As a new business owner, you surely want to see your business succeed by witnessing your customers enjoy your product or service. However, starting a new business is a challenge that few people overcome. In fact, 20% of new businesses will fail within two years of starting up, followed by 45% after five years of being open. To avoid seeing your new business fail after just getting it started, use the following ten tips:

1. Conduct marketing research to determine the need for your product or service

Every business believes that its product or service is the best in its field. However, a harsh reality of doing business is accepting the fact that your product may not be desired by consumers. This is why you need to conduct adequate market research before investing a large sum of money into your business.

Start by discussing with friends and family to see if your product is desirable. From this point, gather information from customers and businesses within your niche to see what makes the product they have so successful. You can then use this research to finetune your product in such a way that you know it will be desirable while also building a competitive edge.

2. Create an effective business plan you can stick to

All businesses need to develop a business plan if they hope to be successful. For those unfamiliar with the term, a business plan is essentially a map for how your business will be structured, who will be running the business, and how you will grow the business over time. Information such as employment structure, management structure, descriptions of the product, how the product will be sold, and much more will all be included in a business plan.

3. Consider different ways to fund your business

Getting your business up and off the ground will require capital once you are ready to launch. Given that most companies start privately, a private equity firm that specializes in venture capital investments is probably the best strategy. Alternatively, investments from friends and family, as well as your own funds, may be enough to get the ball rolling.

4. Create a business structure and name

All businesses need a name that is recognizable around the world, yet this is also one of the most challenging aspects of creating a business. Consult with family and friends to see if there is a unique name that resonates with everyone based on your product or service. Additionally, you need to determine how you will structure your business. For example, consider whether it will be a sole proprietorship, partnership, or corporation. There are financial benefits to structuring an organization in certain ways, so explore all of your options before settling on a type.

5. Locate office space for your business if you have employees

If you plan on having employees in the future, even if it’s only a hundred, you will need an adequate workspace. For perspective, that coworking in The Woodlands can find office spaces dedicated for entrepreneurial communities. These spaces come with seating, desks, whiteboards, and meeting rooms that can be effective for any type of business.

6. Register your business and get tax information

When your business really gets going, you need to register it with the government for tax purposes, otherwise you can run into legal trouble. However, registering your business isn’t just for tax purposes, but also for protection. By registering with the government, you protect your unique brand, chosen name, and product. This means that it becomes difficult for other people to steal your brand in the future.

7. Get a business bank account up and running

Following up with registering your business, you should also set up a business bank account so that you don’t mix up personal funds with business funds. Choose an account that offers you the most benefits based on your business. Additionally, keeping your business funds separated in a business account will help when tax season comes around.

8. Hire experts rather than a jack-of-all-trades

As you start to think about bringing employees into the fold, you will need to consider how many people to hire. While it can be tempting to cut your costs by hiring only a single person who appears to have expertise in a number of fields, that person will be less efficient. Reach out to multiple experts who can head up different divisions in your organization, rather than relying on a single person.

9. Run test trials in your chosen market

Similar to conducting market research, it’s also important to run test trials in your niche. This means taking a small sample of potential customers within your niche and allowing them to try your product or service so that you can get real reviews. Once you have these reviews, you can list the thoughts your customers provided and use those reviews to convince others that your brand is legitimate.

10. Be passionate about whatever you’re doing

Finally, all business owners need to be passionate about the product or service that they offer. By having passion, you will not feel burnt out building up your business. On top of this, all customers love to see a business owner who genuinely cares about their business and the relationship that a business has with its customers. Remember that for every bad day your business has, there will be a good day on the horizon if you are willing to put in the time and effort.

Build a long-lasting business today

All business owners should have the goal of seeing their businesses survive and thrive for years to come. However, the first few years of starting your business are bound to be difficult, which can make powering through seem impossible.

Use the above ten tips to set yourself up for success but remember that they are just the tip of the iceberg. To succeed, you will need to dedicate everything you have to growing your business over time by connecting with your customers and perfecting your product.