Small business administration estimates that over 60,000 businesses will open this year. Small businesses account for 47% to 51% of the total labor force.
There are approximately 60,000 new businesses that are launched each year. Nearly 20% will failAccording to Lending Tree, this is the rate of failure in the first year. A rate of ⅕ of new startups failing in the first year requires you to plan a strategy for your startup to succeed and thrive.
Seven-Point Strategy for Launching Your Startup Successfully
Launching your startup strategically won’t guarantee your success, but it will build the foundation that can springboard it toward your goals. These seven basic points will help you make your startup a success.
Your idea is worth testing
Do a test before investing in your startup. This will help you determine the viability of your concepts.
For example, putting a bar in a strip mall right next to two giant corporate chains like Applebee’s and Cheesecake Factory may not be the best strategic location. On the other hand, it may be that the idea isn’t a bad one, but the site or market may not be able to support it.
You will need to test physical products more thoroughly.
If you are testing your product, check whether it’s already on the market. Also consider if this product is better than what is being envisioned.
The second is to consider whether your market will support multiple products concurrently and whether it can afford you to price yours competitively.
Finally, it is important to establish if your product has a loyal customer base.
Create a Business Plan
Your business plan serves as a roadmap for your company. This plan includes strategic planning for your operation, in-depth market analysis and product information. It may also include details about how to generate leads and other important processes.
Business plans will include:
- Assistance to obtain funding from either private lenders, or public sources like the SBA
- Potential investors can see your market research
- This outline will help you to plan your business structure
- To set annual goals to grow
Register Your Business
Now that you’ve tested the concept and the market and created a business plan, your next step is registering your business with the IRS and local government. You will need a fake name license to establish your legal identity as a corporation, sole proprietorship, partnership, limited liability company, or sole proprietorship.
Make a Sales and Marketing Plan
Create a business strategy that analyzes your potential market. While you can look at many possibilities, be selective about the people that you are primarily targeting.
For example, if you’re selling widgets for men, consider all the applications your gadgets may be using and then target the specific type of job that widget will perform. Also, for pens that hold pens think about what jobs they would make a good fit for, and then target the job that is best suited to that type of role.
In order to fund your startup, you’ll need to have a registered business entity and a business plan that outlines how your operations will run and how you see the market supporting your concept.
Multiple channels exist to raise funds, including:
- Banks are not the only private lender.
- There are public options, such as the SBA and State.
- Investors–private equity, family, friends, crowdsourcing
You will use the money raised to expand your company’s operations.
Recrut the Best Talent
It is critical that your startup has the right talent to get it off the ground. Startup turnover rates are much lower than established companies, so be aware of this when you hire.
Expertise and experience are essential in each role and ability to work together as a group. Startups often require employees to do multiple tasks, which means that there must be a strong emphasis on teamwork in every hiring.
You’ll want to do background research on each individual, which can be time-demanding, so depending on the size of your hiring, you may want to outsource this role and get a third party to perform Background checks in bulk for your departments.
Screen applicants carefully to identify the best talent you can retain and grow your company with growth incentives. The culture that you build within your business will attract the right talent as well as retain what is already there.
When possible, Outsource
Start-ups are often limited by their budget, which makes it difficult to find ways to reduce the cost of operations. Outsourcing functions that are not essential to your daily business operations can help reduce your bottom line.
You might find it impossible to budget for a marketing team that can handle your entire marketing campaign. Consider hiring a team of marketing professionals on a retainer or case-by-case basis. This will help you save your budget. Promote your business launch.
Outsourcing is an option
- Clean-up duties
- Human Resources
- Non-essential Administrative Tasks
- IT Department
- Customer Service
Having a business idea that you’re passionate about is one thing. But, creating a strategy will help you distinguish between those who succeed and those that fail.
Startup Checklist To Make You Profitable Out Of Your Gates appeared first at Enterprise Podcast Network – EPN.