More and more people are setting up their own businesses. Being an entrepreneur can be hugely rewarding, but it’s never a walk in the park. Failure rates for start-ups are high, and keeping a business afloat requires time, effort and energy. If you’re in the process of building an empire, or you dream of seeing your name up in lights in the future, here are some essential steps to take.
Research and plan
The first phase for any entrepreneur should be research and planning. It may seem simple to launch a new venture if you’ve watched movies and TV dramas, but in reality, setting up a business is complex and time-consuming. Devote time to researching the market and gathering information. Be clear about what you plan to sell or provide, and pinpoint your target buyer or audience. Find out about your competitors and see what else is already on the market. Once you have an ideal buyer in mind, get to know your target customers. Use surveys, online polls, focus groups, interviews and questionnaires to collect information and analyze relevant market data. This should include product purchases and information about the demand for your products and services, as well as prices and buyer behaviors.
Use the findings of market research to help you draw up a watertight business plan. Provide detailed information about how you’re going to monetize your ideas, market products and fund the business. Use accurate data and figures and be clear about your objectives in the short and long term. Your plan should provide answers to questions a panel of investors, buyers or financial experts would ask. If your plan lacks detail, or it doesn’t explain what you do, how you make money or where your money comes from, this will cause problems down the line.
Get to grips with the finances
Financing a business is one of the most significant challenges for entrepreneurs. Figures from the US Bureau of Labor Statistics show that up to 90% of new businesses fold within the first year. A lack of funding and cash flow issues are among the most common causes. If you have an accounting background, this is hugely beneficial when running a business. Keep up to date with training and gain CPE credits to make the most of your skills. Use your training and career experience to explore and identify funding streams, manage the books effectively and balance your accounts. Remove emotion from the equation when managing the accounts for your business. Treat your company as you would any other client.
If you don’t have expertise in accounting, you have two choices. You can either try to learn on the job and make use of online tools, programs and software to manage your accounts and calculate taxes, or seek professional advice. This may involve hiring an accountant, setting up an accounts department or outsourcing. Outsourcing often offers benefits for small businesses, as it can be more cost-effective than adding to your team on a permanent basis. When you outsource, you work with external firms or self-employed individuals. With this option, you can access the skills you need without breaking the bank.
Shout about your brand from the rooftops
Once you’ve set your business up and you have a clear plan, the next step is to shout about it from the rooftops. Start reaching out to and connecting with prospective customers using targeted marketing and sales techniques. Use market research to select marketing methods and channels. Focus on the platforms and techniques that will both reach and resonate with your target market. Take advantage of the popularity of the Internet and build an online presence. Create a smart, slick, interactive website and share details of your business on directories and local pages and sites.
Social media marketing can be incredibly effective for businesses across most sectors. Social platforms enable companies to connect with huge audiences and promote products and services on a budget. Using social media can also help new businesses grow a following fast and raise brand awareness. Choose platforms that are popular among your target buyers, for example, Instagram for buyers aged between 16 and 40. Giveaways are a brilliant idea to get followers quickly and introduce your brand to new customers.
Encourage customers to leave reviews
Building a successful business empire relies on understanding what customers want and adapting to new trends. Online reviews have become increasingly influential. More than 90% of consumers now use reviews to help them make buying decisions. Positive reviews can persuade buyers to choose specific products and brands while negative feedback can push them in the opposite direction. As soon as you start getting orders, encourage your customers to leave and share reviews. A high rating is important for establishing a good reputation and creating a strong client base.
Word of mouth remains one of the most effective marketing ploys. People trust friends and family members and online reviews. To grow your business and attract new clients, incentivize referrals and recommendations by offering discounts or access to special offers or perks.
Recruiting, delegating and outsourcing
Many entrepreneurs have an impressive skill set but it’s rare to possess all of the skills required to cover every aspect of business management. It’s important to recognize when you need help and to ascertain what skills you need to drive your venture forward. Your business plan should include plans to recruit and build a team. Adopting an effective recruitment process will help you find the best people for the job. Look for personality and character traits, as well as skills, qualifications and experience. Learn to delegate. This will help you to free up time to concentrate on the areas where you excel and maintain a work-life balance.
Once you’ve built a core team, consider outsourcing if you need additional skills or access to services. Common activities companies outsource include cleaning and waste removal, accounting, IT management, digital marketing and logistics.
Rewarding loyalty
When you run a business, it’s tempting to chase after new customers, especially in the early stages. It can be beneficial to boost customer numbers, but it’s vital that this doesn’t put you at risk of losing repeat customers. Loyal clients are the holy grail. They spend almost 70% more than new customers on average, and they play a crucial role in spreading the word. Reward loyalty and treat repeat customers like VIPs at all times.
