Launching a new business from scratch can be a thrilling experience but also one that’s full of uncertainty and risk. Considering the global market and fierce competition, building your startup from an idea to a successful company is a difficult task. Approximately 90% of newly established businesses fail but with the right network, talents, skills, and a well-thought-out strategy, the chances of success are great.
There are certain key factors that every entrepreneur should consider to avoid setbacks and downfalls and being aware of them at the beginning of your entrepreneurial journey may significantly increase your company’s chances of success.
Below, we break down 4 important things you need to be aware of before you build a successful startup.
Oftentimes business ideas come from sheer passion and drive for your service or product, but sometimes it takes a little planning for things to go the way you want. A business plan will not only allow you to better define your goals and prioritize what is important to your business but will also help you focus on the specific steps required for your business idea to succeed.
With so many resources available online, writing a business plan doesn’t have to be difficult. But if you still feel unsure, you can create a template business plan and ask your friends, family, or even other players in your industry to review it and share their opinions.
Once you’ve written your business plan, you’ll be ready to set a budget and see which channels are best suited to reach your customers.
Use Social Media
One of the biggest reasons why your startup should consider advertising through social media is that your customers spend a lot of their time on these channels. The number of global social media users totals more than 4.62 billion today. With so many consumers using social media every day, this is a great opportunity for small businesses that want to reach their online target audience.
Creating a relationship with your target audience can be easy if you’re active on the channels they use most often. In other words, don’t attract your target audience to the channels you use but choose to use the channels where your target audience is active.
If you’re not already on social media, you may be missing out on an important opportunity to build relationships with your customers and engage new customers. If you believe your business should be present on Instagram, but you’re unsure of how to increase engagement on Instagram, then you must first analyze what your customers’ specific interests and needs are. The more information you get, the more success you’ll achieve on this social media platform.
Test Your Business Idea
Many startups focus on raising capital instead of launching, testing, and seeing if the business idea holds. Before you go big, it’s good to test your idea on the market as soon as possible. Launch a so-called minimum viable product. Then you can get a quick indication of whether there is sustainability in the business idea without wasting all of your capital. Then you can refine your concept.
Another easy way is to test the idea on as many friends and acquaintances as possible. Do they understand your idea and could they consider buying the product or using the service?
Also, think about what problems you’re solving for your customers and what issues your idea facilitates. If your company doesn’t meet the real needs of those who’ll buy the products or use the services, it will be difficult to succeed.
Make a Budget
Serious entrepreneurs make both liquidity and profit budget and make frequent follow-ups. This is particularly critical during the start-up phase.
The performance budget is your plan of the income and expenses that you know and can plan for during a certain month, quarter or year. Some companies work with even shorter time intervals. Through the budget, you get control and an overview of the company’s finances and can see if you seem to achieve your performance goals.
The budget also means that you must ensure that you have the right income and expenses for your planned business. The cost budget is usually simpler than the revenue budget. Sales can be difficult to estimate, but try to be realistic.
The most important thing you need for a successful startup is to believe in yourself, your idea, and your vision. Establish reasonable goals and work hard to accomplish them. Most challenges that arise during the early stages of your business can be turned into something positive. Try to focus on the right things and believe in yourself and you’ll create the conditions for success.
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