4 Ways to Create the Right Foundation for Your New Business

According to business experts, building the right foundation is the greatest challenge of every startup. If you want to start a successful company, this is the first step.

By now, you probably know that a majority (90% precisely) of businesses fail before they even take off from the ground. The figure rises to 95% for online startups. What are they doing wrong? How can it be avoided?

It is easy to be discouraged by these daunting statistics. But the reason is simple. Since the dawn of the internet and social media, it has become a lot easier to set up shop and roll out products- just for get-rich-quick objectives and other selfish interests.

Fewer and fewer entrepreneurs are digging down to plan the vision and direction of their company. As such, they miss the mark on many levels and build a business on a shaky foundation that is doomed to fail. Such was the cause of the dot.com bubble of the late 90s and early 2000s. Today, similar bursts are occurring. Even if not on such an obvious note.

Here are some ways to create a good foundation:

Create a realistic business strategy

 

Setting up a website is easy. Anybody can advertise a product for sale online, but how solid is the plan for that business? Before rushing to set up a website, write a purposeful business plan. Research has shown that this will increase your chance of success twice as much.

A real business plan has many important elements to it. But the most important is the finance section, as well plans for growth. You can get ideas for writing a good business plan online.

Compartmentalize business roles

 

It is common for most startups to begin with a sole owner on the payroll. During this time, you will be doing everything from production to sales to promotions, customer service and so on. But as your business grows and begins to take shape, hire experts in these areas and let them take charge.

This way, you can focus on your core strength and build a functionally capable business. Compartmentalisation also means you don’t have to micro manage; so, you can take a break without worrying about your company.

Watch out for needless expenses

 

Be careful of the costs. A startup can gulp thousands in pounds in the early stage alone. While “startup losses” are a common thing, it doesn’t mean it shouldn’t be minimised. Study your expenses regularly to determine what is necessary and what is wasteful.

Don’t forget to get an insurance policy at least, because you can never predict the future. Start with your energy consumption. Becoming sustainable is an effective way to plug revenue leaks.

Choose your passion

 

Perhaps this should have come first, but there are some businesses that have grown to become a passion over time. Nonetheless, ensure you are in the right place. You probably have no business championing a vegan cause if you are an avid meat eater.

While there are people who do this for profit, it stems from the wrong motivation. In any case, when things seem tough, they are quick to abandon ship because it is not their passion. Always choose something you love.

Are you starting a business? What are your first steps so far?

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