Getting adequate funding for you start up may seem like the most hectic part for your idea to be successful.
According to Entrepreneur.com nearly 80% of all start ups are self funded and that venture capital companies only fund 1% of all startups. The rest of most funding comes from friends and family, and other various loans.
However, after receiving the funds, there are strategies that you should apply to make sure your business idea will gather a substantial ground in the market.
The feasibility of your business idea should be prime, therefore, for starters, make a clear-cut plan that will guide you to judge if your plan is practical.
#1 State Your Goals Clearly
You need to list down clear goals with a brief explanation of action items.
For a start-up business, short-term goals are very essential. Mostly a new business idea needs to go through a phase of both research and development so that the results can be precisely estimated over longer time frames.
You should create a set of both short term and long term goals that are specific on what you want to achieve. When setting your goals, consider the following factors
- The size of your business and your growth projection
- What do you want to achieve from your business
- Do you want your family included in the business?
- The agendas your business wants to solve
#2 Clearly Understand the Needs of Your Customers
Make a choice on the market you want to target. This is because it would be unwise to expect to meet the needs of everyone. Before choosing the target market, you should consider the following customer oriented ideas.
- Needs- consider the needs that your customers have and are not yet met.
- Wants- this is the desire or wishes that your clients may have. Problems- since people buy things to solve specific problems, consider what problems your business offers to settle.
- Perceptions- consider both the negative and positive attitudes that potential customers may have about your business and yourself. It will provide relevant information when it comes to marketing strategies as well as business promotion
#3 Money Matters
How do you expect to make money?
What is the business’s profit potential? You should invest in the preparation of your business’s financial projections. Cash flow projections give you an insight into the amount of working capital your business will need during the low seasons.
When it comes to money matters, the following are some crucial factors to consider.
- Running monthly overhead
- Cumulative cash
- Streamlined sales forecast
#4 Learn from your Competition
Looking at how your competitors perform in the market is crucial. Ask yourself the following questions as a guide to learning from the competition.
- Who are your competitors?
- How do your competitors approach the market?
- What weaknesses do your competitors have?
- In times of competitions, how do you improve your business?
- What are the psycho-graphics, lifestyles, and demographics of anticipated ideal customers?
#5 Recognize Your Marketing Strategy
Marketing is one of the most overlooked part of the business. But having a business is more about attracting your clients than anything else. However, good marketers can be very expensive. A good way to work them into your budget is through payroll outsourcing.
The main goal of the marketers will be to:
- Identify your market targets- have a definition of your ideal customer or target market.
- Choose the best target market– this will determine at length the client profile with the best chances of success. What you need to do is place your business on par with the majority of anticipated customers.
- Identify methods, strategies, and tools- if you cannot access a market, then you cannot serve it. Therefore, choose a blend of strategies and tools that will increase the chances of your business when combined.
In the end getting your start up going can be hectic and overwhelming. However if you follow the tips in this article and in this article on start-up basics you’ll have a firm foundation to launch your business the right way.
So what are you doing to get your start-up going? Share your thoughts and comments below.