A New Entrepreneur’s Guide to Making the Right Decisions When Starting a Business
By Naomi Johnson July 17, 2022
Being an entrepreneur means always having your plate full, chasing deadlines, and working long hours to turn your business into a success. However, during the initial years, the odds aren’t in your favor, as research shows that up to 18% of businesses close within twelve months. This number further rises to 49.7% for the first five years. But, even with these challenges, thousands of individuals make the leap into entrepreneurship every year. If you’re planning to do that as well, this article by Tecofers will explore the steps you should follow to be the exception, overcome the odds and create a successful company.
Thoroughly Research Your Idea
If you have a great business idea in mind, you’re already at an advantage over others who are still in the ideation phase. But, before you commit to an idea, it is important to thoroughly research its feasibility in terms of demand among customers, and similar products existing in the market. Additionally, you need to flesh out what the unique selling point of your product or service will be. Competition in all markets is fierce and selling a generic product greatly reduces your chances of being successful.
Next, do a deep dive into the price points in your niche. Setting low prices may help undercut the competition, however, it will eat into profits as well. Conversely, high prices can pose a barrier to acquiring customers as a new business. Hence, depending on your manufacturing cost and mode of selling, set a reasonable price for the business and customers.
Complete Business Basics
Before selling your products in the market, there are various start-up steps you should complete to provide the business a strong foundation, these include:
Deciding a Business Structure: If you plan to start a business alone, a Limited Liability Company (LLC) is the best structure to go for. As reported by the CFI, an LLC protects your personal finances and assets from business-related disputes. Additionally, it opens doors to various tax benefits which help to keep more money in your pockets. Similarly, if you have a partner, opt for a Limited Liability Partnership (LLP).
Choosing a Business Name: Limited Liability Companies are often required to have the term LLC included in their name, for example – Austin Technology Services LLC. However, if you want your business to be known by a better, creative name, choose to register a DBA (doing business as) name. A DBA is essentially a brand name that can be used on product packaging, promotions, and official communications.
Adopt a Digital-First Strategy
Utilizing technology significantly reduces an entrepreneur’s dependence on manual intervention for key business projects, leading to faster decision making, fewer errors, and timely achievement of goals. One area where using tools can provide the most benefit is marketing. From acquiring new customers and increasing sales to developing a loyal customer base, marketing will play a central role in all these activities. Consider using the following tools to get the most out of your efforts:
Logo Maker: An online logo maker will provide you with an array of customizable templates to create the perfect logo for your business.
Social Media Management Software: Using this tool you can create social media calendars with ease, schedule posts, run performance marketing campaigns, and gain insightful data regarding all digital marketing activities, which can be used to make informed decisions.
Improve Your Business Knowledge
To be a successful entrepreneur, you need to be well versed in all areas of the business such as running marketing campaigns, forming supplier relationships, managing finances, and more. If you feel you lack the necessary skills and expertise to oversee these functions, consider pursuing an online master’s degree in management. A master’s will help improve your business acumen and learn the required skills to manage a successful organization.
Additionally, being a remote student, you’ll pay considerably less for the degree, have the option to maintain a flexible schedule, and continue gaining real-world experience while running the business.
As an entrepreneur, it is a given that you’ll face uncertainties when running your business. But, with sound planning and data-driven decision making you’ll be able to face challenges with confidence and develop a successful business.
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