Two Essential Things When Starting a Business

Did you know that nine out of ten businesses fail? That’s a fact, and it shows how hard it is to establish a start-up that’ll actually generate money. There are a lot of reasons why failure is frequent, but one of it that has a huge impact is preparation. And in this article, we are going to talk about two essential elements that you need to prepare when starting a business.

Two Essential Things When Starting a Business

First: Six Months Worth of Funding

Most young entrepreneurs think capital is money needed to buy equipment and whatnots. In reality, however, capital is also like rainy-day funds. It covers all business expenses required to keep it afloat, even if it has launched and started earning.

Since a lot of start-ups completely ignored this discipline, they end up struggling. And it results in loaning money even at their first month of operations.

What makes a lot of new entrepreneurs ignore this precautionary measure? It’s simple. They honestly believe that once a business launches, it will earn – which is awfully wrong.

Six Months Worth of Funding

You should always consider the first six months as an introductory phase. It means that you shouldn’t expect anything good from it. This practice ensures that no matter what situation may come within that time frame, your business will stand.

To get a more accurate number of your six-month budget, list all the expenses needed per month. Then, think about emergency situations, like repair costs for damaged equipment. Add that to your budget as well.

The amount may be high, but it’s going to help your business survive. And if your business became self-sufficient early, then that extra money will be considered as a return on investment.

Second: A Well-Planned Marketing Strategy

Let’s face it, no matter how great your product or service is, without prospects, it’s useless. That’s why before even considering launching your business, you should already research on potential customers and how to sell it to them. Failing to do so is just as bad as boarding a sinking ship.

See, a lot of people think that when you have something to sell, it’s already considered as business. But, in fact, business is when you get something in return. It’s not going to work when you only have the product or service but none of the customers. And marketing is the means to get them.

Without marketing your merchandise, the chances of success are very slim. That is why you need to know where, when, and how you’ll get your product or service to the public. In business nowadays, exposure is everything.

There are many ways to publicize your brand, one of them that’s now a staple for modern business is using social media. It’s usually free (unless you’d use their ad services), and it offers a unique profile for businesses. You can also do traditional marketing: radio, banners, or even television. The point is, you have to allocate time and money to it for your business to get customers – as early as possible.

Here’s a useful video that will help you become more prepared when starting a business:

Image credits: Pixabay