Business Tips for First-Time Entrepreneurs
Maintaining a successful business is daunting in today’s tough economic times. As someone in your shoes, I understand the excitement and uncertainty of taking your first entrepreneurial step. Maybe you set up a brick-and-mortar shop or run a custom essay service and are still trying to make your mark in your business environment.
We highlight real-world experiences in the business space, plus lessons learned along the way. Whether sketching a business plan or preparing to launch, we provide actionable insights to help you through the difficult first days.
Scarcity Drives Demand
Entrepreneurs should understand that what causes demand is scarcity — and, therefore, opportunities. But then came the COVID-19 pandemic that brought a stark reminder of this principle — in days, the prices of basic items such as tissue papers, hand sanitisers, and face masks soared due to their sudden scarcity. While it is morally reprehensible to always profit from crises, smart businesses will heed that these disruptions are crying out for new products to meet them.
Standford economist Paul Romer said, ‘A crisis is a terrible thing to waste.’ It encapsulates an entrepreneurial mindset. Consider how contextual scarcity impacts perceived value. A water bottle priced at $2 in an urban setting might command $50 in a remote wilderness area. The price disparity reveals not just logistics but the utility of a product in an environment of scarcity.
The key takeaway for a first-timer is developing a keen eye for imbalances between supply and demand in your chosen market. Identify products or services that are scarce and highly valued within a specific context.
More Money is Made Selling Status
Why does a Rolex watch cost so much more than an ordinary timepiece? Rolex sells for a large sum more than Casio; each of them does exactly what it takes to know the time, but Rolex does not cost 100 times more than Casio.
From start to finish, the craft, the art, and highly precious materials — such as 18-karat gold and diamonds that are assembled together to create a Rolex — go past consumer comprehension. It is the intangible appeal of status that really underpins demand.
When a business prospect spots a Rolex on someone’s wrist, it often triggers assumptions about the wearer’s success, vision, and innovative spirit. Rightly or wrongly, it conveys an air of trustworthiness and influence.
Savvy entrepreneurs or services like Payforessay don’t sell products – they sell status. This doesn’t mean slapping a high price tag on your products or services for their perceived value. It means carefully crafting a narrative and experience that elevates your products in the consumer’s mind.
Your Product as an Experience
If you’re running a brick-and-mortar establishment where customers have to avail themselves of your premises to spend physically, offering them an experience becomes imperative. It’s not only the product or service they are coming to purchase; they are looking for a unique experience.
A good example is today’s journalism industry and the competition posed by social media. Recent revenue from news outlets is plummeting as they compete for audiences who receive a different experience from other sources like tabloids.
In reality, high-quality journalism isn’t competing with clickbait websites. These news outlets must understand the experience garnered from their business. They offer fact-based news from reliable sources.
Understand the customer experience customers accrue from your products or services. Then, package the experience as your go-to-market strategy. Leverage AI tools and other predictive models to understand customer behaviors and trends.
Short-Form Content to Attract Audience: Long-Format to Keep Them
Short-form content is also a game-changer, and it’s important for today’s entrepreneurs to grasp its meaning with tools such as Instagram, TikTok, X, and other platforms that are changing how brands do business. They provide an interactive way to reach their target customers, engage their customer base, and build unique brand awareness.
The impatient receptors of content online are at an all-time low. Small content can be easily consumable and thus help in creating viewer retention. These videos fill that role by presenting this content in smaller, more digestible chunks for users to enjoy and share.
After attracting these new audiences to your business or website, it’s time to retain them with long-format content and, hopefully, convert them to sales. Break down long-format content into digestible posts, create threads, and share key insights as teasers with links to the full content. It will keep your target audience engaged and interested over time.
Solve a Problem
What problem does your product or service solve in the market? Entrepreneurs always search for problems to solve, not vice versa. Start identifying and solving real problems that plague customers or businesses daily.
When you develop products or services that address genuine pain points, you’re not only selling – you’re providing value. The paradigm shift in perspective transforms your offerings from only a commodity into an essential solution.
Problem-solving products tend to sell themselves. When you alleviate a persistent issue, words spread quickly. Satisfied customers become your powerful marketing force, and word-of-mouth marketing brings in new audiences.
Don’t Compete With Price: Compete With Value
It is also tempting to want to gain a footing in a new business by using price as an incentive in order to draw in new audiences. At the same time, competitive pricing in a new market could be the death of your business. It would be wise to begin competing on prices only if you have a cheaper cost than your competitors.
The problem, as a first-time entrepreneur, is that you do not have a cost advantage over competitors at the fundamental level. Also, they degrade profit margins as you are compelled to reduce your margin to stay competitive repeatedly. However, this is not scalable for new businesses with few resources.
Instead, focus on your product’s unique value to create a strong brand identity. This clear differentiation leads to customer loyalty and word-of-mouth marketing, which remains invaluable for a new business.
Technical Language Doesn’t Sell: Make It Clear and Relatable
Another failure most businesses make when interacting with their customers is using technical jargon in explaining their products’ qualities. The specialized language these businesses use in a specific niche is used over time until it becomes common within an industry.
The downside of continuing to use jargon in your business niche is that some of your target audience might feel alienated because they need to understand what you’re saying.
That’s why we recommend simple language that allows a target audience to comprehend what you’re communicating, regardless of background or educational level. A clear, relatable, and straightforward communication ensures your message is understood quickly and accurately.
