When trying to start a new company, many entrepreneurs rush in without adequate company planning. This is why approximately 90% of new businesses fail and only 50% get to see their fifth year.
But, what do you need to consider in your company strategy to be successful?
In this article, we discuss what you need to consider to start a company. From marketing the value of your business to hiring staff, there’s a lot to consider. Continue reading if you want to start your business off right.
1. What Do You Have to Offer?
When you start a company, one of the first things you should consider is what you have to offer prospective clients. You may have a product or service in mind already but you need to create a strategy that sets you apart.
Your vision of the new company may be clear to you — but will others see the value in it? If you’re not sure, create a plan to make your vision and the value of your company obvious.
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2. Who Is Your Audience?
Once you have a solid company strategy, consider who you’re marketing to. Your product or service won’t benefit everyone, so you shouldn’t market it to everyone. Instead, decide who you think is likely to purchase from you.
Consider investing in market research at this point if you’re able to. Market research will help you understand current trends and who is most responsive to your business. It can also help guide you to make needed changes.
3. What Do You Need to Get Started?
Invest time in company planning to determine everything you need to get started. Doing this before diving into your new company can prevent you from feeling unprepared or overwhelmed later.
This includes supplies, bank accounts, office space, staff, and more. As you’ll learn in business fundamentals bootcamp, having the right tools early on can help promote future growth and facilitate changes as needed.
4. How Will You License Yourself?
Depending on the industry of your new company, you need to obtain a federal, state, or local license. In some cases, you may need a combination of these. A business license allows you to operate your company legally.
It’s also important in creating a company strategy because it offers you some protection. When you operate as a business, your personal assets are separate from your business assets. This can protect you if a client sues.
5. What Is Your Accounting Strategy?
When you create a strategy for your company, accounting should be near the top of the list. You’ll need to keep your business and personal expenses separate so that they’re easier to distinguish from one another.
This is important for your finances, your taxes, and your legal protection. It also helps keep you informed of the status of your business. Investing in an accountant or an accounting and financial reporting system can be helpful.
Start Your New Company With Confidence
Starting a new company requires thoughtfulness and a good company strategy. Use the above tips to start company planning and set yourself up for future success.
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