aspects of what your team is doing will help you lead more effectively and make better business decisions. You will also be able to promote the business in a passionate and intelligent way, giving your team the drive and determination you want to help your business prosper.
Tip 3: Think medium and long term.
Building a business is not a sprint, it is a marathon. Your job is to start with a “non-scalable” foundation and then figure out how to scale what you offer most effectively. It will take time to get to the scale you want. There is no overnight success; even those that seem like overnight hits took a lot of work to develop and build. Be patient.
Tip 4: Know your numbers (finances, including the “unit economy”) inside and out.
Unit economics refers to how much revenue and how much it costs to sell a unit of your product or service. It is the lifeblood of your business and your finances. You need to know this and your business numbers inside and out. You need the ability to efficiently lead and make impactful decisions every day, including how to optimize time, when to start new initiatives, and whether you can afford to hire someone. And it can’t be a complete exercise every time. In 2021, hopefully, we will have online learning, YouTube, and a host of other resources at our disposal. If you want to be an entrepreneur, numbers are the center of everything.
Tip 5: use technology.
Is your friend. Fortunately, we are in a time where everything is accessible online to learn through YouTube, online videos, and classes. So if you don’t know now, it’s time to learn. And you can’t afford to resist technology. All companies, physical and digital, will have automation at the center in the coming years. It’s happening everywhere, so it’s crucial that you fully understand how automation can fit your business. The evolution towards business automation is making companies more competitive and will give you the opportunity to have better finances, consistency and margins for your business.
Bonus tip: you are your brand, get out there!
Understand social media, use it, and blatantly self-promote. You should feel comfortable showing your business, yourself, and delving into why you created your business and why it is worth something to the world. If people don’t know about the business / product / service, they can’t buy it.
Taking these tips into account when starting your business is sure to benefit your company and help you achieve the success you have striven for. You may not be able to make a fortune overnight, but you will be on your way to unimaginable accomplishments and accomplishments. It is noteworthy for anyone looking to start a long-lasting, prosperous business.
Athan Slotkin is an American business strategist, entrepreneur and former professional poker player.
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