Doing something you love as a job sounds like a dream and yet it does seem to be possible. It is a victory in itself when a project that you have put so much work into finally takes off, one that can only be achieved through hard work and by taking into account a number of other factors, which, together, result in financial reward and the opportunity for the entrepreneur to do what they love.
Motivation, enthusiasm, determination and perseverance are all fundamental in achieving objectives that will bring us closer to our goals. However, there are also other important factors that must be considered when planning a social impact project. In a talk, the serial entrepreneur Bill Gross shares the top five important factors that will determine the success of your startup.
The most important factor is timing – choosing the best moment for take off. There is a perfect moment to enter a market and not every moment is perfect. Evaluating the market situation will help you understand whether the present is too early or too late to do so. How do we evaluate a market? The best way to do so is by talking to your potential clients or beneficiaries directly, get to know them well. Companies like AirBnB and Uber launched their products when the need for them arose. Choosing the right time to launch your product or service will mean the market will be ready and willing to use it; consumers will recognise what you are offering them as a solution to their problem. For this to happen, you must pay attention to developments in your target market, as these will tell you when the perfect moment is to get your project out there.
The second most important factor is the team, playing a key role on the way to success. As humans, we have a tendency to shoulder all the responsibility ourselves and walk our path alone, as working fast, as a team and, above all, being a good leader is a job in itself.
The truth is that four eyes see more than two and every outside opinion will give you fresh, new ideas or things to think about, which will help you develop your idea.
Working together with other motivated individuals who share our values will help us achieve a greater impact.
In third place we have the idea. Knowing what you want to achieve is not enough, you must put your idea into action. Good tips when starting out are to write down your idea, to begin planning it out and to analyse the market. Knowing who your competitors are and determining what makes you different are the first things you should consider when thinking about whether your idea is feasible.
The fourth factor is the business model – an analysis of all the factors that affect your social impact project or business. A business model answers questions such as how will the product or service make money, what business costs are involved, who will be your target clients or beneficiaries, who will you partner with and what channels will you use to publicise your idea and to reach your target audiences.
The fifth and final factor that determines success is funding. We often spend a large amount of our time thinking about how we will fund a project, but the truth is that this factor is ranked last, making it the least important out of these five. If you are offering a useful product or service, funding will come. You, as the social entrepreneur, should first prove that you are willing to put in the necessary work, as this will show potential investors that you are dedicated and believe in your idea. The next step is to convince the 3 Fs, family, friends and fools, to invest in your project. At this stage, you could inform your network of contacts of your idea or use crowdfunding platforms to reach a wider audience. To gain access to those looking to invest bigger sums of money, such as angel investors to begin with and investment funds at later stages, you will need to fulfil stricter requirements, such as having generated a certain amount of revenue from sales of your product or service.
