You’ve probably heard the old saying, “Success is 90% attitude and 10% aptitude” … And when it comes to starting your own business, it’s especially important. However, in order for that new venture to succeed, the owner must translate attitude into proper steps, which begins with doing your homework.
There are so many things to do and decisions to make that it is easy to become overwhelmed. However, with a little forethought and organization, you can greatly simplify the process. Remember this: if you do things correctly, the rewards — both personal and professional — will far outweigh the difficulties. That is why, according to a study, approximately 85 percent of owners said they would start their business over if they had to.
Structure: A startup must consider many factors, one of which is its legal structure (LLC, C Corp, etc.). The right (or wrong) decision will have far-reaching consequences. Structure can either hinder or help the formation of good contracts, and the type you choose may have an impact on your financial stability. Many businesses will, of course, require funding; structure will also play an important role in this process, affecting tax liability, insurance coverage, and other issues.
Important factors to consider when selecting yours:
• Taxes: The type of business you choose influences which taxes must be paid (including personal liability). Before starting any new business, tax considerations should be reviewed to ensure that all relevant obligations are met in accordance with regulations.
• Industry: The type of structure you choose will be determined by your industry and its specific practices. Real estate investment companies, for example, face greater risk than other types; as a result, they frequently organize as LLCs to protect owners from liability risks such as bankruptcy or unpaid debts (among others).
• Personal liability: Depending on the type of business, you can receive varying levels of liability protection, and determining which protections will best meet your needs should be carefully considered.
Credit: It is impossible to build a successful business without first establishing business credit. Those with good credit have more access to loans, contracts, and other opportunities than those with bad credit. How will your investors know if you are being truthful about your financial situation? This is where such commercial credit reports come in handy. Their data will allow potential investors (and banks) to make educated decisions about whether you deserve their trust and money, so pay your bills.
Branding: It is critical to raise brand awareness so that both existing and potential customers are aware of and interested in what you have to offer. Brand development can help you create a lasting image among both groups, and you want yours to stand for something. After all, that’s what people will think of when they think of you. Earning trust is essential for brand building. Customers will return if you consistently make and keep promises. They are more likely to recommend you to others if they have faith in your brand, which helps the company grow.
Digital Media Presence: In 2020, the average time social media users worldwide spent on associated platforms was 145 minutes per day, and the latest statistics put the global number of social media users at an astounding 4.62 billion. Consider your own life-Do you check your phone for new notifications every morning? Now is the ideal time to take advantage of this massive platform and massive audience — customers at your fingertips.
Here’s how a strong social media presence can help your company advance:
• Spend less on marketing: You can grow your business on a budget by spending less on marketing and advertising.
• Expand your reach: Collaborate with social media influencers to reach more potential customers. This will also assist you in increasing brand awareness more quickly.
• Gather feedback: Social media is an excellent platform for learning more about your customers and improving services and products based on their feedback.
• Outrun the competition: You will keep a closer eye on your rivals and devise strategies to constantly outgrow them.
Create Your SOP (Standard Operating Procedures): A clear set of duties and expectations for all employees and departments — from human resources to marketing to production — is one of the most important aspects of any organization. There’s no way for people to work to their full potential if they don’t know how to meet requirements. Good standard operating procedures clearly define those expectations and resources for all to see. These begin with providing precise information about what needs to be done, followed by adequate resources to ensure that each individual has a chance at success. It is critical that procedures do not overwhelm people with responsibility or leave them feeling overlooked by design; this will only lead to confusion, which never ends happily.
Standout: Businesses struggle to stay afloat in today’s world, which is incredibly competitive. To avoid becoming one of those companies that falls through the cracks, do something different — stand out from competitors by offering something better and more valuable. Customers will simply choose someone else if you don’t have strong brand differentiation. The goal should always be to find ways to distinguish yourself from the crowd.
Written By: Clint Peek, Serial business owner and Entrepreneur.