4 Steps To Starting Your Start-Up

Each year, thousands of people attempt to launch their own start-up business. Though many of these entrepreneurs demonstrate commitment and a strong work ethic, many of their businesses never get off the ground due to a failure to properly address the fundamental tasks required before launching any type of business.

1. Conduct thorough market research

Many aspiring entrepreneurs look to start their business without fully identifying and studying the demographics of their target market. In this regard, prospective business owners need to explore current consumer trends and the ability of their proposed business to respond and effectively market their products and services based on those trends. Entrepreneurs should also take the time to study the general state of their given industry and their main competitors. Even if the industry is saturated, a new business could still successfully launch by perhaps identifying and serving a niche market or by carefully investing dollars in an aggressive advertising campaign.

2. Determine size and location

Many successful start-ups begin by launching not in an office environment, but out of the business owner’s home. With today’s technology, many businesses can be founded, operated and managed (at least initially) almost entirely online. This approach could positively impact your required starting budget because you won’t need to pay for office space. Determining the physical size and location of your business also allows you to make better decisions when it comes to funding, such as whether you should consider crowdfunding, angel investors or other financing sources.

3. Establish an identity and construct a business plan

Think of a business plan as a map that helps you evaluate where your business stands and where you want to take it. Before considering all of this, however, you should establish a firm identity that will hopefully last for years. This includes defining your desired company culture, as well as creating and registering a company name, logo and trademarks that properly represent your brand. To optimize your online presence, you’ll also need to register a domain name.

Once this is accomplished, build your business plan. It should detail everything about your start-up that you and potential investors need to know and should include an executive summary, company description, products and services, an overview of your market, revenue estimates, and anticipated expenditures (both one-time and recurring.) Your business plan should also describe the business need for your company and the main problems your business will resolve, along with any major pitfalls that could be encountered.

4. Licensing and legalities

Obtaining and completing legal paperwork, permits and licenses may not be the most glamorous part of the process, but it’s a necessary step towards reaching your goal. Establishing your start-up as a legal entity requires you to choose how it will be structured. For example, businesses can be incorporated as a Limited Liability Company (LLC), as an S or C corporation, or as a sole proprietorship. Each has its own perks, drawbacks, tax implications and licensing requirements. Additionally, remember that the licenses you need to obtain could vary from state to state. Consult a business lawyer to learn the legal requirements for your business type and location.

Launching a business requires strategic planning and a keen eye for detail, and these four steps serve as the building blocks for making it all come together. Consider The Company Corporation's outstanding services for assistance incorporating compliance requirements and other aspects of your start-up

How Your Customers Can Be Your Best Marketers

When you run a small business, you are bound to face some competition, in spite of the promotional strategies you put into place. While innovative marketing methods are often the key to ongoing success, they can be costly. In today's technological world, many small business owners enlist the help of external experts to provide a strong marketing campaign. Oftentimes, however, your customers can be your very best marketers. Here are some ways in which your loyal following can help your business grow and reach new audiences:

Word of mouth is essential

Word of mouth typically travels fast—especially if your customers have large social media followings. By providing innovative offerings and prioritizing service, you can encourage consumers to spread the word about their positive experiences with your business.

People value the opinions of their loved ones

While online reviews may be all the rage, they can also be quite misleading. Some business owners take advantage of a poorly implemented system and get their friends and family members to write favorable reviews for their products or services. Likewise, some companies may pay others in exchange for a good word. This, in turn, has led many consumers to rely on the word of a friend or relative over that of strangers and popular brands.

In the 2015 Nielsen Global Trust in Advertising report, 83% of respondents revealed that they trusted recommendations from friends and family members. In contrast, only 70% of respondents claimed to trust branded online channels. In this way, your patrons can serve as your best marketers.

Cutting expensive marketing costs

Many small businesses can not afford to have extensive marketing budgets in place. Thankfully, your customers can do some outreach for you. Not only can they spread the word about your small business, but they can also answer any questions that new prospects might have. This natural way of marketing can increase your overall reputation, leading to new clientele and higher satisfaction ratings. As a result, it is clear that you can sometimes increase your profits without investing in expensive advertising.

Focusing on customer satisfaction

When small businesses focus too much on external marketing and advertising channels, they may lose sight of what is truly important to their success: ongoing customer satisfaction. While conventional promotion can assist in finding new customers, you will often need the most ingenious marketing plans to stay ahead of the competition.

Thus, your time will be better spent by placing a greater focus on producing quality products and services. This devotion to providing consumers with the best possible experience will encourage your clientele to recommend your business to others. By expanding your audience in this way, you can help your company flourish.

Figuring out what your patrons want

Business 101 dictates that you should find a need and then fulfill it to the best of your ability. This task becomes more manageable when you have a solid understanding of your audience and the types of products and services they want. Once you have this knowledge base, you can develop a powerful marketing road map.

Get to know your consumers by way of surveys, newsletter campaigns, studies of shopping behavior, and analyses of how they react to your newest offerings. This will enable you to attract your desired customers, who will hopefully spread the word to new prospects.

Consumers play a critical role in your business success. As such, you should take every encounter and interaction seriously. By providing optimal service, you can encourage your customers to become your best marketers. Once you earn their trust, many of these consumers will happily introduce you to their circle of friends, family members, and acquaintances, allowing you to increase your overall audience.