#mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; }
/* Add your own Mailchimp form style overrides in your site stylesheet or in this style block.
We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. */
There are currently more than 30 million small businesses in the United States.
Are you considering joining this group and starting your own? Are you unsure of where to begin or what you can do to ensure your company succeeds?
Creating successful startups definitely isn’t easy. It can be done, though, if you know what to do and what mistakes to avoid. Follow these steps for getting your new company off the ground.
Common Startup Challenges
Every startup is unique, but there are still lots of similarities when it comes to the challenges new business owners face. The following are some of the most common struggles entrepreneurs report experiencing when launching a new company:
Lots of Competition
This is one of the most common issues new businesses have to deal with. We live in a highly competitive world, and it can be difficult to separate your company from others in the same industry.
If you don’t have a truly unique idea or a unique way to promote your business and help it stand out, it’ll be harder for your startup to succeed.
Unrealistic Expectations
Some entrepreneurs, especially young people who are starting their first company, go in with unrealistic expectations.
They might expect to turn a huge profit or go viral right away. That’s rarely the case, though, and when people don’t meet these expectations, they feel disappointed and may give up on their dreams altogether.
Hiring Difficulties
Many startups begin with one person who has a great idea. In order to grow and succeed long-term, though, that one person needs to bring on other people to help them create their company and promote it to the right people.
Hiring the best people can be tricky, and many startups struggle because the founder doesn’t know how to choose the best candidates for the job.
Working With Partners
Plenty of startups have just one person as the founder, but there are also lots of companies that begin with two people who have worked together in the past and think they have a great plan for a new business. Partnerships are often difficult, though, especially when each partner has a very different idea of the right way to run a company and help it to grow.
Managing Finances
Poor money management can cause even the best and most unique companies to fail. If you don’t have a good handle on your finances and are overspending, it’s going to be difficult, if not impossible, to keep the startup afloat.
Security Issues
These days, online security and data protection are essential for business owners to consider. A data breach could spell disaster for your company and lead to tons of bad press, as well as a loss of customers and funding. Without a strong security plan in place, startups run the risk of being shut down before they have a chance to prove themselves.
How to Create Successful Startups
Now that you know everything that can go wrong, let’s go over how to make sure these issues don’t happen for you. Here are seven essential steps to take when creating startup businesses:
1. Start With a Business Plan
Before you do anything else, you need to have a business plan for your company.
It’s not enough to just have a great idea. You need to have a clear, written plan for how you’re going to take that idea and transform it into a profitable business.
You don’t have to marry yourself to your business plan, but you need to have some kind of guideline to work with.
2. Get Funding
If you have a well-written business plan, it’ll be much easier for you to complete this next step: getting funding. Banks and credit unions are much more inclined to work with entrepreneurs who have a plan for their business. The same goes for independent investors.
3. Build Your Team
Even if you’re running a one-person show right now, it’s best if you can bring on some professionals to help you with the areas of the business that aren’t your strong suit.
For example, you may want to work with a lawyer to ensure your business is compliant and isn’t violating any of the laws or regulations in your state. Having an accountant or bookkeeper can be helpful, too, and prevent you from running into the challenge of poor money management.
4. Identify Your Ideal Customer
Remember, “everyone” is not a target demographic. Make sure you get really clear on who your ideal customer is. This will help you to market your business to the right people and increase your chances of succeeding.
5. Get Ready to Backup Your Ideas
You’ll have a much easier time securing funding and getting your business off the ground if you have data to back up the claims you’re making about your product or service. Having legitimate research on why something matters and how your business can solve a particular problem will make it much more interesting to investors as well as to potential customers.
6. Perfect Your Pitch
Speaking of investors and customers, you’re likely going to spend a lot of time pitching your company to different people as you get ready to launch it. Make sure you’ve perfected your pitch and can explain it in a way that gets people excited and interested in what you have to offer.
7. Prepare Your Marketing Strategy
Funding a business plan isn’t enough to ensure you have a successful startup on your hands. You also need to know how to promote it.
Take the information you’ve gathered about your target customer and create a marketing strategy that appeals to them. Do you need to use social media or traditional print ads? YouTube or podcast advertisements?
Get Your Startup Off the Ground Today
As you can see, there are a lot of steps you’ll need to take if you want to have a thriving startup business.
If you keep these guidelines in mind, you’ll be amazed at how much easier it is to create successful startups. There’s no guarantee that everything will go smoothly, of course, but the process will be much simpler than if you were going in blind.
Do you need more help establishing or running your startup? If so, we have plenty of additional resources for you to check out. Head to the Business section of our site today to learn more.