Rule number one: It’s not enough to simply have a good idea to start a business. Successful entrepreneurs must first look at the market, plan realistically, and mobilize their troops to achieve their objectives.
In practice, vision is only one part of the equation; it is just as important to know how to deal with concrete problems and to be able to market yourself in a competitive environment.
Here are just some of the basics:
1. Pinpoint the right market
Ideally, you should introduce your products or services to a young and fast-growing market. In more mature sectors, you will need a competitive advantage to distinguish yourself, i.e. product or service innovation, great customer service, or the right price point.
2. Put the right people on your side
People on your management team should have skills that complement one another. The best leaders ensure that they recruit the top experts for each area of operations. You should not be afraid to hire people who have, in their respective fields, more expertise than you do.
3. Think about the road ahead
Avoid fire-fighting and losing sight of your long-term objectives. Make a list of all the factors you have to consider in the immediate and medium-term, especially if you foresee rapid growth. To help you manage that growth, you need to examine all available options, such as purchasing or leasing premises, furniture, and equipment. You might also consider outsourcing different operations, such as human resources, rather than handling it internally.
4. Get your financing in shape
Start-ups are often financed by the savings of their founders (as well as the savings of families and friends). In many cases, it may be necessary to look for outside capital such as Angels (private investors), venture capital funds, assistance funds, or social economy funding agencies.
5. Use your time well
Most companies take time to get established, which means there will be periods when business is slower. The key is to make good use of that downtime by networking, for example. Three networking strategies that may be appropriate, depending on your situation.
6. Iron out the technicalities
There are many rules, some very technical, which are absolute requirements for your company’s continued existence. For instance, you must decide what legal form your business will take, design an accounting system, and comply with regulations covering labor practices, occupational health and safety, and training.
7. Deliver a plan that means business
Be sure that your business plan incorporates all of the above. Your plan must be concise, specific, and describe your business project accurately. Write it yourself, as it is your vision. And expect to do several rewrites before you achieve your final plan.