Get your FREE 30-day trial.
Start by selecting a product:
It takes more than just a good idea to launch a successful startup. Here are 9 things every budding entrepreneur should do.
Although there is more behind successful entrepreneurs than one big idea, a great one is the best launchpad for a successful startup.
For an idea to be truly great, the product or service needs to help people in a way they are not already being helped. It must scratch an itch. Otherwise, why would customers buy from you?
So, start with the challenge – do some research into what challenges people are facing and find one that is common, unsolved and which you could provide a profitable solution for. You need to get into the mindset of someone who is done with accepting the status quo, of changing things for the better.
If you already have a product or service idea, do some research to make sure it solves an existing problem.
If you’re starting with a general idea, figure out how you can narrow that down to a specific and differentiated product or service.
If your idea is to launch a business that provides design services to businesses and website owners, for instance, this already exists. So find out instead about what might hold businesses or website owners from using the existing providers in the market, and address that.
Ask:
Are they satisfied with what’s out there?
Is there something missing that they need someone to offer?
What would they be willing to pay for such a product or service?
Your research might find that it’s confusing to engage the existing businesses – perhaps potential customers don’t speak the language of design or know exactly what they need. In this case, your solution would provide the design, but your point of difference is in how you provide that service – perhaps easily understood and clearly explained packages, arranged by business size and objectives.
If you find that it’s the cost of the build that’s holding back the more design-savvy potential customers, you could create templates that people can purchase and build out themselves.
If your idea is something you’re passionate about, it’s likely you’re already quite familiar with the topic. However, you may need to hone other skills before launching a business.
Consider taking a class or becoming an apprentice for an expert in your industry. If you feel confident you have the skills necessary for creating your products or services, learn the support skills required to run a business. These skills, like bookkeeping, HR and clerical work, are just as important for running a successful start-up.
You know who you’re likely to sell your products or services to – the same people you researched when you were looking at challenges. Now you can build this out into personas – profiles of your ideal customers, covering all aspects of their lives.
These will help you shape your business into something that’s likely to appeal to these customers and, therefore, one that is likely to be profitable. This exercise is also never over. Your target market is always changing, so you should always be talking to them, researching them and updating these personas, so that you don’t start out providing a solution they need, then keep providing just that one solution despite their challenges changing.
Not every business needs a heap of cash to get off the ground, but you will likely need at least some funding for basic business expenses such as permits, employees and legal fees, and to keep yourself alive in the period before you are making a profit.
Since you’ll need to invest in your business before you begin selling products or services, you’ll need to find cash. You can fund the early stages of your business yourself, seek outside investors, ask friends or use crowdfunding. Once the business is up and running, you can fund the growth of your business through the revenue you bring in over time.
It’s now time to come up with a business plan.
How are you going to make money?
How many customers do you need in order to turn a profit?
How are you going to win those customers?
Your plan should include topics such as marketing strategies, expenses and sales data. It’s important to have a good idea of what is necessary to reach your business goals before you even make your first sale. This type of plan may also be necessary in order for you to seek outside investors or supporters for your business.
If you need funding to get your startup off the ground, you’ll need to pitch to investors. Try to set up meetings with venture capital firms or angel investors. There are also startup accelerators, events and programs where you can build your ideas and present them to potential supporters or investors.
You’ll need to be able to show potential investors exactly how your business is going to work and why it would be beneficial for them to invest. If they don’t see the potential for your idea to succeed or don’t see a benefit for themselves, they’re not likely to support it.
How are you going to market your products and services to potential customers? There are many different routes you can take, from blogging and social media to online advertising, local events and more.
Depending on the type of business you’re starting, some methods are likely to be more effective than others. If your business is aimed at customers who need internet-based services, it’s unlikely to be worth advertising in the local newspaper. Online advertising and social media promotions will probably be more beneficial.
Employ a few marketing methods and measure their results to see what works best over time. Create a budget, research, write a plan based on your business goals and objectives, then focus on the methods that bring you the most paying customers.
Ideally, you’ll have built some buzz by this point. If you’ve secured funding from investors, you should be able to continue getting the word out about your startup while continuously working to improve your business. You’ll also need to focus on customer experience to make sure you retain existing customers and build a strong reputation.
Starting a business is no easy feat. Provide good service and create a quality offering that people recommend to others. Follow these steps and you should be well on your way to building a successful startup that will survive the test of time.
Download this free e-book that reveals 10 marketing secrets that you can benefit from to help prepare for big changes happening now and in the future.
