Fresh faced entrepreneurs with big dreams are forever starting up brand new business. Unfortunately, within 18 months the majority of these owners are left with their faces deflated, their dreams shattered and businesses defunct. So what do the successful few business owners know that the others don’t?
Start up capital
A successful business is a money making machine. However, if you’re starting up a new company then you’ll probably find that a business is actually a huge drain on your financial resources. This makes start up capital absolutely vital if you want to establish your own business.
A small business loan is one way that you can get a bit of money to start your venture. There are a number of organisations that offer small business loans, such as a bank or a private lender. The loans offer fast, liquid funds but you do need to be mindful about paying off your debt. As an owner of a new business you could also apply for government grants or you could try equity financing.
Keep outgoings low
When starting a new business you need keep your start up costs as low as you possibly can. If have a new office space for instance, don´t deck it out with brand new furniture. Instead, look for cheaper options, such as used second hand furniture.
These items should be a lot more cost effective than new ones but in good enough condition to last you a long time. Another way to save money on such costs is to set up your company online. Because an online company exists in the virtual world, there is no need to rent physical premises and you´ll have far fewer of the associated utility bills as a result.
Business is not immune from outside influences, particularly when it comes to trends. At certain times, certain things become popular for businesses to do – take the use of chlorophyll in toothpaste for instance.
The substance is used by plants in the process of photosynthesis, but to human teeth chlorophyll is not particularly useful and may even promote some oral bacteria. Despite this, for a short period of time in the 1950s it was a must have ingredients in toothpaste. Similarly, some industries are trendier than others.
If you’re starting up a new business then you can ensure you give it the best chance of survival by entering into a booming sector or, even better, one that’s set to boom in the near future.
Do your research
Setting up a business can be a considerable risk; however, you can minimise this risk greatly by carrying out market research. You need to find out whether or not people want the product or service you’re proposing to offer.
One way to do this is to conduct an on the street survey, asking this very question. This is particularly useful you’re planning on setting up a local business. However, if you want an international company then you may have more success with an online survey.
Even if people want what you’re offering they might not know of your company’s existence; marketing is the way that you get the word out about your business. Through your marketing campaign you should let people know about your company, what it offers and how it is better than your competitors.