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Business owners and entrepreneurs around the world will agree that starting and maintaining a successful business is next to impossible and full of obstacles. The failure rates for small businesses are incredible and depressing to think about to say the least, but the American entrepreneurial spirit continues to drum up ideas and start businesses in the face of discouraging odds. The following 5 steps give you the best chance of survival when starting a small business in this economy.
Step 1 - Validate your idea, product, or service
Have you ever thought that you had a really great idea, but everyone else had little or no interest in what you had to say? This is a common occurrence, and is a great indication as to how your idea will be received by the public. You should always cast your idea in front of a small number of trusted individuals and ask for honest feedback. Once you have received some positive feedback on your idea, you will need to make sure that you are totally committed and dedicated to developing and marketing your idea. You must commit to and validate thoroughly your idea so that you do not spend time and energy on an idea that no one will ever want or need.
Step 2 - Financial Projections
This part is not very fun, and for that reason, it remains one of the principle reasons that a start up business fails. Any person with an idea or an intention to start a business must first crunch some numbers. It is foolish to start a business that you are not sure can turn a profit in a reasonable amount of time. By doing the numbers and making financial projections, you are able to determine whether or not your idea can actually turn into a lucrative venture. If you find out that your idea is not likely to turn a profit or is too expensive to get started, you may be able to save yourself a considerable amount of time and energy. Crunch the numbers, then proceed. Do it first, and not after you have invested the time and money.
Step 3 - Build A Website
Does it seem strange that building a website would make it into the first five steps for starting a successful business. A few years ago, a website was only an after thought from the marketing department in order to help the company develop a presence online. Today, your website can and should be used for so much more. Because of the centralized role that a company's web presence now plays, the website should be developed first, before the company opens its doors. Failure do so could result in the loss of many first time clients and customers. A website structure can act as a preliminary business plan, and enable a business owner to organize his or her thoughts. If the website is well thought out, and developed properly, it can act as a blueprint for how the product or service is presented to the public. Your website is now your storefront, and no one would ever open their doors unless they had their storefront in order.
Step 4 - Develop Company Procedures and Build Systems
Good systems and procedures are the lifeblood of any successful business. If strong, well thought out systems and procedures are not in place, before your company starts to grow, you may find yourself backpedaling or barely keeping your head above water. This condition may cause your good idea to go down the toilet unnecessarily. Instead, plan and implement good systems and procedures before you start taking on clients. Then you will be in a better position to facilitate growth and weather the storm when it comes. Many times, it is not a lack of interest or lack of customer traffic that kills a business, but a general lack of planning and organization that brings the business to its knees.
Step 5 - Overcome Adversity and Persist
Perhaps at the end of the day, this is the most important step. There will no doubt be bumps in the road. You probably think that hardships only occur in your life and in your business. That could not be farther from the truth. Road blocks will crop up no matter what path you choose. As a business owner, you may encounter more challenges than the average person especially in this economy. To overcome and be persistent in the face of extreme disappointment or challenges is what distinguishes success from failure. If you know you have a good idea, and others feel the same way, you have crunched the numbers, built a website and business model, and developed solid systems and procedures, then you need to have faith in your idea and be persistent. This quality is one of the most visible attributes found in successful business owners.
Step 1 - Validate your idea, product, or service
Have you ever thought that you had a really great idea, but everyone else had little or no interest in what you had to say? This is a common occurrence, and is a great indication as to how your idea will be received by the public. You should always cast your idea in front of a small number of trusted individuals and ask for honest feedback. Once you have received some positive feedback on your idea, you will need to make sure that you are totally committed and dedicated to developing and marketing your idea. You must commit to and validate thoroughly your idea so that you do not spend time and energy on an idea that no one will ever want or need.
Step 2 - Financial Projections
This part is not very fun, and for that reason, it remains one of the principle reasons that a start up business fails. Any person with an idea or an intention to start a business must first crunch some numbers. It is foolish to start a business that you are not sure can turn a profit in a reasonable amount of time. By doing the numbers and making financial projections, you are able to determine whether or not your idea can actually turn into a lucrative venture. If you find out that your idea is not likely to turn a profit or is too expensive to get started, you may be able to save yourself a considerable amount of time and energy. Crunch the numbers, then proceed. Do it first, and not after you have invested the time and money.
Step 3 - Build A Website
Does it seem strange that building a website would make it into the first five steps for starting a successful business. A few years ago, a website was only an after thought from the marketing department in order to help the company develop a presence online. Today, your website can and should be used for so much more. Because of the centralized role that a company's web presence now plays, the website should be developed first, before the company opens its doors. Failure do so could result in the loss of many first time clients and customers. A website structure can act as a preliminary business plan, and enable a business owner to organize his or her thoughts. If the website is well thought out, and developed properly, it can act as a blueprint for how the product or service is presented to the public. Your website is now your storefront, and no one would ever open their doors unless they had their storefront in order.
Step 4 - Develop Company Procedures and Build Systems
Good systems and procedures are the lifeblood of any successful business. If strong, well thought out systems and procedures are not in place, before your company starts to grow, you may find yourself backpedaling or barely keeping your head above water. This condition may cause your good idea to go down the toilet unnecessarily. Instead, plan and implement good systems and procedures before you start taking on clients. Then you will be in a better position to facilitate growth and weather the storm when it comes. Many times, it is not a lack of interest or lack of customer traffic that kills a business, but a general lack of planning and organization that brings the business to its knees.
Step 5 - Overcome Adversity and Persist
Perhaps at the end of the day, this is the most important step. There will no doubt be bumps in the road. You probably think that hardships only occur in your life and in your business. That could not be farther from the truth. Road blocks will crop up no matter what path you choose. As a business owner, you may encounter more challenges than the average person especially in this economy. To overcome and be persistent in the face of extreme disappointment or challenges is what distinguishes success from failure. If you know you have a good idea, and others feel the same way, you have crunched the numbers, built a website and business model, and developed solid systems and procedures, then you need to have faith in your idea and be persistent. This quality is one of the most visible attributes found in successful business owners.
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