Brought to you by FJP Investment:
It goes without saying that running a small business is tough. There are a whole host of complex factors that have to be considered when starting up your business, and how you plan and deal with these potential hurdles will define the success of your business.
With the rise of the internet, we’ve seen the number of businesses increase at an exponential rate. Anyone can start a business, but for the most part, these businesses fail. Although there are many pitfalls to overcome, success is achievable.
There are many things to consider with a business, and below are four main tips for anyone looking to start their own business:
Having a Long-Term Plan
You’ve thought up a product or service that you think could work in the market. This is fantastic, but you have to consider the long-term when it comes to the introduction of your product or service. Is there the potential for growth regardless of relative success in the short term? Are you a bakery, a financial business, or craft store? Regardless of your sector or niche, you have to think long term.
This doesn’t necessarily mean achieving specific sales revenues. Building a long-term brand that resonates with customers and inspires confidence will help you go a lot further over time.
Where can you see the business in five years? Can you grow your existing business? Will you need to pivot your business to match market demand, and will this be possible?
Engaging with Consumers
Many people fall into the trap of setting up the business, doing everything right on paper, but still failing. Hoping to sit back and receive an income will not work in today’s competitive world. You need to engage directly with customers and the market itself.
Ask customers for feedback. Talk to potential customers and ask the broader community what they would like to see from the business. The feedback might not all be actionable, but you can at least consider what customers thoughts are.
Building an online presence is also essential. Not just building a good quality website, but also engaging on all relevant social channels is an easy and cost-effective way of reaching a larger audience and engaging with them in a modern way.
You must also engage with other businesses. Research your competition and see what they’re doing that you feel is working (and not working!) to save yourself the turbulent trial and error period. You can also assess competitor reviews to see what consumers like or dislike about your competition.
Effectively Manage Inflows
This is pretty obvious on the face of it, but a lack of profits will cause the demise of a business, even more so will a lack of cash. Understanding cash flows and how to stay on top of them is an essential area of the business that you should be staying on top of. Taking note of any debts or prepayments, as well as ongoing payments for services and rent, will allow you to fully understand the business’ financial situation.
Make sure you’ve also set up business banking with online banking. You need to have constant access to money to ensure you have a clear picture of what your financial situation is.
Make People a Priority
Any small business owner will say that their most valuable asset is their staff. Having the right staff to do the job effectively will propel your business in the right way.
It can sometimes be difficult to bring someone on board in the early stages. As the owner, you believe you can do everything yourself and struggle to delegate. However, a specialist in an area has the potential to deliver higher returns than the salary you pay them. Whether this is a marketer or a specialist salesperson, for the business to grow, you need to bring people in, but these people must be the right people.
Make sure the recruitment process is done correctly, but also give staff an environment where they want to work for the business and for you. Treat them with respect and show them that this is more than just a job, and you’ll begin to see major benefits to productivity and business growth.
Following the steps above gives you a general guide on how to be successful as a startup. Don’t go into business thinking this will be easy. There are so many factors you have to consider. Utilize technologies and people to really grow the company in today’s evolving business world.
