Startups are notoriously known for having different pitfalls at the beginning of their business. According to research, around 20% of businesses fail in the first two years. This number falls until around 25%, which is when only businesses of 15 years exist. The trap is set for brave entrepreneurs who try their luck with only their capital and idea.
All businesses involve some risk. The reality is until you make a profit out of your product, your entire venture is mostly liability. Most successful entrepreneurs will say that breaking even in their first year of doing business should be considered an achievement. Expenses are exponentially higher in the first year. It is the year where expenditures and other costs will spring out of nowhere. Aside from that, inventory will be picked up from nothing. Everything will mostly be negative in your balance sheet.
There is a silver lining to all your troubles, however. You can easily learn all the mistakes others make through listening to experience. There are countless self-help books and guides for would-be business people. Successful people in business regularly give talks about how they made it. Are they just lucky? Which pieces of advice are the most reliable and truthful?
Having a Marketing Plan
A marketing plan is the most fundamental element of starting any business. Worldwide, around 70% of businesses believe in the concept of having a marketing plan. Marketing plans layout the schemes of how your business is supposed to play out. It also helps you understand the risks you are about to take and the possible rewards of those gambles. Like a road map, a good business plan will take you where you need to go. It will dictate your path even if you encounter roadblocks and detours. Your competition and role models should also be propped up in your marketing plan. It also helps your business explore the areas where it can expand and grow if it excels in another product. Marketing plans are definitely a must for startups.
Finding Your Location
Exploring and discovering your business’s perfect place is one of the hardest humps most business people fail to get over. Most businessmen force their way into a bad location. While the timing can be great, forcing yourself into an area where your market is not present will surely spell disaster for your venture. The perfect strategy is never to give in and settle in a location where you can get the most amount of risk. If it is not meant for you to start up in a place where you think you should be, then it is what it is. Location is the most impactful aspect of any business. Building a business in a place where there is no foot traffic of the target market will utterly decimate your plans. Unlike famous businesses where their market already seeks them out and comes to them, smaller businesses need to be more accessible to their target market. Accessibility is the best strategy micro-entrepreneurs can do to get over the hump.
Minimizing Cost but Maintaining Quality
It should be instinctive that minimizing your initial costs should be a priority in starting a business. Capital is always limited for both small and large businessmen. Minimizing expenses left and right should be expected in any new venture. Cutting corners while retaining your final product’s integrity and quality should be the mantra of your business. Seeking out the best mortgage rates before purchasing your desired location is one of the keys to minimizing costs. Actively doing your research regarding your future assets is vital. While cost can be an issue, having durable equipment that will last you a long time is expected. Stretching the value of an expensive asset is cheaper in the long run.
Having Confidence
Confidence in whatever you do is significant to the success of your business. Being confident in your product and actually believing that you can make your plan work is the key to achieving great heights. Your confidence will dictate your motivation and goals. Lack thereof will carve you a pathway to mediocrity. While picking your spots is smart, shooting for the stars is what all businessmen should have in mind. Even if you fall short of your goal, your thirst and passion for your trade will land you in high places.
Getting over the hump is not something a lot of businessmen can do. Even with a great product, an unmotivated driver will get it nowhere. With enough determination and tenacity, startups can brave the storm and be successful.