Starting a business isn’t everyone’s piece of cake, and countless businesses fail months after the launch. Research shows that around 45% of businesses fail within the first 5 years and a fifth fail during the first year.
So, what can you do to improve your chances of survival as a new business?
Some may recommend graduating from business school before launching a new business. However, there are countless successful businesses started by individuals that haven’t graduated from business school.
In this article, we’ll discuss tips to help you prepare for launching a business. We’ll cover tips that are out-of-the-box and recommended by experts who have actually started successful businesses.
Let’s get started!
5 Essential Things to Do in Preparation for Launching Your Business
1. Know How to Pay the Best Rates for Your Business’ Electricity
When you start a business, you need to save money wherever possible. Whether you’ve received private investments or have raised the capital personally, it’s never a good idea to ignore the extent of your expenses.
And electricity is a major expense for most startups!
So, how do you reduce your electricity bill as a startup? Let’s assume you’re a business based in Pennsylvania.
Be proactive and contact your local electricity provider and talk to them about ways to reduce your Pennsylvania electricity rates so that you pay as little as you possibly can for the power that your business needs.
There are tips that the representative will be able to provide to you to ensure that you do not overpay on the electricity. You will also be able to find out if there are any discounts available.
For example, not all electricity providers charge the same rates, and you need to look for a supplier that suits your budget. The Pennsylvania Public Utility Commission provides a guide on how to choose the best electricity supplier to lower your bills.
2. Know How to Choose the Best Location for Your Business
You’ve probably heard that the success of a business depends on its location. If you’re in a private market, location is more important as you’ll need to attract better private investments. You need to take your time when choosing a space to use for your business. Be sure the space is located in a place that is easy to find and that gets a lot of traffic so that you can get plenty of people coming to your business.
However, proximity to customers isn’t the only factor to consider when choosing your business’s ideal location. Remember, lean startups are usually more successful, so you also need to consider expenses when choosing a location.
Be sure the rent is reasonable and that the office space is large enough to suit your needs before signing a rental agreement. Also, check for any tax rebates in designated business districts.
3. Know How to Get the Best Internet Coverage Possible
Internet connectivity is something that’s often overlooked by startups. However, it’s one of the most crucial aspects in today’s digital world.
If you have a business that requires you and your staff to have internet access, you need to take the time to find out what plan is the most affordable option for you. There are many companies who will bundle your phone and internet services together to save you money on the cost of both services.
Also, you want to be sure to choose an unlimited internet service provider so that you are not having to constantly monitor the internet usage to ensure that no one goes over the data limit set by the company.
But never compromise on quality and internet speed, even if you have to pay slightly more. Remember, a stable internet is key to smooth operations, even for smaller businesses, and having faster internet can enhance your customer service.
4. Know How to Hire the Best Staff that You Can
Companies with a well engaged workforce are 21% more profitable, according to stats. Remember, employees can make or break your startup.
Take the time to interview and hire the right staff for your business. It is best to do background checks on everyone you plan to hire to work for your business. This will ensure that everyone is trustworthy and reduce your risk of hiring a thief or someone who has violent tendencies.
Also, once you’ve done hiring the right candidates, you’ll need to keep them engaged. This is easier said than done, so take time to work on your interpersonal skills to improve employee interactions.
5. Know How to Save Money on Advertising Costs
It is important to properly advertise your business when you are first starting out. However, advertising costs can multiply exponentially and may cause more harm than good. But you’ll still need to advertise to promote your startup, especially if you’re in a competitive niche.
So, how do you advertise without spending too much? You’ll have to think outside the box!
Take advantage of all of the free or low-cost advertising options that are available to you. Social media is often a very affordable form of advertising. Many local papers also offer small businesses the ability to advertise in their paper every once in a while, for free.
As a new business, the best advertisement is word of mouth. Most successful startups have a small but loyal customer base. However, they grow more through referrals and positive word of mouth than by traditional advertisements.
More importantly, though, you’ll have to deliver excellent products or services initially. This will help you develop a loyal following that can ensure your startup survives its first few years.
Starting a business is never easy, but the benefits usually outweigh the risks. However, a successful business is built around lean startup strategies, implementing cost controls without compromising on quality and keeping a positive relationship with your customer base and investors.
Remember to think outside the box when saving on things like internet, electricity and advertisement and you’ll watch your startup grow!