4 Things to Do Before Starting a Business

Around 10% of startups fail in their first year of business. Their biggest fault? A lack of preparation.

Everyone knows that starting a business is hard. From finding money to generating repeat clients, it’s definitely a marathon, not a sprint. But if you know what you’re doing, you might just make it to the finish line – and beyond.

The key to every successful startup is taking the time to prepare. Instead of jumping straight in, sit back and plan. Learn what you need to do and how you’re going to do it, or you may end up in that 10%. 

To help you, we’ve put together our top tips for how to start a business and everything you need to do before.  

1. Consider Your Finances

At the heart of every business is money. Without the funds, your business just isn’t going to work, so take your finances seriously. 

Before you set up your company, make sure you can cover your initial expenses. This can include licenses, legal fees, equipment, and general startup costs. There are a couple of options for how to fund your business.

Firstly, there are angel investors. These are people with high net worth who invest their money into your business, usually in exchange for ownership equity. They’re a great way to get your company off the ground, but make sure you know how to find the right investors.

A newer and popular way to source money is through crowdfunding. This is where you post your business idea on a platform like Kickstarter, and people can donate to help. Usually, you offer them something in return for their donation, such as a 12-month subscription or one of your products if they donate $100.

Finally, you can try bootstrapping. This is when you start your company at a small level with only your own funding. You’re in no debt and have sole ownership of the business. Once your product/service is starting to catch on, you can take it to investors with a much clearer business model. 

2. Make Your Team

Building a team for your business is usually essential (unless it’s designed to be a one-man band). By hiring people that have different skills and are smarter in specific areas,  you can create a diverse team to drive the company forward. New minds mean new ideas.

You can look first at hiring in-house. Just make sure you know exactly who you’re looking for, have a detailed job description, and a thorough interview process. Here are a few hiring tips to help you find the right crew:

• Avoid hiring friends and family.
• Prioritize passion and potential; it’s not always about a degree.
• Experienced team members can bring knowledge to a startup.
• Listen to the advice in this article from PolicySweet; if you wouldn’t invest $4,000 in the potential hire in front of you, don’t hire them.
• Make sure your personalities are compatible and have a proper, non-work chat before you hire anyone.
• Take more time to find the right team and it will pay off in the long term.

If you don’t want to bring on permanent staff, you can outsource to other companies. In fact, 66% of small businesses are now outsourcing. It can be a great way to save money and not have the same commitment as contract staff.   

3. Work Out Your Marketing Strategy

If you’re wondering how to start your own business successfully, you need to have a solid marketing strategy. If you’re not hiring a specialized marketing team, this means you have to learn everything there is to know.

Take time to read up on everything, including the difference between inbound and outbound marketing, SEO, and digital vs. traditional methods. Make sure to look at plenty of sources, but if you’re stuck start with the Marketing for Dummies Cheat Sheet. It’s easy to understand and has a lot of valuable information.

You also need to look at your target market before you start marketing. 14% of businesses fail because they don’t meet their customers’ needs – don’t let that be you. Create a detailed customer profile and make sure your marketing is catered to them, including the problems you’re identifying, the solutions your giving, and the platforms you’re marketing on.

4. Stay Flexible

When starting your own business, one of the worst things you can do is become too rigid with your ideas. By this, we mean sticking to the exact plan you’ve created and not wavering at all, even if it’s not in the company’s best interest.

Always be flexible with your business. If something isn’t working as it should change it immediately. If experts are giving you the advice to do something differently, do it (if you think it’ll work, of course).

In fact, we recommend getting other people’s opinions. Have an accountant check over your financial plans and use a designer to draw up your website. These people are experts in their field, so use their knowledge to perfect your ideas. 

No plan is perfect so adapt yours as you learn.

Keep Learning Things to Do Before Starting a Business

Simply by reading this, you’re already on the right path and giving your company the best chance of success.

The real key to creating a flourishing brand is knowledge. If you read everything there is to read and put all of the practical advice into practice, you’ll be giving yourself and your company the best chance. 

So, don’t stop reading! Keep looking through our blogs to discover more about how to launch your company, things to do before starting a business, and advice from business experts.