The starting stages of a new business or startup are one of the most crucial time periods, and often times determine whether or not the business will reach startup success. Startups can be full of excitement and determination; however, they are also full of risk.
Tones of businesses, many which had lots of potential, never get off the ground, simply because they weren’t planned correctly. Understanding the many factors that contribute to the success of your business will help you make the profits you desire. So let me show you the key features of an effective business plan.
Features of a startup success
A business plan is essentially a road-map for the success of a business. This plan should project the future of your business for the upcoming 3-6 years. It needs to incorporate all of your business profits and expenses including, not only limited to, budget, sales, marketing expenses, manufacturing expenses and more.
A company’s business plan can take 12-18+ hours to write so make sure to spend sufficient time developing your business plan. Doing so, will greatly increase the chances of startup success.
The Right Players
“If you are an “A” player, then you must hire an “A+” player in your team.” Imagine playing a sport, all by yourself. No team mates, no nothing, just you. It’s impossible! Because to play a sport, you need a team to support you. The same concept applies to a business— you are the athlete and your employees are your team.
However, an “A+” doesn’t necessary mean that your employees have experience or qualification, it means your team is self-motivated. This is the best quality about the employee that every employer should be searching for in any potential employee you are hiring.
These employees will build that “perfect team” and together lead to your startup success. Having the right team is one of the most critical factors which can either push your business towards success or drag it to failure.
A Properly Distributed Budget
One of the most common mistakes many business commit is distributing their money to where it’s need. Business will spend countless amounts of money on advertising and minimal amounts on improving your products.
“Losing control of your business” is one of the biggest problems in startups. More than 29% of startup businesses fail because owners simply didn’t spend their money in the right place. By continuing to reduce your overhead costs, you can free up financial resources which can later be spent in areas which need it.
Analyzing these factors carefully and understanding how they work together can help your business succeed. If you are looking at these factors and are confident that your business meets its demands, chances are that you are on the road to success. On the flip side, if you notice that any of these factors apply to your business, then this is your cue to invest your time in overcoming those weaknesses.