There's a lot of advice out there for people who want to start their own businesses. And it can be tough to know what's worth following and what you can safely ignore.
Below are six essential strategies for getting your new business off the ground with minimal risk and stress.
1. Resolving Issues
One of the top ways to develop a successful business idea is to create your product or service to resolve a particular problem. By solving a problem, you’ll have loyal customers from the beginning, who won’t need much convincing as long as your solution actually works.
When possible, establish your business around an issue you yourself have faced so that you fully comprehend and believe in the value your company has to offer. If your business genuinely helps improve people’s lives, your success is almost guaranteed.
2. Take Action
Stop waiting for the perfect moment to launch your business and just start doing it. More often than not, entrepreneurs feel like they need to wait until their product is 100% ready before starting, but this usually leads to procrastination. Remember that you'll never feel completely confident about your idea anyway, so there's no use in delaying your progress.
To jump on your competition, it's best to launch quickly. And don't worry about being perfect; you can work out the kinks later with a small group of customers who are paying for your product or service. The most effective way to learn and grow is by putting your offering out there and seeing how people react to it.
Be prepared for failure, learn from your mistakes, and keep trying new things until you find what works.
3. Stick to the Basics
When you have a business idea, it’s easy to get excited and think of all the ways it could go. But when you launch, keep your solution focused and without unnecessary additions. This will help save on cost while still being effective.
When developing your product or service, think about the MVP (minimum viable product). What's the least you can provide and still get results for those you serve? It is much easier to add features later on once your company is running and making money.
4. Be Passionate About Your Product
It is essential to have conviction in your product if you want any chance of success-- choose something you're passionate about so that you will be driven to make it work no matter what.
It's not simply enough to be passionate--you need the correct mindset too. Entrepreneurship requires a great deal of dedication, so unless you're okay with learning from your failures and taking risks, this might not be the right path for you. It will take a combination of both passion and diligence to make it through tough times as an entrepreneur, but if you can manage that, then success is sure to follow.
5. Protect Your Personal Assets
If you structure your business as a sole proprietorship, you won't have any legal protection for your personal assets if something goes wrong with the business. This means that if your company gets into debt or is sued, your home and savings could be at risk.
By taking the slightly more difficult route and setting your business up as an LLC or corporation, you offer yourself protection against being held liable for any debts or damages incurred by the company. In addition, both entities come with a range of tax-saving benefits.
6. Create a Solid Base
Constructing the necessary legal, insurance, financial, and tax buildings to support your vision and goals is what starting a business entails.. At an absolute minimum, you need a legal entity in the state that makes sense for your company, as well as some fundamental agreements that are legally binding. You also require basic insurance coverage along with financial tracking & reporting systems; furthermore, effective tax planning is essential.
While you may be able to do some of the work yourself, it is always better to consult with a professional to get things done correctly. That's where we come in. At our LIFT Start-Up Session, we offer support and guidance for those who are starting a family business. If you haven't opened your doors yet or have started a company but don't have any systems in place, contact us today to schedule your session! We can help ensure that everything is set up correctly from the start.
This post forms part of our Small Business Series and to access the other in-depth articles, please visit the links below.
7 Tips For Creating A Winning Business Plan
How To Choose The Right Entity Structure For Your Company—Part 1
How To Choose The Right Entity Structure For Your Company—Part 2
How to Grow Your Business for Sustainable Success in 2023
5 Best Practices For Establishing Healthy Boundaries With Clients
6 Essential Strategies For Starting A New Business
Putting Your Kids On The Payroll Can Benefit Your Business AND Help You Save Big Money On Your Taxes
3 Red Flags To Watch For When Dealing With Problem Clients
5 Strategies For Boosting Your Startup Business’s Cash Flow
Get Professional Help
Many small business owners don't think they need to hire a lawyer, and this might be one of the reasons nearly half of all businesses fail within five years. On the other hand, the most successful companies always have a lawyer on their team.
Our team of in-house lawyers is devoted to helping your company reach its full potential by identifying risks, and missed opportunities and developing plans to mitigate those risks. Even if you don’t run a large corporation, your business will benefit from having its own legal counsel that it can trust. And by working with us—your local Family Business Lawyer™—you can have this kind of guidance on hand at all times.
Though starting a new business is always risky, the right family lawyer can help increase your chances of success. Contact us today to get started.
This article is a service of Palm Desert Law Group, Family Business Lawyers ™. We offer comprehensive legal services for businesses and can help you make sound choices about how to deal with your business throughout its lifetime and in the event of your death. We also offer a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Contact us today to schedule a consultation.We can help you with all aspects of legal planning for your business, from day-to-day decision-making to long-term strategic planning. We also offer a LIFT Your Life And Business Planning Session, which will give you a comprehensive overview of the legal, insurance, financial, and tax issues you need to consider for your business. Schedule online today.