Starting your own business is not only an exciting prospect, but also a challenge that requires solid preparation. Many entrepreneurs make mistakes, which could have been avoided if they had asked themselves the right questions beforehand. Beata Drzazga – founder of Betamed S.A. – talks about how to create your own business.

In what situation should we start a company, and in what situation it is better not to do it?

The establishment of a company should not be an end in itself, but a response to a specific market need. Thebest moment is when it is clear, that we are able to meet buyers’ needs and have the ability to deliver value in a better way than the current competition does. So entrepreneurship is not about selling a random product or service, but about creating a business model, which responds to real expectations and is able to function in a profitable way.

In other words, it is necessary to find a clear problem that can be effectively solved. Entrepreneurship makes sense when there is a group of customers willing to pay for the proposed value. If such a group has not yet been precisely defined, opening a business can lead to rapid depletion of resources and frustration over lack of demand.

Not every idea is suitable for transformation into a business. There are solutions, which seem innovative, but do not find enough buyers. There are also markets that , although they seem promising, are already saturated and do not leave space for new players who do not have a capital advantage. In such cases, it may not be profitable to start a company. Therefore, experienced entrepreneurs very often test innovative concepts on a smaller scale, for example, through pilot sales or tests with potential customers.

Then how to create effective business models?

Even the most innovative product will not survive in the market if it is not grounded in economic reality. It’s not just about what the company offers, but also about how it delivers value and monetizes its operations.

The first step in building a business model is to determine for whom value is being created. It is not just a matter of selecting a segment of customers, but also understanding their needs, expectations and how and how much they are willing to pay to solve a particular problem. Only on this basis can you design how to deliver the product or service and the mechanisms for generating revenue.

There are many ways to make money in business. The direct sales model is the classic approach, which works well for physical goods and services provided on a one-time basis . An alternative is the subscription model , in which the customer pays regularly for access to a certain value, which ensures predictability of revenue and audience loyalty. Some companies use a freemium model , offering a basic version of the service for free and charging for premium features. Others make money through intermediation, such as. connecting sellers with buyers and taking a commission.

In addition to revenue, costs are also key. Fixed costs, such as room rent, salaries and IT infrastructure, affect the break-even point. Variable costs, on the other hand, increase with the scale of the business. Young entrepreneurs can be sure that plenty of surprises await them in this aspect.

A good business model must also include a well-thought-out scaling strategy. It is necessary to determine how the company will be able to grow without losing profitability. Sometimes this means automating processes, in other cases changing customer segments or adjusting the cost structure. The business model should be flexible and subject to constant revision. The market changes dynamically, and assumptions that seem right at the beginning, may need to be corrected in the face of actual data. For this reason, companies, which regularly analyze their business models and adapt them to market conditions, have a better chance of long-term success.

What are the most important skills needed to run a successful business?

An entrepreneur cannot and need not be an expert in every field, but should have the competence to make accurate decisions, delegate tasks and adapt to changing market conditions. A manager should be able to manage both a team, and processes, and therefore build organizational structures, set priorities and enforce goals. It is also essential to understand team dynamics, motivate employees and be able to manage conflict. Without these competencies , the company may face operational chaos and high employee turnover.

Regardless of the industry, every business is based on attracting customers and generating revenue. Therefore, an entrepreneur should understand the needs of customers, be able to present the value of his offer and effectively negotiate the terms of cooperation. Another key issue is negotiation skills. Negotiation is not about achieving a unilateral advantage, but about creating a win-win situation for both sides. The ability to work out favorable terms of cooperation allows you to optimize costs, increase profitability and build lasting business relationships. It is also necessary to understand the mechanisms of budget, cash flow and profitability management. The ability to assess, whether the company is actually making money, what costs can be reduced , and how to invest funds effectively, is crucial to the financial stability of the company.

Long-term business development also requires adaptability and strategic thinking. The market is changing dynamically, so the entrepreneur should be flexible and open to introducing new solutions. Long-term planning, the ability to see trends and anticipate potential threats allows you to avoid a situation, in which the company loses its competitive position.

Running a business, therefore, requires a combination of hard skills, such as financial analysis and sales, and soft skills, such as leadership, negotiation and communication. Success depends on the ability to combine these elements into a coherent whole and the ability to continuously improve one’s competencies.

How to effectively raise funds for the business? Is there room for innovation here too?

The way, how a company secures funds to start and scale its operations, determines its operational flexibility, cost structure and the degree of dependence on external factors. Regardless of the form chosen, financing must be a tool for implementing the strategy, not a source of constraint.

One of the most common mistakes entrepreneurs make is over-reliance on on external capital without a clearly defined monetization model. Companies, which focus on rapid growth financed by investors, may find themselves in a situation, in which their growth ceases to be the result of actual demand, and begins to respond to the expectations of the capital market. As a result, the company’s strategy is deformed – instead of optimizing the cost structure and gradually building value, priority becomes the acquisition of successive rounds of financing. This approach increases the pressure to achieve short-term results at the expense of long-term sustainability.

