6 Effective Tips to Build a Successful Startup
April 27, 2021
What are the effective tips to build a successful startup?
- Make a business plan
- Secure proper funding
- Know what you are willing to risk
- Identify your niche market
- Network as soon as possible
- Stay focused and make no excuses
Everyone wants to know about the effective tips to build a successful startup and come up with their own booming product or service. For a good reason, the benefits of owning a successful startup include being your own boss, creating something from scratch, and making money along the way. But the key phrase here is, “successful”. Too often than not, 75% of startups fail according to The Harvard Business Review.
This tells you that not everyone is cut out to be an entrepreneur by nature. Building a startup is always a difficult prospect. One has to be able to assume the proper role. It may seem overwhelming but here are 6 effective tips to keep in mind if you want to build a successful startup.
Make A Business Plan
Having an idea is one thing, but making a comprehensive business plan is another. In simple terms, a business plan is a written description of your startup’s goals. It should include both short-term and long-term goals. You will also need to outline how you are planning to achieve these goals. Finally, your business plan should include detailed projections about market analysis, competitive analysis, sales, management, operations, and finances. Typically, a business plan should outline up to 3 years of your startup strategy.
Secure Proper Funding
To build a startup, you will need adequate capital to get yourself off the ground. Naturally, startup costs will vary from industry to industry. Your business may require more or less funding depending on your products and services.
For a small startup with no employee salaries or overhead to factor in, you might only need P10,000. Other ventures may cost millions. Nonetheless, the cost of doing business is much higher than what people initially think. According to experts, 82% of businesses fail due to cash-flow issues. Case in point, you need to secure proper funding.
Know how much money you need to raise. If you can’t secure funding from a bank, find investors. Investors can be your friends, family, angel investors, and venture capitalists.
Know What You Are Willing To Risk
Knowing what you are willing to do to be successful is important in building a successful startup. Becoming an entrepreneur is challenging. You may want to make a lot of money, but what are you willing to risk to reach that goal? Ask yourself how many hours a week you will work on your startup and how far out of your comfort zone you are willing to stretch.
The best entrepreneurs do not let the fear of failure prevent them from building their startup. Instead, they take calculated risks and ask themselves what the downside in everything is. If you can answer this question, then you will be able to plan ahead for potential problems.
Identify Your Niche Market
One of the biggest reasons why startups fail is they assume there is a big market that wants to buy their product or service. You might like the idea or know a few people who want the product or service but knowing if there is a market for what you want to sell is crucial.
To minimize your risks, do market research. Survey potential customers to find out if they are willing to pay for your product or service.
Network As Soon As Possible
Building a startup is about having the connections that will push your business forward to success. Take the concept of word-of-mouth marketing as an example. Today, a huge chunk of consumers read online reviews. The most rewarding benefit of networking is being visible and getting noticed in a positive light. You should also start networking as this generates referrals/leads. You can turn these leads into clients to grow your business.
Networking to gain mentors and strategic partners will become crucial during your startup’s initial growth phase. Having the right team can help you to accomplish far more than you can do alone. Networking is also about hiring the right people in the first place. It allows you to gain the best talent as well.
Stay Focused and Make No Excuses
Just because you started building a startup doesn’t mean you are going to immediately start making money. It would take time to build your branding and achieve your goals.
The truth is, many people dream of owning a startup, but they never do. Some are burdened by technical aspects like finances, while others have excuses or fear of failure. Worrying about the risks of starting a business is normal. However, excuses will only slow you down. If you truly want to build a successful startup, address the reasons why you think you can’t and solve them first.
Launching a startup company is not easy. At its core, you will also need to decide if you have what it takes to be an entrepreneur. With that said, following these 6 effective tips to build a successful startup will help simplify the process for you. You can take the element of chance out of the equation. Proper planning and execution will help limit your startup hurdles.
For professional advice in developing your business, click here to contact Benito Keh. As one of the most prolific businessmen in the country, he can provide insightful solutions to help your business reach success.