Business Basics: What You Need to Know Before You Launch Your Startup

There are many entrepreneurs that start businesses each year. For example, only in the US in 2020 there were 4.4 million new companies registered. Those tentative first steps for startup launching into the real world are, therefore, taken by a great many people. If you want to follow in the footsteps of these intrepid entrepreneurs, there are a few things you really ought to know before you begin your business journey.

Validate your idea before startup launching

You’ve already taken a big step by opting to ‘take the plunge’ and startup launching. However, you need to be aware that the hard work starts now. You should already have an idea of the business you want to run, the products you want to sell, or the services you intend to offer.

However, now it’s time to firm up those ideas and think about the all-important details by going through a validation process. The validation process is important for your startup launching. If you do the right homework here, your chances of success will become much higher.

You can do this using Google search results and analytics, as well as Amazon, social media, and face-to-face interviews. It’s important to be able to tweak and refine your idea in order to ensure it meets the demands of the market.

validate the business idea process

Get to know your audience better

You need to be able to get a better understanding of your target audience before you put the first step in a startup launching. Create a couple of ‘personas’ of the people you want to sell to and think about these in detail. Everything from their age to family status, type of job, and leisure activity could be important in gaining an understanding of your customer base – be that how to talk to them in marketing material through to the pricing of your products.

It’s important to consider who else from your possible audience will buy from you – and not just in your sector. Get a feel for the level of service offered by similarly sized businesses with a similar audience, even if they don’t offer a similar product or service to you as this will show you what your customer is used to seeing.

Don’t be afraid to listen your potential customers before you launch your startup

In both of the above stages – and also in your business generally – it’s important to be able to listen to others. No one has a monopoly on wisdom, least of all you when you’re at the beginning of your business journey – startup launching. Listen carefully to the advice of people who have “been there and done that”, no matter what sector they’re in – as well as the feedback from people who you aim to sell to. Learn from the successes and failures of others and answer the questions and queries of customers and you’ll be well set to flourish.

Don’t run before you can walk

It’s good to have ambitious plans – and set challenging targets for your new business – but you need to be realistic. Buying up too much stock, taking on a large workforce, or signing a lease for an expensive new office might all get you into trouble, especially before you’ve had the chance to establish a reputation and build a bank of customers. Set smaller, short-term targets in the first few months and gradually increase your ambitions if and when you are able to achieve these.

Understand the risks you face – and plan for them

Similarly, you need to accept that there are risks involved in running a business. Don’t let these dampen your enthusiasm but instead make sure you keep a log of the issues you face and use this to inform a plan for how you’ll tackle them, if and when they should become a problem.

Validating your business idea, researching your audience, identifying key risks, being realistic about early growth, and listening to advise from others are all vital to being able to begin your business journey. Do all of this and you’ll have the firm foundations you need.

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan