There are quite a number of misconceptions that budding entrepreneurs often have about business. Entrepreneurs that get caught up in these activities may never launch a business.The activities listed below are important in getting to the right place in business but they are not business in themselves.
1. Business is not just having an idea
Often times I have met people who think they have a business when in fact they are no where close to having one.They believe once you have a great idea you are already in business.They do everything to ensure that the idea is not shared with anyone so that their gold mine is not tampered with.
They wallow in the fallacy that they’ve got something no one else have,only to wake up one day and find out that a better version of their idea is out there making millions.
You know the most annoying part, they still brag about it and say “I got the idea first before anyone else”. No one cares about what you are thinking, but about the value you are pushing out that people are willing to pay for.
Just having a great idea is way different from having a business.
2. Business is not about registering or incorporating a company
Once, a friend told me that she had a business. When I asked her about the business, she explained that she had registered a Limited Liability Company which would be the vehicle to run her chain of businesses.
She had included in the object of the business all possible business lines that you can think of; from Manufacturing to Oil& Gas, to restaurants, event management, designing of clothes, mining, transportation and all sorts. She was still employed at the time she registered the business six years ago, and she is still employed now and none of her product/business line is yet to kick off.
Registering a business that could potentially make money across all industries does not bring a dime to your pocket and until you begin to push out value that people are willing and able to pay for. If what you have done is just registering a company, you are not yet in business.
3. Business is not having a store of an office
Have you heard about people renting a store or an office without knowing exactly what they want to sell therein? This is a very pathetic situation because quite a huge investment have gone into a business you have no idea what you will be offering.
Or better still, you know what you want to sell, but the first investment you make is that of putting up a store or an office…. know that you are not yet in business.
There are certain businesses that do not require a store or an office especially at its inception. In some cases all you may really need is a home office or an online store front to maximize the potential of your business.So be wary of just putting up a shop or an office when you in fact really do not need them.
4. Business is not having a website
Don’t pick on me on this ‘cos i just mentioned that having a website may be an alternative to renting an office or a store. The mere fact that you have a domain name or you have successfully put up a very attractive website does in no way amount to having a business.
A lot of people often get caught up in the feeling of having a website. They show friends and families there home page designs and the new integrated shopping cart, but when asked how much sales they have made, they give you an explanation why they are not selling much if they are selling at all. In fact, i have met some folks that for 3 years they are still working on perfecting there websites before launching.
This also is a catastrophe if only what you have done to have a store front where you can sell your jewelries or shoes and bags is designing a website for 6 months or more. I have a series on Minimum viable Product (MVP) that helps you know the level of value you really need to put out at the inception of your business, before investing so much in designs of technologies, features and raising funds.
5. Business is not hiring staffs
Staffs are a great assets to a business only if you really need them and you hire the right fit for the job.Hiring staffs or employees does not put you in business, in fact it may put you out soon if you are not getting paid for the services that you render.
As an entrepreneur you may need to wear multiple hat at the very inception of your business; running daily chores from Sales to accounting, to cleaner, driver, office assistant and raising finance as CEO.
Over staffing a new business or an idea yet to kick off is one of the surest way to go bankrupt. It may look glamorous to have a lot of people you can control and send on errands, but do not do it until you really need to do it. I’ll talk more about this in another post i will do soon
All the above elements are very key to running a smooth business but they are just support activities or milestones.
So what is business or when do you know you have a business? in simple terms, you have a business when you begin to “Profit” from solving peoples problems or fulfilling their desires.
Let me know what you think about “what business is not or what you think it is” in the comment boxes below.
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