Startups are the lifeblood of the business world. While some would argue that continuous growth is not possible without eventually maxing out all merger and takeover options until only one company is left standing to rule the roost, the fact is we’ll never get to that stage. So following the best advice possible to secure your slice of the pie in the ever-evolving landscape of trade is certainly worth your efforts (you’re not going to be bought up and spat out by the end of the week – unless that’s what you want!)
But as with all pursuits in life that require time and effort, startups come with many things to consider. For example, have you looked into HR and staffing? And have you chosen a business location that is accessible? What do you know about taking payments quickly and professionally?… In that regard, check out credit card swipers available here.
Before we even contemplate all the possible answers to these very relevant questions, we must consider some even more basic principles. Let’s take a look.
How is your business plan shaping up?
Your business plan should be robust, but there should always be room for expansion. Why? Because you have to be ready to adapt to your audience.
That’s why your business plan should always be based on data-driven market research. Do you know who your key demographics are? Do you know what motivates your audience to spend their time browsing your products or services? After all, they could just as easily direct their spending power towards your competitors.
You need to know why people value your brand and find ways to exploit that discovery. A business plan that doesn’t pay attention in this area is not a complete business plan.
How will you determine profitability?
Profit means the money you earn tucked away safely in the bank, while profitability is something else.
Let’s say you run a summer attraction. Profitability over the winter may not come from ticket sales, but rather from online special offers and advanced bookings – all of which could have different monetary figures attached to them in terms of the maximum turnover you can achieve with your available resources.
In essence, you need to plan for the low periods and know how to squeeze every last drop of customer loyalty out of your brand. Your audience won’t abandon you entirely if you find ways to reinvent your products or services during any potential off-season periods.
Name your price (if it ever gets too much, get out)
You need an exit strategy. Unless you were able to finance your business entirely alone, you will likely have debtors that will need updates throughout your early days. Whether you get financial help from a bank, a successful business person, or from an angel investor, knowing when things are too far gone to recover is an important part of taking on that debt.
Plan for the maximum amount of debt you are willing to concede. Just like entering a plane and being told right away where the fire exits are located, you need to know how to get out of your business model should things go phenomenally worse than anticipated. Cover your own back.