DO GOOD X Podcast

Ep. 39 Starting Strong: The First Steps to Building a Successful Business in 2025

• Kimberly Daniel & Stephen Lewis • Episode 39

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Welcome to the DO GOOD X podcast, your go-to resource for insights and inspiration on building impactful businesses! Hosted by Kimberly Daniel and Stephen Lewis, this episode dives into one of the most asked questions by aspiring entrepreneurs: How do you start a business? If you’re ready to step into the entrepreneurial world, starting on solid ground is crucial. Kimberly and Stephen walk you through three essential steps that can set you up for success, especially because nine out of ten businesses typically fail. Before you build a website, develop a product or service, or register your business as a legal entity, note these foundational steps to ensure your venture begins with purpose and clarity. Building a business takes time, effort, and strategy, but it can be a rewarding journey with the right tools and community. Tune in to learn more and find support within the DO GOOD X  community as you take your first steps toward creating a stronger, more sustainable business.

IN THIS EPISODE:

(00:00) Introduction

(02:01) How can an aspiring entrepreneur start a business

(03:46) Step One: Identify the problem, not your idea

(09:26) Step Two: Identify your paying customer

(14:31) Step Three: Test drive your prototype

(19:06) Building a business takes time

(20:03) Find tools to assist in starting a business in the DO GOOD X Community

KEY TAKEAWAYS: 

  • Start by identifying and researching the problem before diving into building a business. Focus on understanding the problem you aim to solve. This involves creating a clear problem statement, conducting research to validate the problem’s significance, and understanding how the problem is currently being addressed. Ensuring the problem is both substantial and solvable increases the likelihood of creating a viable business.
  • Define your ideal paying customer because it’s essential to know not just your target customer but your paying customer—the individuals or entities who will benefit from your solution and are willing to pay for it. Engaging in customer discovery, which involves direct conversations and feedback from potential customers, helps refine your business idea and confirms market demand.
  • Build and test a prototype to transform your idea into a tangible form, like a prototype or small-scale experiment, to test its viability with potential customers. A prototype helps gather real-world feedback on what works, what needs improvement, and whether customers are willing to pay for your solution. Keep it simple and cost-effective to allow for iterations based on feedback.


ABOUT DO GOOD X:
Hosted by advocates for impactful entrepreneurship, Kimberly Daniel and Stephen Lewis, this podcast creates a space for Black entrepreneurs, with a special focus on Black women entrepreneurs, navigating the intricate path of purposeful business.

The hosts dive into the unique business challenges faced by entrepreneurs while sharing tools, tips, and strategies to drive business growth and create meaningful social impact. With their mission to help listeners foster the growth of their dreams, this podcast empowers a community of changemakers to embrace impactful entrepreneurship.

DO GOOD X Episode 39

Narrator: [00:00:00] Welcome to the do good X podcast, a sanctuary from the entrepreneur grind host, Kimberly, Danielle, and Steven Lewis advocates for impactful entrepreneurship, guide you on the path where purpose meets business. Join us to support. Slow down, reconnect, and explore the challenges of under resourced entrepreneurs, uncovering the unique journey of building businesses that make a difference.

Now, your host.

Kimberly R. Daniel: Hello everyone. And welcome to the Dugan X podcast. My name is Kimberly Danielle, and I am a communication strategist, a community builder and coach who comes from generations of faith driven entrepreneurs and leaders who believe that our purpose should drive us. To contribute to the common good. Thank you all for tuning in today.

Thank you, Stephen, for joining [00:01:00] me. 

Stephen Lewis: Hey, Kimberly, I am Stephen Lewis, a catalyst for positive change in communities and businesses. And for over two decades, I have inspired leaders and entrepreneurs to live and work on purpose with intention, faith, and commitment to the wellbeing. It's good to be with you.

And it's good to tune in with our listeners for today's exciting conversation. So part of what we want to talk about is this idea that there may be many of you who are tuning in who already have your business up and running, but there are some of you who are aspiring entrepreneurs and you are still toying with the idea of a business.

