Starting a new business is easy and it doesn’t require a lot of money, and that’s why everyone can do it. Making a startup profitable is entirely different. It requires hard work, patience, and careful money management.
To put it simply – Business profits will occur only when the income is greater than all business expenses combined.
Let’s take a look at some important things you should consider before starting your own business.
Make a Great Product
The most important thing about any great product is to have a clearly defined sense of purpose. It should also deliver value in a focused way as well or better than any other similar product on the market.
Do your research before making a product. Inform yourself about potential clients and consult with them. For example, if you’re looking to make an app focused on fitness, ask fitness experts what useful feature they would like to see implemented in your app.
Make a must-have product, not the one that’s just nice and cool to have. The true key to success is making a product that will solve your customer’s problems once and for all. Make your client dependent on your product.
Sell Your Product
Some startups fail simply because they don’t take themselves seriously. Startup founders who think that going viral and being popular is being successful are lying to themselves. If you’re not selling anything that means you have a project and not a product.
Unless you’re starting your business with a lot of money, focus on making profits first. Targeting growth first instead of profits is very risky, and it’s not recommended for new startups.
Avoid Making Products That Rely on the Community to Grow
If your product is dependent on something that you can’t control, you’re setting yourself up for a disaster. Building a community is hard, but building a community of people who constantly communicate is even harder. If you’re inexperienced, and you’re just starting to dip your toes into the business waters, stay far away from community-based startups.
Don’t Plan an Exit Strategy
If you’re already thinking about getting acquired or about selling your startup for a lot of money, you need to stop right now. The key to success is making a product and selling it, and that should be your focus. Make a product that will still be relevant in two or more years. Make a profit from selling your product before even thinking about selling your company.
No one likes to lose money, but it’s a well-recognized fact that a new business will certainly lose money. There’s no reason to be ashamed of that fact. Some businesses simply have longer gestation periods, and if you can see the light at the end of the tunnel, losing money is not a problem. However, that doesn’t mean that you should sit around and just watch your money burn.
Most startups hire consultants and companies that offer loss management services, and they actually save money by spending it on detecting and preventing any possible future losses.
Market Your Product
You won’t sell your product if you don’t put yourself out there. Fortunately, in this age, information is free and valuable. Learn everything about marketing strategies and pick the one which will make your potential customers trust you.
In this day and age, you simply have to use social media to market your product, so make a team of experts to manage your social media pages. Gain the trust and attention of your potential customers.
If your product is digital, offer free trials to everyone in exchange for a simple share of your post on Facebook or Instagram. By doing that you’ll get free exposure and gain lots of potential customers.
There’s no such thing as a simple recipe for a startup. Every new business is different. Just keep in mind that Rome wasn’t built in a day. Take things slowly, minimize your losses, and make a product that will make your customer’s life easier.