Research to finance: 6 super start-up tips for new businesses in 2018
Want to make your business idea a reality? Following these six steps will help you realise your ambitions of becoming a successful entrepreneur
Everyone knows that there is a lot involved in starting a new business. It is vital that you get everything right from the beginning if you want your start-up to be a success.
If you’re thinking of establishing your brand this year, here are six super tips to help you get your start-up off the ground.
1. Do your market research
Before committing your time and resources into developing your start-up business idea, conduct extensive market research to determine if there is really an opportunity to turn your idea into a viable business.
You also need to find out if the market is ready to receive your products or services, because, while there is no bad business idea, you could be launching your business at a bad time.
Get information from potential customers, business owners in similar industries and professional consultants. This way, you will gather enough intelligence to develop a competitive advantage in the industry.
Market research will also help you to see a sinkhole in your idea before you are heavily invested in it.
For instance, you might be considering launching an international e-commerce business. Have you considered the state of e-commerce in the countries you might be targeting? The UK may have a thriving e-commerce space but once you begin to look internationally, you have to navigate certain concerns such as regulation, shipping and payment bottlenecks.
You also must consider the permeation of e-commerce in the location. Your marketing spend will not yield the desired return on investment (ROI) if you are moving to a market where e-commerce is still in its nascent stage.
2. Secure financing if you can’t start your business organically
You will most likely need some form of funding to bring your business idea to life. One important process of your start-up is your plans for financing. While some budding entrepreneurs have enough money set aside to fund their business ideas, others need help from investors or financial institutions.
The business bridging loan experts at Bridgingloans.co.uk have offered advice on the funding options available to you:
“At certain points in your project, you may need fresh infusion of cash which may not be readily available. At this point, you may want to consider bridge financing. A bridge financing or bridge loan is a way of obtaining interim or short-term financing for your business until other forms of funding can be secured.”
It always helps if you can secure funding to sort out your immediate business needs such as paying for office property or hiring equipment. You have a wide variety of finance options these days ranging from business peer to peer (P2P) lending, bridging finance, secured business loans and Start Up Loans, so you can make sure that you make the funding choice that is right for your business.
Don’t want to go through the traditional borrowing processes? There are other options.
Crowdsourcing your way to secure finance possible if you have a unique value proposition that will attract would-be investors. A more modern way of doing this is to tap into the cryptocurrency fever and launch an Initial Coin Offering (ICO) for your start-up. The public has spent millions of pounds on ICOs. Why don’t you consider how this method of raising funds can help your new business today?
Depending on your kind of start-up, you can give the public a chance to become partners in your business, without any financial barriers.
The reality, however, is that you are no longer under compulsion to work with traditional high-street lenders.
3. Pick the right team
To position your start-up ahead of the curve in the industry, you need the people with the right skills and expertise. This is why you need to spend a lot of time and consideration when choosing the people that make up your team.
To find the right members for your team, you must be willing to think outside the box. It is not enough to publish adverts for vacancies and then relax.
You must accept the fact that the category of individuals you are looking for are probably already gainfully employed in different places. Give them reasons to join your team. In some cases, monetary motivation is enough.
In other cases, you need to throw in lots of whistles and bells like holiday packages, flexible work hours, a robust bonus structure or a profit sharing arrangement. When you have decided on your deal sweeteners, go out and headhunt.
LinkedIn, Twitter and Facebook provide you with a unique opportunity to easily shoot a “Would you like to join my team?” message. Take advantage.
4. Don’t be afraid of making mistakes
Almost every start-up hits hiccups in their early years. This could be caused by inexperience, mismanagement or unstable market conditions.
This is the usual process and is not special to any one business. The best businesses failed at one point or another and ended up coming out stronger and better. Don’t be afraid to make mistakes. Mistakes help you know how to do better next time.
The only difference between highly successful people and those who are not is the time it takes them to bounce back on their feet after getting knocked down.
5. Take advantage of free advertising
Even if you have a marketing budget, there are many free tools to help you keep your business in the eye of your prospective customers.
Take advantage of the free resources of social media to gain a direct line to your customers. You can quickly build up a huge follower base without spending out on marketing. This, however, requires in-depth understanding of digital marketing so you may still need to hire a digital marketing professional in your early days.
6. Manage your growth
A good number of start-ups fail because they are unable to properly manage growth. Many new businesses experience premature scaling. They have more employees or more process than the business can support.
Regardless of how tempting it looks, it is better to consolidate your position in the market before considering any form of expansion. Do you really need to add new employees or would you be better off increasing the portfolio of your current staff?
The start-up journey is challenging but can be richly rewarding when navigated appropriately.
By understanding your market space, building the right team and always having a handle on your growth, your business stands a higher chance of success.
For more details on start-up finance, bridging loans and access to a great calculator, visit Bridgingloans.co.uk