Setting up a business is no guarantee of success; indeed, many small startups don’t make it through the first year, due to a variety of reasons. We asked a top business guru what makes a startup successful and here are their answers.
- Capital – With the best will in the world, a business is going nowhere without money. In fact, lack of funds is the number 1 reason why small businesses fold. Part of the business plan involves costing the startup and if you have a problem raising the money, apply for a business startup loan from an online lender. Whether an offshore company in Vanuatu or a locally registered business, make sure that you have some money set aside for unexpected expenses.
- Marketing – Don’t make the mistake of thinking you can make it with friends’ word of mouth and social media; you will need to join forces with a local digital marketing agency and they can put together an aggressive digital marketing plan. The agency team can help you identify target groups, then figure out the best digital platforms to reach them; a good plan is one that can be amended at any time.
- Strong management – Every organisation needs firm direction; policies should be set and every employee should be made to feel that they are an important cog in the machine. A good manager knows how to delegate and get the best from their team, providing constant support and motivation. HR is a company’s most valuable asset and time needs to be taken to manage a workforce.
- Great product/service – At the end of the day, your product/service should be able to stand with the best. If a product is inferior, this will eventually be the downfall of the business, while if you provide a service, it should be second to none. Customer testimonials are, of course, important, as most consumers will base their decision on customer testimonials.
- Headquarters – Every organisation need a HQ; a place from where all process are managed; some startups are run from home using a spare room, while others share office space with other startups.
It certainly is an exciting time when you create an organisation from just a concept; planning is the key, but you must have products/services that are in great demand. Your business plan should be comprehensive, covering every aspect of the business and you should review regularly.