Most successful businesses are always the innovative ones. They cater either new relevant needs emerging on the market or 'old' needs in a different way. Successful entrepreneurs are those people who push things further creating new trends and improving other people's lives.
All business schools teach that the most important business decision, the key factor in any business is differentiation from competitors. The unique selling proposition (USP) is the starting point of any business strategy and planning processes.
However, most young (aka new) entrepreneurs are inclined to imitate successful business models, being afraid to come up with genuine ideas. They feel secure when taking something that worked for other people, than coming up on the market with a new offer or approaching their potential customers in different ways.
It is true that marketing new ideas involves a high degree of risk. But, as an old business principal states: 'the higher the risk, the higher the earnings. '
The new entrepreneurs want to do everything perfect from the beginning, to not make mistakes, which is impossible. They need to know that making mistakes is not only inevitable, but also advisable, necessary for them to learn how to do things better. Because managing any business means, above all, a learning process. It means taking actions and evaluating results, and testing new ideas, eliminating what does not work and keeping what works. In this way, the entrepreneurs are able to improve business processes and effectively deliver their solutions to their target customers.
The problem is that most entrepreneurs when being at their first business initiative do not master fundamental business principles. They are not able to see their business as a whole. Focusing too much on learning goals and being afraid to not lose money, they skip important aspects of their new business.
The most important thing in any business is to formulate a relevant solution addressed to a clear customers' target, and to deliver and communicate it effectively.
This is the main business goal entrepreneurs must take into consideration. The ultimate goal of any business is to satisfy at its best customers' needs and not to make a certain level of profit. The profit measures how effective a business is in delivering its solution. It is a very important financial indicator to think about and to watch closely, but not an end in itself.
Assuming the risk of choosing the innovative way in business does not mean to not take care of all costs involved and not track all the steps taken in developing the business. By contrast, entrepreneurs need to pay attention to all inputs entering in and outputs coming out of their business, maximizing inputs – by inputs we understand not only financial investment, but also working hours, energy and dedication– and tracking outputs.
So, when starting your first business, do not be afraid to take a calculated risk of being innovative. Bigger challenges may mean bigger rewards.