Building a business is both challenging and rewarding. It takes great ideas, resources, technical expertise and a lot of hard work to create a thriving company. You can increase your chances of success by taking 10 key steps.
1. Honestly assess your strengths and weaknesses. Your first step in building a successful business is to take a look at yourself. Are you cut out to be an entrepreneur? Many of us are attracted to the glamorous aspect of business ownership, but it requires some work. Successful entrepreneurs are resourceful, committed, objective, and dependable. They also possess a positive attitude, excellent communication skills and the technical knowledge necessary to succeed in their chosen field. Most importantly, successful entrepreneurs persevere through tough times.
2. Develop a comprehensive business plan. A business plan is your road map to profitability and success. One of the main reasons for new business failure is inadequate planning. A well-crafted business plan describes the vision you have for your business, and the path you will take to achieve that vision.
3. Create an effective marketing strategy. Perhaps the single most important step you can take as an entrepreneur is to market your goods and services effectively. You can have the best product in the world, but if no one knows about it, your business will fail!
4. Develop powerful image packages. Your image pack is the physical manifestation of your brand and includes three elements: Business Name, motto (your business motto or slogan) and logos. Your package of images represents the vision you are trying to create for your business.
5. Choose the appropriate business structure. A business can be operated through various legal structures. Specific structures are generally chosen for liability and tax reasons. The most common types are sole proprietorships, partnerships and corporations. Each has inherent strengths and weaknesses, and you’ll need to determine which structure works best for your business.
6. Start with adequate working capital. The single biggest reason for new business failure is low capitalization. Many entrepreneurs fail with potentially successful businesses because of a lack of capital. Savvy entrepreneurs make sure they have cash reserves to spend on unique opportunities or on a rainy day.
7. Learn to network effectively. Networking is a proactive process of developing mutually beneficial professional relationships designed to increase everyone’s circle of association. An effective network will increase your customer base, communicate your brand, and showcase your skills to potential customers. It can also help you identify prospects and improve your reputation. Because of its simplicity and ease of implementation, networking is one of the most cost-effective forms of marketing for your business.
8. Providing quality goods and services that meet customer needs. Simply put, if you provide high-quality products that help customers achieve their goals, you are more likely to develop a successful business.
9. Develop a winning team. It is very difficult to build a successful business on your own. You will need help. The two most important sources for this help should be an accountant and an attorney. You may also want to create an advisory board to assist you in the decision-making process.
10. Use technology wisely. As an aspiring entrepreneur, you need to think about how to use technology to increase sales, reduce costs and better communicate with customers. Some examples of technologies that can result in increased quality and productivity include: software application (e.g. accounting, data management), video conferencing (e.g. virtual meetings, webinars and teleseminars) and internet marketing (e.g. email marketing, social media marketing).