Everyone has ideas. While some might be worth a run together, others probably just aren’t that good.
However, even if your project looks great on paper, there is a big difference between it and creating a project. Successful startup company.
Do you have what it takes to be an entrepreneur?
If your answer is yes, you need a detailed guide on how to start a startup.
For those of you who have not started a business before, it may seem like a daunting task.
Don’t get me wrong – I’m not saying bringing your startup to life is an easy task.
Hard work, dedication, money, sleepless nights, and some failures before they succeed.
About 20 percent of businesses fail in the first year, and having done so for more than 12 months doesn’t mean your startup will continue to thrive.
According to government statistics, 30.6 percent of businesses fail after their second year, 49.7 percent fail after five years, and 65.6 percent fail after their tenth year.
Once you’ve started your company, things don’t come easy: you must put in the same hard work year after year to keep up.
However, it is helpful to have a guide to learn and a set of instructions to follow. How to start a startup.
When I write about starting a startup, I discuss my personal experience. I’ve created a few startup companies like Crazy Egg, Hello Bar, and NP Digital.
I am happy to share my knowledge and experience to make things easier and less stressful for you as you go through this process.
Realistically, this would require hundreds of stages. Start your company, but if you want to learn how to start a startup and create and develop your own business, I’ve made the first seven steps a blueprint for you to follow.
In the article below, I outline and discuss each step in detail so you can better understand what I’m talking about.
Let’s start with the basics.
1. Create a Business Plan
Have you heard the saying, ‘If you fail to plan, you plan to fail’? That was the thought of Founding Father Benjamin Franklin.
Well, research seems to back that up. Study after research shows that businesses with a plan are more likely to succeed. In addition, you can find many articles explaining the spelling rules—the importance of the business plan.
However, the Small Business Development Center at Duquesne University explains it succinctly :
“A business plan is an essential and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary to make their business idea successful, but it also helps them achieve short-term and long-term goals.”
Pretty simple. Having an idea is one thing, but having a legitimate business plan is another story.
A proper business plan gives you a significant advantage, but what should you include in a business plan? It helps if you consider it a written description of your company’s future. You outline what you want to do and how you plan to do it.
Typically, these plans outline your business strategy’s first three to five years and detail your business purpose and goals. Ideally, your document should outline your business goals, processes, and plans to achieve them.
The basic steps to writing a successful business plan are:
- Outline your business goals
- Define your target market
- Describe your product or service
- Detail your marketing and sales strategies
- Write down your financial forecasts and detail the finances
- Summarize your overall strategy
If you need help with your plan, Small Business Management has an easy-to-follow guide and some templates.
2. Secure Affordable Funding
Without adequate funding, your business will not start or survive in the long run. According to Statista, in 2021, there were approximately 840,000 businesses in operation for less than a year. Many of these startups will not survive because they underestimate business costs.
Perhaps you are wondering what level of financing you need. When collecting cash, there is no magic number that works for all businesses. Startup costs vary from industry to industry, so your company may require more or less financing depending on the situation.
Costs also vary depending on whether you are an actual store, e-commerce, or service business. If you’re not sure how much you need, try it. SBA’S startup cost templates to get a better idea.
Once you have a clearer picture of the costs, where do you get the funding? These days, most Startups raise their funds :
- You can apply for online startup loans and pay them back with interest over time.
- SBA microloans provide loans of up to $50,000 for startup businesses. Its main advantage is low-interest rates.
- Lines of credit, a type of loan available in both secured and unsecured formats.
- Invoice factoring/financing is a process in which a business sells invoices to a third party at a discount.
- Friends/family/personal loans that are unsecured.
- Business loans you repay over an agreed period.
- Angel investors who have substantial wealth and provide seed financing to startups.
- Crowdfunding is where you raise money online from a group of investors.
Let’s go back to our business plan for a minute.
All business plans include a financial plan. This usually includes:
- Balance sheet showing your business’ assets, liabilities, and company’s equity.
- Sales forecast that predicts future sales.
- A profit and loss statement detailing your earnings and spending patterns. This figure helps you calculate your net income.
- Cash flow statement or financial statement detailing how much your business spends and produces.
You use these financial statements to determine how much financing you need to launch successfully. Additionally, you may discover that the number is much higher than you originally anticipated.
For example, I’m sure you’ve heard someone say, “This would be a great app,” or “I have to make an app for this.”
Do you know how much it costs to make an app? Depending on complexity, anything between $40,000 – $300,000 you’re looking at is just for making it.
Does not include operating costs or customer acquisition costs.
My point is this: You need to find out how much money you need to get the proper financing.
You should research and forecast realistic financials in your business plan to find this number.
Let’s say you discover that your startup needs $100,000 to get started.
