Starting a business is not for the faint of heart. It takes courage, determination, and a clear vision to make it work. But, what if I told you there was a way to reduce risk and increase the potential for success? Well, there is. And it’s all about focusing on what you do best and leaving the rest for others to handle. Here’s the 4-step formula for starting a low-risk, high-potential business:
Step 1: Know Thyself
The first step in starting a low-risk, high-potential business is to understand your unique strengths. What are you truly great at? What do you enjoy doing?
To truly know yourself and understand your unique strengths, try these exercises:
- Make a list of your skills and abilities, then rank them in order of proficiency.
- Think about times in your life when you felt most fulfilled and accomplished, and consider what you were doing in those moments.
- Ask friends, family, or colleagues for their honest assessment of your strengths.
- Consider taking personality or skill assessments such as the Myers-Briggs Type Indicator or the StrengthsFinder test.
By taking the time to reflect on your strengths and weaknesses, you’ll be able to build a business model that leverages them. Once you know yourself, you’ll be able to make better decisions and avoid wasting time and energy on things that don’t align with your strengths.
Step 2: Hire for What You Lack
No one is good at everything. And that’s okay. The secret to success is to hire experts or outsource tasks that you are not proficient in. This way, you can focus on what you do best and leave the rest for others to handle. This is not only more efficient, but it also reduces the risk of failure.
Make a list of the key skills and areas of expertise that your business needs to succeed. This will help you identify the areas where you need to hire experts. Utilize online resources like LinkedIn or Indeed to find candidates who have the specific skills and experience you are looking for. Consider hiring freelancers or contractors for short-term projects or tasks. This will give you the opportunity to test out a potential candidate before committing to a full-time hire.
Develop a clear job description for each role you are looking to fill. Use a structured interview process, and look for candidates who have a track record of working in similar roles or industries. Don’t be afraid to ask for references or to check a candidate’s work samples before making a hiring decision. Have a clear understanding of what you are offering in terms of compensation and benefits. This will help attract the right candidates who are a good fit for the role and for your company’s culture.
Step 3: Keep It Simple
Starting a business can be overwhelming, but it doesn’t have to be. The key to success is to keep it simple. Focus on what is essential and avoid unnecessary expenses. This will not only keep your startup costs low, but it will also reduce the risk of failure.
As outlined in “The Lean Startup” by Eric Ries, one of the key principles to achieving success as a start-up is to keep it simple. This means focusing on the essential elements of your business and avoiding unnecessary expenses. One way to do this is by using the “Minimum Viable Product” (MVP) approach, which involves creating a basic version of your product or service, testing it with customers, and gathering feedback to improve it.
An example of this is when Dropbox created a landing page and a video that explained their product, but they didn’t build the actual product yet. They gathered feedback and validated their idea with potential customers before investing time and money in building the actual product.
Another example is Airbnb which started as a platform for renting out air mattresses in people’s living rooms and then evolved into a platform for renting out entire houses.
By using the MVP approach, you can validate your ideas and gather feedback from customers, which will help you build a better product and increase your chances of success.
Step 4: Stay Focused
The final step in starting a low-risk, high-potential business is to stay focused. Don’t try to do too much too soon. Stay true to your strengths, and keep your eye on the prize. By staying focused, you reduce the risk of failure and increase your chances of success.
Starting a business is not easy, but by following these four steps, you can reduce risk and increase the potential for success. Remember to focus on your unique strengths, hire experts or outsource tasks that you are not proficient in, keep startup costs low by focusing on what is essential, and stay focused on your core strengths. By doing so, you can increase your chances of success and achieve your business goals.
