Sohrab Vazir
Consultant | Founder | Global Citizen | Writer
Tag Archives: Start-up
The Realities of Being a Foreign Entrepreneur
In today’s globalized world, being a foreign entrepreneur is becoming an increasingly popular phenomenon. Subsequently, there’s a growing body of academic and non-academic material revolving around migrant entrepreneurship. In this article, I’ll seek to highlight a number of realities about being a foreign entrepreneur, building on my personal experience. Firstly, allow me to state that being a foreign entrepreneur is not “all sunshine and rainbows” (as the famous Rocky Balboa once said). It carries an enormous amount of risk and can be a quite dark life path (anybody who says otherwise either lacks the knowledge or is lying to you). My purpose in writing this guide is to provide you with a “no BS” and informative piece of advice that can hopefully enable you to consider every aspect of this journey before embarking on it. There’s a good chance your mental health will suffer Let’s face it: there’s a reason why the majority of people don’t start their own businesses. First and foremost, there’s a huge amount of risk involved with no guarantee for any return. This factor alone is enough to make entrepreneurship a non-option for most. But assuming that you’ll proceed regardless of the aforementioned, the constant risk and uncertainty are bound to affect your mental health. Immigration rules can be rigid This is a broad observation, and it highly depends on the country that you migrate to. Nevertheless, you’ll be bound by some form of immigration legislation, and may have to meet specific milestones for extending your stay in the host country. As mentioned earlier, entrepreneurship is unpredictable in itself, let alone having to meet pre-defined goals. The worse part is that you may invest time and money, and still not meet those objectives. Not only are you jeopardizing your most valuable assets, time and money, but you may even have to leave the place that you deemed to be your new home (worst-case scenario, of course). Of course, as I mentioned, this is objective given that different countries have varying rules around their entrepreneur/startup visas. Personally, I went through the foreign entrepreneur journey via the UK’s former Tier 1 GE and Entrepreneur visas, and “easy” is not a word I would use to describe that path. Prepare for (a lot of) rejections I am generally under the assumption that most people associate rejection with employment applications, or their social and romantic lives. Hence, let me elaborate: it’s highly likely that you will have to endure a considerable amount of rejections. Whether it’s from prospective clients, customers, or funders such as VCs and angel investors, you will need to be ready for it. You may face a scarcity of resources Being a migrant may limit some of the business resources that are available to you. For instance, a native person may have access to business loans made available by banks. However, the same option may be unavailable to you due to you having a time limit on your stay. Again, this is a general and objective observation. It is best practice to be prepared for minimal resources and emphasize self-sufficiency. You may be seen as a “cash cow” This is something which I personally experienced in the early days, and it did irritate me a great deal. It was perhaps partly true, as I did invest a substantial amount of money in order to obtain my visa. But the unsettling aspect was the sense of exploitation that I felt when I sought to outsource the company’s projects. To give you an example: I started my company, StudyFlats, as a solo non-technical founder. As I had no idea how websites worked, I obtained some quotes for the website to be coded. Some of these quotes were in the region of tens of 1000s of pounds, for a simple WordPress website. Needless to say, I eventually did it myself at a cost of ÂŁ300. This is just one instance to demonstrate how fast you’ll lose your money if you lack the right skills and knowledge. Being a foreign entrepreneur is a life-changing experience Lastly, I will say that being a migrant entrepreneur is an experience that will shift your perspective and life direction indefinitely. Once you overcome the obstacles and grow your concept, you will realize your true competencies as a person, which you may have never imagined. I hope this guide has given you an idea about what to expect in the bittersweet journey of migrant entrepreneurship. If you require any consultation from someone who’s been there and done it before, ping me for a chat here. About My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, I started my own Property Technology (PropTech) business, StudyFlats. I did so by obtaining an endorsement from Newcastle University under the Tier 1 Graduate Entrepreneur Scheme (similar to the current Start-Up Visa). Subsequently, I obtained a further 3-year Tier 1 Entrepreneur Visa (which was replaced by the Innovator Visa). I grew my business to over 30 UK cities, and a team of four, and also obtained my Indefinite Leave to Remain (Settlement) in the UK. I now help other migrant entrepreneurs, such as myself, with their businesses, and mainly with obtaining endorsements from the endorsing bodies.
