Start a Successful Business: Expert Advice to Take Your Startup from Idea to Empire
272
Start a Successful Business: Expert Advice to Take Your Startup from Idea to Empire
272eBookFirst Edition (First Edition)
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Overview
With stories and advice from a fleet of trusted experts, this book is for anyone wishing to get their business off the ground and become the next wildly successful entrepreneur everyone is reading about.
For decades, makers, doers, and dreamers have turned to Inc. for help in getting their businesses off the ground. The insanely successful entrepreneurs behind organizations like Skullcandy, Spanx, Elon Musk, and Airbnb learned lessons at every stage, experienced unexpected setbacks, and in the end triumphed wildly. All along, Inc. was there capturing it all so that others could experience even greater successes than these titans of business.
From brainstorming to crowdfunding to building partnerships, the book walks new and aspiring founders through seven crucial stages, including:
- Establishing a brilliant business idea
- Selecting the best structure and strategy for your startup
- Getting the word out and building clientele
- Preparing to go global
Learn how Elon Musk stays wildly productive. Discover how Sarah Blakely got the inspiration for Spanx. Read the stories of how a hashtag accelerated Airbnb’s success and how Warby Parker shook up the eyewear industry with its innovative, socially conscious business model. Start a Successful Business gathers these important lessons into a single path-charting guide.
Product Details
| ISBN-13: | 9780814439197 |
|---|---|
| Publisher: | AMACOM |
| Publication date: | 02/01/2018 |
| Sold by: | HarperCollins Publishing |
| Format: | eBook |
| Pages: | 272 |
| File size: | 2 MB |
About the Author
Read an Excerpt
CHAPTER 1
COME UP WITH A BRILLIANT BUSINESS IDEA
"We couldn't sleep, because we thought it was such a good idea."
NEIL BLUMENTHAL, co-founder of online eyewear company Warby Parker.
SURE, YOU WANT TO BE an empire maker. But first you need an idea. A really good one. Some might say brilliant.
Startup ideas can come from just about anywhere — truly.
Let's look at the most common sources:
-> A theme or problem from your daily life
-> An emerging trend
-> A gap in a specific market
-> A drive to help others in an inventive way
-> A special skill or expertise that you possess
Which is best? We've asked scores of successful entrepreneurs and noted experts this very same question. And far and away, they agree: It's that first one, the problem or "pain point" that you personally experience on a regular basis, that is the ideal motivation for starting a company.
While you can (and should) pull from any of the sources on the above list for your startup idea, it's wise to draw primarily from your own need or frustration. Why, exactly? Starting a company will require long hours and seemingly endless focus. Both are much easier when you feel a personal connection to the purpose behind the company.
"The advice I have for entrepreneurs is ... number one, you need to solve a real problem. I look for those problems in my own life. Mint was because I had a challenge managing my own finances using Quicken and Microsoft Money. So I built it for myself."
AARON PATZER, founder of web-based personal finance service Mint.com, which he ultimately sold to Intuit for $170 million
If you don't have that burning, personal desire to see your concept come to fruition, we don't recommend pursuing your startup idea.
That's because the early days of starting a company are notoriously difficult. You might find yourself questioning whether you've made the right call. That's especially true as the months or years drag on, and you've decided to quit a lucrative career, invest personal savings, and sacrifice time away from family to chase your dream. (Many seasoned entrepreneurs, by the way, say it takes at least three years to find your startup footing, and that many newbies give up too soon.)
But beyond that, there's another reason why it makes sense to let your personal challenge lead the way. Chances are, others are experiencing the same problem as well — even if they're not entirely aware of it. They're called your customers.
"I spent all my hard-earned money on this one pair of cream pants that hung there, and I decided to cut the feet out of control top pantyhose one day, and I threw them on under my white pants, and went to the party. I looked fabulous, I felt great, I had no panty lines, I looked thinner and smoother ... and I remember thinking, "This should exist for women."
SARA BLAKELY, inventor of Spanx underwear, whose net worth is now valued at more than $1 billion
Of course, you might say to yourself: "Wait a minute. Yes, this is a personal frustration of mine. And others probably experience it as well. But chances are, someone else is already working on a solution."
Guess what: You're exactly right. In some form or another, nearly every idea is already out there. But how you implement your idea, position your new concept, and execute your plan can be the defining factor of success.
Countless billion-dollar companies are based on ideas that were just tweaks of what was there before. Facebook, for example, is far from an original idea. Social networks had been around for nearly a decade, in companies such as SixDegrees, Friendster, and Myspace. Facebook's success didn't come from the idea itself but instead from countless iterations around how the product could reach customers and achieve a competitive advantage.
"Every company needs a starting point," says Eric Paley, managing partner of seed-stage venture capital fund Founder Collective. "I encourage entrepreneurs to focus more on falling in love with the problems they want to solve rather than their initial ideas."
As founders dig deeply into that original hypothesis, they will learn, adapt, hit walls, adapt again, and build critical expertise that they never considered when starting out. "In fact, in many cases the original idea later seems humorous or at least incredibly naive compared with the lengths to which the startup needs to go to become successful," Paley says.
