So, you are ready to start a business. You are excited and passionate, and that’s great. You have visions of being your own boss, running a great company, and making lots of money.
Your enthusiasm will be a great motivator. But, starting a business is hard work. Before you launch your business, be certain that you understand the basics. Here are six of them.
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You Must Have an Answer to the Question “WHY?”
Why are you starting a business? There are probably several secondary reasons (e.g., independence, flexibility, make money), but what is your “big answer?”
The answer must relate to your passion for the product or service you will be providing. Without that passion, you are destined for failure. It is your passion that keeps you going when things get rough (and they will), when you experience failure (and you will), and when you wonder if you’ll make enough to live this month.
That passion will show. It will show to all that encounter – investors, customers, and people you hire to take this journey with you. But more important, it will stick inside you and keep you going.
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Hard Work, Long Hours, Patience
These are the things in which successful entrepreneurship is made.
You have probably read the stories of entrepreneurs who have made it “big” quickly – Michael Dubin of Dollar Shave Club; Nathan Chan of Foundr magazine, for example. These are exceptions. These two founders had great ideas, passion, and did put in the prep work necessary. Both had a great marketing idea, and those worked – really well.
For most founders, there will be hours upon hours of hard work and the need for patience, as things move slowly along. This is really the true test of your passion – are you willing to do all that it takes to launch, to market, and to live with a slow climb?
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Marketing Strategy
Having a great product or service is one thing – getting people to become aware of it and actually want it is quite another.
You must develop a strategy for marketing your product/service before you actually launch. Not that it won’t change; not that you won’t have marketing failures; not that you won’t dump most of it and start again. But your strategy has to include at least the following:
- What value does your product bring to your target customer?
- Who is your target customer and where is he, both physically and online? This will take some deep research, but, fortunately, newer technologies have made it much easier today.
- What problem(s) are you solving for your customer?
- How will you reach your target customer?
Did you notice that all of these questions have to do with your customer, not you? That’s a huge part of marketing. It’s all about the consumer and his wants and needs, not about how much you want to “sell” him your product. Instead of placing the focus on your product, focus on its value, connect personally with your audience, and develop a trusting relationship first.
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Look at Funding Options
If you have a large fund to draw upon, or if you have just inherited a bunch of money, you are good to go. However, most founders do not enjoy these circumstances. And a lot of businesses fail because the founders simply run out of money.
You need to develop a realistic understanding of how much money you will really need to get your company launched. If you don’t have it, then you need to seek funding. Will you look to crowdsourcing? Angel investors? A rich relative? Traditional sources (i.e., banks and venture capitalists)? Just be aware that if you go to outside investors, they are also in this for the money. Be sure that you have decided what you are willing to “give away” in order to get your funding.
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A Partner?
There are many reasons for taking on a partner. First, he or she can complement your strengths and weaknesses, providing a great balance of expertise. Second, if that partner shares your passion for the product/service you are offering, s/he can “pump you up” during times of stress or anxiety. Further, by sharing resources, you and a partner may have greater financial support. But a partner can also become a nightmare. Be certain that any potential partner shares your values and ethics. In other words, choose wisely.
What is Your Growth Strategy?
This comes down to how you will spread your brand. And you have a lot of channels to do this. But you have to be smart about it.
If you have done the necessary research, you will know who your target audience is, what their problems are, and where they are.
You only have so many hours in your day. But if your target customer does not know about you, you are “dead in the water.” Your growth depends on spreading your brand far and wide, but only in the right places. Ask yourself:
- What is your SEO strategy? When people search for your product or service, will you be on that first page?
- Have you chosen the right two-three social media channels to promote your brand?
- Are you looking for influencers who will help promote your product/service?
- Are you providing content that your audience wants?
- Are you mobile-friendly with that content?
You’re going to have to pick and choose here. Do what your research recommends.
In the End…
Many founders have achieved success, and you can too. But the road is not a straight path, and it is filled with detours, bumps, and setbacks. In the end, the one thing that will keep you going is your passion, translated into an actionable activity that is based upon smart strategies.