published on October 20, 2013 in bussiness
We hear these terms so often, they have become a strong part of certain people’s dictionary. Which is not a bad thing actually. The problem is that the terms are unclear and confusing.
What is an entrepreneur? Is it some kind of strange breed of people, who have magical knowledge about bussiness? Obviously not. They are just bussiness people, like everyone else, like you and me. The only thing that distinguishes them from the other bussiness people is that they have an ability of taking risks the good way. Or at least they try to. Either by implementing their own idea or taking part in the implementation of someone else’s idea.
Nothing unusual, right. Entrepreneurs are just bussiness people. Nothing more. They use the term just to give themselves a separation from all other bussiness people in the world.
On the other hand, there is something different about them. And the “entrepreneur” term is not the best for it. What really ditinguishes them is that they mostly start the bussinesses. Simply put, they are “starters” just as mentioned in Rework.
Here comes the natural question: what is a startup? This one is a much easier one than the previous. A startup is a bussiness which has just started, which is at the beginning of its life in the bussiness world. Nothing fancy. As simple as that.
And again, companies call themselves startups for a number of reasons. On of them, and probably the most important is to distinguish themselves from established companies.
But in the book I mentioned above, in Rework, the authors mention an interesting negative thing about startups and startup mentality. A bussiness usually exists to bring profit. Nobody works for fun. Profit making and bussinesses in general, have expenses. In the world of startups it is a usual thing to spend someone else’s money until you figure out a way of making yours.
In some cases this is acceptable, but I think that if the startup does not have a way of sustaining itself almost from the beginning, then something is wrong. Why? Because in this case it needs investors, which don’t share the dream, which will only be there for profit.
I just saw that someone is organizing a pitching session here in Budapest, where you can learn stuff from wise entrepreneurs, who know everything about the startup world, they even know what you should do about your bussiness, how you should build it, how you should get investors. They know everything. Because they did it.
Hold on a bit.
Maybe you have a groundbreaking idea, which is unique in its way and nobody else had it before you. How can these people give you any kind of advice about something they don’t know? Because it doesn’t exit yet, right? That is the main thing of a startup, building something new, something interesting, something that nobody did so far. Then how can they help?
Well, they can’t.
Your idea is unique. There is one way to find out how you should do things. Do them. While at it, get yourself a good accountant, you will need that. That’s all the advice you need.
Why are all those companies so high on giving advice, for money or for free? Simple. They are businnesses, trying to make money out of something that is really hyped nowadays: the startups.
What does a startup really need
First, it needs your heart. Put it in, that will help in knowing the direction, in making up the product. The other important thing it needs, is a good accountant, to help sort out finance.
And another really important thing. What is the common thing among all successful bussinesses? The one common thing? This is it:
People don’t buy what you do, people buy why you do it.