The surge in A.I. has opened a door for entrepreneurs and people considering stepping into self-employment. If you’re one of the many self-employed people trying to figure out the “secret to wealth and financial freedom” or how to bring your business from a “great idea” into reality, this is something you should read. It’s the manual for jump-starting your business or launching it and making it a success, not a statistic.
Every business has three distinct phases, each with different challenges and solutions. Businesses tend to run into similar challenges, regardless of industry. The first thing you need to do, regardless of whether you’re starting your business or working out the kinks to reaching your income goals, is strategic planning! We encourage clients to plan for every probable outcome, and we still test their planning by outlining various situations to see how they react. If you want to reach over $1 million in income, that’s the level of planning required. If you’re serious about making a 7-figure income, it takes time, commitment, drive, and resources. Let’s break down what you need to do at each step!
Here are three phases every business goes through:
Phase 1: Formation and Launch
Phase 2: Critical Mass and Growth
Phase 3: Maturity and Long-term Sustainability
Again, each phase has its challenges, and the business needs to establish a firm foundation before it can successfully move from one phase to the next.
Phase 1: Formation and Launch
- Critical points: This is where the foundation is laid. Ideas are refined and brought into reality. They are tested, with some failing and others succeeding. The two most important skills developed in this phase are gaining knowledge through experience, trial and error, and strategic thinking. Founders also need to master the art of creating client disciples. Building a loyal following always benefits a business, especially if it’s new. Steve Jobs was a master of creating client disciples. He instilled a sense of absolute loyalty in every company he formed. Early Apple employees were committed to the company. The same was true for NeXT and The Graphics Group. A product that delivers on promises is important, but client disciples will spread the word about your company. Employees should be the first disciples.
- Major challenges: After launching, marketing and client acquisition are two challenges a new company faces; however, funding is the biggest challenge. Critical analysis of how the business evolves in the first few months will yield massive information. It shows you how your target market views your company and gives feedback about where you need to focus your efforts. Always be open to new concepts, products, and ideas. They could take your company in new directions that could become very profitable.For funding, put together a pitch deck, executive summary, and a detailed business plan, then dig into your network to see who is connected to funding sources. You should present your new business to people you know and trust, as they are often the first group of investors. Don’t be too eager to go to the VC or private equity markets until you have enough leverage to deal with these potential funders on a more equal footing. This is where you should hire someone to review your pitch, help prepare your documents, and bring some potential funders to you.
- Best tools to implement: Use A.I. to automate as many functions in your operations as possible. Initial sales, customer service, and responses to inquiries can be executed by a well-trained A.I. assistant. More complex A.I. can be incorporated to do more complicated tasks. Make investments in yourself and your business, as they will pay substantial dividends. It’s possible to run a $10-$20 million company with under 10 good employees if you use the right tools. Bring in a consultant who understands your business and can simplify the process. A good consultant will also help you avoid common blind spots that could damage your business.
- Importance of sales and marketing: Every business relies on sales to grow; therefore, every business is a sales operation before anything else. The sales process walks prospective buyers through the buying process, ensuring they are happy, not just satisfied; you want to cultivate client disciples, not mildly happy customers.Marketing is positioning your company in front of potential customers and making appealing offers that motivate them to consider your products and services seriously. Both are key to your long-term success and should be implemented from the earliest phase of your business.
Phase 2: Reaching Critical Mass and Growth
- Critical points: Growth is the primary goal in this phase. This is where Promethean logic and strategic planning come into play. You’ve analyzed your market and understand what motivates them, what they want, and how to deliver exactly what they want when they want it. Don’t get caught up in meeting needs; focus on meeting client wants. This is how to tell the difference – if your TV stops working on the Saturday before the Superbowl, and you’re a big fan, how long will it take you to buy a new TV and be ready for the game? Nobody has ever died from not having a TV or missing the Superbowl, but most people would have a new TV set up and be ready for the game the next day. People will act on desires before they act on needs. Understand the psychology of your market to reach critical mass. Also, remember that ways of thinking are always fluid; keep track of trends and adapt as needed. Consider using A.I. to help track and predict trends.
- Major challenges: Funding, competition, and sustained growth are your business’s biggest challenges at this level. The goal is sustainability, consistent profitability, and market share growth. There are two requirements to meet this goal: money and a product or service that meets market desires and exceeds expectations. Once your business is established, maintain quality and keep the improvements incremental. The iPhone 15 isn’t dramatically better than the iPhone 14; it’s incrementally different. Most users won’t notice a big performance difference, but it’s enough to maintain Apple’s market share. Your business should strive to meet that market penetration and product satisfaction level.
- Best tools to implement: Proper allocation of resources is important at this phase. They need to operate at a level that lets your company focus on growth while advancing existing client relationships. Deploying a well-trained, enhanced A.I. assistant can allow you to delegate several tasks to a customized A.I. The A.I. systems that were implemented from the launch of your business will need to be upgraded, and more will be added based on what your business needs to grow. Employee training and your personal growth as a business leader will also be critical to meeting the demands of this phase. Remember to monitor trends, watch what your competitors are doing, and learn from their past missteps and your own!
- Importance of marketing: The core sales and marketing principles are more important at this level. Marketing will boost awareness, crafting the narrative around your company and framing it in your target market’s mind. Continually refine the sales and after-sales process, creating more committed customers and clients. To increase revenue, explore introducing more products and services adjacent to your most successful offerings.
Phase 3: Maturity and Long-term Sustainability
- Critical points: This level is the goal for all business leaders. Your company has achieved critical mass, built a dedicated following, and established a strong market share. Don’t get complacent. Several established brands have allowed themselves to slip into irrelevance because they thought they were untouchable.A company at this level chooses its path forward. Does it continue to look for ways to revolutionize markets, or does it settle into incremental evolution? Microsoft is an excellent example of a company that’s successfully moved from innovator to evolver and maintains market share and profitability. They have leaned heavily into supporting the infrastructure of market desires, like heavily investing in OpenAI and other ventures.
- Major challenges: Maintaining market share, building brand loyalty, and navigating a dynamic environment are major issues mature companies face. These are problems new companies would be excited to deal with.At this level, future continuity and furthering brand awareness are major issues. The biggest issue is maintaining relevance. As mentioned, established brands often become complacent and lose market awareness. Once the most valuable company in the world, GE has become an afterthought.
- Best tools to implement: Companies at this level have the resources to build A.I. systems that can automate a significant portion of their operations.
- Importance of marketing: Staying in the target market’s mind is the main marketing goal.
This is a high-level overview of what it takes to start and build your business from ground zero and the issues you’ll face. It’s not meant to be an exhaustive list since each company faces unique challenges. One key action you can take today is implementing A.I. solutions into your operations.
To zero in on your business needs, invest in a good consultant who will work with you as you grow.