Are you finally ready to follow your dreams and be your own boss? Do you have an incredible idea for a business that can really help solve a problem that you just know many consumers face?
Becoming an entrepreneur is exciting and you probably want to jump right in now. However, it is important to take a moment to first think of some critical factors that can make or break your business.
I built my business to help others build six- and seven-figure companies on a bootstrap budget using SEO, so I know a thing or two about setting up a startup for success. I’d like to share some of my own tried-and-true tips to help you start plans for a business that will be prosperous and fulfilling in the long run.
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That said, here are the crucial elements you need to think about in order to set your new business up for success:
Why do you want to start your company?
The first thing to consider is why you want to launch your business in the first place. Why is it important for you to create this new product or service? What kind of problems are you looking to solve?
Writing down your ideas will help you craft your crystal-clear vision of what your business does and who you serve. If your company then dedicates 100% of its energy to achieving that one goal, it will reach a level of excellence that most other businesses that are chasing after the latest fad can never achieve. You will also save time and money later, as you won’t spend those resources on things that do not lead toward your clear future vision.
What do you want your life to be like with this business?
In addition to figuring out your main vision for the business, think about the lifestyle that you want to live with this enterprise. Will you start this business as a side hustle, or do you want it to replace your current income? Are you hoping that this startup will allow you to travel and explore the world more (post pandemic, of course)?
You should spend at least a day writing down how this new business would potentially change your life before you do anything. Try to picture in as much details as possible what your life will be like with this company, as it will help you manifest the outcome you want to achieve.
Related: 7 Questions to Ask Yourself Before Taking the Leap into Entrepreneurship
How much money do you hope to make?
Most people don’t like talking about this, but it is very important to be clear about how much money you want to (or need to) make from the business. Do you want to make enough to buy a new house for your family? Do you want to ensure you have sufficient funds to travel around the world several times a year?
Don’t sell yourself short! This will help you when you set up operations for your business, because you will put systems in place that will ensure you are on your way to attaining the amount of income that you hope to make.
Which type of business is right for you?
Now that you have a clear idea of what kind of lifestyle you want and how much you hope to make from your startup, it’s time to look at your business model options. Do you want to set up a brick-and-mortar retailer? Or do you want to fully focus on e-commerce opportunities? If, at this point, you’ve decided you aren’t sure about the risk of starting your own business from the ground up, have you considered franchising?
Have you validated your business idea?
Once you figure out what kind of company you would like to launch, it is absolutely vital to find a niche to launch your business in. The best way to find a niche is to use Google Keyword tools to figure out if anybody is looking for what you are thinking about selling.
To do this, find out how many people search each month for the product or service you want to sell. Then, multiply that number by 1% and then multiply it again by the estimated profit you will make for selling a unit of your product or service. That number is a rough estimate of how much you can make each month if you market this idea well. If the possible profits are way lower than what your financial goal is, then start vetting another idea. If the amount is enough or more than you need, move forward with your idea.
Can you compete?
The final step to take before moving ahead with your business operations is looking up your potential competition.
To do this, simply conduct a Google search about the business idea you came up with (use the same words you used in Google Keywords in the prior question). This will bring up competitors in the results. You will want to check two things: first, how many competitors there are in your niche. If you find that there are already hundreds of people offering the service or product, the market may be oversaturated. However, don’t get discouraged if you find three to five competitors, as that is actually a good sign that the market is profitable.
The second element you want to analyze when looking at competitors is how established they are in the market. During this process, you need to be objective and ask yourself two questions: Can I offer something as good or better than them? And, can I beat them on price? If you don’t answer “yes” to these questions, repeat this process with another niche until you find one that works.
To wrap it all up
After considering all of the above factors, you probably now have a much clearer idea of how to set up your startup for success. It is pertinent to think about the exact vision for your company and the lifestyle you want to live with the startup (including how much money you hope to make). You must find a niche to launch your business in (and vet it using Google Keyword tools), and analyze the potential competition. Doing all of this will help guarantee success as you begin your startup journey!
Originally published April 4, 2021.
