Making a success out of a new business is nothing if not challenging, and the Small Business Association (SBA) has the numbers to back it up. Did you know that around 30 percent of all startups go kaput for one reason or another within the first two years? Those numbers rise to a whopping 50 percent once the five-year mark is reached and increase to a sobering 66 percent after a decade.
It’s not blind luck that differentiates the successes from the failures either. It’s basic planning and plenty of it. Ensure your business venture is the success it deserves to be by making sure you keep the following principles in mind.
Assess Your Target Market
Even the most successful startups would be nothing without their clientele, so decide right up front who exactly you’re marketing to. Are you looking to corner a small niche or local market? Would you rather build a scalable business instead? How will you go about successfully connecting with that demographic? Carefully consider how much what you have in mind will cost you to create. Then come up with a solid plan for raising, borrowing, or otherwise acquiring the funds.
Take Stock of the Competition
Before you can make a success of your own budding business, you’ll need to take a long, hard look at your competitors. Who else is already out there in your industry offering similar products or services, and how will your business set itself apart? Successful startups bring something new to the table. What they’re selling may be more user-friendly or accessible. It may be less expensive or just a bit more innovative. Decide what this selling point will be for your idea before you begin, not after.
Know Your Industry History
If you’re serious about giving your competitors a run for their money, it’s important to understand what has (and hasn’t) worked for those who came before you. Research the histories of the most successful companies in your industry, and take note of what they did right. You’ll want to study other businesses that attempted to do exactly what you’re trying to do as well. Where did they go wrong (or right)? What can you learn from their experiences?
Once you’ve planned out a solid strategy for success, it’s time to test the waters and get started. The business world’s biggest game-changers were once startups as well, and with enough care and precision, you and your team can join their ranks.
