The idea of creating something from scratch and being an entrepreneur can be exciting. You dream of becoming your own boss and bring value to other people. The journey of a start-up growth can be fulfilling and challenging at the same time. But here is the problem. A review by Harvard Business shows that 75 percent of startup fails. The good news is that there is a significant chance of success.
How can you ensure your small business is not one of 75 percent? If you want to know about growing and running a small startup, you have come to the right place. Below is a list of tips that you consider before a small startup business goes operational.
#1. Come up with Well-defined Plan
During the startup phase of business, it is easy to get absorbed in every new idea. Switching ideas constantly can make you lose focus and affect progress. A well-defined, solid plan is an invaluable requirement if you want to see your business succeed. Invest your time to come up with a plan that defines your objectives and how to achieve them. A business plan also comes in handy when seeking finance.
A business plan helps you to organized, focused, and responsive to business tasks and activities. You do not need to have a sophisticated plan. A simple but well-defined plan will do the trick. Planning should be incorporated in every business facet including hiring.
#2. Know your market
Do you have a ready market? One of the biggest mistakes you can make is to assume there is a market. Market research involves talking to potential customers and find out if they are willing to buy your products and how much they would pay for them.
#3. Understand Your Customers
Understanding your customers can help upscale your sales and profit. It also helps to establish a strong relationship and experiences that will attract customers and retain them.
#4. Listen and learn from professionals
If you do not understand the business dynamics of the industry you wish to venture in, you will progress slowly or even fail. The good news is expanding your knowledge and expertise by socializing with likeminded people, and reading widely will give you the right insights. Consider attending conferences and taking a course. The critical point is that you learn from the mistakes of others.
#5. Choose the right business for you
It is recommendable that before you venture into a business, you assess yourself and personal goals. Venture into a business you are passionate and knowledgeable about. The magic formula is to find a market gap and fill it.
#6. Start small
While investing in a startup, it is always advisable to take a controlled risk. Initially, you should test your idea to get a clear picture of potential profits and losses. This approach enables you to learn the strengths and weaknesses of your product.
#7. Adapt to changes
Another thing, you should be open to new ideas. This helps to grow the customer base. Essentially, being up to date with innovations and market changes can help the business grow and expand.
#8. Embrace digital marketing
As a startup, you may not have enough capital for conventional marketing. We recommend that you adopt digital marketing because it is cheaper and has greater impact on the target audience. What’s more? Digital marketing promotes interaction with customers hence increasing conversion rates and revenue. Step and repeat banner is also an ideal advertising tool for startups.
#9. Know operation needs and Costs
Most entrepreneurs are so focused on profit that they forget about operation costs. How will you run your business? You need to factor in all expenses, such as rent and marketing. It will help you create a budget and business plan.
#10. Avoid Procrastination
It is advisable to start with what you have. Raising doubts on whether your startup will succeed or fails results in procrastination. Everything will not fall into place at once. However, try to perfect everything before opening the business.
Before venturing into business, there are some things you should know. It is crucial that you do research, talk to professionals, and be ready to adapt to changes and mistakes. Most importantly have a business plan to guide you.