About 20% of businesses fail in the first year. Close to half don’t make it to year five.
Starting up a business in a way that makes the business sustainable is the most important thing you can do. You can’t afford to go back and restart the business because you made mistakes somewhere along the line.
How can you start a business that defies the odds?
Read on to find out how you can start a business in just a few steps.
1. Write a Business Plan
A business plan details what your business is about. You need to do a lot of research about the market conditions, the competition, and the potential market size.
Something to consider is how you’ll sell your products and to who? Are you going to sell directly to customers in a retail setting or will you sell products in bulk at wholesale prices for other retailers to sell to customers?
Your business plan has to have a financial plan included. You need to know your startup costs, monthly operational expenses, and a path of financial growth.
2. Get Financing in Order
You need capital to start your business. You can choose to fund the business yourself, or you can get outside investment.
Review your financial statements and see what’s possible. If you’re funding the business yourself, then you need to make sure you have 9-12 months saved up. That gives you the freedom to start a business without too much financial stress.
If you don’t have that much saved up you can still get a business loan or angel investment to start up the business.
3. Register the Business
You do need to register your business with your state and local authorities. The business has to be registered with the department that oversees corporations in your state.
There are various local rules that you need to check. You may need to acquire business permits for a physical location.
4. Set up Business Systems
Business systems are the key to any successful business. You have a ton of small tasks to complete every day. Payment infrastructure is one of the biggest problems for many businesses, but you can use a system like posabit, which can handle everything for you.
Try to use technology as much as possible. Use tools to automate your tasks and create paystubs. These tools will help you make the most of your time.
5. Market the Business
How will people find out about your business? You’ll definitely need a business website. You’ll also want to invest in SEO, setup goals in Google Analytics and get active on social media.
Marketing is all about knowing your customers and delivering the right message at the right time. That lets you deliver the marketing message by using the right channel.
Many businesses start by relying on social media and your immediate networks to get the word out.
6. Open Your Doors
This is the best part about starting a business. You get to welcome customers and serve them. It allows you to do what you do best.
You also have to manage the operational side of the business, but once you get your first customers, there’s no turning back.
Starting up a Business the Right Way
Starting up a business can be easy when you follow these steps. Keeping the business open and going through the emotional ups and downs is hard.
When you set your business up the right way, you have a foundation down that can pull you through any challenge. For more tips on growing your business, check out the Business section of this site.