Building a successful business from the ground up is difficult at best, but it can be done. Here, Michael Eisenga, a successful real estate investor, offers the top five things entrepreneurs should know before launching their startup.
1. Be Passionate About Your Business
Passion is what drives people beyond the point where giving up seems to make sense. It is the motivation to start early and stay late and the wellspring of the notion that they would do what they do even if they didn’t make any money.
At some point, every entrepreneur will need someone besides themselves to believe in their business. It could be a life partner who needs to pick up the slack at home while the entrepreneur works long hours. It may be a banker or financier from whom a loan is necessary. Whoever they are, they will need to see that the entrepreneur is passionate about what they do.
“If you are not passionate about your business, it will be difficult for others to buy into your idea, and no one can build a successful business completely on their own,” – explained Michael Eisenga.
If an entrepreneur is less than passionate about what they do, it might be a good indication that they have not yet found the right business idea.
2. Be Patient with Your Business
In addition to passion, starting a new business requires patience. Mr. Eisenga said, “Most new businesses certainly don’t make a profit the first year. Many times, they don’t turn a profit during the first three years.” He added that it is critical to be prepared for 1–3 years without much income. Everything the entrepreneur makes will need to go back into the business. Plan ahead, create a nest egg, and don’t set yourself up for disappointment with unrealistic expectations.
3. Research Your Market
One big mistake that new entrepreneurs make is they fail to do their due diligence. They may feel that they have struck upon the perfect idea for a revolutionary new product or service. While this may be true, it is critical that they thoroughly research the market. They need to determine if someone else has already tried something similar before, and if so, what was the outcome?
Mike Eisenga explained that “Sometimes an entrepreneur may feel that they don’t have any competition because no one else is doing exactly what the new business will do. They fail to realize that a fierce competitor can come from anyone doing something even similar. A competitor may only need to make a few changes in their design or their process to go head-to-head with a new idea.”
4. Be Open to Change
Like how a competitor can come from anyone doing something similar to a new idea, an entrepreneur must be able and willing to adapt. The best opportunity may not be precisely what they initially thought it would be. It may come from a discovery made during the market research process.
5. Learn to Delegate
Finally, Michael suggests that learning to delegate is crucial for entrepreneurs. “Because if you are trying to do everything by yourself, there’s just not going to be enough of you to go around,” he said. Strengthening the bench should be a top priority for an entrepreneur. Because it can take time to teach others what they already know about their new business, they can’t afford to wait until they are overwhelmed to hand over the reins for part of the work.
About Mike Eisenga
Mike Eisenga is a successful commercial real estate investor with a banking and finance background and is the former mayor of the City of Columbus. As a President of both American Lending Solutions, a mortgage lending company (he founded and operated from 2000 to 2018), and First American Properties, he has a track record of creating and operating successful businesses. Mr. Eisenga is also devoted to property development and construction, primarily serving smaller local communities. Especially in the senior housing sector.