Being a new entrepreneur is unlike any job you’ll ever take. As this is most likely your first endeavor with being your own boss (as well as possibly leading others), there’s a number of considerations you should make in how to develop a well-run company. And if launching a company has been something you’ve been looking to venture into, there are a few things you should know which is why we’ve compiled a few helpful tips. Check them out below:
How Much Capital You’ll Need
Almost every business needs some sort of capital to get themselves going. While this can vary quite a bit depending on the industry, as noted by MBDA, the average amount for a small business is around $30,000, which for most of us sounds like a fair amount of money to compile. However, in the world of startup capital, it is much more attainable than you might imagine, as long as you know how much you’ll need and can justify that price point.
In compiling your budget, take a look at all the must-haves and necessities for your business to thrive. Is this something you can do from home? Are you going to need equipment, and if so, does it have to be new? Are you going to need staff out of the gate? How much are you going to invest in initial marketing? The more factors you’re able to compile, the better, giving you a more well-rounded scope of developing a budget for refinement. As you continue along with your budget planning, the goal is to be as lean as possible, giving yourself the most runway you can while developing your product and market fit.
What Your Brand Will Be
A significant factor of your company’s perception will be reliant upon your brand, which is the core thesis to what you stand for. Whether you’re aiming to have a b2b or b2c model, this is something your customers are going to look towards in wanting to do business with you; according to Zimmer Communications, 64 percent of consumers cite shared values as a primary reason they do business with a brand. A solid brand can go a long way in bringing on inbound traffic, which is why you should consider investing some time in developing this.
When formulating your brand, ask yourself first why you’re in business in the first place, as well as how your product or service could change the world. While that might seem high-minded, your brand has to have a mission that will not only make people want to do business with you but also follow and be an evangelist for as well. We’ll note a big part of this process is refining your messaging and mantra, honing in on only the core elements. Remember, your brand statement should be something that you can say in sentence or less, with the goal of compiling a message others can resonate with for as long as your company is around.
How Your Marketing Plan Will Attract Customers
As important as it is to have a solid brand, you’re also going to need a great mind for marketing to spread the word about it. Although we often think of marketing as this thing to get more customers specifically by advertising, social media, and email blasts, the other half of it is improving your product or service in comparing where you fit into the market. As noted by CB Insights, a staggering 42 percent of startups fail due to no market need, which goes to show how important it is to utilize marketing as a technique to learn more about your startup from others as much as you’re educating them on your current offering.
When establishing your marketing plan, it’d be wise to start reading some ebook PDFs and other instructional materials to gain an understanding of basic marketing concepts. From there, start building out what you view as your ideal customer marketing segment, as well as why these people will gravitate towards your product. A big part of this will also be diving into the mediums that those in your customer base are using on a day-to-day basis where they could discover your company. As marketing is something that you’ll need to work on daily, embrace it as an activity with the most direct impact on the growth of your firm long-term.
How To Be In It For The Long Haul
Finally, as an entrepreneur, it’s easy to get short-sighted in what’s happening on a day-to-day basis, or even worse, spending your future successes. As noted by Fit Small Business, approximately 50 percent of businesses fail within the first five years, which when you consider that figure also includes all the high-risk companies like restaurants and tech startups, makes sense. The goal of avoiding becoming a part of the dreaded 50 percent though is a hard feat, which is why you need to consider how to be better at long-term planning.
In looking at your plans, map out some goals you have for three years, five years, or even ten years down the road. Try to be specific about certain benchmarks you want to hit that are within reason, as well as any potential roadblocks you might see in the way. A big part of sustainability is being able to work on a daily basis with a vision for the future, knowing whatever it is you’re doing right now and how it will impact your future work. Thinking like this will not only ease stress but also put you in a position to seek success for a long, long time.