Are you a startup entrepreneur or a small business owner? Then, you should be aware of three strategies for every successful business startup before you invest all your money.
Nowadays, many of my clients join business education courses that promise to turn them into successful entrepreneurs in a blink of an eye. But it’s really not as simple as you may think.
In fact, most of these business programs are led by uncertified people. But that’s not all. Getting a course certification doesn’t mean you can suddenly start a business and make it successful. That’s not how it works.
If you’re really willing to create your own business and you believe you’ve got everything to make it happen, then double check everything. In addition, you should understand three strategy points that every successful business startup must have while in business.
1. Choosing your advisor wisely
A lot of people ask me if I would be their business adviser. In return for being part of their advisory board, they would give me some company shares.
To be honest, you shouldn’t try to persuade industry experts with shares and interest values in exchange for advice. The advice that you get in a situation like this wouldn’t be the most suitable. Especially… when they’ve got so many responsibilities and liabilities already.
If you really want some mentorship and guidance, I suggest you choose wisely. First, put a really good team together, then select an industry expert for a casual meeting. Afterward, you just need to ask if it’s fine to grab half an hour of their time every quarter.
Tip: Most of the time, people will help you with advice upon asked. Many individuals want to leave a legacy and they want to help young, energetic, and fast-paced people to be successful in their business. Therefore, you don’t need to offer them your shares.
2. Selecting the correct business structure
Every successful business startup should create proper planning when it comes to the structure of your own business. There are many different structures and each one has its own advantages and liabilities.
You can have a company or a corporate trustee. You can have a trust underneath or you can just be a sole trader. But it all depends on your business strategy, where it’s supposed to go and how much money you actually want to spend.
Setting your structure right is very important, not only for the present but for the future too. Therefore, if you’re very serious about your business you should be organising a family discretionary trust and understand the situation.
Tip: When you’re establishing your business, you should protect your own personal assets because particularly as an entrepreneur, things can go bad really quickly. 10,000 businesses went into insolvency in Australia, just last year.
3. Get yourself a reality check
It’s totally fine to challenge yourself, acquire more knowledge, and obtain certificates in various areas. That shows how determined and dedicated you are as an individual.
However, that doesn’t ensure that you will be capable of establishing a successful business startup. You might have some knowledge but you lack practice, among many other things.
As such, you should realize where you stand and get yourself a reality check. Try asking yourself these questions:
- Do you know how can you make your business work?
- Have you done any business planning yet?
- Do you know how to get funds to run your startup?
- Will your target audience be willing to pay for your product/service?
- Are you prepared if you don’t achieve a break-even?
Tip: Test your business idea with your friends and family. Show them your product or service and ask if they would buy it for a certain value. That is the litmus test on whether or not the business is going to work.
To conclude, a successful business startup needs…
There are a few other points you need to consider while starting a new business. But for now, you should definitely look into the successful business startup strategies that I’ve presented here.
You need to select your advisors carefully and most of the time, you don’t need to include them on your advisory board or give out shares.
Additionally, you should choose your business structured based on solid data. Think about the present but also the future. The right structure is crucial to achieve business success.
Lastly, you need a reality check about whether or not your business is going to work. More, you need to decide if you’re financially and mentally prepared in case things go wrong.
If you need business advice or consulting, Shuriken Consulting and I are here to assist you. As such, get all your questions answered and decide if it’s an efficient idea to invest all your money into your startup.