Whenever deciding to launch a startup, the task at hand might seem hard at first. But that will go away once we give you the 7 things to know before launching your startup.
Something often overlooked is making use of the technology available. Instead of wasting time typing minutes from a meeting, you can transcribe mp3 recordings automatically. Instead of doing manual follow ups with clients, you can install a CRM. Get familiar with current technologies to give yourself every advantage.
So make sure to follow to the end as we will discuss some very important things. With all that said, let’s start.
Find Your Industry
Entrepreneurs looking to launch a startup must know this one. The industry that you plan on operating can make or break your potential startup. The obvious mistake would be to go into an industry that you have little to no experience in, are no knowledgable of, and have zero talents for.
Even if you’re experienced in a particular industry, that doesn’t mean you should settle on the first thing that comes to mind. Let’s take IT for example. The IT industry is huge and is made out of many fields. There’s web development, mobile development, networking, system analysis, cybersecurity, and more.
But even so, that doesn’t mean you will successfully launch a startup in IT. With a 90% fail rate, nothing is guaranteed.
What these fields present an excellent opportunity to launch your startup. But what good is it to launch a cybersecurity startup when you have no knowledge of it? If you’re a good UX designer, then surely your skills will be better used in that field of IT?
The first thing entrepreneurs should know when launching a startup is the industry and the area of that industry. Even better if they understand the finer parts such as the order fulfillment process and have some type of edge over current competitors.
Research the Competition
An entrepreneur should strive to create a better product than what the competitors have. This is one way for a new player to grab a sizeable chunk on the market. But before you know what a better product is, you should research your competitors and see what they have to offer.
Start by creating a list of competitors in your area. Look at what products they offer, what prices they charge, and any additional fees. This rule applies to any industry out there. The next thing to do is to look at who their target audience is. This will help you figure out who you should target.
The way researching the competition helps is by helping you understand what your competitors are doing right and what they’re doing wrong. If you can address the wrongs and turn them into rights, then you’ll have a better product.
When researching competitors, be sure to dig into their web traffic. This is done easily with the help of an SEO firm or using tools online. Once you know how competitors are getting traffic, you can build a strategy to beat them. Also pay attention to other SEO fundamentals such as website crawling optimization, page load speed, keyword analysis and off-page SEO practices.
Look At Funding Options
Every startup needs funding. Luckily for you, there are tons of ways to get it. Entrepreneurs might look for funding at banks by getting business loans, or they might turn to other means such as asking friends and family, crowdfunding, and more.
Each of these comes with its own set of advantages and disadvantages. Business loans are fast and reliable, but you will need to pay them off, and most likely, with interest. Asking friends and family for funding is a great way to reach your financial goals, but failing to repay might put you in hot water.
Crowdfunding is another interest-free way to secure funding for your startup, but you’ll most likely have to give something in return, such as delivering participants a product. Regardless, entrepreneurs have to find ways to fund their startups.
Pick A Name For Your Startup
You might think that this one isn’t that important at first, but it can make or break your business plans. Every entrepreneur should know that the name of a company needs to embody both the company mission and values. Without it, the company would be nothing but an empty and emotionless shell.
To pick a name for your startup, you can do a bit of brainstorming. Figure out what you want your customers to feel whenever they see your name. Do you want the name to communicate with them? Do you want it to stand out? Or do you want a name just for the sake of it?
If you picked the third option, then you’re obviously making a mistake. The startup’s name has to stand out and has to communicate to the customer. This is how companies manage to turn into recognizable brands.
Choosing A Legal Structure
Every entrepreneur should know that there is more than one legal structure to choose from. Thus, you should invest considerable time in choosing the right one for your startup. The reason why this is important is that it directly dictates taxes, paperwork, and liability of the owner.
There are other legal aspects of choosing a structure for your startup, so you should indeed invest time into researching this one. From the list of available structures, entrepreneurs can choose from a sole proprietorship, general partnership, limited liability company (LLC), or corporation. While many other substructures emerge from this list, these are the four most common ones.
Know the Risks Involved
Every entrepreneur must know that starting a business isn’t without risk. Thus, much like choosing the legal structure, entrepreneurs must invest considerable time into knowing the risks involved. This is an important step that can potentially save you from making a bad decision.
This step involves calculating as well as, understanding the risks associated with launching a startup. As one can imagine, every industry has its own risks. Some industries are much risker than others, so assessing them is important before moving forward.
The logical next step once you get this one over the line is to start working on a business plan.
Make A Business & Marketing Plan
The last thing on this list, although certainly not the final, that entrepreneurs must know before launching a startup is to have a business plan. A business plan is the single most important piece of document that outlines everything about your business.
It includes stuff like what your business is, its legal structure, how it plans on making revenue, outlines the costs, what marketing initiatives are needed and more. For marketing a new business, the automated ads option is often favorable so founders can focus on better serving customers while still getting leads.
In short, entrepreneurs will never get their business up and running without one. So, look towards putting together the main components of your business plan. Start with your mission statement and end with how you plan on financing it.