21 Tips For Startup Business Success
The great thing about startup business owners is that they find success by breaking all the rules. However there are some universal guidelines that are applicable, no matter how niche or innovative a startup business is. These rules can make the difference between success and failure for startup entrepreneurs.
Always have a plan
Startup business owners often have to switch gears at the drop of a hat, but having a business plan is necessary. Not only is it a great guideline, but lenders require that you have a business plan before they will even consider financing your company.
Never use personal credit to fund a startup business
A startup business is always in need of extra financing, but using personal credit cards is a surefire way to tank your own credit score while preventing your company from improving its credit rating.
Shop around for financing and free advice
Banks and lenders want your business, and a smart startup business owner can get valuable free financial advice by exploring options with commercial finance professionals.
Maximize your time
Whether this means listening to industry-relevant podcasts while you’re at the gym, learning tricks to streamline accounting – running a successful startup business is build on good time management.
Always try to negotiate loan terms
Banks and lenders will always try to structure a deal that benefits them the most, so never take initial offers, and always try to to negotiate terms. Even a few points off of an interest percentage means more money that the startup business gets to keep.
Even if you meet people that have no interest in your startup business, they might know people who are, so always add them to your professional network, and explore they second and third degree circles to generate leads.
The elevator speech is dead
What used to be a “power move” for startup business owners, the elevator speech is viewed at as nothing more than static and verbal spam, these days. Showing interest in others can grow professional relationships much better than constantly sounding like a 30-second commercial.
Leverage social media in an engaging way
Social media doesn’t mean posting variations of the same tweet or Facebook post every few hours. Engage your audience. Give them something to respond to.
Seek out criticism
If everyone tells you that your startup business is great (and it is!) then it will stagnate, and not know which direction it needs to go in order to stay competitive. Listen to criticism – both positive and negative – and see if any of it is applicable to your startup business.
Stand out from the crowd
An old startup business in the computer industry once used the slogan “Think Different,” and they went on to be very successful. Always try to think how to grab your target audience’s attention by doing the unexpected.
Do your taxes as soon as possible
Not only will doing your business taxes net you a return ahead of everyone else, but commercial lenders always want to see the most recent tax forms before structuring financing for your startup business.
Apply for business credit before your startup business officially launches
When you apply for business lines of credit, your company’s name starts to get out there, on lists that banks and lenders pay attention to. In addition to that, applying for credit will give your startup business access to extra capital.
Fire yourself at the first opportunity
Startup business owners have to wear a lot of hats – from sales to marketing, accounting, and more. Once the business starts bringing in a decent profits, fire yourself from your weakest role and hire someone who specializes in that field. It’s a small price to pay for being able to focus on running your company.
Don’t be too proud to ask for help
Many startup business owners do not like asking for help. The truth is, there is no shame in reaching out to other successful entrepreneurs for help. In fact, there are usually small business networks in any city, where startup business owners can bounce ideas off of each other and seek advice from more experienced entrepreneurs.
Lease when possible
When launching a startup business, leasing things like equipment can save on upfront costs. However…
Buy for the long-term
If you realize that something can help your startup business in the long run, then absolutely purchase that equipment, facility, or property, if it is feasible. Those things become assets and can be used to leverage financing in the future.
Try to avoid paying debt with more debt
Many startup business owners take out more loans to pay off initial debt. This can spiral out of control very quickly. Avoid taking out loans and see if things like factoring can help get your business out of debt.
Between the web and apps, there are tools available that can automate everything from payroll to accounting, and so much more. This serves to free up precious time that all startup business owners need.
Remember to exercise
Keeping your body and mind fit and flexible is a key building block for success.
There are only so many hours in the day, and only so much caffeine a body can handle. Recharging your body and mind on a regular basis will make you more productive than pushing the limits of consciousness.
There is never a fair balance of work and personal life
At least, not in the beginning. When launching a startup business, most entrepreneurs will find themselves pulling late nights and long hours. The road to financial independence begin with a lot of sacrifices, but the rewards will be that ideal lifestyle you’ve always dreamed of.