Every day, someone is trying to decide to quit his 9-5 and start his own business as the talk about entrepreneurship becomes more popular. One of the many questions in the mind of anyone taking on this journey is whether I will be successful and how.
If that is you, don’t worry; you are on the right post with all the data and tips to guide you into starting a successful business.
Here you go:
- Facts about starting a business
- Statistics of failure and successes of new businesses
- Tips for starting a successful business
- Last words
Facts About Starting A Business
As you are about starting a business, these are some facts you should note if you must start successfully.
Starting a business requires sacrifice from you
You probably have a beautiful idea in your head right now, and you’re thinking of the returns you will make from your business. With this comes some level of sacrifice from you. You have to agree that you may not even see any valuable return, notwithstanding all the money you keep pumping in.
Your family may have to put up with your late nights and no holidays. This sacrifice may also come in the form of sleepless and late nights working on your business models and pitches. At this point, stress is inevitable.
You are bound to make mistakes
You may think you have it all figured out, but that’s not the case, as you will discover for yourself. And this is fine. You may have a not correct opinion of the market or your target audience and probably built your business strategy and model on this false opinion.
Even great entrepreneurs have made costly mistakes, but we hear about them because they progressed to success despite their mistakes. What you do with your mistakes defines your success or failure.
Every business has a competition
Don’t fall into the illusion that you are the only option in the market or bringing the best of services and products, so there is no competition out there. In an actual sense, the knowledge that you have competition should make you not rest on your oars and even brings out the best in you.
Instead of being unrealistic about your competition, do a real study and analysis of your competition, see where you sit in relation to them, learn from them and apply the result of your analysis to your business.
Success may not come fast
While starting a business, you must realize that businesses require time to build. Don’t assume you will blow up immediately and become rich.
On the contrary, your business will require more funds and funding.
You will need to grow your knowledge and skills
It will be fallacious to think that the knowledge and skills you have now will sustain your business as you progress. No matter how much you know, it is still not enough. Being an expert in your field does not suffice for the basic skills needed to run a business. What do you know about sales, marketing, accounting, law, and taxation? These are the likely areas to gain more knowledge.
Important Data About Starting A Successful Business In 2022
Starting a successful business requires a background check of what is obtainable in the market or industry. That can be made possible by looking at available data.
Data from the Bureau of Labor Statistics show that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years.
Only 25% of new businesses make it to 15 years. Now, this data should not discourage you if you are just starting; rather, it should keep you on your toes. It is intended to give you an idea of how and when businesses will likely fail.
Having this data in mind could serve as a forecast with the tips we will be sharing. On the other hand, you should be armed to start your own business successfully.
Tips For Starting A Successful Business
With the above statistics, one may wonder what causes these failures. A lot of factors contribute to this business failure rate. A proper study of these factors is what gave birth to these tips to help you in starting a successful business:
1. Determine the type of business to start
The first tip to starting a successful business is to know the type of business to run clear. Determine that before any other thing.
Determining the type of business to run will serve as a clear direction or focus on every other advice to take. Ask yourself if you have any niche in mind. It could be something you are passionate about, knowledgeable about, or have gathered experience on.
Will you operate entirely online, or will you have an office space? These questions should give you direction on the kind of business to start.
2. Come up with a great name for your business
One key way to start up your business successfully is to choose or come up with a great business name. That might appear easy on the surface, but it is not entirely the case. A great business name is such that reflects your brand’s idea. It would help if you watched out for the following while selecting a name for your business:
- Avoid names that are difficult to spell.
- Avoid names that may be limiting as your business grows.
- Check the web to be sure no one is already using the name.
- Get a dot com domain name for your business.
3. Be passionate about it
Being an entrepreneur is different from being an employee. Building a business can be very tasking. The inner drive you have will sustain you through the storm.
Your passion for your business keeps you going even when you are yet to see the needed returns. Your passion for the business will translate to your set goals and working towards them.
You can transfer the energy you have about your business to your team. You don’t necessarily have to pursue an idea you love, but you should love and be enthusiastic about your business.
