Starter tips for both intrepid and hesitant young entrepreneurs

Just go ahead and do it! Should one really give young entrepreneurs this kind of advice? Or should they perhaps be slowed down so that they don't inadvertently fall into a trap? It isn't especially easy to formulate general tips for entrepreneurs getting their start. There are intrepid young entrepreneurs and then there are some who are hesitant, and a whole group of people who lie somewhere between these extreme poles. To spur on the intrepid with an unconditional "Just go ahead and do it" can be just as much the wrong thing as slowing down the hesitant. Nevertheless, there are rules and tips that are equally helpful to both different groups of young entrepreneurs. The important thing is simply that action is preceded by planning (tip for the intrepid) and that planning is ultimately followed by a decision and appropriate action (tip for the hesitant). But that alone isn't all.

A concept for you

Any young entrepreneurs depending on third-party capital cannot avoid drawing up a business plan. But even when third-party capital is not required, you should consider recording all aspects of the business you're planning in a sort of concept. This will show you much more quickly where any weak points exist in your business idea. Ask yourself questions like:

• What exactly am I offering and who is the target group I want to reach with my product or service?
• What expenses will I be subject to (both fixed and variable expenses)?
• How high must my monthly revenue be in order to live from my business?
• How long is appropriate for a start-up phase before I begin to bring in revenue?
• How do I reach my target group to present my product or service to them?
• How high is my advertising budget?
• How do I organize my administrative tasks?
• How strong is the competition in my business's industry?

Don't be satisfied with half-hearted answers. Try to pick holes in your own concept and consciously look for weak points. If any exist, you should know what they are and quickly take steps to correct them, and not first find out about them after beginning business operations. This applies to both intrepid and hesitant entrepreneurs. Hesitant young entrepreneurs usually take it upon themselves to ask these sorts of questions.

They should remember: make your decision at some point and begin to take action. Don't get stuck in "maybe" mode. Think through your business idea and then, eventually, come to a clear "yes" or "no".

Marketing

Some people - even today - start a business and hope that customers will just arrive by themselves. This may even still work with a shop located at the heart of a lively pedestrian area or where there is no competition. But often, it does not work. Marketing is a big box filled with tools that will help you actively establish contact with potential customers. Use this box, but not everything it contains. The selection ranges from newspaper advertising to radio spots and advertising letters, through to a variety of online marketing measures. You could easily spend hundreds of thousands of dollars on marketing, if your budget could accommodate it. But you don't have to. Always keep your target group in mind and ask yourself what instruments are best to reach this group.

Don't make your markets too small

An important aspect of your company's success is the decision regarding the geographical area in which you will pursue customers. A plumber located in Philadelphia will generally not get any customers from outside of Philadelphia and its metropolitan area. Who in San Francisco would pay for the plumber to drive all the way out west? A bookstore in Philadelphia, however, could easily consider trying to attract customers from around the country, for example by way of an online shop specializing in crime books.

For the hesitant: Of course, there are major players in the market like Amazon or Barnes & Noble.

When you hit the right niche with your product or service, however - that's your chance. Use it.

Depending on the industry, you don't have to limit yourself to the American market. The internet makes it relatively easy to access foreign markets: Believe in yourself (if it makes sense to!). Don't forget to plan before proceeding in this area, too. Weigh the opportunities and risks you face in the foreign market. Does your artistic handicraft from the Black Mountains have a chance in Canada, Europe or even Japan? Does your online cell phone shop offer something that the local competition in the given country doesn't offer? Another tip for the hesitant: Don't forget to make a clear decision at some point!

Tips for foreign websites

It is important to address a foreign target group with texts in their own language. This requires professional translators. Think of foreign websites you've seen that weren't properly translated into English. They are generally good for a laugh, but not good for business. If you do decide to market your product or service in foreign markets via the internet, correct translation isn't the only thing to consider.

Localize your website for the country where it will be visited from. This means: Take the culture of the other country into account when considering the choice of texts, navigation system, images and videos for your foreign-language website.

Those whose language is Arabic write from right to left, which means that their eyes wander over the website differently than Americans'. A website layout that is user-friendly to Americans may potentially not be so to others. People from India may not consider the comic elements of your website very funny. Various cultures, various target groups, various modes of address. Just go ahead and do it: but use your head.

About the author

Christian Arno is the founder and Managing Director of global translation agency and localization specialists Lingo24. Launched in 2001, Lingo24 now has over 120 employees spanning four continents and clients in over sixty countries. In the past twelve months, they have translated over thirty million words for businesses in every industry sector and their projected turnover for 2010 is £6.3m.