Simple Business Tricks to Move from a Start-up to Fortune 500!
Many people dream of being labeled as “business moguls.” Even though the name is pretty cool, it doesn’t come easy, and you can understand why. According to Forbes, 90% of startups fail, which means that growing a small business into a large Multi-national company is very hard.
Nevertheless, it does not mean that you are destined to fail when you start a business. With the right resources, plan, and focus, you are more likely to become another success story just like Amazon, Google, or Tesla.
But where do the entrepreneurship path of the likes of Elon Musk or Jeff Bezos starts from?
1) Owning a Business Idea
Every journey starts somewhere. Your entrepreneurship journey begins with a business idea. You must have an idea of what you want to offer to potential customers. That said, not every idea transforms into a successful business. Your idea must be great, unique, and practical for you to stand out among competitors. A successful business idea is the one that:
· solves a particular problem
· has the potential to evolve into a large business
· creates a new market
· is profitable
· is differentiated
You have already made a big step towards entrepreneurship success when your business idea meets the above criteria! It probably means you need to do more research if it doesn’t. Simple research can start from conversations with families, friends, or colleagues. Listening to their problems will help you identify an existing market gap. You can explore other channels such as Google, magazine, or newspaper articles to build on your idea.
Recommended: Your business idea should be centered around your passions or interests.
2) Determining and understanding audience
The next step involves knowing your target audience. Your target audience is simply the people that you intend to offer your products or services. In understanding your customers’ wants, famous Australian Author Hazel Edwards recommends businesses to “Ease their customer’s pain.” Analyze your customers’ needs or problems and tailor your products or services around them.
It is also crucial that you understand the target demographics. These demographics include buying habits, gender, income, age, and profession. Demographic patterns dictate which marketing and sales strategies to employ to reach the target market. They also provide essential information about market demand and market share.
3) Planning Finances Well
The next thing to do is to check your finances. Every entity needs resources to run. First, you need to sit down and calculate the capital required to get you through the start-up phase. From there, you can start planning about sources of funding. But where do you get your initial capital from?
Most people rely on their savings to kickstart their small businesses. When you have enough savings, you can get started straight away. Alternatively, you can seek a loan from families, friends, or colleagues if you are short of finances. Other options for funding include applying for business loans from financial institutions or searching for potential investors.
4) Evaluating the level of competition
It is every entrepreneur’s desire for their business to flourish. One way to safeguard your business’s survival is by analyzing your competitors. If you don’t know what your competitors are doing, you are most likely to fail in your entrepreneurship journey. So, what do you have to do?
Examine their products and services closely. Learn about their products or services’ weaknesses and improve on them. Moreover, take note of your competitors’ pricing and marketing techniques. Scrutinizing your competitors’ activities leads to better decision-making. Informed decisions are the foundation of a successful enterprise.
NB: The main objective of competition analysis is to find a unique selling point for your audience that will help you survive in the market.
5) Understanding the legal environment
It is essential that you learn about the existing legal procedures in the industry you are venturing into. Register your business per local and state laws. Ensure you have the necessary legal documentation, such as licenses and permits. Complying with regulations makes it easier to establish a physical presence without worrying about authorities.
The legal environment also involves the payment of taxes. Figure out the amount of taxes you will pay once you get started. With that, you can predict the future tax burden and assess its effect on your revenues.
6) Learning about the skills and Workforce Needed.
Think of the essential skills you must possess to ensure your enterprise is booming. If you think you lack any, seek professional advice from experts or your mentors. Attend industrial events and workshops and reach out to leaders within your industry. As Leonardo da Vinci said, “Learning never exhausts your mind.” Don’t stop learning until you attain the skills needed to implement your idea.
The same applies if you plan to hire some workers. You need to recruit a high quality workforce. Sometimes it is difficult to locate the right personnel. Recruitment agencies can turn out to be resourceful in this regard. Don’t forget to plan on how you will pay them.
7) Preparing for Risks
There are always risks involved when starting a business. Therefore, you have to identify the potential risks within your industry. Consequently, adopt a risk management plan to protect you from them. One way of reducing risks is by taking an insurance cover. Insurance coverage may eradicate or minimize losses due to unforeseen hazards such as fire, theft, and other damages.
8) Writing a Business Plan.
Writing down a business plan is very easy when you complete the steps above. A business plan reveals the goals of a business. A good business plan contains a mission statement, description of products or services, target demographic, consumer expectations, and selling trends.
It should also contain a listing of present and future sources of funding. Moreover, a listing of all business strengths and weaknesses is very crucial. Simply, the document should tell everything about your entity.
NB: A written business plan facilitates easy and timely implementation of tasks. With it, an entrepreneur tend to be more organized and focused on tasks at hand.
Conclusion
Starting up a company is always a challenge. To have any chance of success in entrepreneurship, it is crucial that you follow the steps above. Remember, everything is possible with handwork and a positive attitude! So, what are you waiting for? Get started on that special business idea that you have!
