The Way of Warriors - Business Journal : Learn from Your Competition

7 Steps to a Successful Start-Up Business

Analyze your target audience - Start by performing extensive market research to understand your customers' core necessities. Assessing your target demographic gives you a clear perspective on how to serve them, which could be the difference between a successful start-up business and a failed plan. What is your audience primarily looking for? What do their past and present purchase decisions reveal? How much do they typically spend and why? These questions will pave the way for a strong marketing strategy that will ultimately lead to healthy profits.
Determine a legal structure - Selecting the right legal structure ultimately determines how you handle income taxes and all government reporting requirements. Many small businesses fall under a sole proprietorship or limited liability company (LLC), while bigger entities may identify as corporations. An LLC, for example, is taxed separately from the individual(s) running the company while sole proprietors report all income using the same business form. The Company Corporation is an ideal place to start, and The UPS Store customers get $40 off any formation package.
Establish your premises - Choosing the right business setting could be the difference between a cost-effective start-up and a moderately expensive one. Many small business owners manage everything remotely or from a home office. Other businesses may need a physical location, which will require you to keep up with rent and electricity. Your work space should fall within your monthly budget while still satisfying the need of your customers.
Determine your budget and expenses - Assessing your available funds enables you to prioritize and assign an appropriate amount to your business assets. This may include the implementation of necessities, such as phone and Internet service, insurance, business registration fees, and other costs pertaining to your daily operations. You should also budget for secondary expenses, such as traveling, conferences, and meetings, depending on the nature of your business.
Develop a business plan -Think of a business plan as a road map that indicates where your start-up stands and where it is headed. This will help you see your objectives clearly and determine which areas need more focus. A business plan is also a a great physical document to show investors if you need funding. Interested parties will understand your ideas, philosophy, and goals while internal members can provide ongoing feedback about your company's overall direction.
Plan a marketing angle -Identifying a need in the marketplace does not necessarily guarantee success. Look into similar products and services offered by your competition to determine the areas in which they thrive, and see what makes them successful. Learn from the landscape to improve upon their strengths and gain an upper hand in regard to their weaknesses. Ask yourself critical questions such as, "What are they offering and how do my offers stack up? What unique angle can I bring to the table? And how will I use my budget and marketing strategy for maximum effectiveness?
Be competitive -Keeping track of your industry allows for financial patterns to emerge, paving the way for an effective marketing approach. If necessary, assess the value of your offers and set a firm, but fair pricing model for your products and services. Many start-ups often price themselves low as a means of building momentum, but do not increase their value for fear of failure. Instead, implement various pricing models, such as special offers, coupons, and rewards, to keep all parties satisfied while remaining competitive and profitable in the marketplace.