Startup Spotlight: What every entrepreneur must know before starting a business

Editor’s note: Lauryn Colatuno wrote this post for RIoT, the Raleigh-based business internet of things users group. This blog – our Startup Spotlight – is an exclusive part of WRAL TechWire’s Startup Monday package.

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RALEIGH – Starting a business is a thrilling experience, but it can also be daunting. To be successful, it’s important to understand the fundamental truths of business. Last Thursday, RIoT Virginia kicked off their first Bagels & Business event at the Virginia Smart Community Testbed. This new monthly series takes place on the second Thursday of each month and is designed to cover different topics related to starting and growing a business. The event discussed the four fundamental business truths that entrepreneurs should keep in mind while building their businesses.

#1 Does Your Business Solve a Problem

The first fundamental truth of business is to ensure that your business solves a problem. A successful business solves a real problem for its customers, and this problem can be anything from a gap in the market to an unmet need. Before starting a business, it is important to identify the problem you want to solve, why your idea or company exists, and what makes your solution unique.

#2 Are You Able To Connect Solutions To Customers

The second fundamental truth is to connect your solutions to your customers. You need to know who your customers are and why they would want to buy your product. Understanding your customer’s needs, preferences, and pain points will help you connect your solutions to them. You also need to have a clear idea of how you are reaching your customers. Whether it’s through social media, email marketing, or word-of-mouth, you need to know how to get your message across to your target audience.

#3 Does Your Revenue Exceeds Cost

The third fundamental truth is to ensure that your revenue exceeds your cost. You need to know the size of your market and whether your revenue will exceed your costs. This includes understanding the cost of producing your product, marketing your product, and providing customer service. You also need to know how much money you need to start and run your business until you start generating revenue.

#4 Does Your Business Follows Legal And Regulatory Requirements

The fourth fundamental truth is to ensure that your business follows legal and regulatory requirements. It is important to be aware of any legal or regulatory requirements that may apply to your business, such as registering your business, getting licenses and permits, or complying with tax laws. Failure to comply with legal and regulatory requirements can lead to costly fines and even the closure of your business.

In conclusion, the four fundamental business truths are essential for any entrepreneur looking to start and grow their business. By understanding and applying these fundamental truths, you will be better equipped to identify and solve real problems for your customers, connect with your target audience, manage your finances, and stay compliant with legal and regulatory requirements. RIoT Virginia’s Bagels & Business event is an excellent resource for entrepreneurs to learn and network with other like-minded individuals.

Watch the full session below to learn more about fundamental business truths and join our next discussion on May 11th at 7:30 AM about customer discovery—RSVP here.