Many people are drawn to the idea of owning their own company and building a business from the ground up.
Although some eager entrepreneurs take that ambitious first step and succeed, 20 percent of new businesses fail within two years, 45 percent within five years, and 65 percent within a decade.
According to the U.S Bureau of Labor Statistics, only 25 percent of start-ups manage to stay afloat after the 15-year mark. Luckily, there are a few ways you can improve your chances of success. Here are five essentials your new business needs to thrive.
1. Find Your Niche
Many people combine their passion with their work and pursue a career that involves an existing hobby. These lucky few possess a genuine interest in their niche and already have some knowledge of the business.
Some may have acquired a certain skill set and can provide professional services as a consultant, while others start completely fresh. Whichever route you decide to take, it is essential to do your due diligence and research the market.
2. Market and Industry Knowledge
One thing that will increase your chances of success in a saturated market is knowledge of the said market.
Having an understanding and some knowledge of the industry and market you wish to begin a new business in is a surefire way to ensure your venture has a leg to stand on.
It is easier to find an opening in an existing market for your product or service rather than creating one and trying to fit it in.
3. Write a Business Plan
Every successful business owner needs a well-thought-out business plan if they want their business to get off the ground. Considerations to make include the business’s estimated income and expenditure and unforeseen circumstances.
After doing your research into your chosen industry, you should have gained insight into how much capital you need to realistically keep your business afloat.
Many entrepreneurs require a loan – work out your initial start-up figure, how much money you will need to keep your business going, and all overhead expenses.
4. Necessary Finances
It is no secret that starting a business requires money, and making it a success requires ongoing capital funding. As mentioned above, many business owners require a start-up loan to get them going for business expenses.
These expenses include website costs, basic supplies, technology, labor, and office rental costs. In addition, you also need to calculate incorporation fees and the cost of business insurance too.
Incorporating a company and getting it insured are both great ways to protect your assets. For commercial insurance quotes, visit the KBD Insurance website.
5. Develop a Strong Brand
Building your brand and marketing your business can help get your start-up off the ground. A strong brand identity can help get your product and service in the forefront of your targeted consumers’ minds.
It enables you to convey a message that resonates with customers, and creating a trustworthy brand will help you stand out from your competitors.
