5 Key Steps to Succeed in a New Business

Did you know that as of 2016, American entrepreneurs opened 4.8 million startups and at this rate it is estimated that every one in the US with have their own startup by 2040 ?

If you have a unique business idea, consider developing a startup!

However, you must also keep in mind that 9 out of 10 startups make fatal mistakes and fail!

So, what are the ways to be among the 10% of the startup founders who succeed and grow to the next level?

The first and foremost key to success is constant learning, i.e. you must not stop learning at any point. Learn the methods, trends, industry stats and upgrade yourself.

This learning is a constant process, and once you are on a learning track, you will find your own way. This article will discuss the five key steps to start this process of learning!

Let’s see what these five key steps are:

1- Start With a Business Plan

You need to create a thorough business plan before you can move forward. Include a profit-loss forecast, a cash-flow analysis, and a break-even analysis.

Outline the cash-flow analysis because you might sell your product but not get paid for up to six months. This could shut your business down.

A business plan will be a helpful tool when you seek support from investors. It will show you have a strategy set in place for your idea.

2- Make Sure You Protect Yourself

Most small businesses are either partnerships or a sole proprietorship. These businesses are easy to form, but the owner could also face liability for business debts. A creditor can come after assets like your home or savings account.

Having insurance can lower this liability. It’s also worthwhile to form a limited liability corporation. Another option is looking into creating a corporation. These business structures will protect owners from personal liability.

3- Take Small Steps

A lot of people dream about their business becoming super successful. You may want to open in various locations, but you have to start small before you reach this level. Don’t take on too many expenses.

By starting small, you can make sure you survive any hiccups at the beginning. If you’re an entrepreneur with a modest operation, you can learn and recover from mistakes. This way, you don’t have to take on a ton of debt.

4- Take Time Hiring People

Don’t hire the first person that you meet. Look for an individual who is creative, motivated, and will fit well with your business. Ideally, the right candidates are those who have the potential to grow your business to the next level!

Once, you find the right people, make sure you support these new hires with necessary training, and better workplace environment so they can thrive in the new setup and help you move to the next level!

5- Stay Competitive in Your Industry

Make sure you protect your trade secrets. This way, you won’t give any of your competitors an advantage in the marketplace. There are many different kinds of trade secrets.

These secrets can receive legal protection, as long as you take the right steps to keep them guarded.

Mark documents that are confidential or ask employees to sign nondisclosure agreements. Keep your information secure and look into colocation options.

Stay proactive. If you know that your business will face some challenges soon, start making a plan. This way, you can work with your employees to figure out how to resolve any issues.

The Bottom Line

Succeeding in a business requires you to have hold of multiple areas of business, i.e. finances, marketing, sales, human resources management, business tech and security. The bigger a business grows, the bigger challenges it brings for the founder and the only way to meet these challenges of keep the learning process on going!