So given the start of the new year, this is a great opportunity to go back to the basics. So if you're tinkering with a business idea, this episode is for you. We're going to address one of the top search questions by aspiring entrepreneurs. [00:02:00] Do you know what that question is? How do you start your business?

So before we build a website, develop a product or a service, register your business as a legal entity, take notes of these steps that we will share. Kim, anything you would like to share before we jump in? 

Kimberly R. Daniel: I think this is just an important conversation for folks who are You know, they're new to the game and really trying to start off on a solid ground, uh, especially at the start of this new year and to build a stronger business.

I mean, as you all know, the statistics and data around the success of early stage businesses, especially in the first year, you know, the odds are kind of, you know, stacked against, against us. However, there are things that you can be mindful [00:03:00] of, work that you can do, steps you can take to ensure more of your success.

And just if you aren't familiar with that data point, it's nine out of 10 businesses typically fail. But that one business that Is successful could be yours. So we, you know, I hope that these steps that we provide, which are just kind of the tip of the iceberg can really be helpful and instructive, uh, to as, as a starting place and foundation for, for your business.

Stephen Lewis: So for the start of the new year, for those of you who are looking to start your business, we want to just. Explore three steps among many others. And the first one is identify and research the problem. You have a business idea, but the idea may change or pivot or even evolve. So what most likely will not [00:04:00] change is the problem, the need, or the pain point that you're trying to address and you're actually building your business in order to solve.

So instead of focusing on your idea, initially focus on. What is the problem that you're trying to solve? Now, we briefly discussed this in episode 15, so if you have not listened to it, go back and take a listen. Now, you can simply start by completing this statement as it relates to the problem that you're trying to solve, and that is The problem that I want to address is, you fill in the blank, the customers that I want to serve need or desire, fill in the blank, because, fill in the blank.

So you can use and work with that problem statement to actually get clear [00:05:00] about what is the problem that I'm trying to address. And who are the customers that I'm trying to work with and what do they need or what do they desire? Um, the next thing is do your research, research the data to support the problem that exists for a substantial amount of people.

essentially proves that there's actually a real need there. So part of what you want to do is not just choose a small problem, but choose a big problem that actually has data that can support a large number of people that are experiencing the pain of this particular problem. Man, if you could just figure out how to tackle that problem and provide a better solution, then you might actually be able to create a solution.

A business solution that people be willing to purchase from you. This idea of research is really a, [00:06:00] an opportunity to identify how the problem is currently being addressed. So, you know, it points out, what are people already doing? What are entrepreneurs who are already addressing the problem, maybe from a different point of view, doing?

How are they solving it? And then you can also do your research and figure out, do customers currently pay for a solution to this problem? And that's important because if they don't currently pay for the solution, maybe the problem is not big enough, Or you need to determine why would they then start paying for the solution?

If you were to build a business around that, the next point is after clarifying the problem, consider how your business idea actually solves or addresses this problem. Is your [00:07:00] business better? Is it cheaper? Does it require fewer steps that a customer might have to take or fewer things that a customer may have to consider?

Maybe your business solution office, something that is less harmful than what currently is on the market point is really is to really kind of consider how your business idea, your business solution actually solves or addresses. The current problem that customers are facing, um, in these ways that I've just talked about it.

And then I would just say, you know, once you've kind of identified and researched a problem, there's this other piece where you actually have to test drive the solution to the problem. In other words, it's not enough for this problem or the solution that you have to the problem to get stuck in your head.

And it can make all types of sense in your head, but until you [00:08:00] actually test drive it, until you actually talk to a few people, um, potential customers that are impacted by the problem that you want to solve and demonstrate to them how your solution solves their problem or offers a better solution to the problem, you really don't know.

