Starting a new business can be rewarding both emotionally and financially. However, it’s a fact that most businesses fail within five years of starting. You need to adhere to some important tips to maximize your chances of success, and this article will list them for you.
1. Be Passionate About It
You should pick a field that you have a burning passion for. This passion is what will keep you going in the tough times. For instance, you can start a game development company if you enjoy programming computer games. Entering a sector you’re not passionate about means you’ll likely give up after facing many obstacles, which are inevitable in your journey.
2. Start While Employed
Most new businesses would not turn a profit in their first or second year of existence. Hence, you’ll need a source of income to hold you through those times. It’s advisable to start working on your new company in small phases while employed. If you get traction for your product, you can quit your current job and go into it full-time.
3. Don’t Go In Alone
Running a company isn’t easy. Many ups and downs are involved, and you’ll likely need help at one point or another. Build a network that you can rely on in times of challenge. It could be a mentor experienced in running companies or a family member you share ideas with. Just have someone you can lean on for companionship and help.
4. Carry Out Deep Market and Competitor Research
You must deeply analyze the potential target market for your product or service. What age group is your ideal customer? What’s the average disposable income for that age group? Are they willing to pay your desired price? Etc.
Similarly, research your competitors; identify their strengths and weaknesses and discover where you can stand out.
5. Create A Business Plan
You should create a formal business plan that anyone can read and understand. This is very important if you’ll need equity or debt financing for your business. Your plan should be simple so anyone can pick it up and understand your proposition. It should include
- Analysis of your target market and competitors
- Details about your product or service
- Revenue forecasts
6. Line Up Customers Before Starting
You don’t have to formally launch your business before pitching it to customers. You can start courting customers while working at your current job; your industry contacts are a good place to start. Sell your products at reduced prices to lure the first customers. Once you line up several buyers, you can go all in.
7. Look Professional
It’s essential to look professional to win the trust of customers and fellow businesses. Firstly, ensure your company is formally registered with local government authorities; Osome can help you with company registration. Have a corporate bank account, a registered office address, a business email address, etc.
In Brisbane, a start up business accountant plays a pivotal role in guiding financial decisions.
8. Get External Help
Don’t be afraid to seek external help when you need it. For example, you might need a lawyer to review your contracts to ensure you’re not being cheated or an accountant and the best tax lawyer in Columbus Ohio to help you prepare and file taxes. Professional help costs money but reduces complexity and gives you more time to focus on growing the company.
9. Apply For the Required Licenses and Permits
If your industry is strictly regulated, e.g., law and medicine, you’ll likely need to apply for a license to conduct business. Always apply and ensure you get the required licenses before transacting with customers. Doing otherwise exposes you to legal headaches.
10. Raise Money If Needed
Some businesses need external capital to start or grow, and there are several channels to do this. You can raise small amounts from friends and family, get a bank loan, or raise money by selling equity to other investors.
Note: These tips above will help you start and grow your business successfully. They are not golden rules guaranteeing success, but they increase the chances of achieving your goals.
Also watch Freedom Business Mentoring
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