Many aspiring entrepreneurs try to go into business because they are passionate about their idea. However, a strong passion for an idea is not always enough to ensure profitability, and to be successful in the business world over the long term, it is essential to make enough money to both survive and thrive.
But for those unwilling to jeopardize their idea for another they are less passionate about, the members of Council for Young Entrepreneurs have a few tips. Below, they each share some advice they would give an aspiring entrepreneur to ensure their passion will also be profitable and why you don’t necessarily have to give up on your dream to make more money.
Members pictured from left to right.
Photos courtesy of the individual members.
1. Make a sales forecast
Entrepreneurs who focus exclusively on passion or profit reduce their chances of success. Without passion it’s hard to stay focused, but a lack of profit is like a car without gas. Make a revenue forecast before starting a new project. Is there a clear path to profitability? What is the expected timeline? What are the best and worst case scenarios? Ask yourself these questions to get clarity on whether your idea has the potential to become a business. Numbers don’t lie. If your idea doesn’t make economic sense, no amount of passion can change that. Passion helps you build a great business. But first, make sure your idea has the potential to become a great business. – Robert Hoffman, Contact Studios
2. Know your audience’s pain points
Know your market, but more specifically, know how and why people buy what you sell in your market. Passion is great and a big driver why you work hard every day in a new company. But if you don’t know what your buyer’s pain point is, your solution can only partially solve a business problem. If it doesn’t solve a problem, it can be “nice to have” rather than “critical.” Critical solutions tend to receive more focused attention, and that usually translates into sales. – JT Allen, myFootpath LLC
3. Test the market
If you’re passionate about your idea, but no one else seems to be energized by receiving the news, you might want to hit the whiteboard again. If you share your idea and people rave about it and send you a lot of support and enthusiasm, then you have an idea that is well on its way to becoming a good idea. Work out all the details for what it takes to turn that idea into reality and what the process will cost you, how much you will spend along the way and how much it will bring you when it is in full swing. Examine the details, ask all the questions, get the answers and march forward. – Mary Harcourt, CosmoGlo
4. Start with a minimum viable product
If you have a passion for your business idea, that’s great! However, you need to make sure that your passion will also be profitable. One way to do this is by making sure you have a minimum viable product (MVP). Your MVP is the simplest version of your product or service that you can create and offer to your customers. It should be able to solve their problem or meet their needs in some way. By starting with an MVP, you can validate your business idea and ensure there is a market for what you offer. After you validate your MVP, you can start adding more features and functionality. But keep in mind that your ultimate goal is to create a product or service that your customers will love and that is also profitable. – Pratik Chaskar, spectra
5. Ask the experts
To find out if you can monetize your idea, talk to industry experts at professional meetings, online communities, or on LinkedIn. If you’re new to a specific product or industry, listen to people with years of hands-on experience. Then you can compare the average customer’s expectations to your idea and find common ground before launching your business. – Jan Bracket, Smash Balloon LLC
6. Turn your passion into discipline
I always say passion is the first ingredient to become an entrepreneur; however, it is not always the most important. Ideas mean nothing without execution, and execution requires them to appear every day. It means not giving up. It means coming up with creative solutions to unique problems. It means being an inspiration to others when you struggle to find your own inspiration. It means making business plans from scratch and sticking to them. It means believing in your passion, even if you find it hard to believe in yourself. The difference between an idea and a profitable business is the effort you put into it every day and the responsibility you take for yourself. Once you turn your passion into discipline, profit will come. – Richard Conte, Virtual stream
7. Stand out from the competition
Passion is so important in entrepreneurship because it’s what keeps you going when the going gets tough. However, the best advice I would give for turning this passion into a profitable business is to make sure you are doing something different from your competitors. It can be difficult to come up with an entirely new idea, especially in crowded markets. But creating a new version of something that already exists means that you will have to climb a constant uphill battle. If you can find a way to put a new spin on an idea and offer a new feature or put a spin on an underserved part of the market, you can stand out. – Diana Goodwin, MarketBox
8. Be open to change
Your passion must be fluid or you will find yourself clinging to previous ideas that no longer serve your practice. How your passion manifests itself in your work will change significantly over time, and you have to let it. Trends change, business expectations change, all of which have a knock-on effect on how you feel about what you do. Accepting these changes will put you in an optimal position to remain profitable. It’s also important to remember that business and pleasure don’t always mix. If you choose to pursue your passion in a professional context, your love for what you do may ebb and flow with the passage of time. This is normal, and it does not mean that your passion has died. It just evolves. Embrace it! – Nick Venditti, StitchGolf
9. Find a way to communicate your passion
Passion is always a prerequisite for bringing any good idea to market and winning. However, it is not the only requirement as there are many other elements for creating a profitable business. Loving the product or service you are selling is always important because the energy you convey when talking to prospects is easy to see. My advice is to find the right way to communicate the reasons why your ideal customers should be excited too. While you may see the benefits as a home run, other people may have different needs. Trying to understand all the reasons why someone might become your client will help you focus your passion in ways that resonate with them. This connection drives both initial purchase and brand loyalty to build long-term business success. – Richard Fung, Assistance with a disability
