isn’t for the
faint of heart. It’s stressful and pretty much demands your complete focus. On
the plus side, it can also be a fulfilling experience professionally and
personally.
Here are 50 tips on how to make your business
come to life:
1. Do a self-inventory.
Not everyone has what it takes to start a
company. That’s not to say that your idea is not brilliant. It just means that
you may not have the personality traits to handle launching a company of your
own.
Before investing any time or resources, evaluate
yourself and see if you have some the typical traits of an entrepreneur. Are
you motivated, able to adapt and confident? Are you resilient?
2. Develop an idea.
Don’t just start a business because something is
in vogue and you think commercializing it will make money. Develop a business
concept that you're passionate about related to something that you have
experience with. From there, come up with a product or service that you believe
can enhance the people’s lives.
3. Test the plausibility.
Once you’ve settled on an idea, figure out how
you can make it become a reality. Is the product or service something that
people want or need? Can you make a profit selling it? Does the product work?
4. Write a business plan.
A solid business plan will guide you going
forward. It’s also needed for presenting your idea to potential investors. Your
business plan should include a mission statement, a company summary, an
executive summary, a service or product offerings, a description of a target
market, financial projections and the cost of the operation. Learn about how
to write a business plan at SBA.gov.
5. Identify your market.
Even though you may have detected some interest
in your business, you need to do more homework. Assess the market, targeting
the customers most likely to make a purchase. Perform a competitive assessment.
6. Determine the costs.
Do additional research and find out the standard
cost factors within this industry. Not only will this help you manage your
business more effectively, investors will want to know this.
7. Establish a budget.
Once you determine how much money you’ll have to
work with, figure out how much it will take to develop your product or service
and create a marketing plan.
8. Find the right investors.
You’re going to need some sort of funding to
start off, whether from your savings, credit cards, loans, grants or venture
capitalists. Find an investor who shares your passion, someone you believe you
can work with.
9. Listen to investors.
Whether you like it, investors do have a say in
your company. And you need to listen to their advice or suggestion. But that
doesn’t mean you have to do what they tell you.
10. Set up a great support system.
You’re going to be investing a lot of time and
resources into your new business venture. Be certain that your family is on
board. They must be aware that this process will be challenging financially and
emotionally.
11. Determine the legal structure.
Settle on which form of ownership is best for
you: a sole proprietorship, a partnership, a limited liability company, a
corporation, an S corporation, a nonprofit or a cooperative. Find out more
at SBA.gov.
12. Select a business name.
Decide on a name that best suits your business.
Then check to see if the domain name is available online, as well as if it’s
free to use in your county, state and in the country.
If your proposed business name is
available, register it with
the county clerk, have it trademarked at the state and federal levels and
secure a domain name.
14. Take advantage of free resources.
Numerous free resources can offer advice,
training and assistance.SBA.gov is a great place to look at to find local resources.
15. Determine tax obligations.
Now it’s time to wrestle with the tax
obligations. In the United States, four basic types of business taxes arise:
income, self-employment, taxes for employees and excise taxes.
16. Secure permits and licenses.
According to NOLO, you’ll have to pick up a federal employment identification number (unless the company is a sole proprietorship or a limited
liability company without employees.) Apply for state licenses. Pick up a local
tax registration certificate. File for local permits, if required, such as a
conditional use permit or zoning variance.
17. Buy insurance.
Make sure that you arrange for the proper
insurance for your business. This will vary according to the type of business.
If you’re working from home be sure that your homeowner’s insurance covers
theft or damage to business assets, as well as liability for any
business-related injuries.
18. Set up the books.
Figure out if you’re using a cash or accrual
system, determine the fiscal year for the business and set up a recordkeeping
system.
19. Choose a business location.
Select a location that best fits the needs of your business, one that offers an
opportunity for growth, the right level of competition and proximity to
suppliers. It should also be accessible to customers.
20. Don’t worry about an office.
If you’re not making any revenue, then don't
concern yourself with an office or warehouse ust yet.
21. A patent can wait.
Patents can cost thousands of dollars. Wait to pursue this route until you have a few customers paying
the bills. A patent is
less useful if you can't enforce it or have the money to see it through.
22. Be flexible.
Chances are that your original idea will have to
be modified. Being able to pivot and adapt to
create what customers want will determine if your business will fail or
succeed.
23. Share your ideas with friends and family.
Your nearest and dearest will most likely be the
most honest with you about your business. Don’t hesitate to seek their advice
and suggestions.
24. Ignore the naysayers.
At the same time, there’s a difference between
constructive criticism and someone's quick jab projecting that your business
will fail. Follow the example of French Internet mogul Xavier Niel and
ignore them.
