Starting a business is not an easy task to accomplish. Aside from the good starting budget or initial capital, you must develop a plan, conduct market research, analyze competition and plan out your marketing strategies, among other things.
However, your efforts don’t end there. As a matter of fact, the very first year of your business on the market is the most important one. Here, you will test your skills and your ability to run a business in oftentimes extremely challenging conditions. The fact of the matter is that the online market is a dynamic, overcrowded and a highly competitive landscape.
Even a simple mistake in such conditions can set your business back for years, if not ruin it entirely. That’s why it’s of the utmost importance to plan out your startup’s first year and define goals, as well as objectives that will help you overcome the hardships and challenges that wait ahead. That being said, here are a few of these business goals and objectives for that first year.
Work on your business plan
As mentioned before, you must have a business plan in order to start a company. However, your business plan provides guidance as to how your startup should grow and develop further. That plan needs to be revised and updated, especially within the first year on the market. Here’s an example: market research, for instance, is a continuous activity alongside the competitive analysis. In other words, you don’t do it once and you’re done with it.
As a matter of fact, you have to continue doing so even after your startup becomes an established company on the market. You have to learn new things regarding your audience and your competitors if you wish to remain both relevant and competitive. That’s why you must update your business plan, especially if you need to change tactics or strategies that will help your startup grow.
Determine your funding objectives
As you may already know by now, your startup can last as long as you can properly fund it. That is, of course, until it can become sustainable and profitable on the market. If you don’t have a proper initial capital that will endure up until that moment, you’re most likely to end up in trouble.
The fact of the matter is that 90% of startups tend to fail and 29% of them fail due to the lack of funds. That’s why you must establish funding objectives, so that this doesn’t happen to your startup. As an example, you can consider bootstrapping, borrowing from friends and family or taking a bank loan as a funding source for your startup.
In addition, you can also explore other funding methods, such as venture capital, angel investments, crowdfunding and so on. In any event, each of the investment opportunities has their own advantages and disadvantages and you must decide which one to opt for. Your objectives must also include how to approach investors and how to encourage them to actually fund your startup.
Set your financial goals
Finances are your most important priority as a business owner. The main reason is that even a simple financial mistake can cause a business to fail. Once your startup begins to generate revenue and income, it’s vital that you maintain positive cash flow. What’s more, you must effectively manage your company’s income and expenses if you want to ensure proper financial health and sustainability. That’s why you must set up financial goals and find a way to budget effectively.
As an example, you can leverage budgeting tools provided by companies such as MyFi. You can also consult with a financial advisor or hire an accountant that will help you manage your startup’s finances. In any event, your business finances should be on top of your priority list and you must ensure that you can avoid financial mistakes so that your startup can not only endure its first year but also continue to grow in the future as well.
Develop marketing objectives
Marketing is one of your most important goals. Without a proper way to promote your startup and make it well known on the market, you have little chance of reaching success. Marketing objectives don’t just include the strategies you’ll use for your startup promotion. As a matter of fact, these objectives should also include various ways for you to not just reach out to your target audience but also encourage them to become your customers.
For example, you must determine how to meet consumer needs or expectations, in order to establish a strong and positive sentiment. Aside from that, your marketing objectives should encompass strategies that will secure a competitive advantage. Consider what your competitors are doing wrong that you can do better and outrun them even in the first year of your startup being present on the market?
Starting a business can be a daunting task. What’s more, running a business and ensuring its success can be even more challenging. That’s why you must set goals and objectives in the first year so that they can guide you and your startup business forward.
