Set up your Business to Offer Value
Of all the buzz words and hype generated around entrepreneurship, the one I resonate with the most is the idea of value. In the end, creating any sort of business, high or low in tech, more or less scalable, comes down to generating value or simply creating something useful and sharing it with the world.
The 100$ Start-up, a book by Chris Guillebeau, focuses on creating microbusinesses (some of which evolve to bigger ones) under 100$. The author uses the word start-up with a twist as it doesn't necessarily involve scalability or venture capital. Instead, it is simply about starting your own operation without loaning a cent.
Guillebeau mentions 6 steps that result in a business:
1) Create a product or service: ideally, you are selling something you are passionate about. But make sure you are not the only customer of your business... don't fall into the trap of selling what no one else needs. The key is the convergence between your passion/skill and usefulness.
2) Set up a website: the key insight is not the website but the means of selling. It can be a Facebook store, a lemonade booth or a physical store.
3) Develop an offer: this is a crucial step. You have the product and the means to sell it... but what are you exactly selling? Steve Jobs didn't offer a 5GB mp3 player. Instead, he offered 1,000 songs in your pocket. Are you focusing on features or value? Follow the structure: We help "small business owners" (customer definition) achieve "financial security" (key benefit). Make your customer your hero.
4) Have a way to get paid: it's not difficult at this point — a credit card processing system, Stripe, Paypal, or pure cash.
5) Promote your offer: are your potential customers aware of what you are selling? You must have your offer in front of people. Otherwise, they won't get access to the value you are providing.
6) Learn from steps 1-5, and repeat: probably the most time-consuming one! Fail, learn and iterate (and don't skip this step). Amazon started as a book store, and Airbnb started by renting mattresses.
If you are struggling, ask: how can I help people? Do your business around helping people.