While many of us dream about leaving our 9 to 5 jobs to venture out on our own and launch a small company, it takes more than daydreams to make that happen. Did you know that nine out of 10 businesses will fail during their first year? Those are some pretty dire odds to be working with.
Thankfully, there are many resources in place for new business owners. If you want to make the most out of your first year in business, follow these five tips.
Do Your Homework
Whether you’re launching a tech startup or running a craning company, you need to do lots of research on the industry you are about to enter. Determine your competition by reviewing other companies in your town or city. You can do this by scoping out their stores, social media pages, or websites and seeing what services and products they offer.
Also, it’s important to take note of these companies’ marketing strategies. Do they have a strong online brand presence? Are most of their advertising strategies on TV or billboards?
Save, Save, Save
A lot of well-known businesses spent more money in the first year then they made. This will most likely happen to your company as you try to get your feet off of the ground. An important aspect of going into business for yourself is saving as much as possible before you make the leap into entrepreneurship. A good rule of thumb is to have at least a year’s worth of savings in the bank.
Know Your Target Audience
Before you can start making sales, you need to know who you are selling to. What types of people will most likely be buying your products or services? Single, white men? Married African American couples? Millennials? It’s critical that you understand your target marketed audience so that you can develop a marketing strategy to properly reach them and draw them in.
Write a Business Plan
Log onto the United States Small Business Administration’s website to learn what goes into writing a business plan. You will need to provide a summary of your products or services, marketplace, finances and marketing plan. If you need extra help, you can also inquire with friends, family, or colleagues that have already launched their own company.
Secure Capital
Get your personal credit in tip-top shape so that you can secure some capital and a business loan. Visit your local bank and talk to them about opening up a business account for any purchases that will be related to your company.
With some elbow grease and determination, it is possible to go into business for yourself and succeed.
Originally posted on September 25, 2015 @ 1:33 pm