How to Start a Business in 5 Steps and Avoid Failure

And entrepreneurship isn't an exact science either; in other words, if you follow these five steps with some common sense, you'll reduce the risk of failure, but the risk is still there.

So, what do you need to start a business? 

Well, the most important thing isn’t just having a great idea—which is certainly very important—but it’s far more important that you’re passionate about your idea and, above all, that you’re a curious person; in other words, that you’re willing to learn from the unknown, to be the first to find out what’s happening around you, and to explore beyond the ordinary. If this sounds like you, you’ve met a key requirement for becoming an entrepreneur.

Now that you’ve recognized these abilities in yourself, I’m going to talk to you about what I believe are undoubtedly the five key steps you need to keep in mind to avoid failing in your entrepreneurial venture.

1. Strike a balance between your personal and professional life: Never start a business if it means going against your personal goals or desires. If that happens, there will come a day when you feel frustrated and end up failing. Clearly define everything you want to keep in your personal life and make sure it remains a central part of your life. 

2. Get to know your customers well: Just like in all relationships in life—and your relationship with your customer is one of them—the secret to success in sales lies in getting to know them very well and putting yourself in their shoes. Ultimately, the secret lies in being empathetic. After all, you can never sell anything to someone you don’t know.

3. Identify your value proposition: Now that you know your customer, make your product or service unique for them. You’ll have your brand value the moment you can confidently answer these two questions: What would my customer be absolutely amazed to receive from a product or service like mine? What would my customer immediately reject in a product or service like mine? The values that emerge from your answers will be the value proposition that makes you unique.

4. Create your business model: In other words, start defining the entire internal structure and everything surrounding your business that will make it work (customer relationships, communication channels, key partners, revenue, expenses, etc.), and at the heart of it all, make sure everything aligns with your value proposition. (You can find many examples of good, simple business models on Google to use as a guide.)

5. Set goals and make a plan: Before making any strategic or business decisions, first set your goals (try to make them realistic and short- to medium-term), and only once you have them clearly defined should you plan the steps that will help you achieve them—in other words, create your business and/or marketing plan.

As I said, if you want to start a business and avoid making major mistakes, remember to follow these important steps: strike a balance between your business and your personal life, put yourself in your customers’ shoes, be unique to them, and set goals before you start planning. Good luck!!

Author: Javier Boquete. Marketing & Entrepreneurship.

Over the course of a 20-year career, I have worked inmarketing departments for various companiesin sectors such as architecture, tourism, and education, while also pursuing myown entrepreneurial projects and providing training for entrepreneurs.

Check out his career history on his LinkedIn.