Estimated reading time: 5 minutes
Starting a New Business: A Recipe for Success
Building a dream business can be overwhelming task. It takes energy, money, determination, hard work, passion, and a big leap of faith. But the rewards can be great.
With more than 32 million small U.S. businesses (defined as organizations with fewer than 500 employees), it is clear that these business ventures did not start at the exact same time.
And while there is no “ideal” time of year to start a business, there are some benefits to beginning a business during specific seasons—depending on your particular niche market.
However, the true recipe for business success has to do with numerous unique factors. Below are several tips to keep in mind when embarking on the journey of creating your dream as business owner:
Ensure you are motivated and committed: A true entrepreneur is able to consider the potential payoffs, as well as the risks and pitfalls. Be sure you are ready to commit to your business, as well as the time and energy it requires.
Conduct market research: This research allows you to see what types of businesses are viable and how much money is being spent on these businesses.
Smart small: Developing your business on a smaller scale is safer than going big too soon. Consider selling to friends and family, and growing from there. This enables you to tweak your product or services with the feedback you receive from this small group of trusted individuals.
Keep it simple: Beginning with a simple idea means your branding can also stay simple. And this means that spreading the word about your business will be an easy and smooth process.
Understand your competitors: Not only is it important to understand what customers want and need, it is also vital to grasp who your competitors are and what their successes and failures look like.
Reinvest in the business: When your business is experiencing success, spend money on hiring or retaining top talent, improving training, and investing in inventory.
Develop a solid business plan: A business plan is necessary to help you focus, find funding, and plan for possible pitfalls. This roadmap not only provides direction but also attracts investors and potential business partners. Writing a business plan creates the foundation for your business and guides you through starting and managing your new business.
The Small Business Administration recommends that every business plan include the following:
- Executive summary – a snapshot of your business
- Company description – describes what you do
- Market analysis – research on your industry, market, and competitors
- Organization and management – your business and management structure
- Service or product – the products or services you offer
- Marketing and sales – how you will market your business and your sales strategy
- Funding request – how much money you will need for the next few years
- Financial projections – information, such as balance sheets
- Appendix- an optional section that includes credit histories, licenses, résumés, and permits
Hire experienced and knowledgeable professionals: Because you can’t wear every hat or know everything, it is important to work with individuals who can help you build your business. Finding experts in the areas that you don’t feel comfortable or knowledgeable is a good idea, and can help you build a strong and viable business.
While it is common for entrepreneurs to get very excited about an idea, many do not follow through or they abandon ship when times get tough. As a result, it is critical to create a business with the right building blocks to ensure success now—and in the future.
SIDEBAR: The Key to Succeeding in Business Today
Many people start a business thinking that they will open their doors and begin earning money immediately—only to find that making money is much more challenging than they thought.
To succeed in business today, you must have determination and tenacity. In fact, every successful entrepreneur’s story contains elements of passion, struggle, commitment, and hard work. And Keith Young’s Cup Board Pro is a perfect example.
Keith Young was a New York City fire fighter and a student of culinary arts. He joined the FDNY in 1998, and while stationed in a Brooklyn firehouse, he honed his culinary skills and published a cookbook, Cooking with the Firehouse Chef, in 2003.
Several years later, he developed the idea of the Cup Board Pro, a cutting board with an attached cup to catch juices and scraps from the board. Just as Young was perfecting his design, his wife was diagnosed with Stage 4 breast cancer. She died in August of 2012, leaving Young a single dad of three children.
As a firefighter in New York City, Young had helped in the rescue and recovery efforts after the attack on 9/11. In December of 2015, he was diagnosed with synovial soft sarcoma, a rare form of cancer caused by his exposure at the World Trade Center. His struggle with the treatment and effects of the disease forced him to retire in September 2016, and he died at the age of 53 in March of 2018.
However, his three children did not give up on his invention. That very fall, they appeared on Shark Tank. All five sharks offered the Young kids $100,000 for 20 percent, with each shark contributing $20,000.
In addition, they promised that any profits the sharks earned from their investment would be donated to a charity helping firemen who became sick after 9/11. The Youngs happily accepted the deal.
“The time our dad spent in the kitchen was about more than making tasty food,” explained Keith Young’s oldest daughter, Kaley. “He brought everyone together with his food—and with his humor. We feel honored to be able to continue his legacy.”
It would certainly have been understandable if Keith Young’s children decided to give up on his invention and his desire to see it used in kitchens all across the country—but they did not. They followed their father’s dream to be an entrepreneur. And you can do the same.
So let Inc Authority get your business up and running successfully. Reach out to one of our business specialist and set up your LLC so you can continue to thrive. We’re here to answer your questions and Form your free LLC today!