If you are in the process of opening and running your own business then you may be worried about getting things wrong. It is common knowledge that many companies will fail before they get to their first birthday. If you don’t want this to be you then it is essential you take your time setting everything up and getting it right from the get go. Building a business from the ground up doesn’t have to be difficult. Check out the article below to find out more.
Funding
One of the first things you will need to do is find the right level of funding for your new business. This will pay for everything you need before profits and sales start rolling in, including salaries, tech, and rent. When the time comes to work out how much money you need to get started, write it all down. When you have the final figure, be sure to give yourself some wiggle room. This will allow for anything that takes you over budget, the last thing you want is to run out of money before you have even begun.
If you don’t have this money to hand right away then you may need to successfully apply for a business loan. The bank needs to know you are a safe lending option before they start handing over large quantities of money. Failure to make the repayments each month could result in you losing your company.
Market research
Before you start a business you will need to know and be sure that this will do well out in the big wide world. Market research can help you understand the needs and wants of your customers and clients. If your business won’t do well then you may need to go back to the drawing board to find a new idea for your company. Market research isn’t too difficult to do, send out polls and questionnaires to potential customer groups. You should ask things like: would they shop with your company, how often will they buy products or services, and how much would they be willing to pay for these things?
Employees
At some point you may decide to hire employees. If in the beginning you can manage everything on your own then this is great. However, as you get busier with orders and customers things can quickly become too much. You may be dreading the hiring process as you don’t want to end up hiring the wrong people. The risk you take here is ending up with a high employee churn rate, this happens when employees come and go in quick succession. This means you need to take time away from other projects to hire new people, costing your business time and money. These two things combined can be detrimental for your company.
If you don’t want the responsibility of hiring people for your business then you could work with a recruitment agency. They will do all the leg work, including checking references and resumes. You need to check reviews before you decide which one to use, you don’t want to pay money for a business that won’t hire the right people for you.
Website
You will need to design your website before you open your company. This will be where your customers come when your main office doors are shut. It is thought that most customers do their online shopping between the hours of 7pm and 10pm when they are chilling at home after a long day in the office. You need to make sure that your website is never down for maintenance during these hours. Many businesses put their site up for little fixes during the early hours of the morning.
Your website needs to be user-friendly and accessible, don’t forget that not everyone who will be using your website will be tech savvy. If your customers or clients have to endlessly trawl through pages then they are likely to take their money and custom elsewhere, likely to one of your competitors.
It is always a good idea to add a search bar to your site when the time comes to design your site. If you have never designed a website previously then working with a web design and development agency could help you get it right.
Location
If you plan on having a physical office as part of your business then you need to find the perfect location. When it comes to your business location, you need to think how easy it will be for your customers and clients to find you. If you are set too far back then you will miss out on vital foot traffic. However, being situated in the middle of the hustle and bustle of shops and transport links can push your rent costs up.
There is always the option to run your business from the comfort of your own home, that way you save the environment by not traveling. You also save money as you won’t be paying out for rent each month. If you do decide to find somewhere to work and run your business then you can speak to a realtor, they will be able to find you the perfect location that fits nicely into your budget.
Suppliers
Every great business has suppliers who they have a great relationship with, no matter what they need. Take your time finding the right supplier, you don’t want to pay over the odds for your supplies and products. Paying too much here will mean you are less likely to make a profit further down the line. Speak to different suppliers, get a list of prices and see which ones are best for you, your business, and your budget. Never be afraid to shop around and find a new supplier, especially if prices get too high. Remember, as long as you are not in any form of contract you can come and go as you please. There will always be cheaper suppliers, however, make sure the quality is exactly the same.
Know Your Brand
You will want your customers and clients to remember your business so they keep coming back time and time again. This comes down to how you market your business and how you get your brand across to customers and clients. Your brand is so much more than a catchy logo and bright colors. You need to ensure you know what your business is about and what it represents.
Cut Costs
As a business owner you will always be on the lookout for ways to cut costs. There will always be areas of your business that cost you too much money, as well as areas you need to pump more money into. You could use an accountant to look over your books and give you suggestions on how to save money. One way to do this could be using a third party logistics company, they will take care of everything from storage to delivery. This saves you costs as you then only have to make one outgoing each month.
You can also save money by outsourcing certain tasks and projects, for example if you need transitions for various pages on your site then you could outsource this to a translation service. While the initial cost might be higher than usual, it will save you money in the long run as you don’t need to hire a full time worker to do this.
Customer Service
Think about how you can improve your customer service throughout your company. If your customer service isn’t on point then you may find that your customer numbers are dwindling. The issues that come with this is that you won’t make enough to keep the business running. If you have a website then you can add a chatbot to your site, this gives your customers and clients answers to specific questions right away. However, if you want to take it one step further then you can have a dedicated customer service team on hand to handle questions, queries, complaints, and compliments. In doing so you prevent your customers and clients needing to wait up to three days for a reply.
When you hire a dedicated customer service team you need to ensure they have the relevant experience to handle everything that is thrown at them. Make sure you are checking references and resumes before you make your decision.
Training
Finally, if you are wanting your staff to stick with you and your business for a long time then you need to think about incentives to keep them around. You don’t want anyone to be stuck in a dead end job, especially if you have also been there previously. With the right training package and a promise of promotions and bonuses, you will find your staff work harder than ever to keep your business afloat. If you offer training as a bulk with a few of your employees then this will save you money and give everyone a chance to learn the same things together.
Hope you found this article helpful and that it gave you an idea of how you can make your business stand the test of time.