This October, I decided it was finally time to start my first business.
The decision was, full disclosure, a bit of an impulse. With a busy year ahead of me, I had no intention of adding something else to the mix. That is, until I heard about Start Tank.
Start Tank 2020 was an idea competition hosted by IU’s Collegiate Entrepreneurs Organization in early November. In this competition, teams would compete to present the best concept for a new venture. When I signed up for the competition and heard the incredible pitches of the other student founders, I never dreamed that I would win. That milestone, though, really solidified this fact in my brain: I was starting a business.
In the few short months since I made the choice to move forward, I’ve already learned so much. Below are my 10 tips for anyone starting their first business. Whether you’re thinking about taking the plunge or just curious about what it takes, I hope these tips give you a little insight about what it’s like to be a first-time entrepreneur.
- Just do it.
Nike was onto something when they first coined the iconic phrase in 1988. I’m all for thinking things through, and a certain degree of caution is essential to the success of a new business. But the high financial, psychological, and social risks of entrepreneurship can cause us to overthink. We wait for the perfect time and the perfect idea, where nothing is uncertain. Sometimes, though, we have to embrace that uncertainty. Sometimes, we just have to decide to do it and take action, without regard for whether or not we can. - Problem over product.
A common theme in my entrepreneurship classes is the idea that businesses which put product over problem always fail. Blockbuster is a popular example. By sticking to their original model of brick-and-mortar video rental, Blockbuster failed to change with the times and was replaced by competitors like Netflix and Redbox. To maximize your chances of success, remember that your business’s identity comes from the value it provides to the consumer. Fall in love with the problem you’re solving. As Emily Heyward writes in “So You Want to Be an Entrepreneur,” it’s even better if you have a personal connection to the problem. Remember to put this first and you’ll keep your business on the right track. - Grow your network.
Professors, family, coworkers, friends – you never know where your next connection could come from, or how it might help you. These connections are a godsend in the early stages of your business. They are incredible sources of advice, mentorship, and more. So start conversations and use LinkedIn to build your network. Your next connection might be the one to get your business off the ground. - Talk about it.
When you start a new venture, you might find yourself keeping quiet about your idea to keep possible competitors from sneaking in. Resist this urge. Seriously. In order to make the most of your network, you need to be discussing your idea and asking for feedback. That feedback could help you find new customers, strengthen or adapt your idea, and most importantly, it will tell you whether there really is a market for your business. - Write. Down. Everything.
Every idea, even the crazy ones, should be documented. This includes notes about your competitors or feedback from your network. A thought that seems insignificant today could spark new value creation tomorrow. When that time comes, you’ll be grateful you put pen to paper. - Know your competitors.
When it comes to business success, Emily Heyward writes, “It’s not about who does it first, it’s about who does it best, and the best these days is the business that delivers the most value to the consumer.” To reach that “best,” you have to research your competitors thoroughly – product, marketing, pricing, customer base, all of it. When you’re able to clearly articulate how you stand out from these competitors, you know your idea is on solid ground. - Ask every question.
It’s a cliche, but I’m gonna say it anyways: there’s no such thing as a stupid question. STarting a business – especially that first one – requires a lot of learn-as-you-go, so the sooner you can get used to asking questions the better. This will involve a lot of googling and a lot of conversations with your network, but at the end of the day you and your business will be better for it. - Build your team.
One of the best ways to increase your chances of success is to make sure you don’t go it alone. Even just one co-founder exponentially increases the knowledge and perspective flowing into your business. Think carefully about who you’re looking for. What are their values? What knowledge or resources do they have? How do they work in a team? Do they have a personal connection to your problem? The right co-founder will align with your expectations on questions like these and will deliver incredible value throughout the founding process. - Create a vision.
One of my favorite mental practices is envisioning how entrepreneurship (and this business in particular) will shape my life. To do this, ask yourself who you are as a founder. Why do you want to be an entrepreneur, to start this business? What does being an entrepreneur offer your life? Entrepreneurship is a deeply personal journey, and developing clear answers to these questions will help keep you motivated when things get tough. - Own the title.
Starting a business is an insanely cool thing to do, so when you decide to take the plunge, own it. Add “entrepreneur” to your LinkedIn profile, your Instagram bio, everything. Get yourself some business cards and put up a website. Call yourself an entrepreneur. Say it out loud: “I am an entrepreneur.” And believe you deserve it.
I firmly believe that anyone can start a business, so long as they know where to begin. (If you’ve been thinking about it, this is your sign.) I’d love to join your network and help you along in this journey. To get in touch, you can find my contact info here.