How to start-up a new business.
Most of the peoples are working like a Xerox machine. They are copying to the other business or business model which is growing fastest in the market. Peoples are wanting to start their business. In fact, this is a good thing but at the time of starting a business in actual, most of the peoples think like which business is growing fast nowadays? Which business is more profitable? In which business we can earn more money? Etc. and this is a problem. They think like, this here this ice-cream parlor is growing fast, let’s start also my new ice-cream parlor ice-cream parlor is growing fast, we also start our new ice-cream parlor, this company is producing the engineering parts and getting more profit then We also start that same business so we can also get more profit; and everyone thinks like that and try to copy each other. But at the end, these businesses become less profitable because everyone starts their own same businesses so ultimately competition gets high and then everyone has to compete with each other. But no please that your business should be like that in which no any another people can enter into this business there should be the monopoly.
If you want to start-up a new business then that business model should be unique. You have to start your business from zero to one not from one to N.
What is zero to one and one to N?
When people used to use the horse for the traveling. At that time, Henry Ford (Founder of Ford automobile company) developed a new product that was the car. In this case, Henry Ford started their business from zero to one. But if Henry Ford preferred to develop the products like tonga or provide a fast running horse to the customers then they might be started his business like as from one to N.
If you want to be a successful then do something new and innovative and unique and go from zero to one not from one to N. If you go from zero to one then, It called also the verticle progress; Because if you are copying other peoples business model and inserting some your own changes in the same thing which is working from earlier than you are started then you are going from one to N. Also it called as horizontal Progress. But If you do this then, your success ratio will decrease automatically. You may get some little success by mistake but it will not be a big success and also not for long-term. Every event is organized only once in the business. In this world, next to Bill Gates will not create an operating system, next to Mark Zuckerberg will not create a social network and next Larry Page will not create a search engine. If you are coping with their business then you are not learning anything from them because they get huge success when they go from zero to one. And if you try to copy them then you will go from one to N, which will be never the best option.
We live in these type of society where more gets encouragement to the competition. Our education system teaches the competition to the students from the beginning of their educational career. Frist they compete for the marks with each other then, for the job; If they don’t get anyone to compete then they start to compete with their neighbor, eg. buy the car, TV etc. expensive that neighbor. Those stupid things become a competition but the reality is competition will give you only the loss at all the time. Like this also in the business competition does like a poison; Competition and capitalism these both things are opposite. Capitalism is related to generate the profit and competition is related to decreasing the profit. You will earn low profit how much the competition is there in your business, no matter how big your business is.
US airline companies make money in million and billion dollars but in 2012 these companies could earn only 37 cents per passenger. Let’s compare this with Google, Google made 50 billion dollars and airline companies made 160 billion dollars but google earned 21% profit from 50 billion dollars and it was hundredfold more that than the profit of these airline companies. It happened like that because airline companies were decreasing their prices for per passengers to compete with the other airline companies but at other-site Google was dominating the entire market alone, without competing with any other company. In today’s time if we unify the profit of all the airline companies then also Google is earning threefold more profit than these all the airline companies. Google can do this because in today’s time Google’s search-engine is a monopoly and no one is the competitor there for Google. If I told you to search anything on the internet then, you will search on google only. Because Google is best for the search engine.
As like this if you want huge success then you have to create a monopoly of your product or services in your business.
Start with the niche market and then dominate. Amazon the website where you will get any item but at the beginning of the Amazon, Amazon started a business by concentrating on only one market. And that was of the peoples who read the books. At that time, customers couldn’t get books easily and book publishers had to beer losses but Amazon made online book-store and brought zero to one progress so that, customers could get any book easier. After getting the success in the business of books Amazon started selling the books related products like CD, DVD etc.on the online store and started dominating all the markets slowly.
First, give a good service to the customers then start to dominate all the market slowly. Remember, in the big pond big fishes grab the small fishes so that the better is to become a big fish on small pond grow big then go into the big pond.
I share these some principles from the book ‘Zero To One’ by Peter Thiel. if you want to startup your new business successfully then I think you must read this book once a time before starting your business because this book can teach you how to become the next billionaire. If you want to buy this book then Click Here. Or click below.