Every startup begins with a business idea. Nevertheless, an idea alone is not enough for success. In order to launch a startup, you need to validate the idea, check the receptiveness of the market, gather enough money to do so and tackle several other infrastructural and operational tasks.
Checklist to Avoid Mistakes in Starting Your New Small Business
With this in mind and without further ado, here are our top five tips you need to consider when launching your startup.
1 - Validating your new business idea
As we already said, the moment you get a business idea is the official birth date of your business. Still, not every idea survives the validation process.
In order to validate your business idea, you first need to look it up and see if there’s someone already providing that service. The presence of a predecessor isn’t necessarily a bad thing. On the contrary, this could mean that there’s already an established market you can tap into.
Furthermore, if no one in your region is providing these services, you can reap all the benefits of being the first one in the industry in that region.
2 - Surveying your customer market
The next thing you need to do is survey the customer market. What this means is that you need to check whether there’s a financially potent audience present at your target market destination. But even this is not enough.
The fact that they have the money and need your product isn’t enough, contrary to popular belief. For instance, a lot of people have a need for things which they will never buy, simply because they aren’t high enough on their priority list. This is perhaps the most important thing you need to figure out prior to launching a new product or service.
3 - Raising funds for your startup
Raising funds for your business startup is perhaps the most important step, since it provides you with the resources necessary to realize your goals. Nowadays, there are so many ways to do this, from taking out a loan to crowdfunding.
Looking for a partner or investor is yet another way to do so; however, it might cause some structural problems down the line.
Nevertheless, while giving up equity means giving up power, in this way you’re also gaining an ally with whom you can share some of this responsibility. Most people find this to be a fair trade.
4 - Picking your business location
The next thing you need to consider is the premises for your office unless you plan to run a home-based business, in which case you can feel free to skip this part.
The main thing when it comes to the location are the capabilities and accessibility.
If you aim to add production equipment to the place, you need to make sure that the energy grid, as well as the rest of its infrastructure, can take it.
Next, you need to think about the issue of security for you, your employees, and your products. At this point you might also consider the idea of installing a high-end business security system.
Finally, you should understand that the prestige of the company greatly depends on the location of the headquarters.
5 - Maintaining cash flow
Last, but certainly not least, is maintaining cash flow. The lease on the office space, utilities, employee wages, and so on, are expenses you must cover every single month.
There is also the issue of marketing and sales expenses, maintenance, and upgrading your equipment. Whatever your startup circumstances, you need to figure out how to tackle cash flow properly to give your company a fighting chance.
Each of the above is equally important for your business and neglecting any of these five vital startup areas can backfire horribly.
Handle these tasks well in the startup phase and you’ll be off to a good start as an entrepreneur. After all, fundraising, idea validation, and cash flow maintenance are tasks you’ll have to excel at during every step of your business growth.
Our guest author is Diana Smith, a full-time mom of two beautiful girls. Diana is interested in topics related to marketing and business technology.
In her free time, she enjoys exercising and preparing healthy meals for her family. You can reach her on Twitter.