Google recently conducted a survey to see what young people think about popular brands. It turns out that brands with an entrepreneurial story behind them are considered the coolest.
Companies with cachet among the younger generations included Tesla, Facebook, Apple and Airbnb. Millennials and Gen Zers (the cohort younger than millennials) admire enterprising technologists like Elon Musk and Steve Jobs for their success inventing tech that has reshaped the world around us.
Though youth imbues a sense of possibility but inexperience blinds youth to the realities of entrepreneurship. Below are seven misconceptions young people have about entrepreneurship. Being aware of these will help budding entrepreneurs to establish more successful companies.
1. Education and tech entrepreneurship are incompatible
Steve Jobs, Mark Zuckerberg and Bill Gates all dropped out of school to start wildly successful tech companies. According to their legends, these visionaries didn’t need a degree in order to create multibillion-dollar businesses. In fact, some might say that their education was a hindrance to their entrepreneurial spirit.
But Jobs, Zuckerberg and Gates are exceptions. In most cases, aspiring entrepreneurs will benefit from lessons learned in the classroom. Readers should also note that these dropouts were stellar, dedicated students (inside and outside of the classroom) until they left academia. Zuckerberg and Gates were such good students that they were able to attend Harvard University.
Related: 9 Top Tips For Young Entrepreneurs
2. Great products don’t need to be marketed
Some have a misconception that great products don’t need sophisticated marketing plans in order to catch on. Young people aren’t the only ones who embrace this misconception, but it seems particularly prevalent among young entrepreneurs, who tend to focus on products instead of marketing.
However, it’s important to recognse that “field of dreams marketing” is exactly that – a dream. If you build it, customers won’t automatically come. The market must be educated about new products, especially when they are disruptive.
Take the iPod as one example. The product itself had been done before. Sony had already produced MP3 players. But the iPod caught on because the product was particularly well executed, and because of a marketing strategy that captured people’s attention.
The slogan “1000 songs in your pocket” was a stroke of marketing genius that helped to propel Apple to new heights.
3. The most successful businesses are based on the best ideas
As entrepreneurs we often believe that the best businesses are based on the best ideas. But in reality, the best businesses are the ones that are able to successfully execute a good idea.
While these two notions are similar, they are not the same. Organisations based on a good idea have the ability to address a real pain point with an acceptable solution. Furthermore, they are able to deploy that solution efficiently.
Simply thinking of a great idea is invention, not entrepreneurship. To be a successful entrepreneur, you must learn the business skills required to bring an idea to market.
4. Smart employees don’t need to be managed
Some young entrepreneurs believe that successful businesses simply need to hire smart people, and the rest will work out somehow.
But even smart people need to be well managed. Take Google as an example. In 1998 Google co-founders Larry Page and Sergey Brin hired Eric Schmidt to become the company’s CEO. Page and Brin realised that the organisation would need experienced leaders in order to succeed.
Schmidt ensured that Google had a solid layer of management in place to keep Google’s smart employees on track.
5. The customers don’t know what they need
In some instances, entrepreneurs have been able to start successful businesses by ignoring customer feedback. When Apple was developing the iPhone, most consumers would likely have asked for a smartphone with a better keyboard or a bigger screen. But few could have conceived of the revolutionary device Apple created.
However, while some entrepreneurs are able to develop a product or service that transforms consumer expectations, in most cases, listening to the customer is essential when developing a new business.
6. Success will come quickly or not at all
Young people look at entrepreneurs like Brian Chesky, who was 26 when he co-founded Airbnb, and assume that success will either come early in life, or not at all. But the reality is, success often takes time to materialise.
As mentioned earlier, thinking of a great idea is just the first step in creating a successful business. Execution of that idea is often the most important component of success. But learning important business skills requires years of experience, which is why success often takes longer than expected.
7. Older people aren’t innovative
It’s a misconception as old as time: older people aren’t innovative. The reality is that every successful business relies on a combination of innovation and experience to succeed. In order for your business to move from a great idea to great execution, it will require all sorts of skills, and some of them can only be acquired with time.
Young entrepreneurs often look to a handful of hugely successful companies as evidence that entrepreneurship should take a certain form. In reality, entrepreneurship is more amorphous. Once young people set aside misconceptions about what it takes to launch a successful business, they will be more likely to develop a business that performs well.
This article was originally posted here on Entrepreneur.com.
Going It Alone In Business? 5 Reasons That’s A Really Bad Idea
Being a solopreneur sounds great, but it’s actually a poor choice for your business.
