In theory, starting your own business might not seem all that complicated, however, struggling entrepreneurs are common theme among new business owners. Despite the seemingly straightforward path to getting your own venture up and running, it isn’t that simple to ensure that your business becomes a success. For instance, it is estimated that only 20 percent of new businesses are able to survive their first year. What’s worse is that even fewer companies last five years into their inception. Now, the odds may appear to be stacked against you when it comes to starting your own company, but there are ways to significantly improve your odds. This will involve you understanding the fundamental mechanisms of building up your business.
Determine the Value of Your Idea
There are a number of factors that promote a company’s success. At the very top of this list is the importance of having a groundbreaking and relevant business idea. This is because, in most instances, you will probably be entering an already saturated market. Success requires that you make your company stand out from the competition. This is why it is helpful to determine just how feasible your concept is. Now, there can be a number of ways to do this, but the two most popular avenues are talking to industry insiders and receiving feedback from target users. These elements, combined, will allow you to conclude whether your idea has a chance of survival.
Secure a Name and Brand Personality
Your business’ success relies heavily on your ability to be able to market it to your target audience. This, of course, means that you will have to learn how to create a sales and marketing plan that reaches said audience. It is all about creating a company that simply reaches your customer base. To begin with, you need to come up with a name that creates brand awareness and recognition. Surprisingly, many companies find this to be quite a tricky endeavor. There are reputation and brand awareness companies that specialize in this sort of thing, but they don’t come cheap. Which is why there are effective, and cheaper, alternatives out there. One of these solutions is to use a business name generator. This is an online resource that produces relevant names based on your criteria or the products and services that you are selling. Once you have settled on a name, it might be helpful to start narrowing down your company’s brand personality as well. This is a set of traits that your future consumers can identify with, thus solidifying your position in the market. Most businesses opt to choose from one of the more popular categories – sophistication, ruggedness, excitement, competence, and sincerity.
Figure Out What Resources You Need
The most basic resources you will need to get your business up and running are – capital, people, and physical. You are going to need financial backing from investors or business partners unless you are planning on funding your own venture. While there is nothing wrong with bootstrapping a business, you need to be realistic when taking stock of your financial status. Next, you need to hire the necessary talent and expertise to help you run the business, as well as to market it. Know what to outsource versus what to hire in-house. Lastly, you will then have to find a brick-and-mortar location from where your business can operate. This doesn’t have to be an office building per se, it could be out of ones home office as well. It is important to determine the minimum and maximum range of your required resources (i.e. the amount of capital, number of employees, etc.) so that you know the boundaries within which to work.
Construct a Comprehensive Business Plan
When you have narrowed down the direction you want your business to go, it is time to put together a comprehensive and sound business plan. Most entrepreneurs believe that such a plan is strictly meant for investors. In reality, it can be just as helpful to you as it can be to your financiers. This is because a good business plan clearly lays out every minute detail about your company. It includes a company description, market analysis, structure and management, marketing and sales, and more. When you have to write all of this down, it forces you to evaluate the way you are setting up your business. This, in turn, lets you pinpoint any flaws or gaps that may exist within the current structure.