Readers who are old enough might recall when Jeff Bezos launched Amazon.com in 1994 as a bookseller. Or when Reed Hastings co-founded Netflix in 1997 as a DVD rental service. Both have transformed their companies into something very different than their original concepts.
It's important to remember that the startup you first set out to build will not resemble the company you are operating five or ten years later. Startups, and businesses in general, evolve and take on lives of their own — in large part due to technological advances or changing customer tastes.
The most successful entrepreneurs always keep a finger on the pulse of the current market (more on that in Chapter 5). After launching, they ask questions such as "How is the product performing?" "Is it easy or hard to sell?" "What kind of value does the product provide in the current climate?" "Is it generating revenue or not?"
"A vision ... is the most powerful and unique asset any company has. The original idea for my company started out of a simple pain point I wanted to fix: Find a [fitness] class easily. As ClassPass grew, my vision expanded further into making fitness a way of life. We've pivoted our company a few times, and the most important reason was because it didn't map to our true north. It's hard to always predict how customers will engage with your product; when you see a behavior that isn't aligned to your vision, you have to be able to shift gears. Ultimately, your vision has to be at the core of everything you do, even if that means adjusting or iterating your product roadmap to make sure you get there."
PAYAL KADAKIA, founder of fitness startup ClassPass, a.k.a. the "Netflix for workout classes," which has shifted its business model, raised prices, and discontinued its popular-but-unsustainable unlimited workout option, all since launching in 2013
Based on all that, you might find it tricky to come up with a brilliant business idea, particularly if you understand that your startup will need to keep changing and iterating. That's why some entrepreneurs also recommend coming up with a vision, which stays true even as your company morphs.
FINDING YOUR NICHE
The best business ideas come from your strongest areas of interest, says Ryan Robinson, an entrepreneur and writer who teaches people how to create self-employed careers.
When the going gets rough (and it will), you need to be motivated beyond just the lure of dollar signs. If you're only in it for the money, you'll either give up or be quickly pushed out of the market by people who genuinely care about what they're doing and the people they're helping — they'll be more motivated than you.
If you're not sure what your interests are, or which of them may potentially lead to a profitable business opportunity, ask yourself the following questions. The answers may help you find your way.
-> What are your hobbies?
-> What is the most meaningful part of your day?
-> What are some topics you could enjoy writing a thousand-word article about?
-> What do you love doing?
-> What is an achievement that'd make you feel particularly proud of yourself?
-> Are there any specific aspects or functions that you love about your current job?
-> How about any childhood dreams you still find intriguing?
-> If you had to choose just one thing to be remembered by, what would it be?
Money Makers
When mulling your business ideas, it's always wise to consider where your idea fits in the general marketplace. For instance, in 2017 Inc. interviewed experts and examined investment data to find the industries that are beginning to offer major opportunities for new ventures. Here are the ones that held the most promise.
* Meditation and mindfulness training. Increased corporate spending on programs to improve employee focus has helped boost an industry that research firm IBISWorld values at $1.1 billion in the United States. App-based training is bringing the practice to an even broader audience.
* Ready-to-drink coffee and tea. Consumers are ditching mixes and concentrates in favor of on-the-go coffee and tea, largely driven by health innovations. From 2013 to 2015, U.S. sales of these drinks nearly tripled, landing at $143 million, according to the nonprofit Specialty Food Association.
* Mobility tech. This industry offers startups potential partnerships with and acquisition by large tech companies and automakers working on autonomous vehicles. Ford, for example, invested $1 billion in Pittsburgh-based Argo AI in its effort to develop a self-driving car by 2021.
* Pet care. Tech innovations are making over this industry, which is valued at $60 billion in the United States. Revenue for pet grooming and boarding alone was nearly $8 billion in the United States. In 2016, according to IBISWorld, which projects it to grow 7 percent annually through 2021.
* Construction management. Global funding for hardware and software to streamline building projects, or to sell and rent construction equipment, rose to $254 million in 2015 from $51 million in 2010, according to researcher CB Insights — and analysts say it's still an emerging industry.
* Synthetic biology. Health and environmental concerns have driven interest in genetically engineered medicines, foods, and fuel. It's a costly and technical field, but payoffs can be huge for companies like DNA manufacturing company Twist Bioscience.
* Computer vision. Advancements in artificial intelligence have produced companies working to interpret and act on visual data. The technology, which attracted $522 million and 69 deals in 2016, can be applied to child development, social media networks, and web analytics.
* Brick-and-mortar retail technology. Startups are helping modernize in-store operations. One notable example is London-based Iconeme, which created technology that pushes product information from mannequins to nearby shoppers' smartphones.
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NEXT STEPS: GET FEEDBACK
Once you've pinpointed a pain point and settled on a vision, it's time to start finessing your startup idea. The best way to do that is to seek outside perspectives. In other words, it's time to hash it out with anyone who will listen. (For more on that, see "Building a Personal Team of Advisors," page 14.) That list includes:
-> Friends and family
-> Work colleagues (including former co-workers or bosses)
-> Classmates or professors
-> Members of networking groups that you belong to
-> Fellow entrepreneurs
-> Potential customers
We know exactly what you're thinking: "But what if someone steals my amazing idea?"
