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How to
Launch a Successful Startup- Part Two
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What makes a new business succeed? Success
needs more than just your best efforts, but other elements to blend in
together and work in your favor. Here are 12 factors that are important in
creating and building a successful start up business:
By George Rodriguez
PowerHomeBiz.com
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6. Have a clear understanding of the market and your competition.
Businesses do not operate out of a vacuum, and it is important to learn as
much as you can about the industry, the market and the players. Market
climate, user trends, technology innovation, even the economy, can all
affect how your company does and who it attracts You need to recognize
competitive threats and opportunities; in order to give you time to prepare
contingencies for either. (article continued below ...)
By understanding the market, you will be forced to maintain a
market-focus. It is important to know how you fit in and what your
competitive advantage and core competencies are. Ask yourself what unique
services/products do you bring to the table that is not easily replicable.
7. Run your business lean.
Keep your expenses and spending as lean as you
can for as long as you can. It is important that you don’t spend what you
don’t have! You don’t need a fancy office at the start of your business, or
an office space in the high-rise tower in downtown. If you can hold off
hiring that additional programmer or administrative assistant, then save
your resources instead.
Avoid the mistake of spending what you think will come in – remember,
payment can be delayed, or worse, the money may not even come in at all.
You’ll be stuck with all the bills but without the money to pay for them,
and that could spell the end of your business. Spend only what is absolutely
necessary and forego things that are not critical to your current
operations.
8. Get the right partners.
Bringing in a third party into the business –
whether as a business partner or investor – is one of the most important
business decisions you will make. Like marriage, if you choose the wrong
one, your business can be in a lot of trouble and it will be a pain to work
with them.
With a business partner, determine first the compatibility of your
mindsets and entrepreneurial styles. It is important that you share the same
vision with a potential partner. Find one that complements your knowledge
and expertise, even one who may be smarter than you. Before you jump in and
take the partner into the business, get to know each other; you don’t want a
situation where you can’t stand working with the other person just a month
into the partnership.
Most important of all, never ever start the partnership without any
signed agreements at all. Have a clear partnership agreement, including a
buy-sell agreement in the event you or the partner wants out of the
business. Even the closest of relationships and friendships end badly when
business partnerships turn sour.
9. Develop a culture of success in your organization.
Business success
and your work culture are linked tightly together. The way you do things in
your business must be conducive to success – and this requires a strong
leadership and focus.
The culture of a business is set through the owner’s leadership – what is
acceptable and not acceptable to you as well as the basis with which you
reward employees. The process by which you, and your employees (if any) do
things should be geared towards the attainment of business short and
long-term goals. Everyone in your business must be on the same page, whether
the task at hand is accounting to selling to developing a brand strategy.
10. Conduct regular business and market review.
It is important that you
take time to regularly review, revisit and revise your business strategy.
Look at changes in the overall economic situation, analyze your industry and
determine how and where your business stands.
Your business does not operate in a vacuum, and it is essential that you
take time to analyze where opportunities for your business lie. If the
assumptions and strategies with which you started the business are no longer
applicable, then be flexible enough to modify them and even possibly change
your business model.
11. Learn, and keep on learning.
Your willingness to learn can play a
huge role in your success as an entrepreneur. Whether you think you have the
smarts to become a successful entrepreneur, or you have no idea how to
become one, continuously educating yourself is important. Keep yourself
informed and read -- a lot. Read about stories of other successful
entrepreneurs, how to improve yourself and your productivity, and read about
what is happening in your industry. Always make time to read books, top blogs, and business and trade publications.
Learning gives you the confidence and inspiration to do things and pursue
your vision. It also gives you intelligence into the market, what's
happening now, what might happen next. It can also play a really important
role in connecting you with other people you need to know in business.
Learning can also take the form of talking to fellow entrepreneurs, and
asking for their advice or mentorship support and assistance.
12. Prepare for changes.
Be ready to make the shift. When you start the
business, the key driver to the success of your startup is your
entrepreneurial fortitude. It is your vision, drive and passion that will
spur the business.
However, as your business grow, the needs of your business changes and
you will require help in developing and executing your vision. Hence, your
managerial skills become critical.
Examine your new role when you start growing your business: you may
be a great founder, but a poor manager. You need to know how to manage
people in conflict, as differences are very likely to come up in any
organization. Learn how to shift your role in the business.
Take time to learn and understand how to manage employees. And if
you think you are better off doing other things for the business other than
managing the staff, hire a professional manager for your business and focus
on what you think you do best.
At the end of the day, your goal is to create the best business you can
possibly be, and do the best that you can – and enjoying the process along
the way.
GO TO PART 1
George Rodriguez is a writer for PowerHomeBiz.com. Check out
PowerHomeBiz.com Small and Home Business Blog
January 2009
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