As I’ve navigated the last decade + of entrepreneurship, both in my own businesses and as an advisor for others’, five universal laws have emerged, which define the valiant pursuits of the self-employed. Like the laws of physics, these laws are as undeniable as gravity.
These 5 Laws of Entrepreneurship are:
I will be exploring each of these concepts in greater deal – but for now a few notes on each law. One important thing to point out, is that these laws are in priority order – so if you’re starting a business, be sure to consider the first three laws before you indulge the common instinct to jump straight to mechanics or momentum!
If you’ve read anything about what it means to be an entrepreneur, or how to succeed (at just about anything, really) you’ll have no doubt read about how important mindset is. It’s law #1 because it is without a doubt the most defining factor in your success. This law is all about managing yourself as an entrepreneur – your energy – your emotions and your thinking. This law is also ever-present in each of the other laws.
The only reason a business exists is to earn revenue – so the flow in and out of money is activity numero uno for any entrepreneur to understand. Any passion can be monetized if you find the right angle- so the lesson here is not to obsessively worry about cash, it’s about becoming empowered in your ability to understand, manage, create and grow your finances.
Perhaps the most commonly misunderstood of our laws, marketing is about more than tactics like Facebook Ads. Marketing includes your product and your brand, your positioning and your ideal client. Marketing is third (behind only money and mindset) because it’s such an incredibly important part of your success as an entrepreneur. The good news, is that it’s not as hard, complicated or expensive as you think – and here on jnicholesmith.com, you’re definitely in the right place to get the support you need!
Mechanics includes the product or service delivery, the systems, processes and general ‘doing’ of what you do. Operations is in here, as well as getting organized and fulfilling your promises as a business. Perhaps the most straightforward of the laws, this one is typically a starting point for many entrepreneurs who jump straight to the line between ‘make the thing’ and ‘sell the thing’.
The importance of this law can not be overstated. So many entrepreneurs quit before they’ve had a proper shot at ‘making it’, simply because they never got enough momentum to see the results of their investments or efforts. Concepts like ‘market penetration’ or ‘critical mass’ also ‘virality’ and ‘word of mouth’ all live in this snowball-like law. This law dictates favors the sales funnel, and follows the truth that sales is a numbers game.t When combined with mindset, this law is also about keeping your efforts going even when you’re not feeling it – because consistency is one an entrepreneurs’ greatest allies!