Hello, this is Pavel Gammer with you again!
Today, I would like to share my thoughts not so much about the restaurant business as about business in general. Nowadays, a lot of young people in Estonia and in Russia want to set up in business but do not know where to start. I have always been a supporter of the private initiative, and I believe that the bigger is the small business share, the more successful and wealthy is the country. Nowadays, it is particularly true as, in the era of the Internet and digital technologies, a successful local project could become iconic and bring its creator substantial gains.
Do not get me wrong: businessman Pavel Gammer is not going to take time of his readers with an average lecture on management. I just want to give a couple of tips that I find useful for the preparation of the project and at the initial stage of any startup.
Always rely only on yourself, not on the government. Despite reasonable business support programs in Estonia and the possibility of receiving European grants, it is better to set up in business that would be initially constant and would not require help from charitable trusts and governmental institutions. At the same time, one should not refuse the support of business-angels, as their trust marks a high potential of your project.
Do not be afraid to try. Here, you should follow the principle, “Risking, you can lose, but without risk, you cannot win.” Lots of great businessmen were on the verge of the bankruptcy at various times, but it did not stop them from making millions of dollars later. Business without risk is possible only for monopoly, and therefore, one is almost always at stake of losing. Or becoming a millionaire!
Look at the business through the eyes of a client. The most objective assessment is possible only when the entrepreneur puts himself in the shoes of the client and critically evaluates every detail of the project. It is better to carry out such “audit” before the start of the project to prevent significant corrections and escape financial losses and losses of customers. The key to the successful relationships with partner companies lies in predictability and honesty.
Appreciate human relations. I have a lot of friends and acquaintances who see me not as restaurateur Pavel Hammer but as an old friend and comrade with whom they have ties. The support of personal social circle inspires and invigorates, and the help in a difficult situation often is the only possible solution. It is also very important to build the positive relations inside the team, as it is the key success factor for every business.
The core values are ideas, not money. Unlike other spheres, business is not a “private club” that most people cannot join. Here, everybody could take responsibility, get active, and live out his or her dream. Believe me, the lack of original ideas is now much more significant than the lack of investors who are ready to sponsor interesting projects.
Find advanced specialists for your team. A good leader and successful entrepreneur are always able to see the potential in another person. Today, it is almost impossible to run a business on your own, but the engagement of experts could be too costly at the initial stage. Effectively evaluate the staffing requirements and gather a team of driven professionals or give a part of functions to outsourcing.
Do not stop to develop! A common mistake of neophyte entrepreneurs is the withdrawal of the first profits from the turnover and their wasting on personal needs. However, during the first months, one should spend money on marketing and the development of the project to the fullest. Business is not coherent: it can either develop or devolve. Therefore, if you deprive resources of your project, you deprive its competitiveness in the market.
Indeed, every industry has its own nuances and various barriers to market entry and even the neighboring countries have the differences in legislation and national peculiarities. However, the basic principles mentioned above could help to avoid a lot of pitfalls regardless of where and what you are planning to do.
I will be glad to hear the opinion of experienced entrepreneurs and their additions to the list in the comments. Furthermore, I will be glad to know what problems are the most challenging for neophyte entrepreneurs and their startups at the moment.
That is all for today. I wish all of you good luck and success in business!