Starting a business maybe be hard but what happens after you take the plunge is even harder. When a business is new it’s fragile and one wrong step could turn into a disaster. 90% of all startups in America fail. So the question here is, what is the big difference between the startups that fail and the ones that succeed. The idea of the business and the demand of the goods or service that you are selling matters. But when it comes down to it, the most important things that decide the future of how your business is going to turn out are very fundamental. Therefore the truth is what a small business needs when it first starts out are the fundaments, the basics. Let’s look at a few things that can make sure that your small business someday turns into a very profitable one.
- Detailed Financial information
Having the correct financial information about your company is extremely important as it allows you to make informed decisions. Knowing exactly what your financial statements are indicating goes a long way. They help you figure out the investments that are providing the best returns and also cut on all the non-essential expenses. Taking even the smallest detail for granted can cost you a lot.
- A powerful message
Having a persuasive pitch for your investors and customers makes a huge difference. Your business should have a goal and a message. Have a refined pitched pitch for every situation you never know when it could come in handy. Always have an elevator pitch and a very detailed pitch ready.
Many startups don’t succeed due to the lack of communication whether it is between the founders or between the company and its customers. Reviews and suggestions from your customers and friends can immensely help you improve. Conduct surveys, talk to your customers, get reviews, and understand everything they liked also the parts that they disliked. You should listen to every suggestion and every review but wisely choose which one to act upon.
- Proper Market Research
Starting a business and planning the next move without proper market research is an invitation for disaster. When you are preparing a marketing strategy or when you are deciding the direction of your company proper market intelligence can be very powerful. Market research will help you identify your potential customers and minimize your risks of bad investments. Also, make sure that you are using the right data collection methodologies.
Not marketing your business enough or not marketing your business correctly is the biggest mistake any new entrepreneur can make. In changing times having the right online marketing strategies is crucial. Before deciding on how you want to market your product know the demographics and the buying patterns to your potential customers. Plan a marketing strategy that focuses on all the good things about your company and make what you are selling irresistible.
- A Clear Business Plan
A startup without a clear business plan or a specific goal is like a suicide mission. Every step of the way should be planned meticulously. Know exactly what kind of business you want to be, how you want to allocate your resources, who are you going to sell your products to, everything. Plan everything in advance. And as time passes keep planning further and don’t stop. Sticking to the plan is necessary but when sometimes something unexpected comes along. Don’t make the mistake of following the plan exactly then. You might have to make a few changes and adjustments along the way so be slightly flexible and open to new ideas.
- Data Based Culture
Gather and store data of every business decision you make from the very beginning. Do not leave anything out. Let the numbers and the odds make contribute to every decision you make. The data will help you learn from your old mistakes and ensure that you make an informed choice. It will help you monitor the activities of the company and make necessary improvements.
- Cash management
A no cash situation can be devastating for the business. Particularly for small businesses it might hurt the business beyond repair. You have to make sure that there is enough cash to meet the current obligations while confirming that there are no idle funds. You should be really cautious when planning your cash resources and always be prepared for a rainy day.
- Proper Advisor and Mentor
Starting a business is tricky so you cannot just rely upon yourself for every decision. Find someone whom you can rust and someone who understand your vision for the business. No one person can have the skill or experience to deal with every problem that comes your way. So find few people are experts in their field and can give you the right advice. But choosing someone who does not understand the goals and visions of your company can be an expensive mistake.
- Right investments
When you are starting a business there is a vast number of resources that you are going to require. If you think that there is anything that you require temporarily instead to spending a lot of money buying it try to rent it. And the same goes for services. Try to find cheaper and yet efficient sources for all your business activities.
- Know the Legal Requirements
When your business is new you cannot leave any string untied. Make sure that you are covering all your bases when it comes to legal requirements. Even if you don’t use a high paid professional lawyer, try getting the best legal advice from experienced people and proper research.
When you are starting your business a lot of ideas seem extremely appealing. But, do not forget your goal. Many startups try their hand in so many spheres that they forget the main objective of the business. Focus on one thing at a time and expand slowly. Do not stray from your path to pursue something unrelated and unnecessary.
Never compromise on quality. The reputation you frame today is going to stick forever. Moreover, satisfied and loyal customers are necessary for all businesses and maintaining quality is the only way to assure it. This becomes even more critical when you enter a crowded market. If your business consistently delivers on its promises your customers will likely praise and promote your business on social media platforms. This helps drive your brand awareness and creates a much desired fear of missing out effect. Furthermore, it will significantly boost your sales.
- Proper Recruitment
Hiring the right employees for your business is very important. Having quality employees will help your company operate smoothly and grow. However, it can be a daunting task to recruit and keep top talent. Ensure the employee is willing to go to extra lengths for the company. Hard work and smart work are equally important. Also ensure the when you are hiring someone the person is passionate about what he/she will be doing.
- Start Small
More than 69% of entrepreneurs started their business at home and 79.7% of U.S. small businesses employ only the founder. So don’t try to go big in the beginning. Spend your resources judiciously. Even Amazon started in a garage with a very few employees and turned into one of the world’s largest companies. Start with the small and important stuff and then slowly expand as you get more experience and return of investments.
These were some very important things that small businesses need when they are just starting out. Also investing in crucial day to day requirements like Google Analytics, DropBox, EchoSign, LinkedIn, etc. could be a good idea. A balance between passion and wisdom can be the key to making good decisions. All you need for having a successful business is a proper plan and determination to succeed.
Having a successful small new business can be tough but it can be made really easy if you do things right from the beginning. A company with solid ground work and built from the foundation with patience and utmost perfection will definitely be a success.