We live in an age of startups and side hustles, where everyone wants to become the next Richard Branson or Elon Musk. However, starting your own startup is not as easy as coming up with an idea and hoping it works. There are plenty of things you’re going to want to think about before you get going. Here’s our ultimate guide on how to start your own startup.
Of course, the first things you’re going to want is an idea – and preferably a unique one. Millions of people are coming up with new ideas every year, but only a few actually make it in the competitive business world we live in. So, you’re going to want to come up with an idea, but then test that idea on people. Market research will be your best friend here! Don’t just ask family members or people who know you, as they’ll likely just tell you what you want to hear. Instead, use market research surveys and tools, to ask your target audience (basically, the people you want to buy your product or service). Take on-board all of the feedback, both good and bad, so that you can refine your idea and create something that people genuinely want to buy.
Once you have an idea that you think is going to work, you’re going to want to consider the logistics of setting up your business. When you’re a new startup, it’s likely you’ll want to do most of the jobs yourself. You’ll find yourself wearing all of the hats – sales, marketing, accountant, and maker of coffee. However, as you grow, you’ll want to learn how to assign these tasks to other people. Most startup companies opt for freelance or outsourced workers, as this means you won’t need to invest in office premises and equipment just yet. As you grow, you can then consider renting an office and bringing in employees.
Do you know why most new businesses fail? Cash flow issues. It might seem like you’re bringing in a healthy profit until all of those bills come rolling in. Not to mention the tax bill at the end of the year, too! Make sure you have a proper financial forecast in place, along with keeping an eye on all incomings and outgoings each month. Consider how much you can really afford before you decide to expand. Are there ways of making larger profit margins? Can you hold back on that new office space until you’re bringing in more sales? Always, always keep an eye on your cash flow – it’s one of the best pieces of advice for any new business owner.
Riding the waves
One key thing to remember about starting up a startup is that you’re going to have good days, bad days, and downright ugly days. One day you could be riding high, with sales coming in from every angle. Then, you might hit a blip in the road that slows things downs. What separates successful business owners from those who don’t make it is their resilience. If you can ride the waves, then you’ll be set for success. This means not spending all of your profits the moment you make them, too! Remember that cash flow.
Setting up a startup can be both an exciting and daunting prospect. However, with these top tips, you should be on the right path.