At SMS Varanasi, we offer our BBA students all the resources, knowledge, and guidance they need to launch a successful entrepreneurial career. Here are five practical entrepreneurship tips to address some of the dilemmas student entrepreneurs often face:

1. Do personal connections help you in your business?

Absolutely. In the business world, there’s a well-accepted saying: ‘Your network is your net worth.’ In the corporate landscape, strong relationships foster trust, which is the foundation of successful business partnerships.

Social interaction is key to building trust and rapport with potential partners, clients, and collaborators. These connections often extend beyond the confines of the workplace, creating a valuable network of individuals who can offer support, advice, and opportunities.

This network, or social capital, can be a significant asset for any business. It can open doors to new markets, facilitate collaboration, and even help a business recover from setbacks. While a company’s financial assets can fluctuate, the relationships it has built can endure, providing a valuable safety net and a platform for future growth.

Hence, one of the top entrepreneurship tips for student entrepreneurs is that they should focus on forging personal connections – with like-minded peers, professors, alumni, and guest lecturers. This can offer them a competitive advantage that can be leveraged to achieve long-term business and career growth and resilience.

2. Does it help to learn why others failed in their endeavours?

One of the most valuable entrepreneurship tips for BBA students is to learn from the experiences of those who have walked the path before them. Successful entrepreneurs are a treasure trove of knowledge, having navigated the challenges and triumphs of building a business from scratch.

Don’t be afraid to reach out to established entrepreneurs in your network or industry. Ask them about their biggest mistakes, their most valuable lessons, and the strategies they used to overcome obstacles. Their insights can provide you with a roadmap to avoid common pitfalls and make more informed decisions as a student entrepreneur.

Consider joining entrepreneur networks or attending industry events where you can connect with experienced business owners. You can also find valuable information through online resources like blogs, podcasts, and interviews with successful entrepreneurs. 

By actively seeking out this knowledge, you can gain a competitive edge and avoid costly mistakes.

3. Don’t Trust Recommendations Blindly!

As mentioned earlier, networking is crucial for student entrepreneurs. It can open doors to opportunities, partnerships, and mentorship. However, it’s important to remember that not all advice is created equal.

While your network can be a valuable resource, it’s important to approach recommendations with a healthy dose of scepticism. Don’t blindly trust the advice of others, even if they come from well-intentioned sources.

Instead, take the time to do your own research and gather multiple perspectives before making important decisions. 

This might involve consulting with experts, seeking second opinions, or conducting your own due diligence. By taking a proactive approach, you can ensure that you’re making the best possible choices for your business.

4. Problems do not solve themselves!

As a student entrepreneur, you’re bound to face challenges along the way. It’s tempting to ignore these problems and hope they’ll resolve themselves, but this is rarely the case.

Ignoring challenges will only make them worse. Small problems can quickly escalate into major crises if left unaddressed. This can lead to financial losses, damage to your reputation, and even the failure of your business.

Instead of burying your head in the sand, confront problems head-on. 

When a challenge arises, take the time to investigate the root cause and develop a plan of action. This might involve seeking help from mentors, advisors, or experts in your field. By taking proactive steps to address problems, you can minimize their impact and keep your business on track.

5. Should I sell my business?

Here’s a case study for you:

Shweta Agrawal is an approved elderly care provider and runs a home care business for the elderly. It’s doing well. But now she is wondering if she should run it herself or sell it and book a profit. Here’s a breakdown of where the business stands right now:

• Market Trends: The elder care industry is indeed growing rapidly, but the recent eligibility changes for a registered caregiver and potential future policy shifts create significant uncertainty. Shweta’s experience with client losses due to these changes highlights the vulnerability of her business model to regulatory shifts.
• Competition: Due to unfavourable policy changes in their existing markets, large home care companies are suddenly showing a sudden interest in expanding to Shweta’s city. Competing with these established players with vast resources could be challenging.
• Selling Strategy: Given the strong interest in her business, exploring a sale seems prudent for Shweta. Leveraging multiple offers to maximise the sale price is a wise approach. However, she needs to be cautious about sharing too much information without a non-disclosure agreement (NDA) in place to protect her business model.
• Documentation: Shweta needs to gather all financial records, client contracts, employee agreements, and any other relevant documentation. Having her records organised and readily available will streamline the due diligence process for potential buyers.
• Legal and Financial Advice: Shweta is advised to consult with a lawyer to ensure you understand the legal implications of the sale and to navigate the negotiation process, and a financial advisor to assess the financial implications of the sale and plan for her future.

This case study underscores the importance of thoroughly understanding your industry’s regulatory landscape and potential risks. Student entrepreneurs might be tempted to sell their business while it’s still profitable. 

Remember, burnout and the desire for change are also valid reasons to consider selling. However, as seasoned entrepreneurs will tell you, it might be in your best interest to get a professional business valuation done to ensure you are asking a fair price. 

Flexibility and adaptability are key traits for entrepreneurs, and sometimes, selling a business can be the most strategic move for personal and financial growth.

Conclusion

The Centre For Entrepreneurship, Innovation & Skill Development (CEISD) at SMS Varanasi acts as a catalyst for student entrepreneurs, providing them with the knowledge, skills, resources, and networks necessary to transform their ideas into successful ventures. If you are interested in more entrepreneurship tips or need guidance to start your own venture, contact us at CEISD to find a supportive and collaborative environment.