Tips to Starting Your Own Business

Starting your own business can be a huge undertaking and is involved with great risks. But when planned correctly, the rewards can be amazing. Whether you have a brilliant business idea, want financial independence, or just simply want to take on a new challenge, there are many reasons to become an entrepreneur. But- it is crucial that you build your business on a strong foundation to ensure that your business can be successful. Here are 4 tips to starting a new business!

Research

Before diving into building your business, you must do a LOT of research to make sure that you can be successful. Entrepreneurship should not be rushed; it is essential that you consider every possible scenario before getting started. Ask yourself: is there a need for this business? Is there anyone else selling this product or service? How competitive is the market? Is this a product or service going to be useful years from now or is it just a fad? How will I adjust to changing trends? How will my business fit into the market? In addition to asking questions about your business, you must ask yourself questions. Am I fit for this role? Do I have the time to devote to this? What will happen if I’m not successful? Is this the right time for me? Once you’ve determined that your business can be successful, you’re ready for the next step!


Plan, Plan, and Plan some more!

Creating a business plan can help to turn ideas into a reality. Even if you are the only one involved with your business, business plans can force you to answer difficult questions about your business so that you are more prepared and ready.  In addition, if you need financial support, creating a business plan is crucial. In the most simple terms, a business plan should include what your business is and what you hope to achieve. Also consider including: what is my market? Who is my competition? How can I differentiate my product? Will I be profitable? Asking yourself these questions can set you up for a more successful process.

Assess and plan your finances

Starting your business can be pricey due to initial investments and various costs such as inventory, a workplace, licenses, permits, advertising, employees etc. It is important that you get your finances sorted out before diving in! Although not every expense can be predicted, try putting together a list of expenses so that you have a rough estimate of how much you will need. Since not everyone has large sums of money lying around (I wish!!) borrowing may be neccessary. You can apply for loans, grants, or even get help from generous family and friends. Make sure to research what financing process is right for you.


Determine your business structure

The structure of your business is important to decide before getting started because it determines how you file your taxes and business regulations. Sole Proprietorship,  Partnership,Corporation,  S-Corporation, and Limited Liability Company (LLC) are all great business structure options. Once you decide on one, it is not set in stone. You can adjust and change as your business grows!

Starting your own business can be an exciting and rewarding experience if done properly! Click here to read about how our services can help you!

Why Businesses Fail

The Small Business Association states that 30% of new businesses fail during the first two years, 50% during the first five years, and 66% during the first ten years. So why do these businesses fail? Why is it that even if they make it past the first couple years, the odds of them failing goes up even more? The way consumers purchase products and the way companies market those products to consumers has changed dramatically over the last couple years. This means that every step in a businesses’ process, from marketing the product, to manufacturing the product, and finally to delivering the products to the customer and ensuring their satisfaction, has become increasingly important to that businesses’ success. In considering today’s market and consumer marketability, we have established the top 3 reasons why businesses fail today…

Not Adapting to Change

The most important reason why businesses are failing today is because they are not adapting to changes in the industry, economy, or consumers. New companies are emerging every day and in every industry, and today more than ever before, these new businesses have almost equal opportunity of surviving, if not better opportunity, than companies that have been around for years. Customer loyalty has dropped dramatically as customers are more informed about which product or brand is actually better than the other. Customers in previous years, such as Generation X, simply chose the brands they were most familiar with and stuck with that, causing businesses to depend on customer loyalty. With Millennials and Generation Zers, customers are actually turning their products over and looking at the ingredients, looking up brand ethicality, and so on.

Businesses are failing because they are not adapting to these changes. Utilizing new technologies to quicken business processes, using social media marketing rather than traditional advertisements, and constantly improving and maintaining brand image is only a couple of the ways businesses need to be adapting to these recent changes.

Poor Management

The second most common reason businesses fail is because of poor management. This does not just mean from an upper-level stance, but lower-level management as well. Ensuring that everyone involved in your business, both externally and internally, knows your business inside and out is extremely important in ensuring management is aligned throughout the company. This includes knowing what the business stands for, the goals of the business, and the reason your business was created. Many companies do this by telling everyone who begins working for the business, the history of how the business began and why, as well as accenting on the importance of abiding by the company norms. This allows every individual inside and outside of the company, to be aware of how they should be operating, and how people under them should be operating as well, leading to improved management overall.

Unsustainable Competitive Advantage

Competitive advantages are becoming extremely difficult to maintain today as more and more businesses are entering the market, with increased chance of success. A business can no longer rely on one competitive advantage, such as a successful product, to maintain their business’ success. Companies with sustainable competitive advantages are not only consistently ensuring their product is the best on the market, but ensuring their brand is constantly improving their processes ethically and financially. This ensures that even if a new product comes out on the market, it is in direct competition with your own product as you’ve been consistently innovating and improving it. This also ensures that if a new company comes out that is ethically attractive and financially stable, you have also maintained your brand’s image and effectively improved your processes as well.

The key to ensuring your business does not fail is to constantly act like it is a brand new business. No matter how long your business has been around, whether it’s 5 years or 35 years, if you treat your business like you just started it up yesterday, you’ll be constantly working to improve it and therefore never fall behind your competition. This is evolved around your own motivation to be the best in the business and the perseverance you have, and your employees have, in consistently and effectively improving your business.

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Start Providing VALUE!

Today we go through the importance of providing upfront value. What are you doing to incentivize customers to do business with you? Whether you are a restaurant, salon, or carpet store, you need to give someone away up-front to build trust. Everyone has different expertise. It’s time to start sharing your knowledge, now!