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Although starting a new business is certainly not easy, it will be much simpler if you have the right information on hand. Many entrepreneurs do not take the time to gather helpful tips and advice that can make the process easier. Since only 66 percent of businesses are around just two years after their creation, success is not guaranteed. If you can stay afloat for the first two years, however, you will have a 82 percent chance of long-term financial success. If you are planning to start your own new business, be sure to use these tips in order to have a better chance of success and to save yourself unnecessary hassle.
In This Post:
1. Create a Detailed Business Plan
Perhaps the most important step of the entire process of creating a new business is creating the business plan. The plan should be more than just an idea or a few paragraphs. Spend weeks or even months on this plan, and ask other entrepreneurs for advice on any areas you have not yet addressed in your plan. Calculate anticipated costs and revenues, and determine how long it will take you to break even. This business plan is important for you when it comes to implementation, but it will also be necessary for banks or credit unions to view when they consider whether or not to finance your new business.
2. Seek Out Alternative Financing Options
Many entrepreneurs privately finance their businesses with credit cards, second home mortgages or investments from family and friends. While these investment methods can work, they should not be your first choice. Spend some time meeting with representatives at credit unions and banks investigating potential business loans instead, or research how to be matched with angel investors who can provide you with the startup capital you need to open your business. A final option might be government grants, especially if your business is environmentally friendly or plans to hire veterans or high school students.
3. Market Your Business As Necessary
Entrepreneurs may have a fantastic business plan and the perfect financial backing, but they will never make money unless they market and advertise their products or services appropriately. Although big budget advertising may not be in the cards initially, viral marketing, social media outreach and similar options are affordable ways to introduce individuals to your business without spending a fortune.
4. Educate Yourself
Having a fabulous idea for a business does not mean that you are capable of opening a successful business right away. You will need to spend some time attending business courses, online degree programs or even spending to other successful entrepreneurs in your areas to gather information and advice.
5. Seek Out the Right Employees
As your business expands, you will need to hire employees to carry out the daily tasks. Unfortunately, many business owners hire their friends or family members for these jobs. While this can work out in some instances, it can also create problems and force you to pay more for staff than necessary. A better idea might be to hire those with a passion for your product who enjoy their job, a way to guarantee loyalty to the company for years to come. Famed entrepreneur Richard Branson says,”I surrounded myself with people who were better than me at specific tasks, which put me at an advantage, because I was free to focus on the things I was good at.”
With the right information, starting a business does not have to be hard. These tips will help prepare you for the initial stage of entrepreneurship and will point you in the direction of success.