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As the next big entrepreneur, you’ve got a plan in place ready to surprise the competition. You’ve been working for an extensively long time to create a structure that will bring the next monumental idea to the market. You’ve looked through every possible pitfall and are ready for a perfect day-one launch.
Or so you might think. Research shows that 20 percent of first-year startups fail, with only half of them making it to their fifth year. What can be done to strengthen your startup’s chance of success and take a more careful approach? Here is a few startup tips from an expert Philadelphia bankruptcy lawyer that will make your entrepreneurial success more possible in 2021.
Bring Down Expenses, Bring Up Growth
Expenses are going to be a factor in your startup. Some of these will be single, one-time costs such as permits. Other expenses may be ongoing, such as the cost for utilities or payment for office materials. These are all necessary aspects of your startup, and in keeping your business running following its launch.
However, the most critical part of this process is looking at these expenses from a “fixed vs. variable” level. While fixed expenses such as rent and insurance are essential for a business, variable costs such as inventory or packaging/shipping can change over time and a range of economic factors. Looking into ways where you can save on expenses in both of these areas can help your entrepreneurial launch–and future–in various ways.
For example, in fixed expenses, observing a less expensive office rental choice or a cheaper insurance option can help you devote more of your capital to future growth. Variable costs are a bit tougher to cut back on, as they rely more on prioritizing spending. Examine ways you might be able to save on your inventory, sales commissions, or other everyday variable expenses.
Using free accounting software such as Wave or Due may help you with this process in case your work is piling up for your startup. These overall tactics will help you find and assign more capital to your business’s future.
Reach Out to Customers
It may seem obvious, but many entrepreneurs who are launching their first business don’t have a proper strategy to reach out to potential customers. Make sure that, on day one, you know which exact segment of customers you’re targeting regarding the industry that you’re in and the product/service that you’re selling.
You’ll first want to establish your proper communication channels so that you can let customers know about your new startup and create demand. Ask yourself questions such as:
- What is my target audience?
- Am I communicating my brand message effectively with my audience?
- Do my customers know where and how to reach my business for purchases?
- Does my website offer a clear, effective display of my product/service?
- Do I have social media channels in place for my startup?
If you don’t have clear answers to those questions, then it might be time to do a bit of web development for your business–especially if you haven’t yet created a website or a hub social media page on a platform such as Facebook. The latter is a low-cost marketing strategy that helps you reach out to potential customers with product information, raise brand awareness, and provide customer support for your service.
An additional tip: building up your social media database will also allow you to network more efficiently. Establishing connections with colleagues–especially those in the same industry–will broaden your horizons and allow you to create essential business relationships.
Make Clearer Time Goals
We’re sure that every entrepreneur sets goals for him or herself. It wouldn’t be a proper startup without putting in place a purpose to strive for. But there’s a vast difference between a vague goal such as “make a higher profit next month” and a goal that sets a precise aim in place by utilizing your time.
You’ll want to put a numerical value on your goal if you can and understand what key difference the plan would make if you achieved it. It’s also important to set different daily, weekly, and monthly goals, as different timetables are essential for different types of objectives.
Short-term goals, for example, will have you concentrate on appointment-based objectives. “Having ten meetings with [insert names here]” or “calling fifteen clients for sales” would be daily goals to achieve in the short term. Weekly goals would be between the short- and long-term and be structural building blocks for your startup that you could work on throughout the week. Objectives such as “emailing to 500 subscribers” or “increasing my social media page’s followers by one hundred” are goals that you can also enlarge as your business grows.
Monthly goals would be the most long-term of these types. Here, you would focus on objectives that take time to both achieve and analyze, such as “increase revenue by 20 percent.” If you cannot fulfill your monthly goals, then go over your numbers and take some time to consider where you can cut additional costs.
When launching and running a startup, efficiency is vital. And with so many startups falling flat in their first year, many entrepreneurs don’t have fundamental knowledge about aspects like cutting costs or reaching out to their target audience. With these tips, we’re confident that you’ll be able to strengthen your startup and improve the chance of your business’s success in 2021.