So you have a product or service you want to bring to the market?
It’s official. You’ve set your sights on launching a startup business. Where do you go from here?
Running a company can be stressful, especially when you are first starting out. You may be asking yourself, “Where do I begin?” or, “How do I reach my perfect customer?” With limitless things to consider, it’s no wonder many entrepreneurs feel overwhelmed when starting their own business. Don’t worry, with a little planning, you and your startup can stay on-task and work toward building your business.
Speaking of planning – one of the most important things you can do is to create a detailed plan. This should include your overall vision for the business, your goals and objectives, and your strategies to reach them. You should also think about how you are going to market your product or service. This includes researching your target market, developing a pricing strategy, and creating a marketing plan. Additionally, you should consider the legal aspects of running a business. Make sure you research the laws in your area and consider hiring a lawyer if needed to protect your interests. Finally, you should create a budget and set aside time to regularly review it. This will help you make sure you are staying on track and that your business is operating within its means. With a little preparation and planning, you can make sure your startup has the best chance of success.
Let’s break down a few of these key steps further:
START WITH A PLAN
It may sound cliche, but never underestimate the power of a well thought-out plan. When developing your business, it is important to focus on the fundamentals. You should develop a clear mission statement, set achievable goals, and ensure that your business plan is realistic and achievable.
Additionally, it is essential to think about how you will acquire customers, develop a marketing strategy, and build an effective team. Once these fundamentals are in place, you can focus on scaling your business.
BUILD OUT AND RELY ON SYSTEMS
A plan will help you reach your goals; systems will make sure you get there.
With a plan in place, you are ready to embark on your new startup venture. To ensure you stay on-task and focus on the most crucial areas of growing your company, it is important to start building out infrastructure that can not only support your business goals, but make attaining them easier. As your business grows, so too do tasks like administration, finances, communication and more. A successful business will employ systems to manage:
- Invoicing
- Monitor expenses and cashflow
- Technology to streamline operations (e.g. online bookings, task management systems, etc.)
- Email marketing
- Social media content management platform
- Collaboration systems (i.e. Teams, Slack, etc.)
- Payroll
KNOW YOUR CUSTOMERS
Defining your target audience is a key component in researching your startup’s industry. Whether you will engage with customer base face-to-face or entirely online, it is a good idea to know what drives their purchase habits or why they may engage with your services is imperative for your success. Here are some questions to consider when in the early stage of developing your target audience:
- What is my business model? I.e. will your company strive to target other businesses (B2B) or direct to consumers (DTC)?
- What age(s), location, and other demographics make up the majority of my audience?
- What platforms or methods will I use to reach my target audience?
- Does my audience spend a significant amount of time in places? I.e. coffee shops, schools, outdoors, etc.
- What interests do my customers have?
CONDUCT MARKET RESEARCH
Conducting market research as part of your startup business plan is essential. You should research the industry you plan to enter, the current market trends, any potential competitors, and the needs of your target audience.
This research will help you to identify opportunities to provide value and differentiate yourself from your competitors. It will also give you an understanding of the current market conditions and any gaps that you can fill with your business offering. Additionally, you should research the available resources that can help you to get your business off the ground, such as relevant government initiatives, grants, and other financial assistance. Finally, make sure to research potential strategies for marketing and advertising your business to ensure its success.
DETERMINE YOUR MARKETING BUDGET
Once you have taken care of all the details and finalized everything, it is time to launch your startup. To reach the people you want to target and increase your business, you need to start implementing marketing strategies and activations.
To do this, it is essential to determine the amount of money you are willing to invest in your marketing budget. This will help you determine the scope of marketing activities you can undertake, the type of marketing campaigns you can launch, and the amount of time and resources you can dedicate to it. With a well-defined marketing budget, you can ensure that you are making the best use of your resources to reach the right people in the right way.
ASSESS THE RISKS YOUR STARTUP FACES
All businesses face risks in their day-to-day operations. Depending on the type of business your company conducts, it is crucial to identify where your new venture is exposed. Working with a licensed insurance broker to help walk you through a complete risk analysis can help you mitigate risk and potential exposure while setting your business up to be protected, should a worst-case scenario happen.
When you go through the risk management process, you are being proactive in anticipating and identifying potential peril (ie claims). Reducing exposure provides the opportunity for your new business idea to skyrocket, without the worry of would-if. In the event a risk arises, having the right coverage included in your insurance policy can assist in the recovery. Ensuring there are as few as possible interruptions to your company so you can focus on what matters: building your business.
Additionally, you should stay informed about the changing legal landscape and make sure that your business is up-to-date with any new regulations or requirements that could affect your operations. By doing this, you can help to ensure that your business is in compliance and that you have the necessary protections in place should something go wrong. With the right insurance coverage and risk analysis in place, you can rest assured that your business is prepared for the future.
(Fun fact: Our quarterly newsletter helps you do just that! It includes seasonal information, insights, updates on trends, and news we are seeing when it comes to insurance for you and your business – all to help you make informed business decisions. Sign up here!)