So, um, I think, you know, uh, that is particularly important because the only way that you build a business. is discovering whether or not you're working on a problem that is scalable and painful enough that many people beyond your family and friends and even your neighborhood are willing to pay for the business solution that you create.

And the other thing I just want to say is that when you're looking at problems and trying to research, you know, the solutions or possible solutions to the problem, realize that timing is everything. Sometimes your business idea may be ahead of [00:09:00] his time. And sometimes it may solve a problem that does not yet exist, or you have a problem that customers do not yet know that they have, or they even care enough about.

So remember these sub points, as you think about this first step, which is to identify and receive and research the problem. 

Kimberly R. Daniel: I'll add to that, as far as the second step, Stephen mentioned the customer, and I want to talk about determining your ideal paying customer, not just your customer, because there can be so many customers out there, but you're trying to start a business in which you generate Money and your business can be sustainable while you make an impact.

And so who is your ideal paying customer? And it'll be important for you to think about the [00:10:00] person or the type of, the type of person or the type of entity that will not only benefit from your solution, but is willing to pay enough money for it. And so that can be also a part of that research, but it's, it's, it's important to, to know.

more about who this customer is, what they look like, what they will be willing to pay for a solution like yours. And so require you to understand their needs more, their pain points, which is also highlighted in the problem statement that Stephen shared as well. And ultimately their needs and pain points that they are aware of, or that you may make them aware of that will motivate them to purchase What it is that you offer, if what you offer can solve or alleviate what it is that they're experiencing.

So one way that you might, you know, learn [00:11:00] more about your ideal paying customer, after you identify who that might be, it's to do a customer discovery process. And if you're in the entrepreneurial world, that may not be a new phrase or term, but maybe you're fresh. And you don't know what a customer discovery process is.

That could be a whole episode in and of itself, but I'll just keep it brief. It really just gets you out talking to potential customers to gain insights and direct feedback about their needs. Not just staying behind your laptop and looking at research and data, which data is very important, but it's also, but this is actively getting you talking to these folks and getting that direct feedback for Your purposes of your specific business, and it is about formulating some type of hypothesis, which might be that that problem statement that Stephen spoke about earlier is about formulating that hypothesis and testing it.

To make [00:12:00] sure there is a real market need for your business. You through this, you get to further understand the problem you want to address, how the problem is currently being solved, uh, or not in the marketplace and what people desire in order to better address the pain points. So you could include this in some of your questions that you're asking these customers or potential customers through that customer discovery process.

And in those questions too, you can also begin to understand what people are currently paying for as it pertains to a solution that solves the problem that you want to address and what they would be willing to pay for it, if more or less. Less because maybe they're not satisfied with what they're paying for, and maybe they're not satisfied with the way that their current product or service is addressing the pain point that they are experiencing.[00:13:00] 

And so I would just say it's in, it's in general, it's important to identify your ideal paying customer to understand who that person is, to understand what their needs are. And then to have that hypothesis that you can test by going out and directly talk, talking to these potential customers, that will give you feedback to refine your idea, to make sure that there's a place for it in the market, to make sure that what you are creating is actually needed.

Like Steven said, beyond just your small community or friends and family, because Let's keep it real. Your friends and your family aren't enough to, to just sustain your business. They may not even purchase, they may invest in you, in your business, but they may not even purchase your product or service, or they might not be the type of customer that you're really [00:14:00] looking for.

So you need to talk to, while their, their feedback is important, you need to talk to those ideal paying customers. 

Stephen Lewis: Yeah, that's good. And I would say the final step is to build a prototype to actually test. So, um, I talked about earlier about, you know, you need to think about the ways in which you, um, kind of test drive the problem.

You talk to a few people and Kim Lee's talked a little bit about this. In terms of, you know, has expounded boundless in terms of your idea of paying customer, but then you actually have to get to work of actually building out the idea. And a prototype, a small experiment to see, um, and for others to be able to see what it is that you're doing.