What if you don’t have $100,000?
You have some options like bank loans and commercial lenders, and that’s how many small businesses go. However, banks are less likely to issue large sums of money to startups with no income or assets to default, making it harder for your typical startup to find the financing it needs.
Don’t worry; your dream isn’t dead yet. You can find investors. It could be:
However, whichever method you use, proceed cautiously because you don’t want to start allocating significant equity in your company before the launch.
Then, if you’re lucky and you find a potential investor, you need to know how to present your idea quickly and effectively. Here are some tips to help you do this:
- Memorize your financial numbers; Make sure you understand them inside out.
- Look at your business plan and make sure your financials cover the costs.
- Make sure your business plan is presentable to give potential investors a copy.
- Practice and perfect your pitch.
One more thing: Your business plan must have an appropriate executive summary to attract busy investors.
Once you have the proper funding, you can move on to the next step of how to start a startup business: finding the right people.
3. Surround Yourself With The Right People
Nobody does it on their own. William Proctor might not have been a high-profile, successful businessman had he not met James Gamble.
Where would we go for advice if Larry Page hadn’t met Sergey Brin? It’s not Google, that’s for sure.
But what if Ben Cohen never met Jerry Greenfield? One of the world’s most famous ice cream brands would be rejected.
Even if you already have a co-founder, you need some core staff.
Where do you start? According to Business News Daily, there are eight that your startup needs:
- CEO and COO. They develop a vision between them and put it into action.
- The product Manager is responsible for launching a product from the development stages.
- Chief Technology Officer works with executive members to oversee the technical side of a business.
- Chief Marketing Officer whose job involves creating and executing a marketing strategy.
- The sales Manager manages customer relationships, sells products/services, and motivates the team.
- Finance Director who works on a company’s financial planning and decisions.
- Business Development Officer. This diverse role includes preparing a business plan, securing financing, and creating client/relationship finance.
- Customer Service Officer who assists customers with questions, complaints, and product information.
However, your business structure depends on the industry, so take an authentic look at the above.
Hiring an entire team is often unrealistic when you’re just starting, and you’ll find yourself wearing a few work hats. This is ok to some extent. Remember to play with your strengths and outsource if you can’t afford to hire.
However, there are some experts you should consider essential, including:
- financial advisor
Unless you’re an expert in law, finance, and accounting, these three can help your business save money in the long run.
They may explain legal requirements and tax obligations depending on how you structure your business. For example, one could:
- Sole proprietorship
- Limited company
While your attorney, accountant, and financial advisers aren’t necessarily employees on your payroll, they are still essential people to surround yourself with.
Finally, don’t forget the basics of starting any company for this part:
- Register your business name.
- Pre-Approval federal identification number from the IRS. The IRS allows you to submit your business information online to obtain your employer identification number (EIN).
- Be insured: Shop around and find an insurance agent who can provide you with ample coverage at an affordable price.
Now that you have staff, you need to start working on a website and find a place to base your business.
4. Find a Location and Build a Website
Now you’re ready for the next step in how to get started with a startup plan: finding a physical location and setting up a website.
You need to buy or rent a property to run your business, whether it’s an office, retail space, or manufacturing location.
If you’re not working from a home office, your two main options are leasing or ownership. It often works on a more expensive long-term basis than leases; however, do not base your decision solely on costs. Renting and ownership both have their pros and cons. Look at the whole picture before making a decision.
I appreciate that it may not be realistic for all entrepreneurs to tie most of their capital to real estate.
Set a strategy for this in your business plan and try to secure enough finances to afford the property purchase. It’s worth the investment and can save you money in the long run.
Let’s start a website.
Today, your company cannot survive without an online presence. Don’t wait until the day your business officially launches to bring your website to life, and remember, it’s never too early to start promoting your business.
If customers are looking for an online service related to your industry, you want them to know that you exist, even if you are not yet fully open to your business.
The beauty of an online presence is that you can get started through your website before you find a place to generate some income. If appropriate, start taking some pre-orders and scheduling appointments.
For those of you who are not convinced of the pre-orders business model, many startups are successful with it.
Here are some tips on how to launch and promote a successful website:
- When designing a website, it is essential to keep the user in mind. The layout of the website should be easy to navigate and use. Colors and fonts should not be pleasing to the eye.
- Make your website visually appealing. Use eye-catching visuals and dynamic designs to make the website stand out from the competition.
- Keep website content fresh and updated to keep users returning to your site. Your website is the ideal place to keep your audience updated with a look inside your company, product launches, and details of your workplace.
- Another essential thing to keep in mind is usability. Your site should be easy to use on all devices, from desktop computers to smartphones and tablets.
Finally, make sure that your website is fast.
I cannot stress this point enough.
