Every single month, about half a million new businesses are launched worldwide. Out of these hundreds of thousands of companies, roughly 30% of them go out of business within two years of opening.
Now, you may be wondering, if it’s so difficult to start a business, why do so many people try to do it? Well, it’s because the potential rewards are massive.
Not only can you reap huge financial gains, you can also make a living from chasing your passions. Many business owners choose to start companies that are related to some sort of dream of theirs.
When you open a business, it’s almost like your baby. You’ll learn to care about it more than any job you may have held in the past.
Furthermore, when you’re the owner of a business, you get to call the shots. There is no one to answer to. You are in full control of your future.
Obviously, there are huge risks in trying to start a business. However, the upside is tremendous.
So what is the key to running a successful business? Well, there are a multitude of factors to consider.
When you take a look at some of the more iconic businesses in history, you’ll start to notice some trends. Today, we’re going to be answering the most common questions about startups that business owners tend to have. To learn more, keep reading below!
How Do I Get Started?
The first step in getting your startup off the ground is to do some research. Before you spend a single dollar, you need to do a few important things.
For one, you should talk to people in the industry you’re entering. Make sure you have a realistic view of the market and you know what it will take to be successful. Talking to someone who’s already been successful in the industry will give you insight that you simply can’t learn by reading a book.
You should also conduct extensive research on the industry you’re entering. Find out the success rate of new businesses in the market. Do some due diligence on your competitors.
See what mistakes the failed companies have made and what good decisions that the successful ones have made.
How Much Money Do I Need?
Next, you’re going to have to figure out how much money you need. What supplies and equipment do you need? How much are you going to have to spend on office space? How much do you plan on spending on marketing?
These are all questions to consider as you draft a budget for your company. Every business is different. Some brands start out with $10,000. Others have the backing of millionaire investors behind them.
Gauge what is realistic for your company and its goals. If you have trouble finding funding for your business, consider checking out Ampla growth capital. They connect independent business owners with reputable investors around the world. Through their wide network of partners, Ampla is able to take brands from relative obscurity to household recognition.
It takes most businesses years to become profitable. Don’t expect to start making returns right away. Instead, focus on building your brand and growing your revenue streams.
Don’t forget to take into account your living expenses outside of your business, either. You don’t want to go broke to fund your business. In fact, you should only invest in your business what you’re comfortable losing. Realize that starting a business of any kind is a risk.
Should I Quit My Day Job?
One of the most common mistakes that entrepreneurs make is jumping into a new business without laying a foundation.
Your business needs a solid business plan, strong marketing strategies, and a quality product or service. Before you launch your business, you should have all the tools you need to be successful.
Don’t quit your day job unless you’re 100% ready to start this journey as a business owner. Line up funding, build your team, and make sure your business is clicking on all cylinders before you make any major commitments.
You need a clear, defined path to success. Consider planning up to five years out into the future. You may even want to start thinking about where you see your brand ten years into the future. A long-term plan will help you avoid periods of stagnation.
What Qualities Make a Great Entrepreneur?
This is one of the most frequently asked questions about starting a business: what makes an entrepreneur great?
Some qualities that every entrepreneur should possess are resilience, imagination, passion, integrity, and courage. These attributes will allow you to get through adversity and focus on your goals, no matter what obstacles you encounter.
A great entrepreneur should also be personable. Not only do you need to maintain healthy relationships with your customers and employees, you’re also going to need to be friendly with other business owners and investors.
Being easy to get along with will help you get in the pocket of important people in your industry. Always try to be nice to other people in your sector, especially those with influence. Be careful not to burn any bridges early on.
If you really want to transform yourself into the perfect entrepreneur, consider finding a mentor; someone who has had decades of experience as a business owner and has overcome challenges along the way.
How Do I Manage People?
Another common issue that business owners come across is managing their workers. Having a team that you can trust is one of the most imperative parts of running a business. For that reason, it is absolutely critical to keep your employees happy.
Also remember that your workers don’t have ownership in your company. Therefore, they shouldn’t be expected to work with the same fervor and passion as the CEO would.
Be compassionate to your workers and always try to view things from their perspective. Reward employees when they do something good. Motivate and encourage them when they mess up.
Ultimately, the only way to really learn about managing people is by doing it and gaining experience. You’ll likely make mistakes when you first start out. Every person is different, and you’ll learn how to handle different personalities as you progress in your journey.
How Do I Attract Customers?
Before launching your business, you should know exactly how you’re going to obtain customers. In order to do this, you need to develop an in-depth marketing plan, driven by data.
Do some research on your target audience. What demographic do they fit under? What interests do they have?
Find out how other companies in your industry are marketing their brands. Are they using paid advertisements on social media? Are they engaging in influencer campaigns?
Don’t be afraid to take inspiration from others. Of course, you want to be original in your marketing, so you can stand out. However, some methods of marketing are tried and true.
One unique way to market your brand is through a text message marketing agency community. Through a service like Community, you connect with potential customers directly, by sending them a promotional text message.
Through this service, you can literally have a conversation with your customers. This is a great way of making consumers feel connected to your brand.
