For many starting a new business not only a means of making a living but also a dream, do all succeed at this? It can be both scary and exciting. Very few of them are able to turn their dream into reality and able to see it grow. I must admit that when I first started my business it was a disaster, however over a period of time I was able to master the business growth strategy and I built a multi-million dollar business across India. Last year I started a new business in a new field. Here are 4 steps to consider before starting a new business.
Let’s think about the few of the overlooked challenges before running your own business:
Do you possess the right skills to do the primary work of your new business:
The first thing you need to ask yourself is: Do I possess the right skills to achieve the primary objective of my business? One of the most often overlooked and necessary skill is the ability to sell. For most startups to survive, the owner will have to sell. Top sales person spend 40% of their time in building rapport with prospects and clients.
2) Plan your marketing strategy:
The heart of your business success lies in marketing. The overall marketing umbrella covers advertising, public relations, promotion, and sales. Marketing is a process by which a product or service is introduced and promoted to potential customers. Your business may offer best products or services but it needs to reach the right prospects. Marketing will help you in this.
Every successful business owner I know spends at least 50% of their time in marketing. Every marketing plan must answer these 5 questions to be effective.
Also, a common mistake entrepreneurs make is not knowing the difference between Marketing and sales. Let’s look at some of the differences between these two.
3) Know the rules:
This is one area you just cannot ignore. Break the rules and you can find your business shattered. It is important to know the laws and rules that govern the products and services that you would be offering.
Depending on the nature of your business and your location you will find yourself spending more with bureaucrats than customers.
4) Possess sufficient funds:
Insufficient funds could be one of the major reasons for the failure of your business. Before starting a business, you need to assess the funds available and how much do you require. The scarcity of funds remain one the major contributors to business failure. Most small businesses piece together their funding from several different sources phased out over time.
Whether you are a start-up seeking initial seed capital or an operating small business looking for money to grow, you have to be flexible, remain positive, and stay vigilant in your efforts.
5 ways to start funding your business:
- Self-funding: Most entrepreneurs have now realized that they will have to self-fund (boot-strapping) their project for a significant amount of time until more formal funding opportunities come their way.
- Friends and friend: Funding from friends and family is one of the very popular and effective ways to round up some initial capital for a business since those who are more close to you are more likely to believe in your vision and the ability to make the vision successful.
- Small business loans: Banks are more stringent than ever about giving out loans and if you don’t have any credit, how can you possibly consider this route?
- Angel investors: A large amount of trust can be built by giving your early stage investor his or her money back plus interest. It is your fiduciary responsibility to act in the best interests of the business and its shareholders. But just because someone lent you money to launch your business, doesn’t make them the right financial partner for the long run.
- Private equity funding: This is a powerful way to accelerate your growth journey. You will need to have a strong team, business model and good governance to attract this type of funding. So how can we attract finance especially by means of private equity? Have a look at this blog on how to get financed through private equity.
Starting a new business is an exciting journey and prior planning can help you avoid disaster. Make sure you have thought through the four critical issues above to make your dream a reality.
Share your experiences with starting a business. Like, share and comment below.