By NiNi Vo
Starting a new business can be scary, but the initial phases are exciting, exuberant, while filled with uncertainty. For those who start a business entirely from scratch, this releases major satisfaction and purpose to see it thrive despite unforeseen circumstances, to make a difference in society. This state of success results from multiple frustrations, such as attempts to rebuild the foundation you set out with. There’s also a chance for failure, which threatens your financial security, reputation, and personal wellbeing. With that being said, there are a lot of risks involved in starting a startup.
Read some important tips to consider before starting up your own startup business.
1. The Playing Field Is Not Even
If you’re not from a wealthy family, business legacy, or influential organization, it is imperative to face that the reality is, you’re entering an uneven playing field. Even entrepreneurs with a distinguished business record, driven investors, and beneficiaries often share similar features, and they all have a strong advantage over upcoming startup founders.
Don’t let this discourage you. There are tons of advantages besides the ones mentioned above. Instead, be grateful for the opportunities you were given to help get you started in the community. There is a high probability that you are not one of the true business elites, therefore it’s best to partner with other entrepreneurs.
Reaching out to others and expanding your network can boost your chances of growing a successful business.
Finding a personal mentor might be an option to consider to have an expert coach you, introduce you to others, and provide honest advice every step of the way.
2. Planning Before Action
Before making any important decisions, making a practical list of goals and objectives to accomplish should be completely checked off to launch any business venture. Thoroughly write out a business plan, set terms and conditions for your goals, and don’t skip steps when they get tedious. Constant planning and strategic goal setting is a key feature to climbing your way to success, with the additional help of others as your business grows.
You can create a business plan by utilizing the templates that Google and Microsoft provide for free. Google Docs and Google Slides are valuable tools for team collaboration as long as you and your team have access to the internet and installed the latest version. Microsoft has similar programs, with Word and PowerPoint both readily available and accessible.
3. Accelerator Programs Can Help
If your startup is further along and gone through the necessary steps for preparation, you might want to consider participating in a business accelerator program to provide you with other important information about your business. These programs can provide insightful feedback, practice with pitching, and the potential to fundraise money. Both public and private funds are available to companies that compete in accelerator programs. They are generally hosted through the cooperation of universities, financial institutions, and private investors. Popular accelerators are Y Combinator, 500 Startups, and Techstars, who all share an interest in working with early-stage startups.
According to the U.S. Small Business Administration, calculating your startup costs beforehand can help you:
- Determine a breakeven analysis
- Estimate potential profits
- Secure loans
- Attract investors
- Save money with tax deductions
4. You Can't Have All the Expertise
It’s difficult to fulfill all the tasks required to start a business on your own, which is why hiring an accountant to handle financial accounts can reduce the stress put on yourself. If you find that you’re not a skilled conversationalist, consider hiring a receptionist to answer FAQs. Additional team members can provide a balance to your time management.
If you are unsure about what to do, it’s okay to ask questions. Outsourcing is a simple and affordable way to manage multiple tasks and evenly distribute work. Start by performing a cost analysis of how much time can be saved through hiring a specialist, and calculate what you can earn with the time that’s been deducted from your schedule.
5. Refine Your Sales Pitch
If your team is composed of diverse individuals, you don’t need to bear the burden of cold calling and conducting sales presentations on behalf of the business, constantly post on social media, or serve customers upfront. You must pay attention to how your brand is marketed and perceived by others, therefore preparing a detailed marketing plan is a must. Listening to other sales pitches and learning from professionals can increase your opportunity to practice and perfect your own.
Developing a solid elevator pitch that you can deliver in any random encounter can open numerous doors of opportunity when it comes to scouring interest in your product or service.
It is recommended to have a straightforward, concise, understandable pitch that is delivered in under 30 seconds.
6. Startup Legitimately
Figure out the structure you want for your business, buy the necessary insurance, and educate yourself about the important law firms in your industry and location. Failure to retrieve insurance for equipment, taxes, employees, or auditing could risk your business from growing and your financial security.
Ensure that your startup is legally registered with the local, state, and national government before taking measures that might not comply with certain regulations.
Most importantly, keep striving for longevity, the unacknowledged phase that naturally comes after being a startup, which depends on your legal status as a business.
At MassLight, we specialize in partnering with startups to provide you with the necessary tools and resources to get your business off the ground. Through our build for equity program, we offer software development for a percentage of equity. Find out more about what we can do for you by contacting us.