Top 7 Tips that Your Startup Needs to Follow in 2021

by Startacus Admin

2021 may be a challenging time to start a business, but these tips should help you get it right...

All around the world, businesses close and open every day. The past couple of months have brought many challenges, as well as opportunities for entrepreneurs and organizations. More importantly, our world has experienced changes that no one could even anticipate. COVID-19 changed the ways we do business.

For startups, this means that the tips and tricks companies used in the past might no longer work. To create a rising company these days and keep it afloat, you need to keep track of the latest requirements and trends on the market.

7 excellent tips for startups in 2021

In this article, you’ll learn about the most promising and effective ways to lead a startup in 2021. These are not fail-proof, but they are applicable in all areas and based on the current demand and trends. In other words, following these steps are currently the best way to do business.

1. Create a well-thought-out business plan

Do you have an amazing idea for a business?

This might sound a bit rough and demotivating, but the truth is – many people do. You might have a great idea, but so far, you have nothing.  A good idea does not make for a successful business. The most important thing in turning a startup with a good idea into a successful business is a legitimate plan for it.

Unless you have a thought-out, carefully planned, and executed business plan, your great idea will probably fail you. Not only is a good business plan a way to avoid issues and calculate expenses, but it's something that makes you stand out in front of competitors, investors, and customers.

According to research, 36% of people who had a good plan managed to obtain a loan (getting financing for your startup is probably one of your priorities). These stats also show that with a plan, 64% of companies managed to grow their business.

Now let’s compare this to business survival statistics. According to Investopedia, 21.5% of startups fail in their first year, while 30% of them fail in the second year. Only 50% of startups survive for more than five years. Knowing these numbers, you should do all you can to avoid joining the ones who fail. An excellent business plan is a crucial step in this direction.

2. Check the industry’s pulse

General plans don’t usually work for one very specific reason – because your business is not trending on the market. If you want your startup to succeed as soon as possible, you need to offer to your target audience what they look for – a solution to their problems.

In addition to checking the industry's pulse and researching your target customers, you need to do a thorough research of the laws and regulations. To avoid some legal headaches and reduce the odds of your company failing, you need to keep track of all data privacy laws, regulations, and terms in your industry or on your market.

Many new entrepreneurs overlook the legal aspects of the business because they are too carried away with things like marketing and optimizing their product. While this is essential for your company’s success, you must also make sure that you’re acquainted with everything from the demands on your market to the laws and regulations in it.

3. Secure adequate capital and funding

Chances are, you don’t have a fortune lying around waiting to be invested. Even if you do, you’ll probably want to stick to some of it if possible. New companies always come with a risk.

But, there’s always the matter of funding.

If your company needs capital to get off the ground and keep running, you need to figure out this before you get started. The startup costs will differ since there’s no magic capital number that applies to all.

This is why you need that business plan we mentioned before. Business plans create an estimate of expenses for equipment, salaries, and additional costs. This should tell you how much you need to get started. Still, it won’t hurt to get more funding if possible – in case anything unexpected comes up.

At this point, you’re probably wondering: where do I find funding?

In most cases, the majority of the money spent on startups comes out of the founders’ pockets. Still, doing business comes at a much higher cost than most of them anticipate. This is why business plans include a financial plan with profit and loss statements, sales forecasts, balance sheets, and cash flow statements.

According to Entrepreneur, 82% of new businesses fail because they have cash-flow problems. This emphasizes the need for an accurate financial plan, as well as proper sources of funding. Before you open your doors to customers, make sure that you get a business loan, investors, partners, venture capitalists, and anything else you need to keep it running.

4. Get your employee onboarding process right

Gluu says that a good onboarding process can increase employee performance by 30%. What does this mean?

The onboarding process includes any strategized and systematic transformation of promising candidates into good employees for your startup. In other words, one of your primary concerns right now, and pretty much forever, is to keep the people who work for you happy.

Good service is delivered by good employees. You cannot expect the people who work for your business to be kind to customers and work tirelessly if they are treated poorly. By providing them with the tools they need, the information they require to work and boosting their morale  - you can create an excellent working environment for your staff.

Starting from their training to the tools they’ll use to finding ways to be available to your staff at all times – you have plenty of things to consider before you start hiring people. 

5. Leverage the power of remote work

Many of the challenges we faced last year were resolved with one thing – technology. People who were unable to go to their work because of the quarantine or simply because of safety reasons started working remotely.

Not only that – remote has become a trend in these past couple of months. The industry was popular before due to its perks for both sides of the employment process, but right now, it’s becoming mainstream. Many people decided to toss the idea of office work altogether and started working from the comfort of their home.

If you want to be trending and get access to a wider pool of talent, you should definitely consider remote work. Thanks to the great internet connection, platforms like Upwork, and collaboration software, this is easily accessible and works smoothly.

6. Embrace digital innovations

Digital innovations have made running a business easier than ever. From organizing everything in working software to direct communication with everyone at your fingertips, technology is one of your best friends these days.

Don’t wait for your competition to leverage the latest technology and rise on the market. Keeping track of the latest software, findings, and trends is what will put you in front of them.

You'll need technology for many things these days. Many of your processes can be done more accurately, faster, and with lesser costs thanks to automation. Thankfully, this field comes up with innovations almost daily. What you've been lacking today might pop on the market tomorrow. But, it's still up to you to find this out.

Also, don’t forget that technology can be risky for new businesses, especially when you haven’t explored your options and the market just yet. This is why, from day one, you should build robust cybersecurity to keep you and your customers safe.

7. Boost your presence all around

New businesses today immediately create profiles on various social media platforms to boost their credibility and widen their reach. They are right to do this. Social media advertising is used by 83% of marketers and ranked right behind search engine marketing in terms of success. This is definitely one of the strongest marketing tools and it is here to stay.

Even so, social media is not your only marketing tool. In fact, other tools can bring you the same, if not better results depending on your business and industry.

When you create a new business, one of your biggest goals should be to be present all around. This means creating social media profiles, using paid and unpaid advertising, creating your own website, contributing to other blogs, and many other SEO strategies that can boost your brand's presence.

It also means that you should create a great email marketing strategy and improve your communication with customers from day one. Wherever your target audience turns, they should see your logo, messages, and your solutions. This is the time to grow and the best way to do it is by being present.

Final thoughts

All this is not an easy mission, not by any stretch. Growing a startup from scratch requires hard work, money, dedication, and definitely a bit of failure. However, with the right people and tools in your arsenal, as well as the tips above, you can stay ahead of the competition and turn your business plans into success.

 

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Published on: 24th February 2021