Posts Tagged: startup
The common misconception that startups are designed to rise fast and fail quickly is detrimental for modern businesses. Yes, the very point of a startup is a quick boom, but in order to remain afloat in the sea of other businesses, entrepreneurs need to have a tendency towards stability. Here are some useful tips when it comes to starting a startup.
The General Idea
Although it is important, jumping simply making a leap of faith into the world of business simply armed with the will to achieve success is not nearly enough to get things going. In fact, it is those companies that started out just for the sake of doing business that are quick to crash and burn. Legacy is the name of the game here – something valuable that each one desires to leave behind, which means that innovation is the name of the game! Of course, inventing the wheel is not as easy as it once was, so if your idea isn’t a revolutionary one, make sure that you focus on improvement and efficiency. Take Google, for example – this company didn’t come up with something new and revolutionary, the Internet search engines already existed at that point. By making their interface faster and slicker than their competitors, such as Yahoo, for example, they have achieved success and are now at the very top of the business world.
Your workforce is a key factor in creating a proper basis for running a company. The better your workers are, the better you are off as a company owner. When hiring, focus on using big data – this revolutionary new way of getting informed about your potential candidates can go a long way in saving time and providing with more substantial information. Additionally, you aren’t likely to have access to a huge workforce, which means that your employees will have to be able to wear many hats – even those that don’t necessarily fit them – it’s going to be difficult at the very beginning, but the whole process is quite rewarding!
Financing and Equipment
Money is always the issue – unless you can cash out a whole lot, you are probably looking at either getting a loan, or obtaining other means of financing. The main advice to be given here is properly pitching your financial plan to your investors – refuse to display it without meeting all the parties in person, seeing as how they won’t necessarily share your vision from the mere blueprints of your plan, regardless of how detailed it is.
The other part of financing is obtaining equipment – you won’t exactly be able to run a business without computers, printers and even trivialities such as desks, chairs and pencils. As an entrepreneur, you may not possess talents for equipping your office, so opting for a commercial fit-out might be the best way to go here – always choose professional help if you have the means to support it!
Last, but definitely not the least, let’s address the product that you are pitching. After all, it is the very pillar of your business. Although product placement can be done after your startup is through the planning phase, coming up with the idea should definitely be done first. Investigate your market – keep an eye on the demand and offer something unique; you can save marketing planning for later.
In conclusion, although startups are widely considered destined for failure, this simply isn’t the case. Think of startups as a new way to tackle the modern business world – you have to be quick in the busyness of the modern world, so the entrepreneurs of today had to find a way to adapt. Plan everything properly and then spring your startup into existence – the planning stage isn’t the time to rush things!
Starting up a company in today’s economy might seem like a bold move for some, but others might find it to be just a tad foolish. Various studies and experts in this field claim that nearly 90% of all start-ups tend to fail. Out of this, it’s noted that 50% of these businesses meet their end during the first year. While these numbers can be quite alarming, this isn’t a reason to feel discouraged. If anything, this should represent additional motivation to prepare yourself properly and learn appropriate ways on how to create a company that’ll be successful. In order to achieve this, we’ve prepared a simple checklist which every start-up beginner should follow.
The first step in starting any type of company is to decide on a complete business structure. The choices can vary depending on the line of your work, but choosing the right type of structure is of essence. The structure of your business will determine the paperwork, taxes, income, personal liability and all other regulations regarding your company. According to Entrepreneur, the most common forms of businesses are sole proprietorship, partnership, corporation, S corporation and Limited Liability Corporation (LLC).
Another crucial step in establishing a company is thoroughly researching the market. This step should be one of your priorities, as it decides your target audience, your selling strategy, but also your competition. It’s important to inform yourself about whether the demand for your product or service exists and is it a good idea to invest in the business. Identifying your target audience can greatly help you grasp in which direction should your company go and in what ways you can ensure its success. Knowing your competition is also one of the key aspects of market research, as you’ll want to know who you’re up against. It’s important to observe the wider picture and conclude whether your start-up has a good foundation to sit on.
Who you work against is not as important as who you’re working with. Choosing a good team of people is often more important than having the best product on the market. This is why it’s crucial to carefully choose the people you work with. This doesn’t apply solely to having a good technician, a quality sales representative or a notable PR, it’s also about choosing a great lawyer and an exceptional accountant. This is especially important in the start, as the lawyer can help you manage all permits, regulations and licenses needed for your business and an accountant will be in charge of all the finances regarding your new company. He will give you all the necessary advice about the costs, profits and investments of your company and provide information about business credit cards, debit cards as well as the business tax ID.
Having a good product and a strong strategy isn’t worth a lot if you don’t know the proper ways to present yourself. Your company’s image is a necessary part of your business and it shows your vision, mission and beliefs as a whole. The best way to achieve a good image is to develop a brand, come up with a great name and a nice logo and most importantly – have a story to tell. Your people should be the brand ambassadors and learn how to promote your image. The same goes for your business space and your office. In these terms, hiring a professional decorator might not seem like a bad idea, but there’s nothing that a few shelving solutions, good lighting and quality pieces of furniture can’t handle.
Every new beginning represents a potential risk, but you’ll never know what awaits you if you don’t take the chance. Of course, being prepared and informing yourself thoroughly about everything regarding your next venture will significantly increase your chances for success.