The last few years have seen a massive boom in online businesses. That has been due to the internet and the general proliferation of personal technology. As a result, more people want to start their own business online than ever before.
The problem is that many of those new businesses will fail. It does not matter how innovative a startup may be. The reasons for failure can vary, but it’s essential to realize that if you don’t do certain things right, your new business could quickly lose money or go bankrupt altogether. You should know up front that any business is a risk. So, to help you, here are ten tips to build a successful startup business.
If you do find yourself in trouble, though, you can always resort to debt negotiation with the help of a debt settlement attorney to avoid bankruptcy. A true entrepreneur will not balk at the challenge. Learn how to succeed with your online startup. It’s good to learn from others’ mistakes to not make them yourself.
1. Don’t put all your eggs in one basket
Don’t put all your money into one idea or product. It’s essential to have multiple streams of income and products so that if one fails, you have others to fall back on. That will help you keep your business afloat and avoid bankruptcy.
Every business has its own dynamics and time frame of success. Some are seasonal while others are evergreen. If you are running multiple businesses, do bifurcate them into such categories, do proper risk analysis and only after then go for appropriate allocation of finance. By this way, you diversify the potential risk.
2. Have a solid business plan
Before starting your business, make sure you have a well-thought-out business plan. That will help you map out your finances and know exactly how much money you need to get started and how much you need to bring in each month to stay afloat. It’s also important to have realistic financial projections for your first few years in business. If your predictions are too optimistic, you could find yourself in financial trouble down the road.
The business plan must be fundamentally strong. Each and every step must be mapped with respective pros and cons. You must set the stage with focus and practical figures. To be very honest, if don’t guarantee the success, but it can save from so many last minute decisions and painful hustle. So, do a comprehensive and strategic plan to safeguard your business from undesirable roadblocks.
3. Don’t quit your day job
If you’re starting an online business on the side, don’t quit your day job just yet. It’s essential to have a steady stream of income coming in while you’re getting your business off the ground. Once your business is up and running and making enough money to support you, then you can think about quitting your day job. But until then, it’s best to keep that steady income coming in.
It might be tempting to leave the current job and go for a complete focus on your startup business. If you have financial backup and then only you should think for such step. Obviously, there will be frustration, rejection, self doubt and more such negativity in this journey as you are driving two different verticals. But, be headstrong, change your strategy as per current challenge, but never ever give up.
4. Make sure you have enough money saved up
Starting a business takes money. You’ll need enough to cover your living expenses for at least consecutive six months and enough to cover the costs of setting up your business. If you don’t have enough saved up, you may need to take out a loan or look for investors. But be careful not to take on too much debt early on, as it could put your business in a difficult financial position down the road.
You need to understand the financial literacy lessons to minimize your debt ratio. There can also be inevitable situations which can eat up a huge chunk of your saving. The tax man can also run after you, if you are not following legal business practices. Please consult your CA or a financial advisor which can help you in such tough situations.
5. Find the right niche
Don’t try to be everything to everyone. It’s crucial to find a niche market and focus your efforts on serving that market well. When you try to serve too many needs, you’ll end up spread too thin and won’t be able to provide the level of service that your customers expect.
In our case study, it is one of the essential tips to build a successful startup business. You might need to take help of SME (Subject Matter Expert) to zero down to one niche and start solving the problem. You must define the problem statement and work accordingly to tackle it. Do study other products or services which cater the same niche. It will give you an upper hand for actual innovation.
6. Don’t skimp on quality
When you’re first starting, it’s tempting to cut corners and save money where you can. But don’t skimp on quality. Your customers will notice if you’re using cheap materials or subpar services, and they’re likely to take their business elsewhere. It’s better to charge a bit more and provide a higher quality product than to save a few dollars and end up with an inferior product.
Quality product and service is the key for customer acquisition and retention. Your quality stands you apart from your competition. Eve. n if you are running a discount scheme, do not give up on this parameter. It will help you to build a strong relationship with your customer. The good idea is to make various versions or flavors of your products to give variety.
7. Build a strong team
You can’t do it all yourself. As your business grows, you’ll need to build a strong team of employees, contractors, and partners to help you meet your goals. This team will be essential to your success, so take the time to find the right people and build good relationships with them.
You must know how to nurture your team – economically as well as emotionally. Your team must live on your brand essence and be true to it. It will reflect in their day to day operations. Make sure that you leave no room for politics within your team. At times, you might need to take some harsh steps to maintain the integrity of your team members. But, in the long term, such step will be worth.
8. Provide best after sale service to the customer
Make sure you’re providing excellent customer service from the start. That will help you build a good reputation and keep your customers coming back. If you don’t have the time or resources to provide good customer service, outsource it to someone who does. It will help you to get to know customers.
A good quality customer service is the essential for retention and repeat orders. As per the nature of your business, you might outsource the entire customer care unit or can use AI based chat bots. You must work on faster resolutions of problems. Listen to your customers very well. From the problems, you might find an idea that can make growth hacking of your business.
9. Don’t be afraid to spend money on marketing
Many new businesses are hesitant to spend money on marketing, but it’s essential to getting your business off the ground. Invest in some suitable marketing materials and make sure you’re getting your name out there. You can also use social media and online advertising to reach potential customers.
There are many benefits of PPC campaign for your business. It will minimize the online spend and give you qualified leads. You must also go for white hat SEO practices. It will help you to generate organic traffic for your products and services. It takes a long time, but it is one of the most sustainable business tactic. Feel free to also go for Facegram (Facebook and Instagram) campaign to increase brand awareness and reach.
10. Be prepared for bumps in the road
No business is perfect, and there will inevitably be some bumps in the road. But don’t let these setbacks discourage you. Stay positive and focused on your goals, and you’ll get through them. It is a very nature of any business.
If you have done proper business planning, you can easily sail it through. Unfavorable situations can arise any point of time. You need to stay calm, do proper analysis of the problem and take the steps accordingly. Don’t take any decisions in haphazard manner. Do approach a consultant who have strong practical experience in your business niche.
Brace yourself and go. By following these tips to build a successful startup business, you’ll be well on your way of growth hacking. Just remember to take things one step at a time and always keep your customers in mind. With hard work and dedication, you can make your business a success.