Combining all these elements may sound complicated, but it’s not that difficult. Just focus on one task at a time, and you’ll get there.
Once your website is up and running, you need to expand your digital presence. To do this, use social media platforms such as:
- Tick Tock
Your potential customers use these platforms, so you should be with them. However, when choosing a platform, ensure you go where your primary audience is. For example, TikTok may be ideal targeting a younger market.
5. Become a Marketing Expert
You need to be an expert if you’re not a marketing expert.
You may have the best product or service in the world, but your venture will not be successful if no one knows about it.
To start spreading the word, you must learn how to use it. Techniques such as digital marketing :
- Content marketing
- Affiliate marketing
- Email marketing
- Search engine optimization (SEO)
- Social media marketing (SMM)
- Search engine marketing (SEM)
- Pay-per-click advertising (PPC)
However, some of the traditional methods can still work if you’re starting a small business in a local community. Think:
- Print advertisement
- Radio ads
While some argue that outbound marketing efforts are not that effective these days, research shows that cold emailing and calling still work well.
For those of you who aren’t effective marketers, there’s no shame in hiring a marketing director or even a marketing team, depending on the size of your company.
Your marketing efforts will be one of the most important. The most important components of starting your startup business. To increase your chances of success:
- Set aside a marketing budget.
- Determine how you will distribute this money to different channels.
- Make a plan and try to maximize your return on investment for each campaign.
Consider these numbers before you spend your entire budget on something like banner ads.
The bottom line is this: The highest priority for a Startup of Marketing is company p.
6. Build a Customer Base
If you’re following this plan in order, the good news is that you’re already on the right track to building a customer base.
Launching a website, growing your digital presence, and becoming an effective marketer are all steps in the right direction. However, now is the time to put these efforts to the test. This means:
- Opening your doors (or website) for business.
- Getting a customer to make a purchase is the first step.
- Retaining customers.
There are three keys to customer retention:
- Customer service
- Customer service
- Customer service
It’s not a secret. these Customer Needs to be your main priority. These are the lifeblood of your business and need to be treated accordingly.
Once you have a stable customer base, you can use it to your advantage.
You will earn more money from PC existing customers than new ones.
It is a more effective method than cross-selling.
Less than 0.5% of customers respond to cross-selling.
More than 4% of your customers will make additional sales.
Both of these strategies come back to being effective marketing campaigns.
Overall, building, building, and maintaining a customer base will help get your startup company off the ground.
7. Prepare for Anything
Expect the unexpected.
Starting your startup company will not be easy and you have to plan for some obstacles along the way.
Don’t let these speed bumps turn into roadblocks.
Don’t get discouraged when something goes wrong.
Protect and go through.
The challenges you face when starting your startup company help prepare you for the challenging road ahead.
Even after your business is up and running, sailing doesn’t have to be hassle-free. the entire lifecycle of your company.
As shown above, you experience ups and downs as your company runs.
Errors and mishaps happen.
Some of these will be out of your control, such as a natural disaster or a crisis in the country’s economy.
Employees will come and go.
You will face difficult decisions and crossroads.
Sometimes you even make the wrong decisions.
This is good.
Part of being an entrepreneur is learning from your mistakes.
It’s important to realize that you’ve done something wrong, move forward, and do your best to make sure it doesn’t happen again.
Pay your bills.
Pay your taxes.
Act within the bounds of the law.
As long as you do these, you will be able to tackle any hurdles your startup company will face in the future.
How Do I Start a Startup?
Where Can I Get Startup Funding?
There are various sources such as personal finance, banks, crowdfunding, friends, family, angel investors, and venture capitalists.
Do I Need a Website to Start My Startup?
How Can I Use Marketing To Start My Startup?
Let’s summarize again.
Starting a startup company is not easy.
First, you have to determine if your idea is worth turning into a business, then you have to determine if you have it. What it takes to be an entrepreneur.
The percentage of entrepreneurs in the United States is growing stronger and each will face challenges along the way.
However, having a proper plan to follow helps to simplify the process. You can learn the basics of starting a startup by following the seven steps and tailoring them to your needs.
However, most successful businesses start with validating an idea, creating a comprehensive business plan, and securing adequate funding. Without proper financial planning, your venture doesn’t stand a chance.
Then surround yourself with the right people and play to your strengths.
For example, if you are good at organizing and motivating, focus on that; If marketing isn’t just you, have a professional do it.
Don’t forget lawyers, insurance agents, and accountants to get your business in order, and make sure you have essentials like an online presence.
Starting your venture is a flawed journey and you need to prepare for unforeseen circumstances. However, proper planning and implementation help limit these hurdles and get your business started quickly.
How will you raise finances to get your startup company off the ground?
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