Before you worry about upstart financing, marketing or product , you should begin with an idea – not just any idea, but one that’s unique.
What makes your business stand out from the rest? Uniqueness doesn’t necessarily mean you have to invent something, it just means that you have to set yourself apart from the competition in some way
Evaluate upstart funds
What will start-up cost be? Every business has some expenses at the start, whether you’re paying for equipment, rent or just basic marketing materials. Make a realistic estimation; you’ll need these figures to obtain a loan or simply to budget if you’re paying these expenses in any other way.
Who is your target customer
Who’s your customer? Knowing who will be buying your product or service is vital to your business success – how else will you find your customers if you don’t know who they are? Are you catering to busy professionals, stay-at-home moms, college students, retirees? Define your customer, even if you have to be broad at first. If you’ll be renting a space, make sure the local demographic fits this profile;
Where is the competition
Unless you’re lucky enough to find a hole in the market, your business will have competitors. Check them out, because your future customers surely will. Competitors can be a great resource to you as an upstart; you can see how much they charge, what marketing strategy they use and so on.
What’s the economic mood
Your business’ success can greatly depend on economic mood: evaluate the state of the economy , and think of how it relates to your upstart: where are consumers’ mind right now?
Even an economic downturn can be an opportunity if you can meet the mood of the consumer. If your business idea doesn’t fit the current trends in spending, think of ways you can tweak it to tap into today’s needs.
Remember step three, where you identified your customer? Now you have to develop a marketing strategy to make sure these potential buyers know about your business. With today’s internet capacity, marketing can be disruptive and diverse to give your business the visibility it deserves.
Continuing Cash Flow
Imagine this: business is booming, you’re on a roll and getting in more orders than you ever imagined. But you have to front the money for supplies and other costs, and you’re out of cash – just like that, your business stumbles because you can’t meet demand. This is a classic cash flow problem many new businesses face, and one that can be prevented with proper financial planning.
Raffaele Felaco @2020