What makes a great entrepreneur is someone who knows the end game. Someone who understands the three steps in the entrepreneurial journey.
See, a lot of entrepreneurs I see in my courses say things like “ I want to hire a lot of people” or “I want have my name and brand out there” but the reality is that there is a lot of businesses out there that hire a lot of people have fairly good brand awareness, maybe even 100’s of thousand of followers across their social media accounts, BUT aren’t making any money. When I say “real” money I mean profitable.
Entrepreneurial phase 1:
If you are in your first venture STOP focusing on the branding, how many followers you have on twitter and what your website looks like. Just solve a problem or add a benefit to a specific client in a specific industry, get in front of them as much as you can and focus solely on profitability.
It does not matter what you turnover if there is no profitability you are going to really struggle to survive in business. Most importantly you are going to struggle to make any type of impact. I always say if you are starting a business for the first time DO NOT focus solely on turnover that is a big mistake! You only concern, as well as delivering the best service to your clients and solving your clients, is after every single year how much do you actually make in your business i.e. how much do have left over after all expenses etc. Without this, there is no business.
Entrepreneurial phase 2:
This entrepreneur is one that has probably got some money in the bank and most likely on his second or third venture. This person is still playing the profitability game, but they are playing exit strategy. So what this entrepreneur usually does is build their second or third business to capture a market share in a specific niche market because they know there is an end client to it.
At this stage they know they can sell this specific business to a bank, to a private equity company or list it on a stock exchange somewhere. This is a much larger entrepreneur who already has had some successes and most likely some cash behind them as well a list of contacts or a network they can tap into to for support.
Entrepreneurial phase 3:
Now the third phase is the largest and where A LOT of the wealthy entrepreneurs sit in. They would usually buy under valued assets be it a already established business, property development opportunity or invest in a small business that needs cash injection to go large.
While most will see problems in these businesses they buy, they see opportunity. While most see bad times, they see good times once the right model has been introduced that puts them in a much tighter niche. They see profitability in these businesses, while others see cash flow issues.
They build these businesses up to a state of profitability and then sell them back off. Essentially they buy low and sell high, not matter the type of business.
Again, this type of entrepreneur has had many successes under their belt and has cash behind them as well as a vast network to tap into.
What I mainly deal in
Phase 1 of the entrepreneurial journey is the one I mainly deal with. The ones that want to go out ad build that first successful business. So with that in mind here are 5 things to focus on for the phase 1 entrepreneurs.
- Focus on profitability
- Focus on your niche market
- Focus on getting your value proposition right
- Focus on getting the business profitable within the first 12 months.
You can hear more about this in this YouTube video.
Now, I would love to hear from you. What phase of the entrepreneurial journey are you in?
Comment below and let me know your experiences in your business and how you are getting on whatever phase you are in. And if you have any questions, post below and I’ll be sure to answer them.
Huge thank you for taking the time to read this and sharing your thoughts below.
Live. Love. Change the world just because you can
Wilson Luna 🙂