It’s said that 70 to 80% of people actually think about starting a business, so why do such a low number of people actually follow through with it? Essentially when you start up a new business as a 1 or 2 person operation, you are basically an equity employee. What that means is that although you are self employed, you are handling all the responsibilities of employees from advertising, to accounting, to sales to the mail. You are working 18 hour days and many times getting paid much less than you would if you were an employee. We are programmed to think that if we go into business for ourselves that it takes too much capital, we wont make money for at least 1 to 2 years (as you pay down expenses etc) and we have a very small chance of success. There are simple things you can do before you start a business that can get you thinking out of the box and avoid many of these shortcomings. They are known as the 3 S’s and they can be applied to any business or venture.
The 3 S’s are Structure, Self Sustainability, and Scalability – if you can implement these things correctly while setting up your business and constantly monitor them, you can set yourself up for success and get your business working for you.
Structure – depending on how you structure your business will determine on whether its self sustainable and scalable. Its been said that you need tens of thousands to setup a business, but really you should be able to setup many businesses for a few thousand dollars or even much less. Reinventing the wheel is usually much harder than taking a business that’s already successful and changing a few things – its already working so there’s nothing new to take to market where you need to prove a concept. Whatever structure you choose, make sure it is or can be made self-sustaining and scalable.
Self-Sustainability – this goes back to those 18 hour days mentioned earlier. If your businesses is self-sustaining than you do not need to be there all the time – its making money, even when your not there. After all that’s why you start a business, to have a better life, spend more time with your family etc. – Self sustainability can give you that luxury and that’s the difference between being rich and being wealthy.
Scalability – if you choose the correct structure and your business is self-sustaining than the beautiful thing is that it can be scaled. Scalable businesses can be franchised, licensed etc, because the business model works and can be taught to others and resold with the same formula that keeps working – its a well oiled machine and as long as you keep adding oil it keeps working and you keep getting paid.
The 3 S’s are simply meant to be a guideline to assist you in any endeavor and get you thinking away from typical stereotypes associated with starting a business, or becoming an entrepreneur.
Bonus S – SENSEI – the sensei’s at kungphoo are here to assist with your endeavor with a social marketing platform that will help promote, discuss and further your purpose. Hope to see you in the DOJO!
Kungphoo ( http://www.kungphoo.com ) is an easy to use, dynamic social marketing and commerce platform. You can buy, sell, promote or search for anything collectively with like-minded individuals, by creating purpose based ‘circles’ that people can join to talk about or take advantage of. Listings are promoted within the kungphoo marketplace as well as across the social media world.