When we read about Elon Musk, Richard Branson, Arianna Huffington and all the other business giants – we immediately see a single champion. Much like old literature traditions where the hero triumphantly wins alone, our legends in business are often portrayed as the singular hero.
Steve Jobs reigning over Apple, Bill Gates towering over the giant that is Microsoft and Richard Branson stylised in his cape throughout the veins of Virgin – this kind of mythology and idealisation of the single hero in business has spurred a new wave of entrepreneurs who call themselves “solopreneurs.” We idealise the entrepreneur who does it alone and doesn’t need a team or support.
If you’ve been doing it alone or aspire to become a solopreneur, let me share with you five reasons to not be a solopreneur – and why the myth of any singular hero, whether in literature or business, is a misnomer and will only hold you back from having the most significant successes.
1. You’ll become a jack of all trades and a master of none
When you are a solopreneur, it’s practically impossible for you to master every skill needed to substantially grow.
Running a business takes a lot of capabilities: Mapping out content, creating it, sharing it, building a tribe, sending out emails, doing sales, attending events and growing the network, coaching, consulting and building out products is a small list of what a profitable business requires.
If you’re weak in some of these areas, it will hamper your business growth and fun.
Related: The Foundations Of Growth
Trying to do it all will soon see you doing low-level activities that pull you away you from making sales, doing projects for your high-end clients and doing the things that help keep the business growing.
2. You can’t scale or grow
Business strategist Jay Abraham says there are only three ways to grow a business. You either get more clients, increase the cost of each transaction or you service your clients with more products. Two of these methods will mean more work.
If you increase clients or increase the number of products you sell, you will most likely need to increase your output.
Since there are only so many hours in a day, you’ll either become your own bottleneck and slow business down – or decide to outsource some of the tasks to your team and ensure business runs smoothly.
3. You won’t have time to do everything you want to do
When you’re overworked and doing it alone, you have no one to relieve the pressure. You have no team to support you, and you have no partners who can take some work off your plate. That means when there are emergencies, you won’t be available.
If a client needs you, your kids need you and a new client wants to pay you a lot for a new project – you’ll have to decide which is most important.
While having a team may not save you from making hard decisions, ideally you aren’t so thinly spread out that you find yourself saying no to more clients, family emergencies and serving current clients to the best of your abilities.With a team, you’ll be able to free yourself more, and you can say yes to more opportunities.
4. You’re more vulnerable to mistakes
Imagine if didn’t have spell check your documents and emails. Or what if this magazine didn’t have editors and any article got through? I’m sure you’d agree, the quality would be lost, and it’d likely result in many lost customers.
In my life, I’m lucky to run a business with my wife and my team. Having a team helps me to not only “cut once and measure twice,” it also relieves some of the pressure to be perfect. It helps me to do my work, knowing my team will help me, and that inspires me. Doing it alone would be too stressful.
Having a team will allow you to call upon a support network, hand off jobs and have an extra set of eyeballs when you’re delivering a service.
If you’ve aspired to be like Elon Musk, Richard Branson, Arianna Huffington or any highly successful entrepreneur – take some time and study them and you’ll find they love building and being a part of a team. Soon you’ll find out all these legends have a team, an incredible support system, and they don’t do it alone.
5. You can’t ever sell your business
In most entrepreneurs’ minds, the idea of selling isn’t there until decades after starting the business. But, it’s something that if given the opportunity most of us would do.
Even if you wouldn’t sell your business, isn’t nice to know that if you wanted you could take your business and get paid one lump sum equaling years of work?
Or if you don’t want to sell your business, maybe you want to step out of business but collect payments and keep it in the family – well, if you’re a solopreneur it’s tough to ever to work yourself out of a job.
This article was originally posted here on Entrepreneur.com.
Start This Business With Zero Advertising Budget And No Need For Premises
What do we need to do to make our chances of entrepreneurial success as high as possible? Is it possible to build and position a business that has the highest statistical chances of survival? How would we even go about building such a business? Financial Freedom Project seems to have the answer.
What are the causes of most business failures?
When it comes to business failure in South Africa, the numbers aren’t optimistic. Some of the more common reasons for business failure include:
- Start-up funding
- Ongoing support
- Lack of new business to sustain growth
- Admin time / costs associated with running a business
- High cost of equipment / premises
- Advertising budget
- Cost of personnel labor
- Legalities of employment contracts
- Costs of credit
- Market experience
- Competition within the industry
- Current market conditions.
