It’s a huge step in anyone’s life to launch a business. Not only do you need to have a feasible idea and finance behind it, you will also need to deal with competition, the economy and the constantly evolving marketplace.
There will be times you will need to take risks, but without risks how can you become different from the rest? Below is our comprehensive guide for everything we think you will need to know when launching a successful start-up.
The first steps
When starting up a business it’s important to be sure you have a great idea. The other parts of the business can only be as good as your product/service so it is important to make sure it is useful and meaningfully different from competitors. If you have thought of a unique idea, make sure to research thoroughly to make sure it hasn’t already been done.
Once you have come up with a great idea, you will need to come up with a name. It’s important to think of a business name that is easy to spell, won’t be limiting if your business expands, has an available domain name and isn’t trademarked by anyone else.
Start-ups rarely get past the early stages without having a clear vision and goals to keep them on track. Ask yourself who is your customer, what is your industry, what are you selling, what is your plan to grow and what do you do better than the rest? This will help clarify your vision so you can keep moving, growing and expanding the business.
Keep your business relevant by staying on top of what others want and need, what people are saying about your product and what the current industry trends are. Staying up to date means you can diversify and adapt as the market changes so you never get left behind.
Customer service
One of the most important (and sometimes overlooked) components of a new business is customer service. You should never compromise on customer service as it doesn’t matter how good your product or service is, customers wont want to come back or tell their friends if there was poor service or they didn’t feel valued. In the early stages of a business, positive buzz and word of mouth is one of the most valuable assets so its worth putting in the work.
Marketing
Marketing is vital for telling potential customers what you do, who you are and what you’re offering them. It is more than just advertising, it’s the way you present yourself and your product to your customers. Having a strong marketing strategy is important for showing prospective customers who you are and what your business does.
When starting a business you would be silly not to take advantage of the affordable marketing platforms available such as Facebook, Instagram and word-of-mouth! In addition to these, making a website, sending out press releases and continuous networking are great ways for a new business to market.
For a start-up to succeed you need to be constantly growing your market. You can do this by understanding your customers – their needs, wants, problems, perceptions and how you can address these. Consider your main competitive advantage in relation to these and use it to market your business.
Business plans
Creating a business plan will mean you will be much better prepared for the future and know whether your business idea is actually feasible. Going through this process will force you to think about how your business is unique, why your product will appeal to customers and why they should choose you over competitors.
A business plan includes information like your vision, goals, company structure, competitor analysis, environmental analysis, strategies for growth, marketing and financial predictions. They also include a SWOT analysis which identifies the strengths, weaknesses and opportunities for your business so you can improve decision making and strategies going forward.
It is also important to form the correct kind of business structure to protect your personal assets. The right choice will be different for everyone and business structures include sole trader, company, partnership and trust. It’s important to talk to a trusted business advisor about what structure will be right for you.
Competitors
Competitors are the biggest threat to a start-up and you need to thoroughly research your competition and consider whether you are going to work with the established players in your industry or against them. Working with them could give you greater access to resources that can help your start up enter the market faster, but it does mean you will have less control.
Competing against them means you will have more freedom however it does mean you will be taking on competitors with more financial resources. If you have come up with a unique concept or idea it’s also important to consider protecting your intellectual property. Patents, trademarks, copyrights, confidentiality agreements and privacy policies are all ways to protect yourself, your company, your product and idea.
Overall competitors are useful for a new business as you can learn from them and study how they do business, what works for them and what doesn’t. You can analyse their strengths and weaknesses and make an effort to improve on their approach.
Finances & Legalities
When it comes to financing a new business, there are a few routes to take. You can get financing from loans, from shareholders/investors or from your savings. Loans mean you will have to pay the money back plus interest and having shareholders means you can keep the money but will give up some control of your business. It’s important to consider where you will get this initial financing and also how you will make money long term.
Investing in financial projections is definitely worth it so you can understand how you are going to make money. Your accountant develop a cash flow forecast and profit & loss statement to give you a good idea of your financial situation.
Once you’ve determined if your business’s finances will be viable, it’s important to have the right insurances, licenses and registrations. Some common ones include:
- Public liability insurance
- Workers compensation
- Professional indemnity insurance
- ABN registered
- Tax registered
It’s also important to take advantage of technology when it comes to the finances. Set up a good bookkeeping and accounting system to keep track of income, expenses, profits and losses. There’s lots of programs that can help you with these from online accounting like Xero and MYOB to staff management software. These programs will help keep things easily accessible and in order.
Are you ready?
If this all seems like a lot, that’s because it is! It’s important to make smart decisions when starting a business, but at the same time don’t be afraid of risk or failure. Without failures and setbacks how can you learn, grow and improve?
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