Tips for Building a Successful Business From Scratch
Starting a business from the ground up can seem overwhelming. Especially when you begin to break down all of the steps involved - but that shouldn’t deter you from reaching for your goals and getting on the right track toward successful entrepreneurship.
Today on the blog, we’re revealing the top tips for building a successful business from scratch.
No matter what business you’re in - or specific industry you’re involved in - there are some general “rules” for business start-ups and entrepreneurial planning. These “rules” are not set in stone, but they do provide an excellent foundation of initial steps and proven strategies for getting started on your new business journey.
Make a business plan
No doubt you’ve heard the saying, “if you fail to plan then you are planning to fail” - and this couldn’t be more true, especially when it comes to business start-ups.
Your first step? Making a business plan.
A good business plan should outline the kind of business you are building, your specific mission plan for the business and the professional services you are going to provide.
More specifically, the following items should be included in any good business plan:
An executive summary
A company description
A market analysis
Outline of the management and organization
A list of your products and services
A clear understanding of your target demographic
A marketing plan
A logistics and operations plan
In the case of some business start-ups, you may not (yet) have the answers or particulars in order to thoroughly outline all of the above items.
That’s okay! Remember, this is a marathon, not a sprint.
The first step is to simply begin considering all of these components and doing the research and due diligence required to ensure you are covering all of your bases in your planning before you begin taking action. Don’t rush this part of the process. Allow yourself the time and space to do a thorough job in drafting and finalizing your business plan, as this will represent the blueprint for your business.
Having a plan will keep you focused and on track at every step of the way. Not to mention, a thorough plan and detailed outline for your business will show potential investors that you are serious about your business and are approaching this venture with every consideration and the utmost professionalism.
Secure funding
It takes capital to get your business off the ground. The amount of which will vary greatly based on the size and scope of your business, the immediate needs of the business and your own financial health, which will have influence over your ability to secure funding.
There are many ways people will source funding when starting a business, and the avenues they pursue will depend on what their financial standing is, what resources they have available to them, and in the case of using personal funds, their comfort level with managing the potential financial strain or risk of loss that comes with these kinds of investments.
Here are a few methods of sourcing capital when starting your business:
Personal investment - Using your personal funds to support your business’ early growth is always risky, as the strain of financial investment is now coming directly out of pocket, and the risk involved can leave you feeling an overhead pressure that could impact your ability to focus your energy on growing the business.
“Love money” - This refers to money gifted/loaned from family and friends. Bankers refer to this as “patient capital” because of the flexibility in repayments (though the downside here is that friends and loved ones may not have enough capital, not to mention the potential for those gifting/lending the money to have an expectation of some stake or equity in your business).
Venture capital - This term is in reference to people or companies who are looking to invest in companies where they see growth potential for the purpose of return on their investment. This type of financing will offer the most capital, but comes with risk as well. The investors typically have conditions to their lending which include affording them an active role in the company, which generally means claiming ownership of part of the company.
Surround yourself with the right people
The company you keep will have a massive impact on your business, especially in its early days. Surrounding yourself with the right team to develop and launch your business will give you - and your business - the support network it needs to thrive.
The early days of any business are often fraught with challenges and stressful days, and having the right people on deck can make the difference in maintaining morale and momentum or succumbing to the pressure.
Find like-minded individuals who are not only experienced but also enthusiastic about your industry and who not only believe in the business but feel invested in seeing it succeed.
Follow the right legal procedures
It goes without saying, having legal counsel at every step of the process when building your business is imperative to its success - and your sanity! There are so many legal facets to consider when you are building your business, ranging from branding to operations - and understanding your legal rights and obligations throughout is critical.
Establish a location
Every business requires a home base - a hub of operations and headquarters. Even if your business is to be remotely run, you will need to identify some form of address as your business location when registering it.
In the case of a non-remote business, finding a location will be a major undertaking, and represents one of the biggest early expenses for your business.
This is where you’ll want to seek the guidance and expertise of a real estate agent who understands your specific needs in sourcing a location. A realtor who is experienced in locating commercial/retail properties for businesses and business owners will have specific insights into aspects of your search you may have overlooked, and will be able to help you navigate your search seamlessly.
Develop a marketing plan
Successful entrepreneurship is about building your business - and effectively marketing it to your customer base.
A marketing plan should consist of an outline of your planned marketing and advertising schedule, typically spanning the first year. The plan specifies how you intend to reach and entice your customer base using action steps and goals.
Build your customer base
Building your customer base can be challenging at the start.
Business and brand exposure is key. Get your business online and be sure to create relevant and carefully-curated social media accounts to make your services visible and easy-to-find for potential customers. Initial promotions and influencer-collaborations are also a great way to gain momentum, build up some positive Google reviews and give your business an identity online.
And don’t be shy about asking friends and family members to help spread the word. If they are as excited about your business as you are, they’ll only be too happy to help get the word out. But you have to be willing to ask and put yourself and your business out there!
Once you get the ball rolling in amassing your clientele, with consistency in your efforts, you’ll find your customer base will continue to grow organically.
The most important thing is to remain optimistic, even in the face of a slow start as far as customer interest. When you’re new to the industry, building up your client base, reputation and experience to stand out amongst competitors can prove challenging, but don't forget: you’re at the starting line, just like every business that came before you. So remember: stay the course and stick to the plan - you’ve got this!
Plan to change
As steadfast as you may be in your original business plan, goals, schedule and desired pace of growth, you will often find that success lies in your ability to roll with the punches. So re-adjust your plans as needed - and where it calls for it - change it up.
Flexibility in your planning is key. Leave room for change - always, and in all ways. This doesn’t mean you should modify your business goals, your company’s mission, or your professional values and integrity. Leaving room for change is all about being open to, and expecting, that somewhere along the way, you’re going to need to change up the plan and strategy in response to the feedback you’re getting, and as a means to arriving at those same original goals, albeit via a modified route.
The destination shouldn’t change, but you should expect a few detours on the way - it’s all part of the journey!
In conclusion
Starting a new business is a major undertaking, and should be entered into with detailed planning and thorough consideration. Being an entrepreneur is not an easy path, but it’s a worthwhile one.
Have confidence in yourself and your business - and then get out there and make it happen!