If you’re thinking about starting a new business and getting set up on the market then you might have heard that most new companies fail. Some polls suggest that more than 90% of new startups fail in their first year. We admit, this isn’t particularly promising but you have to remember that it’s ridiculously easy to start a business and not everyone does it the right way. In fact, most people will make critical mistakes and these are the problems that you need to avoid. Luckily, there are ways to all but guarantee that your business is successful.
This is a contributed post. Please refer to my disclosure for more information
Find A Hole
One of the best ways to find success with your business is to look for a hole in the market. You probably think that there is every type of business that a customer could need right now available online. That might be true but that doesn’t mean that there aren’t things missing that customers want. If you find out what customers are struggling to find, you can make that a key part of your business model. Suddenly, you are attracting clients from your new rival and you will be rising through the sea of competition. This is largely related to developing a great USP which every business should have.
Make Sure There’s An Audience
A key mistake that businesses will often make when setting up is not checking that there’s an audience for a product. For instance, let’s say that you start a business that offers cinema releases at home for $50. Cool idea and this was actually floated around a few years ago. The problem is that after researching, the potential investors discovered there wasn’t a significant audience that would be willing to pay that price. They favored the cinematic experience and decided it provided benefits that a home setup could not offer. This is an example of why you have to check for an audience. You can’t offer a supply of a product if there’s no demand for it. Of course, some business models have audiences built-in which is a useful shortcut. For instance, if you run a cleaning services franchise you’ll be under a name that is already established on the market.
Don’t Forget About Costs
It’s absolutely essential that you have a business where the costs are not out of control. You need a tight budget but at the same time, you also need to spend in the right areas. There are certain services that a business needs like marketing. It’s critical that your business is in the position to bounce back if the economy takes a downturn. But at the same time, if you don’t invest in quality marketing, you’re going to run into other issues. So, basically, this is one big balancing act.
Of course, one of the easiest ways to keep costs under control is to hire an accountant. They will be able to ensure that you are keeping your books in order and that you don’t have to worry about unnecessary spending.