If you’re thinking about starting your own business you’re probably terrified by the fact that 8 out of 10 new businesses fail in the first 18 months. But the truth is, if you know what you’re doing, you don’t really have to worry about your new business suffering the same fate. With enough time and effort, you might just be able to make it through and earn more money than you ever would working your full-time job. But in order to achieve small business success, you have to put your business on the right path right from the start. And we’ve compiled a list of 6 tips that are guaranteed to help you do this so make sure you read on.
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1. Come up with a killer business idea
The most important thing you need to have in order to start your small business is an idea. Chances are you already know what kind of business you want to start but it’s very important that you assess the viability of that idea. This means you’ll have to check out how big is the market and what is the demand. Moreover, you’ll have to figure out what’s going to make your business idea different from all the companies that are already doing business in that industry. Bear in mind that there are experts who can help you research the market before you start investing any money in your business idea.
2. Find money for starting out
No matter how good your business idea is, you won’t be able to make it come true unless you have some money to invest in it. Your safest bet is to use your own money to fund your small business. However, most of the rookie entrepreneurs simply don’t have enough money to kick-start their business, and if this is the case with you, you’ll have to look for other ways to fund your small business. Turning to banks and private lenders is always an option, but you might also want to consider alternatives such as angel investors and crowdfunding websites like Kickstarter.
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3. Perfect your pricing
You’ll hardly be able to make any money off of your idea unless you get your prices right. And it doesn’t only mean you should cover your expenses, but you’ll also have to make sure you generate some profit for your business. Try not to undervalue your time and talent, which is one of the most common mistakes fresh entrepreneurs make. The best way you perfect your pricing is to stop from the top down. Basically, what this means is that you should figure out how much you want to earn on a yearly basis, see how that breaks down monthly and weekly and determine your prices accordingly.
4. Invest in quality equipment
Having quality equipment can do wonders for your business. And where are you going to invest your capital money if not in the things that are going to help you with your business operations? So, if you’re running a web design company, you’ll probably want to get top-notch PCs for each of your employees. And if your budget doesn’t allow you to buy all the equipment straight away, consider the idea of renting it. For example, if you’re running a warehousing business, you might want to turn to companies that offer forklift and scissor lift hire services.
5. Check your name
One of the first things people do when they come up with a business idea is to try to think of a name that would suit their business. However, quite often it turns out that the name they’ve opted for has already been taken. And the last thing you want to do is choose a name that’s going to have your business confused with one of your competitors, so make sure you check it before you make any final decisions. When it comes to choosing the right name for your business, you might want to stay away from using any geographic names since you can always end up moving or expanding your business to another city or country.
6. Design a memorable logo
Just like your business name, your logo is going to play a huge role in how successful your small business is going to be. You’ll need a logo that’s easy to remember and associate with what you do. So, if you’re starting a restaurant including something like a fork and a knife might be a good idea. Also, bear in mind that you should be careful with colors you choose for your logo. For example, red is often associated with something urgent and that’s why many fast food restaurants use it for their logo while blue stimulates feelings of cleanliness and many cleaning companies try to incorporate it in their logo.
We see more and more people starting their own business. Follow the 6 tips we mentioned above and you should be able to do the same. Just bear in mind that even once you make it through the first couple of months as an entrepreneur, you’ll still have to keep working on constantly improving your business.
Carolin Petterson is a businesswoman and content marketer with years of experience under her belt. She has had the opportunity to contribute to a number of popular business and marketing websites.