Here’s a common misconception: that the most crucial element in starting a business is the idea. While a unique concept can certainly set your startup apart from others, we believe that it is definitely not the only essential factor. In fact, it’s not even the most important. This is the reason why numerous companies thrive, even with a very common product or service.
By Lidia Staron
Instead, we recommend you to consider the factors that we are going to feature below to help you attain business success.
1. The Money
There are business ideas and models that can be launched with little to no capital at all. However, it is no secret that having extra funds certainly helps.
Beyond the basic expenses of covering your initial rental fees and acquiring any needed equipment, we also recommend setting aside some funds to devote to research and development. Don’t forget to invest in a solid marketing campaign, as well. Finally, there are hidden fees that you also need to prepare for just in case some arise.
If you find yourself in need of extra funds, then you might want to consider looking into personal loans for business startup options online.
2. The Plan
You also need a detailed business plan alongside your capital. Having the clear path that a plan provides is critical before you start a new business, after all.
At the very least, it must include your main vision or objective, your goals (and the milestones that will define them), your target demographic, possible marketing campaigns, and fulfilment strategy.
3. Financial Management
Speaking of fulfilment, this factor closely involves your cash inflow. What are the feasible payment methods for your clients to pay you? How are you going to record and budget your income once it starts coming in? Have you already opened a separate bank account for your business? Do you have an emergency fund savings account established for unforeseen expenses?
Irresponsible and unorganized financial management is one of the most common pitfalls that lead to business failure, especially for new startups.
4. The Documentation
The next factor that you should look into is the legality of your business. Will it require you to accomplish certain licenses and documentation to start operations? If so, how long will the waiting time be for you to get approved?
It’s best to have these things settled as soon as possible to avoid issues and liabilities later on.
5. The Location
The location of your business will usually dictate the documentation you need to prepare to process your requirements. That’s because each state or country has its own laws and regulations.
These territorial lines get a little bit tricky, though, if you’re planning to establish a digital business that requires offline transactions. For instance, where are your employees located? Where is your warehouse?
Speaking of going digital, is it really the best option for your business? Will it fare better with a brick-and-mortar store instead? Or should you consider the combination of the two?
6. The Industry
Deciding on the location will also depend on the industry. Hence, it is highly recommended to research about it before you even become a part of it.
Some of the questions you should ask yourself are: How is this industry performing? Is it rapidly developing or the exact opposite? If the latter is true, is this perhaps the perfect time to enter it given the lack of competition? Or will it be similar to getting on a sinking ship? More importantly, is there an actual demand for it?
7. Your Reach
However, if there’s no demand, one can argue that there are tried-and-tested techniques that allow business owners to make one, as so many pioneers have done in the past.
This will all boil down to your reach. This will depend on a number of factors. First is the location. Are you thinking of providing a service to your local community? Or do you intend to cater to a global clientele?
Next, what is your marketing strategy? Will it heavily rely on digital marketing or are you planning to use offline methods as well?
Finally, who is your target demographic? Each demographic is unique. What may appeal to students are different from those that will inspire their parents. And those that will motivate Asian students are in contrast with Western ones.
Launching a Startup in 2020
There are definitely other factors to consider when launching a startup, especially in this day and age, but the ones we have mentioned above are what we believe to be the most essential. Hopefully, you will be able to build a strong foundation for your business which will eventually lead to your success.
To end, here’s one last tip: trust your instincts. The landscape of entrepreneurship is changing, so tips that might have applied a decade or even just a couple of years ago, might not suit the challenges you’ll face in launching a startup this year. Hence, don’t second guess your vision and go for it. Good luck!