The 5 Main Reasons Why Startups Fail
Why startups fail is not a new question, given that the majority of startups fail within the first three years. When launching a startup, there are many things to take into account. There are so many factors that may either help your company grow or cause it to fail. Many assume that launching a business means you’ll almost certainly succeed. In reality, failure is something that is more common than most people think. According to Statista, the failure rate for startups stands at 67% within the first 5 years after they are launched. When they fail, it’s often because of one of these five factors. Let’s take a look at why startups fail and how you can avoid falling into the same traps when launching yours. 1. Poor Timing The first reason startups fail is poor timing. Timing is important in any business venture, but it’s especially critical for startups. If you launch your new business at the wrong time, you may find that there is not sufficient demand for your product or service. This can spell disaster for your business in the long term. This can happen for a variety of reasons. First, the market may have changed since you first came up with your idea. If you are launching a tech-based product but the industry has recently undergone a major shift, your product may already be outdated. Second, your customers may not be ready for your product or service. You may have a great idea, but if people don’t need it or can’t use it yet, it won’t be successful. You have to make sure the timing is right before you launch. Third, you may be entering a highly competitive market. If you are trying to launch a new product or service but there are already similar offerings out there, you may experience difficulty getting customers to choose yours. 2. Lack of a viable product Another very common reason for startup failure is the lack of a viable product or service solution. Many entrepreneurs are so excited about their ideas that they don’t ensure the viability of their offering. They rush to get the product into the market as quickly as possible in order to start reaping the benefits of their hard work. First and foremost, ensure that you’re actually solving a real problem. Second, make sure that your product is high quality. You have to be sure that it lasts as long as possible, and that it solves the issue it’s designed to resolve. If your product is low quality and you don’t do anything to resolve the problem, your business will quickly flounder. Customers will be dissatisfied with your product, and they will likely stop purchasing it altogether (should it get to that stage). At that point, it’s highly unlikely that you’ll be able to keep your business afloat. 3. Bad marketing Another reason why startups fail is incorrect marketing. Sadly, a lot of the time, it’s a case of “not what you say, but how you say it”. This happens when a business is marketing the wrong product or has an ineffective marketing strategy. If you are marketing a product or service that no one wants, it won’t help you get new customers. It will only serve to annoy the ones you already have. If you are marketing your product ineffectively, you won’t reach your target audience and you won’t be able to reach them effectively. You have to ensure that your marketing methods are reaching the right people. 4. Poor internal dynamics Another reason why startups fail is that the founding team members are not compatible with each other. If the founding team members aren’t able to work together productively, if they don’t have the right skills, or if they don’t have sufficient chemistry, the business is at risk of failure. Moreover, if there is a case of conflicting personalities, it’s bound to affect productivity. You have to be sure that you are choosing the right people to work with you. At the same time, it’s imperative to ensure that you are choosing partners who appreciate your skills and who can work well with you. If your team members aren’t able to work well with each other, they are unlikely to be able to solve problems and they won’t be able to work toward the same goals as a team. 5. Networking Finally, another reason why startups fail is because of network issues. A lot of startups rely on investors and lenders to help them get up and running. In some cases, they may also rely on partnerships and alliances with other businesses. If you are dealing with a lender or an investor who is disorganised and unreliable, you may find that you don’t get the funding that you need. If you are dealing with a lender or an investor who is dishonest, you may find yourself in serious financial trouble. Similarly, If you are partnering with another business, you have to make sure that you are working with reliable partners. You have to ensure that you are able to work with them effectively and that you are compatible. Hopefully, by now you have a better idea of some of that factors that can contribute to the failure of a startup. If you’re launching your own company, or thinking about doing so, check out what I have on offer About My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business, StudyFlats which I scaled to over 30 UK cities. I currently help other entrepreneurs and businesses of all size with the digital marketing strategy around SEO, copywriting and content. For more info, please visit here.