Guess what: Ideas, even the brilliant ones, are worth very little. Unfortunately, too many aspiring entrepreneurs become fixated on the value of their big ideas, declining to speak with others who might provide advice or feedback. They believe sharing an idea with other people will hurt them. This is a terrible mistake.
"For several years, I worked closely with a brilliant inventor named Natan Parsons, who had almost a hundred patents under his belt and invented the mechanism behind automatic flush toilets. He would always solicit feedback about products he had in the works from prospective customers. He'd tell people what he was doing, but not how — and it was the "how" that he patented.
Remember: If sharing your idea gives away all its value, it's probably not a defensible idea to begin with."
ROBERT GLAZER, serial entrepreneur whose digital marketing firm, Acceleration Partners, works with brands that include Adidas, Bonobos, and ModCloth
When you're thinking about launching a new product or service — particularly one that is unlike anything else on the market — it's critical to talk to others to understand potential customers' needs and to gauge their feedback. The worst thing you can do, many experts say, is to operate in stealth mode. While you may think you need a patent, most experts say your limited resources are better spent on developing your business idea.
Patents can offer value to companies. For example, venture capital investors might insist on them. They can give an entrepreneur the legal standing to demand redress from someone who encroaches on the patent ... assuming that the entrepreneur has the money to litigate the case and can come to a contingency arrangement with a qualified law firm.
But, if you have limited funds, getting to market and creating revenue are more important steps. There are other ways to stymie competitors. A better product, smarter marketing, better customer service, and more effective business processes are just a few examples of how to get ahead of other companies.
John D. Smith, an inventor and entrepreneur, wrote a book called Don't File a Patent!, which comes from his experience developing and selling a hurricane window protection device. He had filed other patents successfully, and tried to patent the hurricane window, but the U.S. Patent & Trademark Office rejected the patent three times. The conclusion he reached was that he had spent "almost $25,000 in legal and government filing fees" to no useful end. He says that he would have been better off putting the money into selling the product.
If you truly need a patent, you can always begin the process at a later date. You have up to one year from when your invention is first made public (by being announced or put on sale) in which to patent it, according to Minda Zeltin, coauthor of The Geek Gap. "And you can always file a provisional patent application, something like a save-the-date note for a wedding," she says. It doesn't commit you to a formal patent application, and doesn't result in a patent, but it does allow you to claim your invention so that you can do a full patent application later. For more information, including answers to frequently asked questions about patents, visit the USPTO's site at www.uspto.gov.
*
Building a Personal Team of Advisors
It's never too early in your entrepreneurial career to surround yourself with good people.
"Many of us are convinced that we have to fly solo and figure everything out on our own, the hard way — that having a support team and advisors is only for the powerful or wildly successful," says Antonio Neves, a leadership speaker and former TV journalist. "This is foolish and naive. You don't have to do it alone. In fact, you shouldn't."
People are more willing to help us accomplish our goals than we may think, according to Neves. "In fact, they want to help," he says. "The hard, challenging, and vulnerable part is this: It's our job to ask for their help."
Neves recommends that newbie entrepreneurs form a "personal" board of advisors — a small but important group of professionals or experts that guide decision making and provide critical input and advice. To find them, he recommends listing the areas where you'll likely need additional help and expertise (e.g., fundraising, marketing, design, etc.). Then, evaluate your network — LinkedIn connections, Facebook friends, current or former professors, family friends, etc. — to see who could fill the void in your gap areas.
Next, ask for an informational meeting with your potential advisor. Explain what you're doing and why you're seeking their help, as well as what type of support you need from them and what this might look like (such as weekly, bi-weekly, or monthly calls). "Once someone agrees to become your advisor, always treat this relationship with the utmost care, tact, and professionalism," he says. "Be generous with your 'thank yous' and create as much value for them as possible."
(Continues…)
Excerpted from "Start A Successful Business"
by .
Copyright © 2018 AMACOM/AMA.
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Table of Contents
ACKNOWLEDGMENTS, VII,
INTRODUCTION, IX,
1 COME UP WITH A BRILLIANT BUSINESS IDEA, 1,
2 SELECT THE BEST STRATEGY AND STRUCTURE FOR YOUR STARTUP, 43,
3 FIGURE OUT FUNDING, 77,
4 GET THE WORD OUT-AND GET CUSTOMERS, 107,
5 DIG DEEP TO DISCOVER CUSTOMERS' WANTS AND NEEDS, 141,
6 BECOME AN EXCEPTIONAL LEADER, 171,
7 PREPARE TO GO GLOBAL, 211,
CONCLUSION, 237,
INDEX, 239,
ABOUT THE AUTHOR, 247,
FREE SAMPLE FROM ACCOUNTING FOR THE NUMBERPHOBIC BY DAWN FOTOPULOS, 249,
ABOUT AMACOM BOOKS, 270,