So, you know, more about the problem, your ideal paying [00:15:00] customer, and now you can actually build something to test with your potential customers. And so that is actually building this small experiment. So what could you do in a small way, less than a thousand dollars, maybe less than 500. Some would even say less than 200 that you can actually build something tangible, build a model, build a mock up, a prototype.

Um, so a prototype is simply a visual or a physical representation of your solution in order to explore and learn what works. And to test whether or not you have something that customers are willing to pay. Or to experience. And a good prototype requires you to focus on key activities or the most important features of your business solution that you need to test.

Improve and [00:16:00] receive feedback, um, in order to improve it. And again, you know, it shouldn't cost a lot in order to build it. Why? Because your business idea will change or you even pivot based on the feedback to you receive. So that's how we say, find something that you can build for less than a thousand dollars, less than 500, maybe even less than 200 that you can get quick, immediate feedback from.

So an example of that would be you build a landing page for a website or a service that you're going to. Provide, maybe you're going to go into a cake business. So, you know, like how could you put a landing page and then share that with customers about why your particular cakes are better, um, versus another, or maybe you're going to go into, because it's the beginning of the year, you're going to do something like, um, build a.

[00:17:00] Coach training health care kind of business again. Maybe you build a website or maybe you build a brochure, something that is physical intangible that people can actually see. Or maybe you record a video, you know, maybe it's less than two minutes. Or less than, you know, 90 seconds that gives you the who, what, when, where and why of what it is that you're doing.

Or maybe it's a little bit longer that you give an example of why your particular exercise routine and coaching framework will be beneficial to certain groups of people. And then you can test that and see what people do. But the point is, The matter is to get your idea out of your head and actually make something tangible that people can actually see.

Sometimes, you know, it may even be like just writing something on a napkin. You know, folks talk about, oh, that business that started in a [00:18:00] restaurant. Um, simply having a conversation with a person and you wrote it on a napkin. And I've even seen some organizations where they've taken the picture of that original idea from 30 years ago, and they post it on the website to actually show people like, this is where it all started.

But again, building a prototype of the idea that you're trying to solve and key activities of features, um, are important. For helping a customer to actually visualize, to actually experience, to actually taste, or to put their hands on to say, Oh, and then they can give you some real, real time feedback about what works, what doesn't work, what they'd be willing to, uh, pay for, or what needs to change in order for them to actually say, I would use this, I would pay for this.

So that's what I would offer in that regards. Kimberly. Any other thoughts that you [00:19:00] have as we wrap up this session and these three steps for building a business? 

Kimberly R. Daniel: No, I mean, uh, other than to say, I hope that if you all are, you know, starting a business that you really take the time to identify and research your problem, you take the time to determine your ideal paying customer and you build that prototype to test, don't get stuck in your own way.

Don't get stuck in your head, get it out there. Make it happen, at least test it to see if it'll work because you won't know until you actually do. And so I hope in this new year that you take that opportunity, that you give yourself the courage and that you bounce back regardless of what the result is.

And you pivot in the ways that are necessary for you to be successful and whatever this journey has for you and offers to you. And we will continue to be here as a resource for you. I [00:20:00] hope that you continue to tune into this podcast. And also, if you're ready to turn your idea into action and you want some other support as well, you can go to do get x.

org and we can provide a supportive community and resources that will. Help you as you get your business up and running, or you at least test out that idea before you get your business up and running, because save yourself some money, make sure you know that it works before, before you, you get, get out there and start building things, uh, paying a lot of money to build products and services.

And so continue to join us and we hope to see you, to hear from you soon. Steven, anything else that you would add? 

Stephen Lewis: I would just say Happy New Year and to next time, be [00:21:00] well and do good. 

Narrator: Thank you for listening to the Do Good X Podcast. To continue the conversation or access our resources, Visit www.

dogoodx. org. Join us again for conversations that will nourish your soul, ignite your dreams, and empower you to build an impactful business, one intentional step at a time. Until then, keep striving, thriving, and doing good.