Launching a startup is an exciting moment in the entrepreneurial journey. You have a marketable idea that you’re ready to share with the world. As exciting as it may be, there are still a number of boxes to check to achieve startup success. To make the launch easier, use the following tips.
- Having A Budget And Sticking To It Is Important
The number one reason startups fail is lack of market need, according to research compiled by CBInsights. But this isn’t an issue, since you did your due diligence in your industry market. However, the second most common reason why startups fail is lack of funds.
If you fail to have a budget in place with every penny spent logged and accounted for, you may run into this common startup gravedigger. Budgeting is actually not that hard. You can use a number of online platforms to help you make a budget and stick to it.
Budgeting tools like QuickBooks and Scoro can come in handy. They serve up user-friendly dashboards and make budgeting and accounting for your business simple. Stay on budget and keep your startup from being a failure statistic.
- Keep Costs Low When Starting Out
During pre and post launch keep spending in check. This ties into budgeting, but with a little twist. For example, don’t buy your location, since you don’t really know your startup’s true needs. You may end up buying a small office space or manufacturing spot, but need to expand in six months.
Not to jinx anyone, but you also don’t know if your startup will be successful. In fact, 90 percent of startups fail, according to Neil Patel. You don’t want to be stuck with a mortgage if your first entrepreneurial attempt goes belly up.
The same goes for equipment you may need. If you can rent, do it! If you need manufacturing equipment to produce your products, by used. This will cut costs significantly.
“Upon purchasing a used machine, you definitely get some significant savings,” according to MachineryNetwork.com. “The machine’s condition greatly influences how much you will save. Also, remember that dealers don’t sell faulty equipment hence your ideal machinery will adequately meet all your needs.”
- Always Have A Rainy Day Fund
There are a lot of businesses that get hit with a big unexpected expense and that’s lights out for them. Don’t let this happen to you. To grow your startup into a successful business, you need to have funds set aside when the unexpected does happen, and it will.
Rainy day funds can be cash set aside in case of emergency, or you could even get a business line of credit to help cover unforeseen expenses.
“A business line of credit provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow,” Steve Nicastro of NerdWallet explained.
If you’re starting your startup with very little seed money, like bootstrapping, try to keep you day job until you begin seeing a return on your investment. Having a steady flow of funds coming in can help you mitigate any unexpected situation. You also have a bit of leverage when applying for startup loans or a business line of credit.
- Put Profit Goals Into Action
Everyone has one goal in mind, and that is to make his or her startup a successful business. This is a fantastic goal, but how do you get there? Having profit goals in place and actionable can help you stay on track to facilitate your number one goal . . . success!
Have monthly projections and numbers to hit. This will be a little bit of guesswork at first, since you may not have much data to go off of, but after a week or two, you can narrow the target and start setting realistic goals.
One of the most important things to do when it comes to your startup goals is to hold yourself accountable. If you miss a goal, do some digging and find out why. This will keep you and your profits moving forward in a powerful way.
- Remember That It’s All About The Customer
No customers means no business, and that’s not good. Never forget who your target audience is and cater to them as best as you can. This is called user experience, and your startup needs to have exceptional user experience to attract and retain customers.
Develop buyer personas and make meaningful connections with your audience to ensure they trust and feel good about you, your startup, as well as your products and/or services. If you get the customers rolling in and provide a stellar customer experience, you will have amazing growth and success.
Ready To Launch?
These are a few of the most undeniably awesome tips for startup success you can’t afford to ignore. From budgeting to monthly revenue goals, make your launch a powerful one. What are your top tips for budding entrepreneurs? We want to hear them!