1. Find enough backing.
Financing a business venture can be tricky right out of the gate. You must have a clear idea of what the company will do and what the demand is. You must also package that awareness in a way that convinces investors that your small business has real potential to survive and grow.
Depending on the type of business, of course, your initial investment needs will vary. But it’s important not to write off the possibility of backing simply because you feel that your company is too small to warrant outside investment.
Even if you plan to run a small company offering products that you can guarantee yourself, there are other aspects of success that require money, such as marketing and branding (more on those later).
According to business investment and economy specialist advisors MaRS, most of the main barriers to starting up and successfully running a small company involve backing money. Basically, without adequate backing, you may not be able to get your company off the ground. Even if you are able to launch it, you may not be able to pay for the overhead, marketing, employee training and other necessities to keep the business from drowning. The time to secure adequate funding is before the business launch, in order to ensure that the company doesn’t falter at any point during the all-important first year.
You have several options to find financing, such as turning to friends and family, finding an angel investor, and the increasingly popular choice, crowdfunding. But this only really becomes a building block for business success when it is done at the right time, to the right degree.
2. Know your audience.
Whether your business has already launched or you’re still putting it together, demographics are a key part of research and success. Figuring out who your target audience is before you launch your business may seem like a no-brainer, but the impact that this has on other factors can’t be downplayed.
With a clear idea of your audience, you can:
- Streamline your products and services to make sure they appeal to that target demographic.
- Put your marketing budget where it will do the most good.
- Pinpoint sections of the target audience that provide the most potential for growth.
- Reach out to your consumers in the ways that appeal to them.
- Build on what you know about your audience to create a connection and build brand loyalty.
The importance of the personal touch is at an all-time high. Knowing basic facts about who you’re reaching out to makes every effort that much more effective.