An alternative to investment capital can be organic financing, which is based on generating funds through operations. In practice, this means building a business model, which allows self-financing of development, for example, through the rapid achievement of positive cash flow or revenue from accompanying services. Innovative approaches to financing can also include diversifying sources of of capital in a way that minimizes the risk of losing control of the company. The use of financing in the form of loans, leasing or factoring allows for full ownership independence, although it is associated with the need to manage liquidity in a more restrictive manner.

However, the most important issue remains matching the financing structure to the real needs of the company. The company, which plans stable, organic growth, should seek to minimize the cost of capital and maintain control over the direction of growth. A company focused on scaling and dynamic expansion may consider more aggressive forms of financing, but with full awareness of their consequences. In both cases, it is crucial that financing is a means to implement the business strategy, and not an end in itself.

The success of a company can be affected by a huge number of factors, and as you mentioned, an entrepreneur cannot be an expert on everything. How to prepare for the various surprises, that the business environment prepares us?

Risk management in business is not about eliminating uncertainty, but about consciously controlling it. Every business activity is subject to various risks – market, operational, financial or regulatory. A successful entrepreneur does not focus only on current problems, but builds mechanisms to respond quickly to unexpected events. In this context, a risk management strategy and a contingency plan to protect the company’s stability in crisis situations is crucial.

The first step in building business resilience is to identify key risks. Risks can arise from internal factors, such as inappropriate cost structure, wrong assumptions of the business model or problems with operational efficiency, but also from external factors – changing market situation, new regulations or actions of competitors. Each of these risks requires a different approach, however, a common element in risk management is the planning of alternative action scenarios.

One of the most common mistakes entrepreneurs make is failing to prepare for a situation, in which the initial business model proves unsuccessful. Assuming that a product or service will find an audience right away, leads to rapid exhaustion of resources, if the market does not respond as expected. Therefore, already at the stage of designing the business, it is worth identifying potential modifications to the offer, distribution channels or the way of monetization, which can increase the chances of matching the real needs of customers.

Financial risk management is also a particularly important area. The loss of a key customer, unexpected changes in operating costs or liquidity problems can threaten a company’s stability in the short term. Therefore, entrepreneurs should strive to diversify revenue sources and reduce dependence on single contracts or markets. It is also crucial to maintain an adequate level of financial reserves to survive periods of slowdown without having to make decisions under the pressure of lack of funds.

The contingency plan should include both short-term stabilization mechanisms, and long-term adaptation strategies. In the case of a liquidity crisis, these may include negotiating with suppliers to extend payment terms, restructuring costs or seeking alternative sources of financing. If the threat comes from a loss of competitiveness, it may be necessary to redefine the value proposition and seek new customer segments.

Risk resilience is not only the result of effective planning, but also of flexibility in decision-making. Companies that regularly analyze changing market conditions, test different operating scenarios and are ready to adapt quickly are much more likely to succeed in the long term. Contingency planning, therefore, is not about anticipating every possible threat, but about building the capacity to respond to change in a way that is thoughtful and consistent with the company’s strategic goals.

What sources of knowledge and support are most valuable to budding entrepreneurs?

Running a business successfully requires not only capital and strategy, but above all the ability to learn quickly and adapt to a changing environment. Entrepreneurs who consciously build their competencies and surround themselves with the right advisors are more likely to avoid costly mistakes and manage their businesses more effectively. It is therefore crucial to use a variety of sources of knowledge and support to develop both analytical and practical skills.

One of the primary sources of knowledge is business literature, which allows you to understand market mechanisms, management strategies and key principles of building an organization. Classic positions, such as ” The Lean Startup” by Eric Ries, “Zero to One” by Peter Thiel and ” Rework” by Jason Fried, help to develop an effective approach to running a business and avoid typical mistakes made by young entrepreneurs. It is also worth reaching for Spencer Johnson’s “Who Moved My Cheese?”, a book that metaphorically shows how to deal with change and uncertainty in business. Theoretical knowledge is only the first step, however – the key is to implement it in practice and adapt it to the specifics of your own business.

Mentoring and networking are invaluable support, allowing you to gain knowledge in a more interactive way and tailored to the individual needs of the entrepreneur. Using the experience of mentors allows you to solve problems faster, which cannot be predicted based on literature alone. Mentoring programs organized by business incubators, startup accelerators or business organizations allow you to establish contact with experienced industry leaders who can help you develop effective strategies and avoid the most common business traps. Business communities and networking groups enable the exchange of experiences and mutual support. Conferences, meetups, and closed mastermind groups help entrepreneurs develop contacts and gain practical knowledge in a more dynamic way than traditional forms of education. Thanks to such initiatives, you can better understand current market trends and find out what strategies work in real business conditions.

Access to knowledge and support is easier today than ever, but the key is to skillfully select information and focus on those, that have a real bearing on running a business. The best approach is to combine various forms of education – from literature and courses, through mentoring and accelerator programs, to active networking in business communities. Conscious use of these resources allows for dynamic development of competence and increases the chances of long-term success in business.

Interviewed by Mateusz Banaszak
Source: Manager Report