4. Start while you are still employed
You might be buzzing with a great idea and have enough energy to get started, but don’t quit your 9-5 job just yet. Starting successfully requires you have an external source of income aside from the business you are starting.
You may not start making money as soon as you think you need something to rely on.
5. Don’t do it all alone
Entrepreneurship can be a lonely journey, but you must open your arms to external support as you climb the ladder.
A lot goes into starting a business. You would need all the support you can get. A supportive friend, family, or even a mentor. Someone who will be willing to listen to you share any new idea or a shoulder to lean on when there is some crisis in your new business.
6. Do a market research
One way to start a business successfully is to set out loaded with all the knowledge you can get about the business you are venturing into. Don’t launch as a novice. And this requires a lot of in-depth research. Research your product, industry, and market.
7. Have a business plan
How do you start successfully without a plan? That will be running with no specific direction or focus. Hence, you cannot measure success. Having a business plan first ensures you don’t spend your resources on the wrong venture.
8. Have a funding plan
Have a plan to fund your business. Lack of funds is one of the reasons a lot of new businesses fail. To avoid this, you should have a financial backup plan for your new business until you can get investors, especially your working capital.
9. Pick a strategic business location
You need to be strategic about this. Your business location determines different regulations your business will be subject to, which eventually affects the success of your business.
10. Make the deal clear with co-founders (If any)
You will need to spell out the roles and responsibilities of every co-founder. Have a shareholder agreement that spells out the vesting provisions of each co-founder and what should happen if any of the co-founders decides to leave. This way, your business is secured from the start.
11. Establish your business as a legal entity
Don’t be in a hurry to launch your business without getting this right. A business’s legal structure regulates certain aspects of your business. It tells about your tax burden and level of liabilities during lawsuits.
That should be pre-determined before registering your business. You determine if your business will be registered as a partnership or corporation at this juncture.
12. Be sure there is a market for your product
Starting a successful business entails there is a market for your product. You can realize that by conducting proper market research for the product you are bringing to the market.
That way, you also gather information about your potential customers and target audience. That will serve as a guide on the exact kind of product you eventually bring to the market.
13. Research and analyze your competition
You can discover your strength, weaknesses, and competitive advantage by researching your competition. Doing this from the start helps you develop a better option than what is available in the market.
14. Surround yourself with the right people
Nothing breeds success like being surrounded by like minds. Do you desire success as you are starting? Then hire the right people in your team. That will mean hiring the right skillset for your business and people whose values align with yours.
15. Have a wait list for your product/service
One beautiful way to start a successful business is having an audience lined up for your product launch. Don’t wait till you launch before you start marketing. Spend enough energy and time getting people aware of your product or service so that they anticipate it before you launch.
16. Embrace digital marketing
Digital is the new normal. People spend a greater percentage of their day online. In your marketing strategy, you don’t want to use outdated methods.
Research the best social platforms for your business, get your business online, and design a website for your business. Be armed to utilize the online space to your advantage.
17. Adapt to new technologies
Change is always constant. There is continuously an update in technology, don’t be too rigid to let go of old and familiar methods. Be open to new upgrades in tech to move your business forward and serve your customers better.
18. Keep detailed records
You can’t measure growth in a vacuum. In starting a successful business, you need to pay attention to your business records. Your financial records, tax records, administrative, etc., all contribute to your business success. Are you keeping track of them? How detailed are they?
19. Recognize your strength and weaknesses
Since you are just starting out and may not have the financial strength to hire all the talents you need for your business, be quick to recognize areas you can handle and areas you need help on. This recognition will help you determine what role to outsource or where to seek help on.
20. Be patient
Success is not achieved in a day. Bear in mind that you need patience to achieve success in your business. Patience keeps you going against all odds.
Last Words On Starting A Successful Business
This list is not exhaustive but a helpful guide to starting a successful business. A committed effort to follow these tips will gear you towards success amidst all you may encounter on the field. Which tip stands out for you? Let us know in the comment session below.