Creating a new start-up business is a challenge but an exciting one. However, before you can really establish yourself, you need to consider a few important factors that will ensure you’re in the best position for success.
You’ll need to be your own motivator. Starting a new business isn’t just about getting the logistics and legal requirements right but understanding that there will be ups and downs and that you’ll be the one that has to find the light at the end of the tunnel when those bad days come along. Part of this means knowing yourself: how much money you want to risk, how many hours a week you want to sacrifice, and how your work will affect your leisure activities and family life. Getting your motivation right is about setting attainable goals in order to feel a sense of progress and achievement.
Are you going to do your own books or get an accountant? Are you renting out office space or working from home? Do you have a business name, are you going to have a business account, and do you have all the legal compliances needed for the services you’re providing? Depending on your state, you’ll need to consider the law dependant on your sector, business structure and location. All these questions need to be answered before you can “open the door” to customers. Sort them out as early as possible so that you can focus on getting your core service right.
Depending on the nature of your business and whether or not, for example, you deal directly with members of the public or have multiple employees, business insurance is there to protect you. Public liability insurance is crucial if the public will come into contact with your operation, covering costs if someone makes a claim against the business for injury or damage. Professional liability insurance, on the other hand, covers claims against the company by an employee because of injury, illness or damage as a result of their work. Think about the risks you may face and seek relevant cover.
Get yourself out there. Networking is one way to market yourself and the company and helps you to get a better understanding of the market and your competitors. But don’t underestimate the potential of marketing. Use the platforms that are available to you based on budget and relevance. Social media is a great and cost-effective way to develop a following, while a website detailing your services can be the essential difference between gaining a new customer and losing them to a competitor.
Some start-up business owners assume their idea is good enough to succeed because they’ve recognised a niche in the market or believe they have a geographical monopoly. But growth is a keyword in business, and a start-up’s success is as much about developing reputation through an expanding reach as it is about remaining profitable. A business is destined to fail if an owner assumes the market is going to be around forever. It’s about being able to react to trends, having the capacity to adapt to customer demands, and using your core skills to give the market the solutions it wants, not the solutions you think it needs.
Taking into consideration these tips for creating a new start-up business will give you the best chance of success. There are many pitfalls that can impact a new company but, by ensuring you’ve done all the essentials correctly, you’ll be well-placed to flourish.