Five Things Every New Entrepreneur Should Know

Being an entrepreneur in 2012 is actually a lot harder than how many media outlets are making it sound. Every day there is a new application, website or device creating a new market for individuals to transform. Yes, many of these are useful but some just make things harder for everyone in the end. Take a look at LinkedIn and Google+. Because of their open profile styled layout, companies are able to find more research on the person/people they’re working with before they ever meet. I recently spoke with a company who found me on a social media platform I haven’t updated in months. Every detail about companies and those who run them are becoming increasingly easy to find, which for many could mean failed partnerships and business deals.

If newly developed companies want to run with the best, their founders will need to know a thing or two in order to be competitive. This no longer means creating the best product there is. People will love you for that in the beginning but what they really want is something that truly defines a corporation in our technological age.

Here are fives things every new entrepreneur should know if they hope to succeed in 2012 and beyond.

5. Know your clientele better then they know themselves.

SOPA continues to provide an excellent example for this particular point. When the act was released a lot of content providers and digital corporations (ourselves included) publicly voiced their disagreement with what could be the end of “digital free speech.” However, companies such as GoDaddy failed to make the right move in connection to their primary audience. As one of the biggest web hosting and Internet domain registrars GoDaddy should have known its customers would have been against something that could negatively affect their businesses in the long run.

4. Do what your competitor is doing but better.

If company A created a product that sells and company B wants to get into the same market, why not look at the tactics company A is doing to help their product grow. One thing I always hear when talking to fellow entrepreneurs is how they want to do something no one else is doing. That’s great…run with that. But, take a look at what a company is doing and see if you can improve it. If that company already has clientele in the market you wish to dominate figure out what their customers wish the company had and then give it to them.

3. Social media is the red-headed stepchild you’re forced to love.

It’ll be hard to find companies willing to admit it but they all hate social media even though it’s becoming a major component of their business model. It’s an added task that must be maintained on daily basis but some entrepreneurs are simply too busy to do so, especially if you’re flying solo. Platforms like Twitter and Facebook make it easier to connect but in order to maintain that connection you have to update. Most individuals see this as a New Years diet they’re forced to keep.

2. Advertising doesn’t mean $$$ no matter how many unique views you have.

If I just caught you off guard calm down and take a moment of self-reflection. While advertising may earn you money in the short run it won’t earn you that much as time goes on. People are becoming more aware of advertising, which accounts for many media companies witnessing a lower click-through rate.  If you want to be a profitable digital company (well, if your not selling an app or something) you’re going to have to diversify your business model.

1. You’ll eat, sleep and breathe your company for the foreseeable future. 

This one should be self-explanatory but just in case. There are two things that can end a company quickly. The founder/founders realize it’s more work than what they originally thought or they burn themselves out before their product reaches its true potential. I like to think of companies like having a baby. Don’t commit to creating if you don’t want to put in the endless hours needed to see it grow and don’t overwork yourself or you’ll become unpleasant to be around. Like having a child, a new company should be a learning and loving experience. You should always have fun while learning the lessons of life along the way. Take a note of wisdom from Thomas Edison.

Nearly every man who develops an idea works at it up to the point where it looks impossible, and then gets discouraged. That’s not the place to become discouraged.

Obviously there are more lessons to being an entrepreneur but these are the top five people seem to forget before diving in. What are some other important need-to-know points?