Creating a plan before starting a business is essential to your success. According to the latest news from the Small Business Administration, over 60% of new businesses last at least 2 years. However, only 44% of these businesses that survive the first two years will last another two years. Unfortunately, more small businesses fail than succeed.
There are two primary reasons why businesses fail: lack of proper planning and insufficient funding. While we can’t help with the funding part, we can offer some helpful insight in regards to new business planning.
At LUXA, we have pinpointed at least five things every entrepreneur should consider as they start their journey to launching a new business. We understand that there are many more, however, these five areas will provide you with a solid foundation on which to build.
1. Hire an Attorney to File the Necessary Paperwork
Far too many business owners lack an understanding of the legal issues that affect their industry. You must develop an understanding of the legal and regulatory statutes and laws surrounding your business. The best way to ensure that you have a complete understanding of this area is to hire a business attorney.
Additionally, a good attorney will assist you in determining your corporate structure and filing the necessary paperwork with your state to make your business official.
2. Determine a Clear, Simple Name for Your Business
The name of your business is much more important than you may think. Your business’s name must clearly and simply state the service that you provide. For example, a bakery by the name of “Smith Brothers” will not inform potential customers of the service you provide.
It is also best to refrain from incorporating foreign language as part of your business name. Keep your name simple yet innovative.
3. Create a Comprehensive Marketing Plan
In order to have success in business, you must take time to create a comprehensive marketing plan. Who is your target market? Who is your current competition? How can your business fill a unique need? What strategies will you take to tell your story effectively? What will the cost of doing business be?
These are just a few of the important questions you must ask yourself as you create a marketing plan. Without a comprehensive marketing plan in place, you will not have a clear direction to take once you launch your business.
4. Develop an Online Presence & Web Strategy
Now, more than ever before, an online presence and web strategy is crucial to your success in business. It doesn’t matter what type of business you are starting, a web presence is a must-have. Your online strategy may include things such as a website, social media (Facebook or LinkedIn), or even a blog. Depending on your industry, it may be helpful to incorporate platforms such as Twitter, Pinterest, and Instagram as well.
5. Seek Out Business Mentors & Advisors
Even experienced entrepreneurs benefit from the advice of a business mentor and advisor. As you launch your new business, take the time to seek out mentors and advisors. Whether your mentor offers pointers on business strategy, helps you bolster your networking efforts, or acts as a confidant, it is good to have someone on your team.
It is also wise to hire a competent attorney, insurance agent, accountant, and payroll HR/firm. Starting a new business can be a daunting adventure. However, equipped with these tips, we hope that you establish your business for success.
LUXA Enterprises specializes in HR services, outsource accounting, bookkeeping, and payroll services. We match up with ideal candidates for services by allowing small to midsize businesses to increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!