The Process Of Building A Successful Business/ 6 Helpful Tips.

So, you want to start a successful business? “Shark Tank” makes the process of entrepreneurship seem like a sink or swim endeavor, though the reality is fraught with risk as much as a reward given that 20% of businesses fail within the first 2 years and 45% within the first 5 years.

To understand how to build a successful business so that you’re among the 80% who last the past 2 years and the 55% that last after 5 (and hopefully many more!), you need to understand where most businesses fail and what you can do differently so that you can ride a wave of success.

Satisfy a need.

Every business has something to sell, but not everything that is sold is in demand. Ultimately, a business’s success boils down to earning more than expenses, and that requires generating customers as well as repeat customers. How do you do that? Find a need that constantly needs to be satisfied.

If you have a business idea, the first thing that you need to do is research that idea. Some questions you might ask include the following:

•  Does a similar business already exist that provides a similar need? You’d be surprised at how many businesses already exist, and how many have already been tested. A quick Google search using keywords or phrases relating to what your business is selling will give you an idea of what kind of approaches have already been taken. Most importantly, you can gain an understanding of what customers actually want, which may help to tailor your idea further.
• What is the market already like? You may have an idea that is nuanced enough to be distinct from pre-existing businesses, but you need to be aware of what other businesses are already doing and how you will distinguish yourself from the competition. For example, if you live in a high-density urban area with a nearby Starbucks, Dunkin Donuts, and boutique coffee shops, trying to start your own coffee enterprise may entail more risk than reward.
• Similarly, what are your competitors doing to succeed? Just because there is competition doesn’t mean that you can’t mimic certain elements. That being said, you should make sure that whatever ideas you do have to make your business distinct don’t infringe on any proprietary elements of your potential competition. In addition to researching your idea, you should consider any patents, trademarks, or copyrights that may be necessary to protect your intellectual property as well as to avoid any legal mishaps should you inadvertently incorporate aspects of a pre-existing business.
• The most important consideration with regard to your business is whether it is something that you want to invest your time, money, and energy to do well. Recommendations for time investment can be as high as 18 hours a day within the first year, making your business a personal investment as much as a financial one. If you’re not prepared for that type of commitment or don’t have the resources to allocate at the present juncture, then you may need to delay or develop your plan further if not postpone it until you feel ready to embark on your business dream.

Write a successful business plan.

If you feel that your business has the ability to capture the market presence and satisfy your needs as well as consumer needs, then it’s worth looking into the actual structure of your business.

A business plan will help you to focus your energy on how the business will take shape and how you’re going to invest in your business.  A business plan should contain the following components;

.Executive summary – says what your business plan will cover
.Business description – an overview of business goals, products/services, and intended customers
.Market analysis and strategy – what the target audience is and how to find this audience
.Marketing and sales plan – pricing and marketing strategies as well as sales forecasts
.Competitive analysis – an analysis of your competition, can incorporate elements of a SWOT analysis (Strengths, weaknesses, opportunities, threats)

.Management and organization description – how your business will be managed and organized.
.Products and services description – details on product/ service manufacturing, delivery, costs, longevity, and any related information.
.Operating plan – how and where the company will operate
.Financial projection and needs – identify future revenue streams and funding sources.
.Exhibits and appendices – any legal, financial, or proprietary supplements to direct future considerations.

A successful business plan not only helps to guide your business’s structure but is also critical if you are seeking future funding or incorporating outside business partners to help you run your business.

Secure proper financing.

Maintaining a reliable revenue stream, particularly during the first year of a business, is critical to ensuring that a business develops properly and doesn’t accrue more debt than income.

Depending on the type of business you wish to run, what your start-up costs are, and what your overhead is, there are a variety of funding options to consider.

For example, you can personally fund a business through personal savings, credit cards, or a home equity line of credit. Outside investment opportunities include family/friend contributions, trade organizations, or private investment.

Depending on whether you have sufficient funding or whether these options are insufficient, you may also need to consider loans, such as private loans, small business loans or even crowdfunding. As with a business plan, having a reliable funding supply is an important first step in establishing a business footing.

Location, location, location.

Location plays a critical role in the success of many businesses. Some businesses have a reliable product or service but may exist in an oversaturated market, while others may not be located in an area with as much demand as in other places.

You may be faced with high taxes or insurance rates, higher crime, or external costs (such as potential storm damage). You may even encounter infrastructure limitations, such as building conditions or limited parking.

These can all play a role in how your business operates. Choosing a location that suits your production, distribution, and customer interaction needs will help to ensure the success of your business.

As an additional consideration, supplementing a retail operation with an online retail component, either in conjunction with or as a sole retail option, may help to avoid some of the costs associated with a physical location.

That being said, online business entails its own concerns, including cybersecurity investment, maintaining a website, online marketing, and retaining product storage facilities.

Flexibility

Businesses constantly change over time. One can look at how an industry giant such as McDonald’s is constantly adapting its menu, both over time as well as in different locations, to ensure that customer needs are being met while maintaining a competitive edge.

If you want to stay competitive, you need to simultaneously master your current approach while also maintaining the ability to change to changing market demands.

Constantly refining your business practices, whether in targeting new markets, cutting costs, improving products and services, or even improving management practices, will ensure that you stay ahead of the game.

Appropriate expansion.

One of the biggest problems with starting and growing a business may be in expanding too rapidly. This may entail taking on too much debt relative to income, producing more products than customers demand, acquiring new locations in unproven markets, hiring more employees than demand can satisfy, or even introducing new products or services that haven’t been tested thoroughly.

The key to running a successful business is to grow at a sustainable pace. Constantly researching products and services, evaluating markets and changes in demographics, gathering sufficient client feedback in addition to proper quality control, and maintaining a constructive company culture are all critical to managing business growth properly.

Being successful in business is ultimately about making a business that reflects your lifestyle as well as your values. A business that you can live with will help you to make your business work.

The above considerations are just some of the many factors that are important to running a successful business but can be make-or-break factors in whether your business lasts.

If you’re looking to start a business, beginning your research and development journey early while mastering the above principles will help to guide your business to success.

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