Many people might have a startup idea that they’re passionate about and that they think is even worth their time but don’t proceed with it or give it any real thought because of all the things to consider the most important of them being the financial implications.
While that is true and without a source of finance your business startup is bound to fail, it is not the only thing that matters and you will have to look at several other factors. Overlooking other factors and just considering the source of finance can have a negative effect on the success of your startup especially if you also need to hold down a job with it.
Having a 9-to-5 job can be emotionally and physically tiring and you might feel like you don’t have the energy to commit to something as big as starting your own business which will consume your time and money but if you manage your time and resources efficiently, it might not be as difficult as people make it out to be so here is a brief guide to the six things for a successful startup business.
Table of Contents
Keeping your day job:
Here is the thing, almost every new startup requires months even years to be profitable, and during that time, you probably can’t salvage a salary from your company because either it will be breaking even or going in loss. It might make a profit, but it won’t be enough to get you through your daily life, so a secondary source of income is important. If you have a secondary source of income, you won’t have to worry about earning money straight away so you’ll be able to focus completely on your startup.
Commit and prepare for the long haul:
If it was easy, everyone would’ve been an entrepreneur. You need to make sure you’re committed to your business physically and psychologically and to do that you’ll need to cut back on some of your activities and hobbies. One of the ways to do that is to create a list of all the activities and commitments you have during the week and the amount of your time they consume, and then work out the activities that you can either spend less of your time on or completely cut off.
This should go without saying but this means that you’ll have to cut off your leisure activities which mean time spent playing video games, watching TV or surfing the web randomly. If you cut down on these basic time hogs, you’ll realize that you have more than enough time to make this work.
Starting a business without a clearly defined plan is a recipe for disaster. It is impossible to “take things as they come” while running a business and if you’ve not pre-planned how you’re gonna run your business you’ll be out of the market before you even get in. A way to achieve that is to draw up a written business plan. Not only will this have all your steps written down but you’ll also be able to assess whether you’re achieving your goals or not.
Playing to your strength:
The last thing you would want to do is to start something that you don’t have the market knowledge of. Identifying your strengths and playing to them is the key here. To yield quick results, your startup business should be backed up by relevant skills, experience or industry knowledge. Not only will this increase your chances of having a profitable business but will also help you rebound quickly should you face some drawbacks. Going in a market, you don’t know much about will require you to spend extra time learning about the industry and the skills required to make your business work.
Having a competitive advantage:
Pursuing a business that is already clustered with various firms in the market is a risky move. In this situation, you’ll be competing with people working full time on their business which will really mean that they’ll have a better chance of success than you. To get around that, make sure you offer your potential customers something unique and have a competitive edge over your competitors. This does not mean that you’ll have to invent an entirely new product; the competitive edge can be gained through the form of your cost structure, customer support, distribution networks or elsewhere in the business. This will increase your chances of making your business profitable as soon as possible and can generate greater sales.
This might not be an option available to everyone because of the monetary costs that come with it, but if you’re able to, make sure you’re outsourcing the part of your business that you feel like you may not be able to perform effectively. For example, new businesses often outsource the advertising part of their marketing campaign so that it is done the right way.
Other than all the things mentioned above, the first and the last thing you need in order to flourish is enough capital for the business. Here’s how you can find strong financial resources.