How to Start Your Own Business
Thinking about how to start your own business? Don’t know where to start? The this article’s just right for you I started my own business, an internet start-up called StudyFlats, as a solo immigrant founder at the age of 22 with very little professional experience. Not only did I have to overcome the hardships of starting my own business as a fresh graduate, I also had to deal with a rigid set of immigration rules. (But hey they say whatever doesn’t kill you makes you stronger) Undoubtedly, starting your own business involves (and demands) a great deal of ambiguity, risk, mistakes and sacrifice. I know this because I’ve gone through this journey One of the most difficult stages is actually getting started. Some questions that you may be asking yourself are: What business should I even start? How much money do I need to get started? How to market it? Should I leave my regular job? 1) Start with a “pain point” So we all know that most businesses are essentially solving a problem or simplifying a process (e.g. UberEast simplifies the process of ordering food online). Think about something that has bothered you personally, particularly if it has done so on multiple occasions or if there’s a pattern of that inconvenience. 2) Alternatively, think about what you’re personally good at Okay let’s say you can’t really think of a pain point. Or you did and you discovered that a solution already exists in the market. Another way to start your own business would be to think about your personal skills, strengths and attributes. For example, you’re a two-time national champion in a sport and are a fitness enthusiast. In this case, a good idea would be to start your own (online) personal training business, or something relevant to that area. This is a really good way to start because it involves the things that you’re passionate about. We’d all love to do what we’re passionate about as a career, yet sadly most of us don’t. 3) Market research Regardless of how you find a business idea (steps 1 and 2 above), the next step is validating your idea with actual numbers and facts. This is the process that’s called market research. Market research is about understanding everything that concerns your customers, their characteristics and defining features in addition to the competitive landscape. Make sure to make use of online tools such as Mintel. There are also plenty of online guides about how to do market research such as this one. 4) Think about the business’ operational structure Now that you’ve discovered the idea, it’s time to think how you will implement and execute it. Depending on whether your business provides goods or services (or both), it’s key to think how you will provide them. Is it online over a website? Is it e-commerce? If yes, which platform to use? And if it’s providing products, some relevant questions would be how to source your products? What about storage? And so on… 5) Choose a business name (AND think about your digital marketing strategy) Okay so in my experience, this was the part that things started to get slightly annoying. As you’re planning to start your own business, things are generally exciting and on the optimistic side. However, choosing a name is, in my opinion, where things start to get tricky. Now, the extent of how difficult choosing a business name is will depend on the nature of your business. However, here are some of the things to keep in mind when choosing a name: As a general rule, keep it to less than 10 letters Your chosen name must be rememberable It cannot infringe any existing rights (i.e. if another company is already using that name) It should be available on social media channels No association with any events,. individuals or content that may harm the company’s reputation The latter and additional factors are even more significant if your business is primarily online-based. Some factors include: The availability of domains (we all know the preference is for the .com extensions though this is slowly changing) Social media user availability Once you choose a name, it’s also important to think about your online presence, with some of the key things to consider being: Creating a Google Business profile Website Social media channels 6) Consider the legal structure of your business Once you’ve taken the previous steps, it’s now time to think about the legal structure of your business. Depending on factors such as your circumstances, number of people. involved and so on, this part is highly dependent on each business. In the UK, there are a number of options such as limited companies, partnerships or self-employment. It’s important to consider all the legal implications of any path you decide to take. Make sure to obtain professional advice from an accountant or a solicitor if necessary. 7) Prepare your business plan It’s important to create a 3-5 year forecast and planning for your business. This is where your business plan comes in. 7) Register your business After deciding the legal structure of your business, it’s time to register it. Once again, make sure that you do so after you gain a thorough of understanding of the implications and details of your chosen structure. Here are some of the key steps to take towards starting your own business. As I mentioned before, starting a business is a demanding journey but if you’re passionate about your venture, it’ll all be worth it. You might also like another article of mine about 5 brutal truths about being a founder. Additionally, If you need help with starting your own business, contact me.