Starting a business is indeed an exciting time in one’s life. A startup launch does come with a degree of uncertainty, however. If you have looked at new business statistics, you are already aware that the probability of your business being successful in five years is worrying.
This should alert you to proceed with caution, not necessarily drop your dreams of entrepreneurship.
With this in mind, the actions you take while preparing to get into business will be just as important as those you take once you get started. Here, read 5 necessary things to do before staying your business.
1. Equip Yourself with Business Skills
While having a great business idea and a passion for entrepreneurship is a good place to start, you will need more than this to run a successful startup launch.
Keep in mind that when starting out, it might be challenging to hire for the different roles required to keep your business afloat. The onus is then on you to adequately take up these roles and carry them well enough to ensure your business runs as it should.
Luckily, there are many business-related courses you can take to become competent. And the good thing is that you don’t have to attend a physical classroom.
2. Identify a Legal Structure
Determining how your entity will be registered is an important step in your startup launch. While you can change the legal business structure, you might have to spend a lot of time trying to do that. It’s therefore essential to get it right from the start.
There are many business structures to choose from, and each comes with its own privileges, requirements, and restrictions. If you are not well acquainted with such matters, a business accountant or attorney can help explain the specifics of each and help you identify the best one for your line of business.
3. Manage Finances
Starting a business without a firm handle on your finances is a sure recipe for disaster. This is especially true if you intend to fund your business from personal finances.
If this is the case, you need to do a proper audit of your net worth, credit card debt, available savings. You may even have to work on your credit score. This aside, you will need to have some living expenses. Keeping in mind that your business might not be profitable for 6-12 months. To cushion yourself, keep aside your monthly expenses for up to a year.
4. Research the Competition
Researching competition should not entirely be about copying an existing business’ model.
To develop a winning business strategy, you must understand what your competitors are offering and then find a differentiator.
You also need to look at pricing and find a way to price your products competitively while remaining profitable.
5. Identify a Marketing Mix
Rarely will a business survive without good marketing. This is more so for new businesses that need to gain traction and win over a stable client base. Your market each will largely influence what your marketing mix will look like. Market research gives you insights into who your client is, how to find them, and the messages they respond best to.
With this data in mind, you can then fashion your marketing initiatives in a better-targeted way.
Digital marketing is always an excellent option for a new startup launch. This strategy is affordable, reaches the masses quickly, and helps you collect customer data to inform other business decisions.
The Bottom Line
A shaky start yields a shaky business.
These tips will help you put down a firm foundation on which to build your business on. Work your way down this list and do your due diligence on all other aspects of starting an enterprise. This will go a long way in ensuring the success of your startup launch.