With the odds stacked against you, what type of business could you start that offers you:
1. Minimal start-up funding
Consider minimal start-up funding requirements to mitigate as much risk as possible and make start-up as easy and quick as possible.
We need to go as low as less than one month of one month’s average salary as so to be able to start this business on the spot. Let’s make our criteria less than R10 000.
2. Mentor/ Trainer support
For support and experience we need to have easily accessible communication methods with a mentor / trainer i.e. WhatsApp and skype.
3. Access to a market full of customers with unlimited spending ability
Want a colossal market, how about an estimated 5.3 Trillion Dollars a day?
4. No need for an advertising budget
Maybe a business where customers come to you without advertising because they want what you have. Let’s be ridiculous and put a zero advertising budget.
5. Minimum paper work / admin requirements before and after sales
Let’s aim for no admin and have everything processed and stored online for absolute minimal ongoing costs.
6. No premises required
You can work from anywhere at minimal cost and only need one computer.
7. No employees required
This business must be able to run as a “one man show” as to exclude all labor costs and employment legalities. As in previous point, let’s aim for one person to run this business and internet to stay connected to the world.
8. Little competition
This industry offers the least possible competition between participants.
9. A industry with no “seasonal times” so you can make money all the time
To get a never ending supply of opportunity we absolutely have to be a part of the global supply and demand system.
10. A proven concept
This will be outlined below.
What’s the business?
Financial Freedom Project provides you with a long-term financial freedom by utilising financial markets. The Financial Freedom Project is a results-based wealth creation training and mentorship programme that has start-up capital requirements of only R4 000 to begin accessing markets. The course requires only 3 days of your time and offers unlimited course re-sits.
For more information about how you can work with Financial Freedom Project visit financialfreedomproject.net or call them on 010 020 5699 for further info.
BrightRock’s 5 Entrepreneurial Tips For Start-ups
Schalk Malan, co-founder and executive director, shares five tips that he says were instrumental to BrightRock’s success thus far.
After six years in business, needs-matched life insurance player BrightRock is widely regarded as the fastest growing player in its segment. By the end of 2017, they have achieved an annualised premium income of of over R1.1 billion and a year-on-year growth of 62%, relative to the industry’s growth of 8%. Schalk Malan, co-founder and executive director, shares five tips that he says were instrumental to BrightRock’s success thus far:
1. Get the right people together
It all starts with a shared goal to make a difference – in our instance, we shared a vision to change the life insurance industry through a unique, needs-matched product that would make BrightRock stand out from the crowd. We ensure that this vision is embedded in the actions of each and every one of our employees by encouraging a collaborative and entrepreneurial spirit, which in turn continues to enable us to drive the business forward.
2. Always put your clients’ interests first or build products that really create value for your clients
We put clients’ interests first by designing a product that tracks the changes in clients’ financial needs over time, so they pay only for the cover they actually need. It’s more cost-efficient and sustainable, because we strip out wasted cover to deliver premium savings. In doing so, we also create more value for our clients. But it’s not just the product that puts clients’ interests first:
By communicating our cover in simple, plain language without intricate terminology and clauses, our clients are empowered to understand what they signed up for. This principle of client-centric design can be applied in any business.
3. Play on a differentiated playing field >>> Stand out from the crowd, create your own niche
BrightRock operates in a competitive and well-established market, so we understood we couldn’t compete if we simply did things the way they’d always been done. We created our own playing field with new rules, where we differentiate what we do in every facet of our business. This is done on various levels – from our highly advanced product and systems architecture; to having the best claims definitions in the market; to offering a high touch; personal claims experience; personalised documentation; various initiatives offering support for independent financial advice; to our content-led consumer marketing strategy.
Related: Bright Futures
4. There will be twists and turns, no new business perfectly follows the original business plan
Any successful entrepreneur will tell you that you will need to constantly adapt and make changes to your business plan to stay at the top of your game. This needs to be done without compromising on the reasons why you started your business. One of many examples of this in the BrightRock story is that we originally had envisaged a Johannesburg-based head office. These days, we have a large contingent of our staff based in Port Elizabeth – delivering cost efficiencies and service improvement to our servicing model, much to the benefit of our clients.
5. Never give up
In the beginning of any new venture, it is hard because many people doubt you. We were told we were nuts to leave successful careers to start something new and take on the big boys. That doubt can be crippling if you let it be. You’re constantly watching the cash flow and new business numbers and need to recruit and motivate people based on a promise of what the business will become. There will be many sleepless nights and dark-hours-of-the-morning butterflies-in-the-stomach, but just keep going – your perseverance will eventually pay off.
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