How to Ensure Your Startup Succeeds
So you thought of a brilliant idea and you want to put it to action. But how do you turn that idea into a successful business venture? Creating a startup is no easy task. In fact, only 56 percent of startups make it to their fifth year of business, according to the Bureau of Labor Statistics. With a stat like this, you need to be extra cautious when you begin creating your business plan for your startup. The last thing you want is to spend a large sum of money to open up shop and have it fail within a few years.
To help you get started, we’ve created a guide to help ensure your startup succeeds well past the five-year mark. With these tips in mind, you’ll have a business that generates revenue for years to come.
Conduct Market Research
The first thing to remember when starting a business is to conduct market research. In a research study reported by CB Insights, it was found that 42 percent of startups fail because there was no market need. While your business idea may be great, you must make sure it’s not already out there. Opening a pizza shop in a town that already has five probably won’t do too hot.
Instead, you must conduct market research to see where there’s a demand for a certain product or service. Then, you can fill this gap with your new innovative idea. To conduct market research, you should:
- Determine who the competition is
- Find the gap between supply and demand
- Create a plan to satisfy the demand
- Analyze whether your product or service will be successful using focus groups
The same report by CB Insights found that 29 percent of startups failed because they ran out of money. Before you open a business, you’re going to need adequate funding. This funding will be needed for a variety of reasons, such as:
- License and certification fees
- Money for employee wages
- Inventory costs
- Items such as technology, software, and furniture
These areas that need funding merely scratch the surface. This area of running a business can be overwhelming. However, you can receive funding in a variety of ways, such as crowdsourcing, taking out a business loan, and asking friends and family for donations.
Promote Your Business
The next step for creating a successful business is promoting your brand. The only way to make money and increase foot traffic is by getting your company’s name seen and heard. This can be done in a variety of ways, such as using duplex printing to create pamphlets and flyers to hand out around town, at trade shows, and at events. Or, you can create promotional products online, such as t-shirts and swag, to giveaway to attract customers. As a new business, it’s essential that you stay on top of marketing, as this is essential to success. After all, 14 percent of startups failed due to poor marketing, according to CB Insights.