What You Should Know About Starting a New Business

Before you jump into starting your business, read these tips to make sure your product or service will really take off. 

Andrew Charles, Partner
4-minute read

You decided to start a business with a life-long friend, and after discussing your options for several weeks, you are finally ready to put your plan in action. Although it may be a stress-filled few weeks of trial and error, you are both sure your plan can change the world. Before you can get your product to the public, there are a few things you should know about how to start a new business.

Listen To Everyone

As you workshop your idea for your business with friends and family, you never know when a side comment or off-the-cuff remark could bring fresh new ideas or clarify questions you may have had. Remember to keep an open mind when your loved ones offer feedback and advice. It is also important to notice how people react when you talk about your idea. Watch their body language and notice whether they seem excited or bored. The way your family and friends respond to your product spiels will almost always prove to be a microcosm of the larger collective.

Raise Your Credit

There are many reasons to raise your credit score, but one of the most important is the ability to save money. When looking for financing for your business startup, you may notice that low credit can make it difficult or impossible to get a loan. Even if you are able to get a business loan with so-so credit, you may be charged a higher interest rate. It is a good idea to review a credit monitoring site monthly to stay on top of your scores.

Create a Solution

If you want a product or service to succeed, create a solution to a problem. Consider a product like the one-touch, leak-proof water bottle. This product was designed to help travelers, commuters and athletes simplify the process of accessing their water. Without a cap to unscrew, it's easier to use than a traditional water bottle. Even more importantly, it solves the problem of leaks in transit. Think about how this simple fix could apply to your business. Because challenges are universal, it is easier to collect a solid base of consumers when you help them solve one of life’s difficulties. Your consumers will proudly tell their friends about how you solved a problem they didn't even know they had.

If you want a product or service to succeed, create a solution to a problem.

Birth a Name

Creating a name for your business may sound easy, but in reality, it can one of the most difficult responsibilities you will face. Be careful not to make a name that is too cute, too clever, or too strange. Make sure the name is easy to spell, and if there are a variety of spellings for a word, use the most common one; for example, there are different spellings of fairy, faerie, faery, depending on where you live in the world. And remember to keep your target customer in mind. You could use the name "Fairy Dust" for your makeup foundation or carpet powder, but you might have trouble selling wheelbarrows or automobile cleaning wipes.

Know Yourself

One of the most important things you can do for your future business is to know what type of person you are. Some people are dreamers who love to generate ideas but struggle to follow through. Other people thrive in the execution. Some people are dedicated enough to stick with one idea their entire lives, while others won't be happy unless they can shift gears to something new. When you know which type of person you are, you can hire staff that will complement your work style. Planning around your strengths and weaknesses can help your business succeed.

Understand the Opposition

No matter what type of product you create, you will find yourself facing tough rivals and fierce competitors. Understanding how your competitors are doing business, where they sell, and what type of services they provide with their products can help you understand where you should take your dreams. Perhaps your competitor sells foot cream for a set price, but if someone buys two bottles, they throw in a free foot powder to sweeten the deal and keep the products selling. Knowing that simple trick can help you understand how you can attract consumers rather than competing with your rival companies.

If you can’t imagine yourself pursuing your dream with just as much passion five years from now, you probably shouldn’t invest all your time and energy into creating the business.

Love the Project

Finally, the most important thing is to keep your passion alive. Musicians claim that over the years, they get really tired of singing or playing certain songs because of the popularity of the music and the number of times they have been forced to render the tune in years past. Sadly, many business owners find themselves in the same situation because even if their customers are happy with the services they create, the business owners themselves no longer love what they're doing. Don’t allow yourself to fall into that trap. If you can’t imagine yourself pursuing your dream with just as much passion five years from now, you probably shouldn’t invest all your time and energy into creating the business.

These are only a few things you should know about starting a business. But they can help you bring your dream to life.