Author: Gerard Ferreira
Ask any entrepreneur and they’ll tell you how important passion is to having a successful business. Many businesses begin because the budding entrepreneur has a hobby that they are talented at and, therefore, passionate about, like woodworking or fashion. Based on this, they then make the decision to monetize their talent.
However, many small businesses also fail because the business owner believes/hopes that their passion and talent are enough to get them through. For example, Lisa knows her coconut and currant sweet bread is excellent, and yet no one is buying and she can’t figure out why. 🎂 🤷🏿♂️
The answer to that ‘why’ is often because, sadly, it is not enough to be talented and passionate about your craft.
The missing ingredient is usually a knowledge of business fundamentals. The good news is that knowledge of these practices can be learned (at the very least Googled) and can make all the difference in the world.
Don’t get me wrong – passion and talent are definitely important. Passion will get you up in the morning to continue doing what you love and keep you and your team operating with drive. On the flip side, good business practices will ensure you can continue earning an income from doing what you love and will let you go to sleep a little easier at night.
Here are a few ingredients to consider in order to get that taste of business success:
Strategy – How will you move your business from dream to reality in a way that supports your long-term vision? What actions will you need to take and what routines will you need to follow in order to ensure that your business is still around in the long term? In other words, it’s the roadmap of how you’ll monetize your passion.
Pricing – How will you price your goods and services to ensure that you make a profit and yet stay competitive in the marketplace? Poor pricing will break your business. Understanding and covering all the costs (not just raw materials) involved in your business, including paying yourself, is imperative.
Market/Consumer Research – What factors affect your market? Who are your competitors and what do you need to know about what they are doing or not doing? You also need to know who your customers are and what they are like.
Marketing – How will you advertise and promote your product or service? Where, when, and how will you market what you have to offer?
Financial Management – How will you track your income and expenses, what record-keeping practice will you adopt? It is also essential to think about the kinds of investments that may be necessary as your business progresses — for example, from equipment to training your team to real estate.
This may all seem daunting but it can also be very exciting and doesn’t need to overwhelm, particularly if you bring your passion for your business to the planning of your business. Some good places to start are:
Business Content + Caribbean Spice. Mix up Nice!