Launching a new business is an exciting experience, whether it’s your very first startup or you’re a seasoned entrepreneur. However, bringing your dream to fruition – and ensuring it’s successful – is often easier said than done.
Though different startups face different challenges, there are some tried and true strategies that can increase your likelihood of becoming profitable.
Prove Your Concept
You should have proof of concept before you invest in your startup idea. No matter how good your idea is, you can’t be sure it’s destined for success until you prove it. Otherwise, you’re just putting hard-earned money into a concept that may not generate returns.
Market research is a key step before your launch. It takes time and resources, but you don’t need a complex process to understand your customers. Simple surveys with friends and family, a market analysis tool, or other DIY options can offer insights into your potential customer base and industry.
Plan Your Path to Profitability
Long-term planning is an essential step to a successful startup. While many will say you need to put money into your business if you want to get something back, it’s easy to lose control and follow the wrong path to profitability.
Make sure you have a roadmap for your business. This not only ensures you have a concrete vision but it helps you stay organized and build a sustainable model. Just like planning a home renovation timeline, you need a plan and a budget to make sure everything fits together as you want. Your business should have a clearly outlined path to success.
Get the Capital You Need to Grow
One of the most important aspects of developing a startup is getting capital. You may not have the funds to launch your business on your own, so it’s crucial to understand where and how you can get additional capital.
Do you want to give up some of your equity for startup capital? Would you prefer to do it all yourself? There are pros and cons to both, especially if you think you’ll need a lot of investors to bring your dream to life.
Much like choosing to sell a house as-is or investing in renovations that will increase the resale value, it all depends on your priorities and goals. The more equity you relinquish, the less money you stand to make if you sell your business in the future. You may also lose some control over how your business is run, so it’s important to think carefully about your funding sources.
Recruit the Right Talent
It’s rare for a startup to operate efficiently as a “one-man show.” Even if you keep your team lean, it’s likely that you’ll need at least a small number of employees to help you with accounting, marketing, IT, product development, or other aspects. You may spread yourself too thin trying to do it all yourself.
The key is getting the right talent to help you in your early startup journey. There can be a lot of highs and lows in the first few years. Some people thrive in that kind of environment, while others may prefer to take their talent to more established businesses. You need employees who are adaptable, take initiative, and are comfortable wearing many hats. This may mean a longer recruitment process, but taking the time to find the right people can maximize your success and your employee retention.
Nurture Your Business Network
No matter how well you prepare, you may make some mistakes while you launch and grow your startup. Don’t let it discourage you, as it’s part of the process of getting established. However, you can learn from the trials and tribulations of others, giving you a proactive strategy to minimize risks.
Expanding your network offers a lot of benefits. Connect with others in your industry to gain insights and ensure your business can move forward – and reduce the risk of costly mistakes.
Safeguard Your Assets
Many entrepreneurs focus on their product development or new sources of revenue, especially when they’re building a startup from the ground up. However, you also need to make sure that your business is protected in the long term.
Though intellectual property (IP) protection is often overlooked, it’s an important part of developing a business. Failure to secure your assets can lead to many vulnerabilities that established businesses can exploit, such as a revolutionary new product or feature. Make sure you invest in trademarks, patents, or copyrights as needed to protect your business, both at launch and when it grows.
Prepare to Scale
The first few years of a startup involves a lot of agility to overcome different hurdles. You may be focused on scaling in the future, but it’s crucial to stay in the present right now. Scaling can impact your operations, especially if it happens too quickly for you to keep up.
Before you can scale sustainability, you need to have the right infrastructure in place, including systems, staff, and resources. This ensures that you’re not compromising your business or your product to grow.
Build a Foundation for Success
Though you may hear about an “overnight success” story, most startups take time and effort to become profitable. Planning ahead and building a strong foundation can ensure that your business has what it takes to weather the challenges, including market shifts, rising competition, low cash flow, and explosive growth.
Dalip Jaggi is an entrepreneur, technologist, and passionate business leader sum up the core of Dalip Jaggi, co-founder of Revive Real Estate, a PropTech company with a goal to democratize house flipping. Since its 2020-inception, Revive has since become the smartest solution for homeowners to maximize their home’s sales value across the nation.