Approximately 627,000 new businesses are started each year. But the reality is, many of those businesses will fail within five years.
What does it take to succeed as an entrepreneur? How can your startup thrive?
It won’t be easy to succeed, but starting a business from nothing is possible if you have the right mindset and knowledge. Here are some top tips that the smartest entrepreneurs should follow when starting a new small business.
1. Research, Research, Research
The biggest mistake you can make when starting a new business is assuming you know your target audience. It is incredibly important to research industry trends and holes in the market so you can find where your business can fit in.
Learn about what people are looking for and spending money on. Learn about your competition and what they’re doing to succeed, and how you’ll do better at it.
The more you research and prepare prior to actually starting your business, the better off you’ll be.
2. Get Funding and Create a Budget
If you’re starting a business from nothing, you’ll need to get investments to fund your startup. You can look for investments from angel investors, family or friends, or crowdfunding. You can also look for small business loans from banks to fund your startup.
Once you have funding, you’ll need to create a realistic budget for your company. Consider costs like supplies, employees (if you decide to hire right away), marketing, and any other business expenses.
Try to cut spending anywhere you can because you will be tight on money and making little to no profit.
3. Set Financial Goals
Set financial goals for your first year, first three years, and first five years. Write out what it will take to reach those financial goals.
How much profit will you need to make? If you don’t reach those goals, what will you do to make more of a profit? These are things you’ll need to consider if you want to be successful down the line.
4. Be Patient and Realistic
On average, it can take two or three years to start making a profit. This means you’ll need to be patient and have a realistic understanding of what the first couple of years will look like.
Just because your small business isn’t taking off right away, doesn’t mean it won’t in three years. Whether you’re a tech entrepreneur or real estate business owner, you need to remain patient and stay confident in your company.
5. Adjust Your Vision
If your small business falters or does not perform as well as you thought it would, you need to adjust your vision. Don’t remain stubborn in your business ideas and let your company fall under.
The best entrepreneurs are willing to adjust their vision and goals in order to succeed. That doesn’t mean completely losing sight of what you want, though. It means adapting to the market and to what consumers are looking for.
Starting a Business from Nothing Is Possible
But you need to have the right mindset because it will be a tough journey. If you follow these top entrepreneurial tips on starting a business from nothing, you’ll be giving yourself the best chance to succeed.
Check out our entrepreneurship blog to find more tips on starting a small business!