Entrepreneurs’ Journey: Insights from My First Business Venture
Entrepreneurship and being a business owner are not the same. Entrepreneurs innovate and create, whereas business owners manage and operate. The term "entrepreneur" isn't simply a fancy way of saying 'business owner.'
The Invention that Changed Cost Allocation
Back in 2007, I developed a software to manage wireless devices and their expenses for large corporations. At that time, most companies still relied on spreadsheets for managing these devices. My software was groundbreaking as it could automatically sync with company bills, recommend the most suitable plans for phones, and even create detailed monthly reports on usage.
This was a game-changer for large corporations, which needed to accurately allocate costs back to each division to monitor their Profit and Loss (PL) statements. Running this software saved mid-sized firms millions in annual costs by correctly recommending phone plans.
Revolutionizing the Mobile Plan Buying Process
Back then, purchasing mobile plans was a guesswork affair. If you bought a bigger plan, you overpaid. Conversely, if you bought a smaller plan, you faced hefty overages. My software leveraged user behavior trends to recommend the correct plans for individual phones, saving companies millions.
The software would have been called 'Artificial Intelligence' had it been developed today, but it was ahead of its time. This invention brought a new dimension to business expense management.
The Business Model and Success
Selling this software to customers was straightforward. I would call them directly and deliver the prototype within weeks, which was pure profit. Once the software was ready, I invested in a server and a programmer to code the actual software.
We were profitable from day one, earning almost six figures in the first year. My current company is launched with a mere $10,000. Thus far, I've more than doubled the initial seed money in the bank. Even though I haven't paid myself yet, I know that in one to two years, I'll make more than I had before.
The Lesson of Early Success
The biggest investment when starting a company is your time, but it’s often your salary that suffers most. Many entrepreneurs overlook the fact that they are not paying themselves. Without money to pay yourself, the company is not truly profitable, as true profitability includes paying yourself a meaningful salary.
Entrepreneurs often work hard without a salary upfront, but it’s important to remember that you should be paid for your time and effort. Without this, the business can struggle to sustain itself long-term.
Final Thoughts
Entrepreneurship is about innovation, problem-solving, and foresight. My first venture taught me the importance of reinvesting profits, the value of time spent on actual business, and the significance of profit over personal gain.