Entrepreneurial Commitment & Expectations

I am often asked by would-be entrepreneurs what I think of their new business idea. Alternatively, I know new entrepreneurs who started businesses and then wonder why the business did not work out. I believe that there are several misconceptions as to what is required to build a successful business. This post is an overview of the questions I believe one should be able to answer affirmatively before diving into a new business as well as have realistic expectations. Please keep in mind this is based on my experience and my conservative approach to risk taking. I believe in running a business on what you can afford and not putting your family's livelihood in jeopardy. So, start with what you can afford and invest your profits to build the business!

Many people think, "If I build it they will come". I think that is the biggest misconception. First, a product or service must meet at least one of the following criteria:

1) is it cheaper than the alternative?
2) is it faster/saves time/saves money/is easier/makes life better in some way than the alternative?
3) if there is nothing like it, do people need it?
4) how many people would find it beneficial?

Assuming, you can answer these questions with your business idea, the biggest question I have learned is, how will your consumer learn about the new business/product or service? I think this is the area that probably trips up most entrepreneurs. You can have the greatest new business idea but if no one knows about it and understands the benefit, you won't have customers.

This is where dedication and commitment from the entrepreneur becomes important. Many people think they can "hire a great manager with the proper incentive plan" or "get sales reps that already have account relationships" or "build an impressive looking site and people will come". You can get lucky and maybe this will work. You can also buy lottery tickets. After all, someone is going to win, right? However, the truth of the matter is that no one else is going to sell your product or service like you will. No one else will have the passion and enthusiasm no matter what their incentive plan is. The entrepreneur must expect to work all day, every day, for years (most likely without a paycheck) to build the business. This must be the expectation to make sure that the passion and commitment are there. Building a brand that is sustainable and sellable does not come over night.

Building consumer awareness, there are several methods of doing this and much will depend upon the kind of budget you have. Assuming you do not have a budget for a television and magazine advertising campaign right off the bat, you will have to approach marketing using PR, viral marketing, grassroots, and/or social marketing. This is where the entrepreneur's time will be spent, driving marketing and building consumer awareness. Each day, I ask myself what I did to move the ball down the field.

At Stick-e Brands, we have been diligent about doing all of the above. We are regularly featured in editorials in major magazines and trade rags, we get media spots on local network affiliates, we participate in Radio product giveaway contests, do Facebook ads, blog, write and submit press releases and get major players in the yoga and Pilates arena to promote our products. (See our press release titled, Entrepreneurs Expand Marketing in a Down Economy through Networking).

If you need to reach the wholesale buyer, you will need to participate in industry appropriate tradeshows. You might think that you can avoid this cost by just getting sales reps and paying them on commissionable sales but the reality is, sales reps aren't generally ground breakers. They want an established product with an install base. They want the easy sale, not the one they have to work for. OK -- you sales reps, don't yell at me for that but I've seen it over and over again. It's the rare rep that is a ground breaker. It's actually smart time management from a rep perspective to work with established products. So, without a sales force, tradeshows become the best way to for the entrepreneur to reach the wholesale buyer. Do your homework to identify where you'll get the most bang for your buck. For the first two years of my business, I packed everything, shipped it, set it up, worked the show every day all day alone, and packed and shipped and sent everything back. However, it was my business and the positive feedback at the shows kept the passion alive!

If you've gotten this far, and are still committed and passionate about your business, you do need to think about infrastructure. At Stick-e Brands, we have outsourced virtually all aspects of our business which enables us to stay lean and mean. If your business involves a consumer product, you will have to figure out how you will handle inventory acquisition, warehousing, quality assurance, shipping, insurance, and billing.

I believe being an entrepreneur is one of the most thrilling, exciting, and rewarding jobs a person can have. When you have a success, it's your success! However, the reverse is true as well so you must be thick skinned. So, plan ahead, be prepared, have proper expectations, have fun, work hard, and reap the rewards! For more on Stick-e Brands, visit http://www.yogastickysocks.com/!

PS - Have you watched the new show, Shark Tank? I think it's really worth watching!