Getting your business off the ground is no easy task, especially if this is your first crack at it. Many startup owners will make the mistake of investing too little or too much time and money into their project to start, but you need to strike a balance here to increase your success. Let’s take a look at the best startup business practices that will help you hit the ground running.
5 Tips That Will Help Launch Your Startup Faster
1) Start the Research Process and Decide on a Business Model
There are many different types of business models, but they mostly come down to whether you see a product or a service. When you have an idea of how you intend to market your business, what expenses you’re likely to face, and how to turn a profit, you’re already halfway there.
Understanding your business is important, and that can only be done through research. Without this knowledge, you can’t create a business model that supports the following components:
- Value Proposition: What makes your product/service attractive to customers?
- Competitive Advantage: What part of your business can’t be copied or mimicked?
- Target Market: Who is interested in your product and why?
- Key Metrics: How do you measure success?
- Cost Structure: What are the expenses your business needs to function?
From there, you can choose from popular business models like a subscription model, freemium model, or the ever-popular bundling model. Experiment until you find something that works.
2) Getting Insurance for Your New Business … and for Yourself
The insurance jungle is challenging to navigate because it can be difficult to determine what you do and don’t need to protect your business or self from liability. The insurance experts at PolicyScout will likely suggest business interruption insurance and general liability to cover your basics. However, you will only need product liability if you sell items rather than a service. If your business does provide professional or creative services, opt for professional liability instead.
3) Spend Time on Marketing – Paid or Otherwise
Every business benefits from a sound social media strategy, a steady flow of blog posts, videos, or podcasts, and dollars spent on paid ads because it puts wanting eyes on your business.
Marketing your business the right way is integral to your success, but you can’t come off as overly “salesy”. Spend less time on your company and products and put more energy into solving problems. User-generated content is highly effective at creating value for the consumer because it shows real people using your product. The happier and more authentic they sound, the better.
4) Work With a Co-Founder or Councilor That Pushes You
There will be days where you don’t want to run your own business or focus on aspects of your startup that aren’t glamorous. That’s why you need a “Yes Man” on your team that pushes you and your team towards success. Whether you prefer to work with a co-founder or hire a job counselor, both people can help you find the inspiration and passion needed to drive forward.
5) Hire Freelancers and Contract Workers Instead of Employees
The best and most affordable talent is out there, but you may not find it within your city. If you’re willing to hire remote workers, they can help your startup succeed while costing you 1.25-1.4 times less than a traditional in-house employee. However, hiring a contract worker may suit you better because they’re already vetted through an agency and usually work for an employer.
Generally, freelancers are hired by project, don’t receive benefits from the employer, and report and itemize their own deductions. The differences between contract workers and freelancers aren’t distinct, except that freelancers are paid by invoice, and contract workers are paid hourly.
