Lesson #1 I Wish I Knew Before I Started My First Business

by Michael Cage on October 16, 2004

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I spent almost a year organizing my first business. I devoted all of my spare time and energy to important things like securing the product I’d be selling, and learning about who I was going to be selling it to. I invested an embarrassing amount of money. And then…

I discovered what I had to sell would not sell.

This is a hard learned lesson for many entrepreneurs who believe the important part of their business is the idea. The idea is important, to be certain. But there IS NO BUSINESS until you have a customer.

In most cases, priority number one should be to get the first sale as quickly as possible to prove the business concept you have has legs. If it doesn’t, all the planning and strategizing in the world won’t do you a bit of good.

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Tagged as: Business

  • I couldnt agree more. I have also been a victom of setting up a busniess without doing proepr market research. It frustrates you.

  • It is really a nice post, its always great reading such posts, this post is good in regards of both knowledge as well as information. This is a hard learned lesson for many entrepreneurs who believe the important part of their business is the idea. The idea is important, to be certain…Thanks for the post.

  • Terrific article, but the comments here suck!!

  • Nice post thanks for sharing


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  • A good service is one of the keys to the success of the business.

  • Condos Toronto

    Cheers Ayomide. I’m a senior too and it sure hasn’t been easy applying to colleges on top of schoolwork. I definitely agree with you on finding a balance between work and play and also on the amount of time you sleep and are awake. Feeling sleep deprived sucks especially when there is a party coming up but you’re too tired to go.Hope things get better for you and good luck with college admissions….!!!!

  • Good post.This is a hard learned lesson for many entrepreneurs who believe the important part of their business is the idea. The idea is important, to be certain…

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  • Wow, that was heart provoking article presented by you sir

    thanks for sharing


    regards

  • When you start your first business its so hard. You always come across bumps in the road. Keep you head up and keep working.




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  • Valuable information and excellent design you got here! I would like to thank you for sharing your thoughts and time into the stuff you post!! Thumbs upexhibeoutdoordisplays.com/”>Outdoor Display

  • The problem is that planning and strategizing is built on a large number of assumptions, most of which are bad assumptions. As a result the expected outcome rarely materialize. It is very smart ,as the author of this post suggests, to mix planning with action simultaneously. The assumptions are tested and validated from the beginning. By getting the first customers before investing heavily, entrepreneurs can make sure that there is a real need for their products and that customers are willing to pay for the products. Entrepreneurship is more about taking calculated risks rather than about gambling.

  • Nice stuff..I totally concur with what you said there.

  • This is true that without customer there is no business. For this you need to attract people and also give them good service.

  • Anonymous

    I agree there is no business if there is no customer. That is why a business plan is a good idea, where you are forced to define your target market and establish market requirements upfront.

  • Anonymous

    I work for a mortgage brokers, are biggest problem is the banks dont want to sell what they have. So now we have no lending and no borrowing.

  • Anonymous

    You do the cerebral work! Really admirable. Thanks for sharing with us.

  • Anonymous

    i’m agree. thanks!

  • Anonymous

    Really great blog with alot of good information!! Keep up the good work.

  • Anonymous

    True, true…....a little marketing before launch is a great idea.
    ——-

  • Anonymous

    Mind sharing what you first sold?

    What if my first biz I want to offer a service?

  • Anonymous

    It is a Catch-22 situation. Your first Customer/Sale are extremely important and so are the preparations before the first sale. You have to be sufficiently prepared to serve the customer and execute the sale. If you include “how-to-sell” along with “what-to-sell” in your initial preparations, then your initial efforts are worth it.


    I agree there is no business if there is no customer. That is why a business plan is a good idea, where you are forced to define your target market and establish market requirements upfront.


    In spite of all the precautions, things can turn out to be different, but hey! isn’t business an opportunity to try out your risk-handling capabilities? <img src="http://www.entrepreneurslife.com/images/smileys/smile.gif" width="19" height="19" alt="smile" style="border:0;"></img>


    You are absolutely right about the fact, most entrepreneurs focus too much on the IDEA. Instead, they should keep idea in view while concentrating on other practical aspects of doing the business.


    Oh by the way, I write a blog about running a “virtual” dotcom business, which does all the preparations that a real business would do, before selling the product/service. Currently I am writing about Business Plans. Check it out: http://businessworks.blogspot.com

  • Anonymous

    Until You Get A Sale, Nothing Else Matters

    Michael Cage: “This is a hard learned lesson for many entrepreneurs who believe the important part of their business is the idea. The idea is important, to be certain. But there IS NO BUSINESS until you have a customer. In…

  • Anonymous

    Michael—


    You are so right! And you’re not alone. Way too many small business owners (or wannabes) come up with a fantastic idea that they spend hours and money on to get ready to sell and once they take it to market, it’s a flop.


    Most of them miss the all important step of market research. And many ignore the advice that we should listen to our market crying out for a product and then provide that product rather than the other way around.


    Best of success!


    Denise O’Berry

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