Studies show that over 5 million new businesses launched in 2023 in the US alone. A growing number of people are interested in setting up a startup and becoming their own boss.
There are incredible advantages to being an entrepreneur, but there are also risks. Failure rates are high, so how do you go about beating the odds and growing a successful business? In this guide, we’ll share some essential steps to help new business owners thrive.
Prioritize market research
Prioritizing market research is one of the most effective ways to identify and reduce risks, spot gaps in the market and build relationships with customers quickly. Use market research to gather as much information as possible about your ideal buyer, your key competitors and the level of demand for similar products and services. Interact with target audiences through polls, questionnaires and focus groups, and analyze recent sales data. Look for trends and patterns in buyer behavior. Use the findings of your market research to make decisions. Your research should inform everything from prices and promotions to where and how you sell products and services and what your logo and packaging designs look like. Tailor every decision to your target buyer.
Create a detailed business plan
The next step is to create a detailed business plan. Your plan should cover critical aspects, including funding streams and finances, marketing methods and channels, costs and expenses, recruitment and hiring, outsourcing, company values and predicted sales figures and profits.
The information you present should answer key questions about funding, how you’re going to reach customers and market your products and what your brand stands for. If you have a comprehensive plan, you should find it much easier to turn thoughts and ideas into reality. A watertight plan is also essential if you’re hoping to borrow money or secure external investment. Lenders and investors will want to know everything about the business before they make a decision.
Define your USP
Customers today have access to a vast range of products and services. New businesses face fierce competition from fellow startups and established brands.
The mission is to stand out and persuade prospective customers to choose your business. One way to achieve this objective is to define and up-sell your USP (unique selling proposition). Tell customers what is different about your brand and make sure they know how your business can benefit them. Make sure your USP is relevant to the target customer.
Create a buzz
As a new business owner, you want potential clients and buyers to be excited about your brand and interested in the products and services you offer. Be proactive in creating a buzz around your brand. Use marketing techniques to introduce your business to target audiences and provide more information about what you do and who you are.
Choose channels and platforms that are popular among target customers, and build anticipation. You can do this by posting on social media, advertising in local magazines or posting printed leaflets through doors. Utilize targeted methods for maximum impact.
For local businesses, for example, it’s a brilliant idea to set up social media accounts alongside traditional techniques including flyer printing, posters and press adverts. You can also use local SEO to drive traffic to your website and social media feeds. Post frequently in the run-up to the grand opening, host a competition, or offer an exclusive discount to use on launch day or in the following weeks or months.
If you’re selling online, celebrate your store opening with a giveaway or flash sale. For younger audiences, Instagram giveaways are a brilliant way to build a following rapidly and affordably. Choose a prize, share the news with your followers and then issue instructions.
Encourage followers to share the post or story, tag multiple friends and like your page. Take advantage of new followers by posting updates about products and services, introducing your brand and showcasing the human side. Talk about your brand values and company culture and post about your team. Interact with customers and start conversations.
Manage your money
Financial problems often contribute to new business failure. Up to 90% of startups fail, with many firms folding due to a lack of money. It is crucial to manage your finances effectively when you run a business.
Separate personal and business accounts and monitor data continuously. Avoid borrowing too much money in the early days and make sure you can afford repayments if you take out a loan. Set deadlines for customer payments and keep an eye on your cash flow. Chase outstanding invoices and make sure you’re up to date with outgoing payments.
If you get off to a flying start, it may be tempting to try and grow the business as early as possible. Tread carefully. Make sure the demand is there and check the figures.
If you’re in debt and you’re not turning over profits, it’s wise to wait. It’s also a good idea to put plans on ice if the demand is falling. You may be better off putting time and money into developing existing products or stores rather than launching new ones.
Build positive customer relationships
Consumers today are increasingly conscious about where they buy products and services. More and more customers want to buy from brands they follow on social media and businesses that share their values.
Over 80% of people need to trust a brand before buying from them, according to a 2024 survey. Building strong relationships is instrumental in establishing trust and encouraging loyalty.
There are several ways to create strong relationships with customers, including providing excellent customer service and support. Whether you interact with customers face-to-face or supply products or services online, it’s essential to make buying and ordering processes seamless and stress-free and ensure that customers feel valued.
Extend a warm welcome, offer access to support and advice and address issues promptly. Engage with clients, encourage them to share ideas and concerns and make them feel special. If you don’t look after loyal customers, you could lose them. This gives competitors an advantage and it also impacts brand reputation negatively. It’s also a lot more expensive to attract new customers than to secure repeat orders.
Recruitment is another important element. Your team, no matter how big or small, represents your brand. Hiring the right people can increase your chances of success and enhance your reputation. Look for individuals who share your core values and possess the character traits you’re searching for as well as the skills and qualifications. Use the interview process to get to know candidates. It’s often very difficult to see what people are like from a resume or an application form.
Develop and evolve
It’s an impressive feat to launch a successful business, but you have to develop and grow to impress customers and generate profits. The world of business changes constantly. You have to be agile and adaptable to cater to new consumer demands and preferences and capitalize on trends and new technologies.
Be prepared to modify the way you work, adjust and update marketing strategies and invest in product and service development. If you stand still, you may fall behind. Monitor data, keep talking to your customers and conduct market research regularly. Track your competitors and take inspiration from companies or individuals that blaze a trail.
Many people dream of setting up and growing a successful business. There are amazing advantages to being an entrepreneur, but there are also risks. New business failure rates are worryingly high, but there are ways to tip the odds in your favor.
Research the market, create a comprehensive business plan and connect with your target audience. Build strong relationships, draw up a targeted marketing strategy and create a buzz around your brand. Up-sell your USP, show the human side of your brand and be prepared to modify and alter strategies to embrace new trends and technologies. Manage your money carefully and don’t try to grow or expand too quickly.