Statistics suggest that around 100 million startups launch every year. As the world recovers from the pandemic, new businesses are springing up, with owners excited to embrace new trends. If you are setting up a company, it’s essential to make sure that you’re ready to launch before you start trying to find customers, accept orders or open stores. In this guide, we’ll outline 5 steps to take to increase your chances of success.
By Team Savant
Image: Tim Gouw
Registering Your Company
Opening a new business is not as simple as printing business cards or designing a fantastic website. There are legal processes involved and you have to register your company and make sure that the brand name is unique. Make sure you are aware of all the steps involved in setting up the venture and crossing the boxes required to start trading. You can find cost-effective company formation options online. It’s also a good idea to seek legal advice early on to simplify the processes and ensure that you’re up to speed in the run-up to the launch. If you have an idea for a name, but you’re not quite ready to start trading yet, you can also reserve a name for the future.
Financing Your Business
Most new businesses fail. Cash flow problems are among the most common causes. It’s hugely beneficial to make sure that your finances are watertight and that your business plan covers all your outgoings and expenses. Running a company can be expensive, especially at the outset when it may feel like there’s a lot of money going out and not much coming in. Establish how you’re going to finance each phase and try to be proactive in managing cash flow and reducing the risk of issues. Outline clear customer payment deadlines, put contingency funds aside and keep track of your accounts.
Defining An Ideal Customer
One of the most important steps for new business owners is to define an ideal customer. Whether you are creating or selling products, opening a store, salon, cafe or restaurant, launching a website or offering services, it’s wise to target specific audiences. Think about who you want to buy your products or services and research the market. Get to know your target customer and find out how they like to shop, how much they want to spend, how they make choices in terms of the businesses and brands they prefer and how best to connect with them. Make sure there is a demand for the products and services you’re offering before you invest time and money into a business plan.
Creating A Buzz
When you are ready to launch your new business, it’s crucial to let people know. Ideally, you want to be able to start building your client base and creating a buzz before your store opens or your website is ready to accept orders. Use social media, your website and marketing methods, such as flyering and press adverts, to tell prospective customers about your business, let them know what you’re offering and provide contact details and information about the launch or opening. Try to create hype by offering exclusive discounts or releasing glimpses of the premises or a sneak preview of the products. It’s also a great idea to encourage people to follow your brand on social media by running competitions and giveaways. Offer a prize and urge followers to share posts, tag friends and family members and spread the word.
Building A Team
If you plan to hire employees for your startup, it’s beneficial to think about recruitment early on to give yourself time to figure out your staffing structure and find the best people for the roles you have available. Tailor your strategy to your business and think carefully about how many people you need to hire, what kinds of skills and qualifications you are looking for and the type of people you want to employ. If your business is seasonal, or you want to start with a very small team, you could consider outsourcing or offering short-term, temporary jobs. When you are ready to start recruiting, use interviews to get to know candidates and look for people who have personality traits and values that complement your company values and ethos.
Millions of new businesses launch every year. Statistically, startups are more likely to fail than succeed. It’s not always possible to beat the odds, but taking these essential steps before your company launches can help to reduce risks. Make sure you are aware of the legalities and processes involved in setting up a new business, create a buzz, figure out your finances, define an ideal buyer and give yourself sufficient time to build your team.