For many upcoming entrepreneurs, starting and running a
successful business may seem like an intimidating task. By any stretch,
starting a new business is not an easy undertaking; but it’s doable. You often
need to spend money and time and go through some sleepless nights to make it
happen. You shouldn’t give up, even when things tend to go the wrong way. Here
are the five main steps of launching a successful startup.
Step One: Craft A Business Plan
Developing a viable business plan is the foundation for launching
a new business idea. A majority of smart business owners obtain startup capital
from established angel investors or venture capitalists.
Mark Stevens is one of the
most reputable venture capitalists in technology. Working with an experienced
venture capitalist like Stevens requires you to craft a convincing, error-free
business plan. Since you need money to start your business, you need to
persuade investors, suppliers, and other like-minded business partners to
support your venture.
Your business plan is simply a written description of your
startup idea. In other words, you outline what you want to do and how you
intend to execute it. The plan should basically describe the business idea for the
first three to five years.
Step Two: Secure Funding
You’ll need to secure adequate funding to help you get started
when starting a business. 82 percent of businesses fail
due to financial challenges. The amount of money you’ll need depends on your
business model, and its specific needs and objectives.
For instance, if you’re thinking about launching a tech-based
part-time startup that doesn’t require colossal overhead spending, you can
quickly get your business off the ground with around $5,000 to $10,000.
In the United States, close to an average of 600,000 startup companies are
launched every month. Since the cost of doing business is another factor to
consider, you should ensure your business plan has a solid financial plan, as
well. Your financial plan should clearly cover areas such as:
For instance, even launching a mobile app, acquiring customers,
and running it successfully requires a lot of money. Therefore, before your app
goes live, you must ensure you have adequate funding to cushion you from
You need to find out the exact amount of funding you require to
launch the business before you even start sourcing for the financing. Weigh out
all your available options to avoid compromising your business’s growth
potential in terms of paying exorbitant interest rates.
Step Three: Partner with The Right People
At some point, you’ll need help and outside support in running a
business. If you’re starting a venture in the technology industry, you’ll only
need small teams to execute the core tasks of your business’ operations. The
number of employees you’ll need when launching a business in other industries,
such as healthcare and catering, may be a bit higher.
In addition, you’ll need a federal tax ID number from
the IRS once you register your business. The good news is, you can get your
business’s employer identification number (EIN) online by submitting your
business information. The process only takes a few minutes.
You may also want to partner with an established financial
advisor, business lawyer, and experienced accountant. While these experts won’t
be part of your staff, they may play a critical role in helping your business
Step Four: Find A Good Location
The location of your business could affect the viability of your
new enterprise. You’ll need to lease or buy some property to operate the
business. Interestingly, buying a property or operating from your garage may be
more affordable than leasing property. Since tying up all your business capital
in real estate may not be realistic to most entrepreneurs, you need to
strategize carefully and come with a solid plan when crafting your business
Additionally, in today’s fast-paced digital environment, you
also need to have an online presence by building a business website for your
company. Even if your business is not ready for launching, it’s wise to start
promoting it online and making solid online connections. Doing this will
eventually help you get to market fast.
Step Five: Learn How to Market
At this stage, you need to become a marketing professional.
Regardless of how innovative and transformative your startup idea is, you’ll
not succeed if people don’t know about it. Therefore, you need to aggressively
promote and market your product or service both online and offline. Some of the
most effective marketing strategies that you should familiarize yourself with
Once you learn these basics of marketing, you can now launch
your business and start making money.
You have to be dedicated, focused, and motivated in order to
succeed in your business. While there are numerous steps and tips to follow in
launching a new business, these should at least cover the basics and show you
where to begin.