Did you know that most startups fail within their first year? If you’re thinking of starting a business, you may feel put off after reading that – but don’t be! The reasons these companies go under are varied but avoidable. Running a successful business is a bit like baking a cake; If you follow a recipe and remember every step, chances are you’ll come out on top. However, forget the flour, and you’re in for a headache. So, let’s examine the basics of business building and learn the recipe for starting an SME in 2019.
Get Your Software Sorted
Unless you’re running a lemonade stand, your business is going to need some IT and some software to run. You’ll need to invest in some accounting software in NZ, which will help you to keep track of your finances and issue invoices, late payment reminders and final notices. As well as a program to keep the books in order, you may want to invest in a customer relationship management program. This helps you to keep track of your customers, their orders and can help you build a substantial marketing database. Finally, if you’re wholly online or have an online presence, a website with an integrated e-commerce section is required. This may seem like a lot of work, but with some knowledge and effort, you can pull it off. Alternatively, if you have some capital, consider employing an agency to get your systems up and running.
Have a Unique Offering and Place in the Market
You need to figure out what you’re going to sell. This will be a product or service that makes people’s lives easier. From delivering pizza to developing software, the aim is to ease people’s pain points and help them live a more comfortable and relaxed life. You also want a product or service that stands out from the pack. You’ll be entering into a crowded marketplace so consider your point of difference carefully. If you’re investing in a brick and mortar location, then thoroughly examine your site and the nearby competition. For example, it’s not wise to open a burger joint on a street that has two burger joints already operating. Find another piece of real estate or vary the cuisine.
Have Some Capital Ready, or get Finance
Starting a business costs money. You’ll need software, perhaps a physical location, IT systems, materials, fleet cars or various other expenses to generate income. This means that you need capital to begin. If you’ve got a nest egg tucked away, perfect. Otherwise, you may want to consider a business loan. Once you have a product or service that’s innovative and useful, you may wish to begin approaching venture capital firms to chase investment funding. Be wary of this route though – investors can have much sway when it’s their money you’re running on, so if you want to maintain autonomy, you may want to consider bootstrapping until you’re successful.
A Startup Wrap Up
Running a business can be a risky venture, but follow a few steps, and you’ll have a chance at success. Have your software and IT systems sorted from the get-go and you’ll have an edge already. Figure out your unique offering and place in the market and make sure that you set yourself apart from the competition in every sense. You’ll also need some capital to spend as you get up and running, either from your funds or via a lender. Once you’re racing along, you may want to consider seeking investors. Good luck, it’s a jungle out there, but with some hard work and effort, you can live the dream.
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