Entrepreneurship – Solving A Problem

Entrepreneurship1.

One of the most common complaints I get from clients is: “Starting a business is so complicated!”

If you have ever attempted to start a business, you would have found out that the red tape alone can choke you. The fees, the paperwork, the taxes, the business plans to beg for a loan… It is all just too much.

How about we simplify things by focusing on the essentials.

Simply put, entrepreneurship is just a long complicated word for ‘solving a problem’.

Every business you can think of whether they sell products or services, all have one thing in common. They offer something that will either simplify, enhance or improve the quality of lives in some way.

Grocery stores simplify our lives by making a wide variety of goods available in one location (platform). For this service, we pay them 15 – 30% extra on the cost of goods we purchase. But I can imagine we much prefer this arrangement to running all over town to the bakery, butcher, farmer etc in order to have our food needs met.

This mark up or profit of 15- 30% can be broken down into labour, packaging, energy cost (to keep meat frozen), rent etc. Every aspect of business can be simplified like this. If sales aren’t great this month, we find a way to increase awareness of our services (marketing) in order to attract more customers.

If if you ever get the feeling that you need a four year degree and years of accounting training to startup, just remember that all you will be doing is solving a problem, for a group of people (market, niche) who have a need.

You can do this.

No matter who or where you are there is something you can do to enhance someone else’s life; to improve their quality of living. You just need to get a little creative. Entrepreneurship banks on the fact that people like to have processes in their lives simplified.

Find a group of people with a problem you can solve. The beauty of E-Commerce is, you have access to a global community. This increases your likelihood of finding people with a problem you can solve. In addition, setting up a platform (website such as Shopify) and marketing (social media such as Facebook) is relatively easy and cheap compared to renting a brick and mortar store and purchasing equipment.

Clearly, your exit strategy (dropping everything and running for the hills if you fail) would be much smoother in E-Commerce as well.

So, think about a problem you can solve. Think about how you can reach the people who have the problem and how much you will charge for your services.

As the world evolves, new problems arise.

It has been said that during the gold rush, it wasn’t the persons doing the digging who made the most money, but rather the ones who sold the digging tools.

If you start a business, keep in mind that your main purpose isn’t profit but to solve a problem. Profit will always follow the solution. Read more on starting a successful business by solving  a problem in Chapter 18, Creating a Wealthy Mindset.

Happy problem solving (business building)!

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