Starting a business needs apt understanding and dealing with issues. Know that these may relate to sales, marketing, legal, liability protection, financing, human resources, and more. But, one thing that keeps you going is the interest in entrepreneurship, which is at an all-time high.
And, that’s the reason why early-stage seeds have grown into a multi-billion dollar company. Some of the spectacular success stories are those of Airbnb, WhatsApp, Facebook, and many others.
If you’re an entrepreneur who’s paving a path to startup establishment, here are some key steps to get you started:
- Develop a Keen Understanding of the Challenges and Commitment Involved in Starting a Business:
Establishing a business is a huge commitment. Usually, entrepreneurs fail to appreciate the requisite amount of time, energy, and resources that go into starting and growing a business.
Some of the biggest challenges that come to light while starting and growing a business are:
- Coming up with great and unique service or product.
- Having a strong plan and vision for the business
- Finding great employees
- Firing the inefficient employees in a way that doesn’t result in legal liabilities
- Protect your Assets by Establishing Business as an LLC:
Business tycoons suggest never starting a business as a sole proprietorship. It is because by doing so, you’re risking your assets for the liabilities and debts of the business.
You may wish to start a business as an S corporation, which gives you a favourable flow through tax treatment. Or, the business type may be a C corporation, which most of the venture capital investors expect to foresee. The other types may be limited liability companies.
Know that none of this is expensive or even difficult to set up. However, the only thing you need to see is your business needs. For instance, if you go in for an S corporation, you’ll be able to convert it into a C corporation with complete ease. And, this process begins as you bring investors and issue stock classes.
- Think of a Great Name for your Business:
One of the major aspects that impact your business success is selecting the right name for your startup. It is because a wrong name can trouble you big time, which has the possibility of getting you into business and legal hurdles.
Some tips to help you name your startup are:
- Avoid hard-to-pronounce or spell names
- Don’t pick a name that could limit your business growth
- Conduct internet research on the name you propose
- Prefer a “.com” domain rather than a “.net” domain.
- Research for a trademark
- Focus on Creating a Great Product
When starting a new product or service, make sure it is good, if not great. Make sure you differentiate the same from the offerings of your competition.
Never drag your product into the market right away. Ensure considering customer feedback as it helps you improve your product in the best manner. You may need a “minimum viable product” to begin with.
However, that too should be good and different from your competitors. Some startups and even successful companies prefer having a “beta” test product as it helps get the bugs out from the user reactions.
- Build a Website for your Business:
It is always worth devoting time and effort to building a website for your business. A website can make or break your business. It is because a website gives the very first impression to your prospective partners, customers, and investors.
Whenever they’ll consider reaching you, they’ll visit your website and thus, you’ll want to impress them with your professional product.
- Work on your Elevator Pitch:
The elevator pitch must provide a clear, compelling, and concise introduction to your operations. Thus, make sure you perfect the pitch and modify it depending on whom you’re pitching- whether they are customers, investors, partners, or even employees.
- Set up a Good Bookkeeping and Accounting System:
It is always wise to set up an accounting and bookkeeping system for tracking all your finances. You, as a business owner may want to track your income, capital expenditures, EBITDA, expenses, profit, and loss, etc.
Know that these are vital for understanding your businesses’ cash flow situation and for tax-filing purposes as well.
- Perform a Comprehensive Check Before Hiring an Employee:
Many employers conduct a limited reference check when interviewing candidates for jobs. Thus, this often results in hiring candidates who’re unable to perform their duties well. Sometimes, these candidates don’t work well in a team.
For instance, if you’re establishing a logistics business, you can take the help of agencies to find trade service professionals for your business. Contacting them can be your best bet as they help in saving your time and connect you with the best.
It is always wise to undertake reference checks as you wish to be sure that the applicant fits into your company. And, you also wish to ensure that whatever’s stated in their resume is honest and accurate.
- Take Steps to Protect your Intellectual Property:
It is really important to protect your company’s intellectual property. If you’re afraid of burn rate, you as a startup may have the temptation of deferring investments in intellectual property protection.
However, if you haven’t tried protecting your intellectual property, it may feel expensive and complex. Studies show that startups forfeit their intellectual property rights by negating the protection of their inventions and ideas.
- Market your Business to the Best Levels:
It is essential to attract, build, and educate your target market if you eye at business success. Thereby, ensure to curate a marketing strategy that includes:
- Search Engine Optimization to help the audience searching for your business online finds it in the top searches.
- Use social media for promoting your business. Some of the best marketing channels are Twitter, Pinterest, LinkedIn, Facebook, etc.
- Write guest articles for relevant websites by engaging in content marketing.
- Network continuously.
- Lay Focus on Exceptional Customer Service:
Highly successful companies exclaim laying focus on customer support and service. It is because if your customer is happy, they’ll act as a spokesperson for your brand. They’ll give referrals to their friends and other acquaintances.
Thereby, ensure expressing a token of gratitude to your customers by email. Also, ensure going an extra mile for showing your appreciation.
- Hire an Experienced Attorney:
If you feel like you are getting amidst some hurdles or suspect business complications, it is worth hiring a savvy business lawyer. Make sure you get in touch with the one who has experience in regularly forming startups and have the requisite experience in advising them.
Take A Plunge
Starting a business isn’t an easy task. But, it has many rewards and appreciations, and if you start on the right foot, you’ll never have to look back. The above-mentioned tips are sure to get you started and embrace the benefits of a well-established business venture.