25. Don’t become angry.
If your idea is rejected by customers or
investors, don't just succumb to anger. Find out what they didn’t like, make
adjustments and go back to them when you’ve made the changes. There's the
possibility that the timing was wrong as well.
26. Deliver the product or service fast.
Your business is a work in progress and if you
launch your product or service quickly, you will be able to build a community
of customers who can provide valuable feedback that can help you improve the
offerings. In the words of LinkedIn founder Reid Hoffman, "If you're not embarrassed by your first product release,
you've released too late
27. Offer new products or services.
If you already have customers, be sure to hold
on to them by providing new products or services.
28. Be patient.
Always keep in mind that success won’t happen
overnight. It’s going to take some time before you make a profit.
29. Overdeliver at first.
Once you land a new client, be sure to go above
and beyond the call of duty for at least the first month. You’ll have this
customer hooked from then on.
30. Blog all the time.
Don’t be ashamed to share both your triumphs and
struggles. Customers will enjoy your honesty.
31. Avoid fights with partners
If you have disagreements with partners, then
sever ties as soon as possible. In-house bickering will prevent you from
focusing on growing the business.
32. Don’t worry about dilution.
So an investor has required a stake in the
company. Recognize the fact that eventually at one point or another you'll have
to give up some control of the business. Accept it and move on.
33. Hire a copywriter.
Unless you’re an excellent writer, hire a
copywriter to compose emails for highly targeted customers. A copywriter will
also prove handy for press releases and other pieces to spread brand awareness
or provide business updates.
Related: 7
Taboos of Business Pitching
34. Prepare for meetings.
When preparing for a meeting with a client, read
up on everything that’s available, steeping yourself in information about the
industry, that firm's employees and its competition.
35. Don’t fear the competition.
Don’t bad-mouth the competition when talking to
investors or customers. There’s no need to become an object of pity. In fact,
talking in this manner might even point customers to a competitor who may offer
a product or service that you don’t. Remember, when competition exists, there’s
a market for your business. Use that knowledge as inspiration to outperform a
rival.
36. Benefit from word-of-mouth.
Nothing beats some good old-fashioned
word-of-mouth marketing. Let friends, family members and influencers in your
field spread the word about your product or service.
37. Network.
Don’t be afraid to get out there and show your
face to the public, whether at a conference or just being out and about with
friend on a Friday night. But try to stay local because travel can dwindle your
budget.
38. Provide outstanding customer service.
Interacting with people is a big part of the
job. Your business may gain new customers because you made them feel important.
For example, Zappos wasn’t the first online store to sell shoes, but the
company perfected its customer-service department and won over shoppers.
39. Be sure your website functions.
Potential customers want to know as much about
your business as possible and they should be able to quickly access that kind
of information on your website.
40. Don’t be overly concerned by the economy.
Some of the best businesses have launched during
a recession. In fact, half of the Fortune 500 companies listed in 2009 were
founded during such times, according to the Ewing Marion Kauffman Foundation.
41. Make sure clients pay their bills.
Always be certain to receive payment for your
products or services. Instead of being taken advantage of of, establish a time
frame for payment. It also wouldn’t hurt to accept credit cards and have an
online payment system set up.
42. Find the right employees.
Hire the right people for the job. Even though
it's your business, you won't be skilled at every task, which is why you need
qualified people to complete the work.
43. Assign responsibilities.
Eelegate attainable tasks to employees. This is
all about effective management.
44. Know that honesty is the best policy.
If any issues with employees emerge, be sure
that they are addressed. No one enjoys being talked about behind their back.
45. Remember that opposites attract.
Hire people with skills and personalities that
are the opposite to yours. They’ll challenge you and will bring different
skills and talents to the business that you don't.
46. Say goodbye to your social life.
You’re going to spend a lot of time devoted to
the business. Even if you plan a night out, you may leave early because a
lightbulb just went off. Hopefully those closest in your life will understand.
47. Recognize that you'll be the final person to
be paid.
As the CEO, you’re the last to collect a check.
That’s just how it works until there’s adequate revenue.
48. Arrive at a useful definition of success.
Just because your business hasn’t made you a
millionaire (yet) doesn’t mean that your enterprise is a failure. If you’re
able to make some sort of profit doing something that you’re passionate about,
isn’t that a success story?
49. Realize when it's time to move on.
Failure is inevitable. If things aren’t working
out and you’ve done all you can, then put aside your pride and close up shop.
Something like this is not easy to accept. But it’s for the best.
50. Don’t just rely on the advice of others.
Despite my offering up all of these tips for
you, perhaps the most important piece of advice is something learned the hard
way: While many people may offer a startup assiistance, recognize that in the
end you’re the person running the show and the one responsible for the
company's success and failure. If you understand what worked and what didn’t,
you’ll burnish the skills and knowledge to run your business.
0 comments:
Post a Comment