Although starting a business–either as a solopreneur or as an entrepreneur leading a small team–is filled with challenges, the rewards are worth it. Once your business succeeds, you will earn much more than if you were an employee somewhere who had to deal with an income cap. Two challenges that you might face are deciding on your location and developing a successful marketing plan.
Challenge #1: Location
This is usually a problem faced by solopreneurs rather than entrepreneurs working with a team.
As a solopreneur, it may not make economic sense to rent a commercial office space when you could get the same level of functionality by setting up a home office. Since all you need to run your business is some basic computer hardware and some office equipment, which doesn’t take much space, it isn’t cost effective to rent a space for the same amount of computer systems and equipment. Moreover, in terms of hardware and software needs, you could run a multimillion dollar business using the cloud and SaaS services.
However, one drawback to this arrangement is that you will have to use your home address to send and receive mail, as well as list it as your place of business. This is a huge problem because consumers are suspicious of a business venture that does not conform to their expectations about what a business should look like. You will need a separate business address for mail. You will also need one for those times when it’s necessary to list the location of your business.
One simple way to solve this problem is to go to iPostal1, which is at https://ipostal1.com/online-po-box.php, and rent out a mailbox and get a real business address.
Usually, most startups don’t have this problem because a commercial space suits their needs perfectly since many employees can be housed under one roof and there is probably a need to invite clients over. Additionally, it is much easier for a team to collaborate in person than remotely, at least when first starting a business.
Challenge #2: Marketing
If you have a limited budget, this will constrain your marketing. While it is possible to use free marketing options, these usually tend to take a long time to work. Meanwhile, paid advertising works quickly.
Let’s assume you have a new product that you want to sell and you hire a copywriter to create a fabulous sales page for it. Now that you have a high-value product to sell at the right price point and a sales engine all you need is to add some marketing for you cash machine to work. If you were to use free tactics, like SEO and content creation, it will take weeks, even months, for the traffic to start flowing in. Conversely, if you put up a high-quality ad on Facebook that will directly appeal to your target audience, you will get traffic within the first day, sometimes even within the first hour of your ad going live.
When you have a limited budget, it’s challenging to ramp up sales for your business.
One solution to this challenge is to use free traffic sources until you get some sales from your efforts and can reinvest your earnings into buying paid advertising. However, you should use a free method that works faster than SEO, writing articles, or hosting YouTube videos. One method that works fast is networking in person. In order for your networking opportunities to be successful, you need to prepare for them. Here are 3 steps to take:
First, you will need to create business cards, and, depending on the nature of your business, possibly even brochures and flyers.
Second, you will need to craft an elegant elevator speech. One formula you could use is to use the XYZ script. When someone asks you what you do for a living, you would say, “I assist X to achieve Y by providing them with Z.” So, if you’re a freelance photographer, you could say, “I assist clients who need personal pictures for their marketing campaigns by using my special techniques for taking photogenic photographs.”
Third, research the best social and business events to network for your line of business. You could, for example, approach service clubs like Rotary. They are open to guest speakers who can talk about a subject that offers value to their members.
In summary, by choosing a location that works for everyone, one that suits your budget and that builds credibility, and by learning how to market effectively, you will quickly build a profitable business.