According to the U.S. Small Business Administration (SBA), there are 30.2 million small businesses in the U.S., which collectively account for around 66 percent of new jobs. Among that 30.2 million, around 414,000 are less than one year old. If you’re one of these brand-new businesses, you probably want to do everything you can to make sure your business is compliant and set yourself up for success from the get-go. From finding clever ways to fund your home-based or brick-and-mortar startup to acquiring the appropriate insurance and bonds, there are all sorts of tricks to help bolster your business before it’s even born. Here are some of our best tips for getting your biz off the ground like an entrepreneurial expert.
DO: Get Bonded, If Applicable
If it applies to your industry, make sure to obtain a surety bond. Surety bonds are written agreements that guarantee something (such as compliance, performance of an act or payment) between your business and another party. Having this extra piece of paper gives your customers or clients added peace of mind knowing that you can’t up and abandon their project, so they’re much more likely to hire you. Note that small business bonds are required for licensure in some industries and states, including general contracting.
DON’T: Neglect to Market Your Bond Status
If you’ve ever heard or seen the phrase “licensed, bonded and insured,” you know what we’re talking about here. Consumers appreciate that you’ve taken the additional step to become bonded—and you’ve paid extra to carry this designation—so make sure that you include it in your marketing materials.
DO: Register Your Business with the State
Many micro-businesses operate for years without registering as a business by forming a limited liability company (LLC), a corporation or simply requesting an employee identification number (EIN) from the IRS. These steps may not be required in your scenario, but there’s a good chance that if you do decide to register your business, you can take advantage of a few measurable benefits. Officially registering your business may bring tax benefits while also helping to improve the perception and legitimacy of your company.
DON’T: Skip Trademark Protection
According to the SBA, you can usually trademark your business name, logos, symbols, words and more for less than $300. Not doing so can expose your business to risks associated with knockoffs and copycats. Before you register your business, search the United States Patent and Trademark Office (USPTO) Trademark Database so that you can be sure your desired name is available and know that you aren’t infringing on someone else’s trademark.
DO: Perform Market Research and Focus on Pain Points
These days, there are few businesses beyond niche tech markets that don’t already exist. The most successful new companies are the ones that take an existing model and “disrupt” it by changing the way things are done for the better. Rather than selling yourself as the company that invented sliced bread, focus on how your business enhances sliced bread. You can do this by performing market research (whether informal or formal, it doesn’t matter) and asking your core customer base about their pain points. If there’s one main complaint, focus on fixing it.
DON’T: Forget to Focus on Customer Experience
Consumers, especially millennials (who happen to have the big buying power at the moment), are quickly starting to realize that just because a company is forward-thinking and disruptive doesn’t mean that it’s actually going to improve their experience or the industry at large. But study after study shows that customer experience is one of the biggest purchasing influencers among consumers. Providing fast, quality and responsive customer service is one of the best things you can do to start your business off on the right foot. Make it a pillar of your business, not an afterthought.
DO: Focus on What Makes You Different
Be clear on what makes your product different as early as possible in your marketing efforts. Every business is going to claim that their product is number one. Why should customers choose you, a relative newcomer, over a more established company? Focus on highlighting your key selling points that differentiate you from your competitors. If you’ve done your market research, you should be able to use some of your customer’s pain points to help you stand out in a crowded market.
DON’T: Over-promise and Under-deliver
If you can’t make good on your promise of same-day shipping or hassle-free returns, don’t promise them in the first place. Customers today are skeptical of flashy advertising and bold claims made by companies that have yet to establish themselves. The last thing you want to do is make customers distrust your business by not keeping your promises. Instead, stick to the facts and consider omitting some factual statements that could potentially be misleading as well. Strong businesses are built on brand loyalty, which isn’t possible without first earning the customer’s trust.
DO: Look for Unique Ways to Fund
If you’re the idea person rather than the financial person, you may not realize that there are more ways to get business funding than appealing to investors. One of the funding opportunities many green entrepreneurs overlook is the government grant. The SBA and other organizations provide grants to businesses that focus on research, development, exporting and other in-demand sectors.
DON’T: Blindly Crowdfund
Crowdfunding is an amazing tool for early-stage entrepreneurs, especially those who want to get the word out about their project. There are some major drawbacks, though, making this funding option less-than-ideal for many business owners. For example, there have been several cases of young businesses making promises in exchange for funding without following through, making the option risky for consumers. If you opt to take this route, make absolutely certain that you can deliver the incentives you offer to those who contribute.
DO: Forge an Online Presence
The vast majority (97 percent, according to Adaptive Marketing) of consumers use the internet to connect with a local business. Obviously, if you need to market to your community, you cannot miss out on this opportunity. Businesses that don’t have a strong online presence are much less likely to succeed for a variety of reasons, including the fact that they simply won’t be found by potential customers and, if they are, they might not be taken seriously or seen as legitimate if they aren’t online.
DON’T: Get Lost in the Crowd
Getting online is one thing, but standing out online is another thing entirely. You need to make sure that your business is easily findable when people search for your company on Google, Facebook, local business directories and other places. If you have only a small marketing budget, it’s probably smart to invest it in digital marketing and search engine optimization (SEO) to help your company stand out among the competition online.
Be Persistent and Believe in Your Product
Sure, the logistics of a business can certainly make it or break it. But one thing that all successful businesses have in common is passionate, persistent leadership. Ask some of the most successful entrepreneurs the key to the success, and many of them will say it’s their tenaciousness. As Financier Davis Rubenstein once said: “Persist—don’t take no for an answer. If you’re happy to sit at your desk and not take any risk, you’ll be sitting at your desk for the next 20 years.” As long as you’ve got the persistence part down, you’re halfway to a successful endeavor.
