Like any other successful relationship in life, you have to bring your commitment and passion to your startup. And that will not be enough. As you might already know, every business starts with an idea. So, your idea either has to be original and an effective solution to a certain problem, or a solution that will be more creative and come with a better price. Stepping out into the world of business can be interesting, but all the information you need to take in during the startup stage can be a little overwhelming.
And to make it worse, some of that information will not even be helpful for your startup. The thing you need to remember is that business does not necessarily have to be complicated – you just need to go towards your main goal, which is to make money. So, let’s see what crucial elements you need to have in mind when you are launching or managing your new startup.
Research
First, you need to check out your competition, and this is where you need to be incredibly thorough. Are you going to be a local brick-and-mortar business or will you launch your business online? You need to find out whether someone is already running a similar business and where that business is located. What are their prices? Use Google until you drop. Never move forward without proper research, because it can happen that you later discover that there is already a company that offers the same service or product for a better price than yours.
An important thing you should not forget is looking up for domain names that will provide your new business with all the essentials you need to build a brand. Research some more to see if someone has already registered the name you had in mind, because if they did, chances are that they are offering something similar to you.
Business Plan and Finances
Writing a business plan is something people usually resist doing, but this is a crucial element for your startup, so just do it. Do not worry about whether your business plan will be the best plan ever – you just need to sit down and write an overview of your business. Find a mentor to share it with and to address all the items so that your business plan becomes effective. And for the finances, find someone who is an expert with numbers to go through expense and sales projections for the next few years.
Funding Strategy
This is a tough one, but you will find a way. After you have done the financial projections you will know how much money you are going to need and you can begin the fundraising. Many people start with their family and friends, people who believe in them and want to support their ideas, so this is a great place to start. You can also go to some crowdfunding websites and check them out. The most important thing here is to be honest, especially with your family and friends, and inform your investors that there are risks involved.
Tell them that you have faith in your project and that you will do your best to make it work, but something can always go wrong. Think about how you will return their money, or something called “exit strategy”. How many services and products will you need to sell? Will you be sharing the profits or will you be selling your business in near future? Figure out the answers to these questions and inform your potential investors about them.
Testing
If you have this option, use it. Test your service or product before you officially launch it. Let’s take an example – if you want to sell muffins, gather a group of 20 people of different backgrounds and ages to taste them and give you their opinion. And people who are business savvy can give you their feedback regarding the pricing. This way you will know if the prices are too low or too high when compared to your competition. You will need to create a website, so when you do, share your homepage with your friends and ask for their feedback.
You will find out what is engaging to your visitors and what is not, so make sure to be open to suggestions to make the improvements. Try several landing pages and test out how to convert your visitors into customers. Do everything you can before you start your business, or in other words, try to break down every crucial element of your business model by asking people you trust for their sincere feedback.
Love
You need to believe in yourself and be brave. Running your own business is challenging, thrilling, exhilarating and breathtaking all at once, but you can do it. Your chances for success will be much bigger if you start with a belief in your idea and yourself.
You have to realize that there is no such thing as a shortcut to success, and no magic formula that will help you create the perfect startup. The factors above are what really matters, along with the right timing. So, read carefully everything we have written above, be thorough in your research, write a good business plan, find investors, test your service or product and, last but not least, believe in yourself and your idea.
The author is highly qualified and writes blog posts weekly.
