You won’t know all there is to know about running a business the minute you establish your first start-up, no matter how much industry experience you have. There’s a high learning curve here, and you’ll probably find yourself repeating, “I wish someone had told me that,” at least a few times.
It’s critical to listen to the experiences of people who have been in your shoes before you if you want to be prepared for some of the more tough and unexpected obstacles of business. Fifteen CEOs of new and current businesses reflect on their experiences and provide advice to prospective start-up entrepreneurs.
Let’s have a look at few tips for a start-up:
- Think of a catchy name for your company
The name you choose for your business may have a big influence on its success. If you choose the incorrect name, you may face overwhelming legal and business obstacles. Here are a few pointers for naming your business:
- Avoid names that are difficult to spell.
- Choose a name that will not limit your business as it expands.
- Perform a comprehensive Internet search for a potential name.
- Obtain a “.com” domain name (rather than a “.net” or a similar variation).
- Perform a comprehensive trademark search.
- Make certain that you and your workers will like speaking the name.
- Make a list of five names you like, and then put them to the test with possible workers, partners, investors, and consumers.
- Recognize that obtaining funding is difficult
Raising funds for your business will almost certainly be more difficult and time-consuming than you expect. Persuading angel investors or venture capitalists to invest in your firm requires a lot of work. As a result, you must plan ahead for the time delays.
Don’t spend your time requiring potential angel or venture capital investors to sign a Non-Disclosure Agreement (NDA) to protect your concept. It’s ineffective and will slow down your fundraising efforts. Even still, many investors will decline. Don’t make it any more difficult for you to secure a meeting with an investor.
- Concentrate on creating a fantastic product, but don’t wait too long to launch it
To begin with, your product or service must be at least decent, if not excellent. It must be distinct from your rivals’ products in some significant way. Everything else is based on this idea. Don’t put off putting your product to market since early client input is one of the most effective methods to enhance it. However, you should start with a minimum viable product.
- Develop your sales skills
You must become an excellent salesperson if you want your business to succeed. You’ll have to “sell” your company to a variety of people, including consumers, investors, and even potential workers.
It is necessary for you to practice. You need to work on your pitch. You need to obtain some input. You must be outgoing. You must exude self-assurance. You must maintain a good attitude. You must be dependable. It’s imperative that you follow up. You must request the sale. You must pay attention.
- Create a fantastic website for your business
You should put in the time and effort necessary to create a fantastic company website. Your site will be seen by potential investors, consumers, and partners, and you want to impress them with a professional product. Here are some pointers on how to create a fantastic corporate website:
- Examine the websites of your competitors.
- Begin by drawing a template for your website.
- Make a list of five or six websites that you may show your Web developer to show them what you appreciate.
- Make sure the site is optimized for search engines (and thus more likely to show up early on search results).
- Make sure your material is of good quality.
- Check to see if your website is mobile-friendly.
- Check to see whether the site loads swiftly.
- Create a user-friendly environment.
- Keep things basic and tidy; clutter will repel visitors.
- Get your elevator pitch right
The goal of an “elevator” pitch is to give a brief, convincing overview of your company. Depending on whether you’re presenting to potential investors, consumers, workers, or partners, you can change your elevator pitch. Here are a few pointers for crafting an effective elevator pitch: Begin with a powerful statement.
In your speech, be upbeat and passionate.
It’s important to remember that practice makes perfect.
It should be no more than 60 seconds long.
Use industrial jargon sparingly.
Demonstrate why your company is special.
Pitch the issue you’re working on.
Inviting the listener to participate or interrupt demonstrates that they are interested and engaged.
- Make sure your executive summary and pitch deck are flawless
An executive summary is a three- to a four-page high-level overview of your firm that you may give to potential investors. A pitch deck is a 15- to 20-page PowerPoint presentation that visually depicts the company for potential investors. You must definitely ace both documents. It would help if you expressed yourself clearly:
- Your objective is to
- The issue you’re attempting to resolve
- The management team’s expertise and enthusiasm
- The product and its major distinguishing characteristics
- You perceive a huge market potential.
- Your competitive advantage is based on your technology or exclusive invention.
- Recognize and comprehend financial statements and budgets
You must keep track of your spending and learn to comprehend financial accounts and budgeting in depth. Many businesses have failed because the founder was unable to modify spending in order to prevent running out of money. It is critical to creating a thorough, month-by-month budget that is evaluated regularly.
Understanding your financial statements can also assist you in responding to investor inquiries. Investors are likely to ask you the following financial statement questions:
- What are the company’s forecasts over the next three years?
- What are the major assumptions behind your projections?
- What is the capitalization structure of the company, and how much equity and debt has it raised?
- What kind of debt or equity financing will be required in the future?
- What percentage of the stock option pool is set aside for employees?
- When will the business become profitable?
- How much money will be burned before the firm becomes profitable?
- Keep Your Investors Constantly Informed with Both Good and Bad News
It’s a good idea to email your investors once a month to keep them informed. The updates don’t have to be extremely thorough, but there are a few things to think about putting in them:
- A summary of the company’s progress
- Overview of the product development process
- Updates about the team and recruitment
- Recent press or PR
- Financials key factors to pay attention to include monthly burn rate and current cash position.
- You’re dealing with strategic concerns (and ask for advice)
If you still can’t think of a new concept after doing this, it’s because you “don’t have enough puzzle pieces on the table.” You’ll ultimately come up with something fresh and inventive if you keep iterating the process.
Aurora is a contributing writer to LiveWebTutors. She is a podcaster, style coach and has been a blogger and a professional blogger writing about educational skills, personal development, assignment writing, and motivation since 2010. She operates a team of experts and qualified professionals who will provide best online essay writing help in Australia.