Launching a startup takes more than just guts. Those who launch a startup without any prior planning or research can find themselves joining the 25 percent of businesses that fail within the first year of operation. Here are five tips to launching a startup right.
Make a Business Plan
You could say this tip is overused in many business-related articles but for good reason. Businesses that have a business plan are proven to have a higher chance of success compared to businesses that don’t have one. For instance, businesses with a well-detailed plan are 18 percent more likely to get approved for a loan than those without one.
Get a Cofounder
It’s not about cutting the workload in half but rather about having someone who sees the exact same vision and has the same level of passion to work on it until the idea reaches fruition. Choose a cofounder whose strengths complement your weaknesses. For instance, if you are good with people but are unable to see the individual technical pieces, find someone who is technically proficient with the product/service or industry.
Don’t Focus on Profits
Making money is, of course, one of the main goals of any business venture, but it’s something you should be thinking less of throughout the day. Instead, worry about what product/service you are producing and bringing out into the world. A great product/service will always find a way to generate profits.
Hire Remote Workers
Most startups launched don’t have the financial backing of a billion-dollar hedge fund or VC. Thus, being resourceful and cost-efficient is key to surviving the crucial first few months in business. Use the services of remote contract workers who are more affordable but equally talented. This also frees you from having to lease a physical office to house full-time employees.
Engage Your Potential Customers
Startups, especially tech-related ones, often focus too greatly on the technical features of their product/service and not enough on who their potential customers are. You’ll need to learn as much about your target audience as you can. For instance, knowing what income bracket they belong in can help you price your product/service more accurately.
Launching a startup can be viewed as a race – the faster you start, the more likely you are to come out first. And to be fast and agile, you’ll need to take advantage of all the resources you can get your hands on.