Entrepreneurship is glamorized in our culture. We’ve all heard stories about the guy who started a business out of his garage and went on to become a multi-millionaire. Apart from inheritance, it is true that the best way to become wealthy is through entrepreneurship but it is far from a guarantee that any business venture will become successful. In fact, 90% of startup businesses fail; 21.5% in the first year, 30% in the second year, 50% in the fifth year, and 70% in the 10th year. Most entrepreneurs try several times before they are successful; entrepreneurship is a career choice suited to those who are willing to dream big, work hard and take risks.
Top 5 Things You Should Know About Entrepreneurship Before Jumping In
1. Identify a need to fill
The businesses that are most likely to succeed are ones that fill an immediate need or gap in the market that you plan to serve. Your business and brand will stand out because you are offering a product or service that is in demand and not met by other businesses. If you believe that you have found a viable need, do some research to make sure you are right. Create a focus group or online survey and ask friends and family as well as other entrepreneurs in different industries for their opinion.
2. Figure out what sets you apart from your competitors
If you will be entering a market with competitors, it is very important to figure out what will set your business apart from your competition. Why will customers choose your brand over your competitors’ brands?
- Will you offer a better price?
- Better customer service?
- More convenient hours?
- Higher quality products?
- Local, organic and/or Fair Trade products?
3. Identify your purpose
Without a clear purpose, your business will flounder and it will be all but impossible to secure investor funding. Once you’ve identified a market need to fill, you will want to drill down on your purpose for launching the business. Answering a series of questions such as:
- What is your purpose for launching this business?
- What type of workplace culture will you create?
- What type of commitment do you intend to make to all stakeholders?
- Where do you envision your business in five years?
- What is your exit strategy?
Once you have answered these questions, you will be in a better position to create your vision and mission statements as well as a strong business plan that will set you up for success.
4. Secure funding
It takes capital to start a business. Some entrepreneurs are lucky enough to get funding from a parent or other family member, while others will need to secure funding from sources such as angel investors or their local bank. It’s important to understand that most small businesses don’t make money for at least the first year. Because of this, many entrepreneurs need to keep their day jobs or have a substantial savings account to pay their bills until the business can afford to pay a salary.
5. Go for it!
Once you have done the work to ensure that you have a viable idea, you have a clear vision and mission and your funding is in place it’s time to take the plunge! Don’t waste time hesitating. Believe in yourself and your vision and work hard to make your business a success. As you run into challenges, push through them; secure in the belief that your business is meant for great things.
When you are ready to hire your first employees, your HR needs have begun. Rather than hiring in- house staff, many small businesses choose HR outsourcing by partnering with a Professional Employer Organization (PEO). When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!