5 Essentials of Startup Success a First Time Entrepreneur Should Know

Every new entrepreneur is excited about his very first venture, but some get overwhelmed. There are too many things that need careful attention and you find it difficult to decide what you need to do yourself, and what should be delegated.

Well, with an actionable business plan in hand, you can easily sort things out, and this article will discuss five major areas you should focus while getting started.

1- Consider the Business Taxes

When the time comes to pay our taxes, we need to be very clear about what part of the central business is and what will be declared as part of our tax dorms. In other words, we need to know the difference between what an LLC is and what is a disregarded entity in the eyes of the IRS.

If you are certain that you can handle this efficiently, that’s a big plus, but if you are unsure, ideally you should look for a tax advisor to clarify these issues, right from the beginning.

2- Have an Inspirational Startup Story

Being a startup, there are many things stacked up against us since we are the rising star on the block and a startup has to learn from others that have already demonstrated success in the business world. The first element of success is a strong and compelling story and is part of your startup essentials package.

Whether it is selling bubble gum or hair spray, people what to hear some story that inspires them. Like the thriller movie, the consumer is not interested in the bad guy who is caught, but how the good guy figured him out. 

In business, it is important to be able to communicate a compelling story of how you got to where you are today. Was it grandma’s favorite recipes found in the safe that was left in the abandoned Civil War plantation, or Uncle Lester’s first set of tennis shoes he cobbled as a young boy in the old country until he escaped the war and came to America seeking freedom from a renegade government. Then he and Aunt Peggy settled in Baltimore and opened a small custom made shoe store to make a few extra dollars?

A compelling story is a story that makes an emotional connection with the customer, and the customer can identify with the same values they already have and want to support the product.

3- Look for a Mentor

Just like how we sometimes all need a little help from friends, so a good business needs excellent advisors and consultants to keep it on track. One person with good business sense is worth a whole dozen who don’t have experience. A good mentor or an advisor will guide you through the difficult decision making situations.

4- Building the User Base

Not only are customers important for getting you off the ground, but also for keeping you in business. If through your marketing campaigns you can find 10,000 customers who get your brand, you have a goldmine. Your best customer can come from anywhere.

Treat your customers the best possible way, get to know their needs, thank them for their contributions, and, most especially, give them what they are looking for in a product that will make their lives better. Whether it is a corporate or a home startup, customers are the core of your business.

5- Know When & How to Fund Your Business

There is no business without investment from an angel investor or a significant investment from a venture capitalist. Both investments are tremendous and can bring you from anonymity into the landscape of startup success.

Today, it is said that no startup can be successful by only private funding. It takes enormous amounts of money to get very far in a startup world and that means having to share your company with investors. You get to stay in business with their influx of cash. Listen to investors and they will bring you to a place where you can reach heights of success.

Lastly, success comes with hard work, and as Arnold Palmer, the great golfer once said, “The harder I work, the more luck I get.” Of course, Palmer was referring to the fact that there is no substitute for honest hard work and dedication to your business and your customers. If you are giving the first two elements, your customers will come. Your products will move them to see the value behind them and that is where the luck comes in.

The Bottom Line:

Building a successful startup is a long term process; it doesn’t happen overnight. The above five are the core areas to start with, but that’s not all about success roadmap. You need to strategize your every move based on the results of your previous moves and keep tweaking your strategies. Always be ready to learn new things and grow yourself with your startup!

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