2024 has been predicted to be a year of booming home-based entrepreneurship, so those who want to start their own business aren’t alone. Studies indicate that Gen Z is poised to lead the charge as the most entrepreneurial generation and, according to Wells Fargo, the number of woman-owned businesses has almost doubled in the last few years compared to men.
As I step into the role of forum chair for Arizona Entrepreneurs’ Organization, I can’t help but reflect on the dynamic entrepreneurial ecosystem that defines the Valley. With 2024 having been predicted to be a year of growing entrepreneurship, people are left with questions about how they can take part successfully.
Harnessing the wisdom of our Valley’s leading entrepreneurs, I’ve gathered these tips for those embarking on their entrepreneurial journey.
Delegate wisely. Understanding strengths and weaknesses is paramount. Delegating tasks that don’t align with expertise frees up valuable time to focus on strategic initiatives. Whether it’s administrative duties or technical challenges, outsourcing allows the business to maintain productivity and efficiency without spreading the owner too thin.
Focus on revenue generators. In a landscape cluttered with endless opportunities, it’s crucial to identify and double down on what works best for the business. Instead of chasing every trend, entrepreneurs should concentrate on revenue-generating activities that drive sustainable growth. By narrowing the focus, resources can be maximized and distractions can be minimized, which can propel the business forward with purpose.
Embrace lean operations. The current labor market presents challenges, but it also offers opportunities for innovation. Leveraging virtual assistants and adopting lean practices can streamline operations and reduce costs without sacrificing quality. Embracing agility and adaptability allows the business to stay ahead of the curve while maintaining a competitive edge in a rapidly evolving landscape.
Network strategically. Entrepreneurship can at times feel lonely, and building meaningful connections within the industry is invaluable. It is helpful to engage with peers, mentors and even competitors to exchange insights and forge partnerships. A robust network not only opens doors to new opportunities but also provides support and guidance during challenging times. Fostering relationships built on trust and collaboration can allow a business owner to navigate the entrepreneurial journey with confidence and resilience.
Cultivate grit and determination. Success in entrepreneurship is not just about skills and products; it’s about resilience and determination. Against setbacks — which are likely to be experienced along the way — entrepreneurs should try to maintain unwavering faith in the vision. It is helpful to cultivate a mindset of perseverance, as that can propel the business through obstacles toward entrepreneurial goals. It’s important to remember that every challenge is an opportunity for growth and every setback is a lesson in resilience.
Be careful with funding. Those who are starting a brand-new business, with an untested product or service, should try to limit investor capital or borrowing from a bank. Until there is market demand, it is risky to take significant investor funds, sell equity or straddle the house with debt. Instead, they should start small or bootstrap the business until the marketplace demonstrates sufficient demand to perpetuate the venture. When acquiring an existing business, with current customers, employees and revenue, Small Business Administration loans often have very favorable terms.
In addition to these core principles, one-on-one mentorship is a huge key to success. Learning from the experiences, both successes and failures, of seasoned entrepreneurs can provide invaluable insights and shortcuts on the entrepreneurial journey.
Nathan Donohue is the incoming forum chair of Arizona Entrepreneurs’ Organization and owner of Consilio Wealth Advisors, an advisory firm providing financial planning to tech executives with significant equity compensation.
