What You Need To Know To Make Money In Business

According to the US Census Bureau, about 4.7 million businesses are started yearly. About 20% of these fail within the first two years, 40% in the next five, and 65% in the next ten(Commerce Institute '24). How do you make sure yours isn't one of them? Here's your guide on how.

1) What's your business model?

Starting a company is a lot like "If You Give a Mouse a Cookie". If you have a fun little idea, you might want to research it a little bit. If you do some research on it, you're going to want to try it out. And to try it out, you're going to need a plan!

If your business model is to sell cookies, where and when do you imagine yourself doing so? If you're like me, you'll have it all planned out and know the specifics, like the prices and location. Businesses have an element of unpredictability, but it is possible to operate one and create value if you have a plan in mind and commit to it. Include everything about your idea that you consider important. It can range anywhere from new products you have in mind, to how you plan to market your business. And last but not least…

MAKE SURE YOU PUT IT ON PAPER!! YOU NEED SOMETHING TO REFER TO WHEN YOU GET IT OFF THE GROUND!! The fact I'm yelling hopefully speaks on how important a business model is! :)

2) Choosing the right business model and niche

When putting your business together, you're going to have to make sure it's unique enough to stand out amongst other companies, but also appeal to the public. Let's say you start a bakery—what's different about yours compared to the competition in the area? Do you offer a monthly delivery of fresh goods perhaps, or is your decor so good that it's going viral? If your city has so many bakeries that you see one on every other street, it'll be very difficult to stand out and get more customers, especially if you have nothing unique to offer. Depending on your situation, maybe a certain business isn't the best idea, but don't let that stop you because hard work can make a difference.

3) Marketing Tactics

One of the biggest parts of an enterprise is how you advertise it. There are four basic P's (principles) to marketing: product, price, place, and promotion. Coined by E. Jerome McCarthy in the 1960s, "developing the 'right' product and making it available at the 'right' place with the 'right' promotion and at the 'right' price, to satisfy target consumers and still meet the objectives of the business" is your foundation for a successful entrepreneurship. Let's have a little quiz here:

You want to start a sports academy, where you'll teach little kids to play soccer. How/where are you going to promote your business??

a) Posters on a fast food restaurant
b) Ads at the movie theater
c) Coupons at a tattoo shop
d) Flyers by the closest elementary school

If your answer was d), then congratulations because you're right! Answer d) is correct because you'd be marketing to the target audience, who would be most likely to seek out your services. Fast food restaurants wouldn't best reach your target audience, and people probably wouldn't care much when they have a movie to watch. Those looking to get tattoos probably aren't looking for any sort of sports academy for their kid. At an elementary, not only are there parents, but there are kids as well who can take matters into their own hands. Even if a parent isn't very interested and child might be and convince them otherwise.

Now that you have the foundations of your idea and business model ready, it's time to dive into action. Don't hesitate to start small—you can always scale up your operations once you gain momentum and understand what works best for your customers. You've got this! Hard work, dedication, and a little luck will help you turn your business idea into a successful reality. I wish you the best of luck on your entrepreneurial journey.

Sources:

Commerce Institute. "How Many New Businesses Are Started Each Year? (2022 Data)." Commerce Institute, 19 June 2022, www.commerceinstitute.com/new-businesses-started-every-year/.

Twin, Alexandra. "The 4 Ps of Marketing and How to Use Them in Your Strategy." Investopedia, 28 Feb. 2024, www.investopedia.com/terms/f/four-ps.asp.