According to statistics, about 30 percent of small businesses fail during the first year while about 50 percent of small businesses fail within their first five years. Although so many new businesses never live to achieve the success the owners initially had in mind, that shouldn’t discourage you from turning your own business idea into reality. In fact, that’s the first step towards achieving financial independence and being your own boss. But how exactly do you start a business that will succeed? Listed below are five tips you must know.
Choose something your passionate about
There’s hardly a business owner out there who loves every aspect of their work and you don’t have to as well. However, it’s important to opt for an industry you’re fired up about. After all, you’ll be devoting so much time and energy to it, and putting so much effort into something you’re not passionate about just doesn’t make sense. If you want to check whether you’re on the right track, just ask yourself do you feel the excitement when you think of your company and whether it’s worth sacrificing so much time and effort. If the answer is no, coming up with a new business idea might be a smart thing to do.
Conduct market research
You can come up with a business idea you really love but if there’s no place for another business on the market, chances are you won’t be able to succeed. That’s why, when you think of something you’d like to do, it’s time to conduct market research and check whether that specific business idea is worth investing in. This is where you get to check whether the market really wants the product or service you plan to offer and whether you’ll be able to reach your target audience. When conducting market research, don’t forget to take some time to take a look at what your future competition is doing.
Don’t be afraid to invest
If you’ve decided to start your own business, it’s important to believe in yourself and not be afraid to invest in your business idea. There will be times when your business simply doesn’t do well or you have to wait for a client to make a payment. In situations like this, it’s up to you, as the business owner, to put your own money into your business and keep your operations running. In case you invest in your business but need money quickly, you can always turn to a company that offers fast loans and get one in a timely fashion.
Don’t mix personal and business money
Once you get started, you’ll have to take care of your company’s money just like you do with your own money. Still, this doesn’t mean you should keep it all together. Do this and you might end up spending your company’s money on something you want to buy for yourself. Not only that but dealing with your business’s taxes will become even more difficult if there’s no separate bank account for your business. Also, if you have clients you write checks to, using your name as opposed to the name of your business shows a lack of professionalism and makes them less likely to take your company seriously.
Embrace social media
New businesses simply can’t compete with large corporations when it comes to marketing. While you won’t be able to invest millions in creating TV commercials and working with influencers, there are still plenty of things you can to get your business noticed. Social media has never been more popular and every business, including yours, needs to be on it. It’s just that promoting your business on platforms such as Twitter, Facebook, and Instagram is so easy and cheap that not doing doesn’t make any sense. All you need to do is create pages for your business, come up with content ideas, and post on a regular basis.
Some see starting a business as gambling but as long as you know what you’re doing and put enough effort into it, the chances of your venture succeeding will be a lot higher. Follow these five tips and you can be assured your new business has absolutely everything to prosper.