Entrepreneurs Must Focus on Their Core Business
Entrepreneurs are faced with a great deal of pressure coming from all angles to focus on their core business. The media, investors, and other entrepreneurs will try to convince you that your success lies in one thing – whatever service or product is central to your business.
In reality, focusing on your core business can be incredibly beneficial for startups but it does not always guarantee the best results. There are several reasons why you might want to avoid focusing on your core business as an entrepreneur which includes:
1) Focusing on only one thing limits growth opportunities
2) You may end up infringing on another company’s patent or copyright
3) Your competitors could use the patent or copyright against you (e.g., Amazon’s Kindle case with Apple)
First, let’s talk about the pros and cons of focusing on your core business:
PROS:
1) You will develop a clear vision for your company and how it operates
2) Consumers may feel more loyalty to a product or service they know and love
3) You can better understand what problems you’re solving as well as what resources you need to solve those problems
4) It can be easier to raise capital when investors see that the company is focused on one main idea or product. CONS:
1) The market might not be big enough for your particular business model (For example, there could already be another successful e-commerce platform like Amazon in place)
2) Your competitors will be able to copy your business model and overtake you in the market (e.g., online retailers like Amazon, eBay, Groupon)
3) You could end up infringing on someone else’s patent or copyright (theft is still theft even when it’s digital).
When deciding whether or not to focus on one thing, consider the following:
1) How big is this market? Is there room for all of my competitors?
2) Can my company actually make money doing only this one thing?
3) If my competitor steals my idea/patent/copyright how can I stop them from growing too quickly? What resources do I have at my disposal?
4) What’s the worst thing that would happen if my competitor was able to take over this market? How can I prevent it?
5) Does my company require more than one service/product in order to thrive (e.g., Amazon offers books, movies, music, etc.)?
Now that you know the pros and cons of focusing on your core business, where do you start? According to Forbes magazine, there are five steps every entrepreneur should consider taking when deciding whether or not they should focus on their core business: 1) Brainstorm ideas for new products/services 2) Write down every idea 3) Evaluate each idea 4) Focus on what has succeeded 5) Invest the energy where it is needed most.
The first step is to come up with a list of ideas for the future. This could be anything from offering a new service to new products. Write down every idea that comes to mind – even if you’re not sure where it would fit in your business model. Evaluate each idea and consider whether or not you can make it work given all of the resources available to your company. Focus on what has been successful for you so far, and invest the energy in pursuing those successes even more vigorously.
In conclusion, focusing on your core business will be critical for some entrepreneurs but others may find success by focusing only on one thing at this time. The most important consideration when deciding how to focus is doing what’s best for your company and securing its future.
The final piece of advice Forbes gives to entrepreneurs is this: “Be prepared to pivot if the market rejects your products, but avoid changing direction just for the sake of change.” Remember that you’re passionate about what you do and it’s better to take a few steps back than to bite off more than you can chew.
Entrepreneurs are faced with a great deal of pressure coming from all angles to focus on their core business. The media, investors, and other entrepreneurs will try to convince you that your success lies in one thing – whatever service or product is central to your business. In reality, focusing on your core business can…