Four Things to Consider for Successfully Starting a Business

Mark Zuckerberg, Elon Musk, and Steve Jobs are a few of the modern entrepreneurs who successfully put up a company from the ground up. While accomplished in their respective fields, they each had their ways of reaching the heights they enjoyed. These people proved there are no set instructions for success; however, if you want to put up your own company, there are some things to consider that increase your chances of making it to the 10% of successful startups. From having a solid vision to getting yourself a mentor, let us discuss the four things to consider when starting a business.

1. Have a Solid Vision and Business Plan

Many people have ambitions of starting a business, but the reality is that not everybody is entrepreneurial. To succeed in your own business, you need the drive and passion to carry you through many days when things do not go the ways you want them to. To guide you through this journey, you need a solid vision in the form of a business plan to serve as your compass when things get rough.

A business plan is a document that outlines your goals and how to achieve them. It serves as a road map for you to remind you of your goals and why you started the business in the first place. Do you need a business plan? Technically, you do not. However, you should, and if you are thinking of getting a business loan or funding, you will need it.

2. Secure Funding

According to research by CBI Insights, one of the main reasons business startups fail is because they secured no funding. Simply put, to get a business up and running, you need money. Unless you have the capital yourself, you need to get that capital somewhere. There are a few ways traditional and non-traditional ways to finance your business, some of which are:

• Crowdfunding. Raise money through many people using crowdfunding sites. If you want to get money this way, you need to set up an account with a crowdfunding site, set up how much you want to raise, and present your product. You also need to reward people (a discount on your product or other benefits) for donating to your crowdfunding. Kickstarter, Indigogo, Fundly, Gofundme, and Crowdcube are popular crowdfunding websites to try.
• Business Loans. Business loans are some of the traditional ways to get funding for your business. You secure loans from sources such as large banks, community banks, peer-to-peer lending, and online lenders, to name a few. If you decide to secure funding this way, make sure that you read the small print, especially when it comes to collateral and payments.
• Angel Investors. Angel investors are people willing to invest in early-stage companies in exchange for equity ownership interests. Successful companies like Facebook and Uber inspired Angel investors over the years to take the risks with startups. A typical angel investor usually invests anywhere from $25,000 to $100,000 per company. One of the best ways to get an angel investor is to meet one through someone you know. However, if that is not possible, try AngelList, LinkedIn, or Crowdfunding websites. In addition, network with fellow entrepreneurs.

3. Find the Right People to Work with You

“When you are in a startup, the first ten people determine whether the company succeeds or not. Each is 10 percent of the company. So take as much time as necessary to find all the A players. If three were not so great, why would you want a company where 30 percent of your people are not so great? A small company depends on great people much more than a big company does.”  – Steve Jobs

The quote above from the late Steve Jobs sums up why to take your time hiring the right people for the job. Having the right people working with you towards your goal is crucial for your success. In assembling your team, ensure that they have the skills and the attitudes to contribute to the company’s success.

However, where do you find these people? Start with the people you already know and want to work with or with people that come with recommendations. Post ads on multiple job boards online if needed.

Do the hiring yourself by internal recruitment, or get an external recruitment service that uses HR recruitment software to help you out. These services narrow down your search for your perfect team with their agency software.

4. Get a Mentor

Starting a business from scratch is like learning how to walk, especially during the first few years of its operation. It works to your advantage if you got the help of an industry expert or a mentor. This is somebody you already know who has been an entrepreneur longer than you have, or it is possibly an entrepreneurship professor. If you cannot think of anybody to fill the role of mentor, meet potential mentors in online mentorship networks, events, or social media.

A successful business startup combines a well-planned strategy, lots of hard work, and a little bit of luck. By following some of the suggestions above, you are on your way to starting a business and being the successful entrepreneur you dreamed of becoming.