We all hear people talking about how risky it is to start a business. But with the right idea and the determination to succeed, your business idea can become a successful reality. There are several key components to creating a great business and, while some might seem obvious, the simplest ones often make for the most successful businesses.
Energy is the key. Do you have the energy to carry this through from start to finish? Even several years into a business, there’s not a lot of [down time]. At night, you’ll be thinking of new ideas and ways to grow the brand. By constantly challenging yourself with new goals, you’ll find the motivation and energy to keep your business going at a fast pace.
Have a good partner. Make sure your business partners complement you as well as each other. It always works out best if everyone can bring something new and different to the table. You must surround yourself with passionate people who care about the outcome of the business. If someone is there just for the job, it won’t work. By tapping in to the people around you, you’ll find new excitement and ideas.
Find a void in the industry. Become a student of the industry so you can determine which products and marketing work. Find a void in the market that your product can fill. Entrepreneurs must find specialty niches, as established brands dominate and constantly reinvent themselves. How can do you this? Get out there and talk to consumers. What are they looking for? Do they have trouble finding it? Where do they normally go to find the product?
Try to bankroll your business without financing. It lets you try things immediately rather than having to go to a board to see whether or not it’s OK. Make sure your company is well-funded. You still need money to run a company in any kind of economy. Given that a number of companies with “me too” products will go out of business during times like this, companies with great products and cash to have a sales force in place will benefit. If you’re looking for loans, you need to shop around for the best rates and where you feel most comfortable. Again, you need to make sure the loan comes from someone who is as passionate about the brand as you are. It’s one thing to loan money, but completely different to truly invest in a company.
Make sure you have distribution in a “money maker” area, such as New York City. My company launched in New York, San Francisco and Los Angeles. Everyone told us that, given we were a San Francisco-based company, launching in New York City was useless. What we learned is that launching in New York City was one of our smartest moves. It was hard and money intensive but it definitely put our brand on the map. It’s a great launching and testing ground for any product to see if the consumer will accept it.
Make sure you’re relaying the right message to your audience. Do your homework and make sure you’re putting your advertising and marketing budget to good use. Our product is a healthy alternative that’s great for families, so partnerships with companies like Disney was a perfect fit. By marketing to the correct audience, you’ll see a direct increase in sales. Explore different industries to see where your product or service can be of use.
No regrets. You have to take chances. If you don’t, you’ll regret it. I would have regretted not taking the chance to create my company. We produce a product that we see people carrying and enjoying. How fulfilling is that? Ask for honest opinions of your test products. Also, it’s better to under-produce slightly if you know you can produce more quickly, especially if your product has a shelf life.
At the end of the day, starting a business takes knowledge, passion, energy and a great team. When you put these things together, you have a winning combination that would be hard to beat. If I had to give one single piece of advice, it would be to manage your expectations. If you think you’ll be a millionaire overnight, you might need to change your plan. Starting a business is demanding on you, your family and friends, so you have to be committed 150 percent.
Kara Goldin is CEO and founder of San Francisco-based HINT, Inc., which produces unsweetened, all-natural essence waters. Since its official launch in 2005, HINT has garnered praise from the likes of Time magazine and “Good Morning America” for its refreshingly clean tasting products and appealing bottles, which have appeared on popular shows such as “Grey’s Anatomy,” “Boston Legal” and “CSI.”
