Starting a business is a big decision. It’s also one that takes a lot of planning before the fact. Too many entrepreneurs are so excited to get started, they skip the critical strategizing process.
If you’re thinking of starting a business, I will discourage you from adopting an action-first mentality. Instead, take the time to follow these tips to ensure greater success.
- Define your business. Make sure your company or product solves a customer’s unsolved problem.
- Understand your potential customer. Defining your target market is a critical step in your business strategy. To be able to sell something to someone, you need to know everything about them. So, ask yourself this:
- Do your target customers identify as a specific gender?
- How old are they? Are they millennials, baby boomers, etc.?
- Are they in committed relationships or unattached?
- What’s their income? Do they have a lot of discretionary funds?
- Research the competition. Competitive research is a crucial component of your start-up strategy. By identifying and studying your competitors and analyzing their goods and services, you can determine how your offerings compare and improve on them. Researching the competition also helps you identify industry trends you may have missed.
- Write a business plan. Writing a business plan helps you detail your vision for the company and allows you to see it from different angles. What’s more, if you need to obtain outside financing, you’ll need a formal business plan to present to the lender or investor.
- Create a cash flow projection. Cash flow projection models are most entrepreneurs’ least favorite part of creating a company. But understanding how you’re going to make money is key to the success of your business.
Above all else, the best way to set yourself up for success is to seek out people and businesses experienced in helping small businesses succeed. Lucky for you, our team is ready to be of assistance. Whether you are starting a new business, or just propelling your current one forward, give us a call to help with the finances so you can focus on the launch.