If you have never run a business before, starting a business for the first time will be very difficult. It is a process that requires the founder to put a lot of heart, courage, even a lot of risk. Therefore, before starting a business, you need to prepare more thoroughly than ever. Here, Skylink Partners will share the first 9 steps to building a startup.
To build successful startups need a great idea
This is one of the steps that a startup cannot skip if you want to succeed. A great idea is the right one for the right group of customers at the right time. Think simple and start from problems from people around or yourself. That way you will find the most optimal product or solution to solve those things.
However, your idea does not always have to be a fresh idea. You can update existing products or services in a way that is better for consumers. This could be as simple as:
- Change the appearance of the product
- Add a new feature
- Make a product that customers already love more convenient to use.
For example, Apple started from the initial idea of Steve Jobs on the production computers Macbook and since then, they have created many different versions suitable for the needs of the market. They also continue to develop new products such as the iPhone and iPad, making them more useful with each update. With the idea to help customers use the iPad more convenient, they added keyboard for iPad and now users can easily use them as a laptop.
Make a detailed business plan:
Once you have an idea, you need to ask yourself some important questions: What is the purpose of your business? Who are you selling to? What is your ultimate goal? How will you raise capital for your business? These questions can be answered in a carefully prepared, complete business plan.
A lot of mistakes new businesses often make is rushing into things, not taking these aspects into consideration. You need to figure out your target audience. Who will buy your product or service? If you can’t find proof that users have a need for your idea, what’s the point?
Conduct market research:
Market research helps you understand your target customers – their needs, preferences and behaviors – as well as your industry and competitors. Business professionals and advisors often recommend gathering demographic information and conducting competitive analysis to better understand the opportunities and challenges in your market.
If the initial size of your business is small, the best product or service needs to be different from the competition. This has a significant impact on your competitive landscape and allows you to convey the unique value of your product or service to potential customers.
The master business plan will help businesses shape the feasibility of the idea, start-up model, general strategy, issues of brand building & positioning, legal, financial, etc. Implementation schedule…
After you have an overall business plan, set short-term goals, time, resources and implementation roadmap. Because the plan board is very important to get the financing for your startup. If you find evidence that there is real demand for your idea, banks are more likely to lend to companies.
Consider an exit strategy:
Usually, founders are very excited about their business and make sure their potential customers are everywhere. However, you should also consider your exit strategy when drafting your business plan. Generating some ideas on how you will eventually leave the business will help your company gain more value and not lose previous partnerships.
Financial assessment of the company
The capital of a startup usually comes from many different sources depending on the founder. However, regardless of your budget, you may need to get start-up financing from:
- Relatives, family, friends
- Angel Investor
- Risky investment
- Bank loan
Starting any business comes with costs, so you need to determine how you will cover those costs. Many startups fail because they run out of money before turning a profit. It’s never a bad idea if you overestimate the amount of start-up capital you need, as it can take some time before the business starts to bring in sustainable revenue.
Perform break-even analysis.
This is an essential element of financial planning that helps business owners determine when their company, product or service will be profitable.
The formula is very simple:
BEP = TFC / ( SUP- VCUP)
BEP: breakeven point (number of products)
TFC: total fixed cost.
VCUP: average variable cost.
SUP: profit of each product.
Every entrepreneur should use this formula as a tool as it informs you of the minimum performance your business must achieve to avoid losing money. Furthermore, breakeven analysis helps you understand exactly where your profits are coming from, so you can set production goals accordingly.
Track business expenses:
Don’t overspend when starting a business, and avoid overspending on novelty gadgets that won’t help you achieve your business goals. Track your business expenses to make sure you’re on track.
If your business idea is complete and viable, the next thing you should do is find partners to develop it with you. Depending on your personal experience, look for excellent personnel who can support you in areas such as sales, marketing, human resources, customer care, production… From there, creating a unified whole Together we help you build a growing company.
Besides, there are many risks when starting a business. That’s why you’ll need essential business advisors to guide you along the way, like:
- Certified Public Accountant (CPA)
- Insurance specialist
- Financial experts
Legal registration of the company:
After completing all the above steps, the next step you need to take is to decide on the type of business. According to the Enterprise Law 2014, there are currently the following types:
- One member limited company of irrigation works exploitation
- 2 member limited company
- Private enterprise
- Joint Stock Company
Depending on the capital source and scale of development, you will choose the right type of business. In addition, you need to take the right legal steps to give you the best chance of success, including:
- Apply for a business license
- Register your business name
- Get tax code, register stamps, trademarks
- Create a separate bank account
- Building and drafting contracts for customers, employees, partners
Develop a marketing and sales plan:
When developing a financial plan and assessment, you need to balance spending on marketing and sales activities. It’s an important expense because:
- Establish a brand identity, help the brand stand out from the competition
- Create customer relationships and build loyalty
- Increase brand awareness, attract new customers
- Enhance your company’s reputation
Some of the startup marketing activities you should consider include:
- Use social media to engage customers with coupons, gifts, promotions.
- Reward new customer referrals, help build customer community.
- Give away free samples in your store
- Sponsor events to spread the brand’s reputation in the community.
Building a customer care system:
For your startup to have long-term success, you’ll need to build a customer care system. These loyal customers can help:
- Boost your sales, because they’re willing to keep spending at your company
- Send a message to new customers that your brand is trustworthy
- Word-of-mouth referrals save you time and effort in finding new customers
Some of the ways you can attract and retain customers include:
- Consistently deliver a great product or service
- Launch loyalty programs to retain them
- Use social media affiliate marketing, which involves paying influencers to promote products to your target audience
- Use actual survey samples to better understand customer expectations
- Request direct feedback from customers
Choose the right partner:
If you feel that running a business with a “bulky” staff is too much for you, choose the right partners. Focusing on developing the core team is a great strategy if you want to save office space, time, money, and effort in recruiting and training stakeholders. You can hire an outside lawyer, marketing team, … if you don’t feel it’s really necessary at this time.
However, you should be careful in choosing a partner. Because they will need the right to hold important information about the business such as business records, financial information, products – services of the company.
Anticipate risk plans:
“The marketplace is the battlefield” – Therefore, you cannot guarantee that business will always run smoothly. Have a risk plan that will help you in difficult times. In addition, flexibility and sensitivity, “knowing who knows me – hundred battles, hundred wins” at appropriate times are also essential.
Ideas are often not “copyrighted” and are easy to steal, there are many large corporations that will “pour” money into the market to “kill” startups in the same field even if you are the first. Phong or not. Please re-evaluate all resources, time, market, competitors to choose the most reasonable option.
Through the information shared about the first 9 steps to building a startup, it can be seen that becoming a founder and leader is not easy. However, social life will be enhanced thanks in part to the creativity and contributions of founders like you. In the end, you will realize that starting a business is an effective but difficult but rewarding self-improvement process.
Skylink Partners start-up investment fund is a member of Skylink Group operating under the venture builder model. Owning a team of experienced core experts in the fields of finance, IT, sales & marketing, Skylink Partners is committed to bringing diverse investment products in the fields of technology, social media, and retail with high quality. , has long-term profitability potential. Therefore, if investors want to accompany or cooperate with us, please contact the hotline 028 6254 9999 or leave a message in the form below. Skylink Partners will support you as soon as possible. Best regards.