Advice to an entrepreneur
A student wrote to me: “I want to become an entrepreneur and start my own company instead of wasting my time in university. How do I start a company? I need your advices. Please help.”
Answer: Entrepreneurship is a long journey that requires a lot of efforts, commitment and determination. You should not decide to become an entrepreneur because you are tired of school; you should not decide to become an entrepreneur because you need a job, or you want to be rich. Many students believe that if they have good idea, they can start a company and making money. Do not make that idealistic assumption! Having idea is only the beginning but not enough. You must create a good product based on certain technology to solve problems and meet the needs of customers.
Since you do not tell me about your education, it is difficult for me to give you good advice. Are you a student in technology areas such as Science, Technology, Engineering and Math (STEM) fields? Do you have enough trainings to realize your goals? Do you have an idea for a startup or it is something that you are still thinking about? What problem are you planning to solve? How do you know that you can solve it? Is there something that you can do better than anyone? What skills do you have and what do you think that you can do? You need to answer these questions honestly, else you will not go far.
What do you think your company will look like in five to ten years? Do you have one idea or several ideas at this time? Are you planning to start a small business with few people or plan to grow it bigger? Are you planning to do it by yourself or with somebody? How many people? How do you pay them? How do you manage your own company? Do you have management skills? Do you know something about accounting or finance? How do you track progress? How do you measure your company’s performance? Startup plan that cannot be measured will never be accomplished. You need to answer these questions truthfully, else you will not go far.
Do you have any potential customers? Do they need what you want to do? How many customers do you think you could have? Is the market large enough, and growing fast enough, to make it a profitable opportunity? What are your obstacles to start a company at this time? How do you make money? One of the biggest problems for all entrepreneurs is time and money to start the company. Do you have enough money to start a company that may last at least several months to a few years? Where are those money come from? Are you borrowing from friends or family? You must be careful because if it is not your own money, you must be responsible to pay it back. Do you know how much does it cost to operate your startup? How much money do you expect to make in the first year? When do you think you will make a profit? How do you adjust your plan as you learn more about your startup? You need to think about these questions and try to have the answers, else you will not succeed.
Starting a company is not simple as many people think. It is difficult and requires a lot of trainings to be successful. You must plan carefully and determine to succeed. You cannot let your emotion leads you toward an illusion by jumping into something that you do not know. Starting a company is serious business; you cannot start with just a wish or a dream. You must start with a solid technology and business foundation because entrepreneurship is a long and difficult journey. To travel that road, you must be prepared. My advice: Finishing school first and learn as much as you can, you are young so you can wait until you are ready. Do not hurry into something that you do not know well.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
