Launching a startup is no piece of cake. Starting a company from scratch and making it successful is exceptionally challenging in today's competitive market. In fact, a report by Fortune found that nine out of ten startups do not survive.
So what’s the secret to launching a successful startup? If you want your startup to be successful, you have to be passionate, devoted, and willing to work for the long haul.
Here are the top five tips on how to launch a startup that can give your business a stronger chance of succeeding.
Step #1: Have a Solid Business Plan
The first and most crucial step is to create a solid business plan. Remember, having a great idea is entirely different from having a legitimate business plan. Making a proper plan for your startup can provide you with a significant advantage. A survey found that having a proper business plan in place doubles your chances for success.
The business model you make should include your financial sources, business strategies, and future targets. It’s crucial to outline your business objectives and strategies to ensure its success.
Step #2: Find a Partner to Help You
Building a startup requires more than just passion and hard work, and doing everything alone may make the process more challenging and time-consuming. Regardless of the nature of your business, you will need some support. As the founder, you need the help, skills, and inspiration of partners. A business partner is a person who can offer the knowledge you lack to take your business to the next level. So, if you are planning to start a business, you need to look for a talented business partner before getting the company off the ground.
Step #3: Find Investors
One another essential tip you need to keep in mind is finding an appropriate funding source for your business. Money is a necessity for every business, and you need adequate capital to get your startup off the ground. Data also shows that 82% of companies fail due to poor cash flow. Don’t let this happen to your business.
Make a proper financial plan to show investors. This can help you get enough funds to get your startup moving in the right direction. Your business financial plan must include a sales forecast, balance sheet, loss and profit statement, and cash-flow statement. These financial statements can help you find out how much funding you will require to establish your business. There are also non-traditional funding routes you can take, such as crowdfunding.
Step #4: Choose the Right Industry
Starting a business is one thing and making it a success is another. According to a report, the top reason that startups fail is because there’s not a demand for their products. Before investing your time in making a product or service, you should take the time to analyze what your audience wants.
To achieve your entrepreneurial dream, make sure to choose your business industry wisely. There are several promising industries that can offer you plenty of opportunities for success. Some of the industries include artificial intelligence, 3D printing, educational software and online learning, mixed reality, and mobile food businesses.
Step #5: Hire Remote or Contract Workers
Last but not least. Hiring remote or contract workers are a great option for startups. If you hire full-time employees, you have to be ready to consistently pay their salary and benefits, which can be difficult for startups. Hiring freelancers is a smart move to minimize your business overhead cost. With freelancers you can hire based on what you need at that particular moment.
Launching a startup is not easy, in fact, a startup has a lot of moving pieces, you’ll likely have to overcome plenty of hurdles and setbacks to build a steady customer base in the market. But proper planning and execution can help you minimize challenges to grow your startup successfully.