For new business owners to find success, they have to do their due diligence and learn as much as they can from various resources and experienced entrepreneurs. Doing so ensures that they make the right choices when faced with crucial decisions that define how their business will perform in the future. If you’re a new entrepreneur who wants to ensure that your business does well, here are 4 key decisions that you’re going to have to decide during the first year of your operations.
Figuring Out Your Target Market
Every entrepreneur should understand their target market when they are launching their business. If you want to compete effectively with huge corporations, establishing a target market can help you focus your marketing on people who are more likely to buy your products or choose your services. Doing this ensures that you have a steady stream of profit and nurture a loyal group of customers. When figuring out your target market, look at the demographics and psychographics of your current target market. By doing this, you can analyze the specific traits and qualities of those who patronize your business — making it easier for you to establish a target niche.
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Choosing Your Branding Strategy
Branding goes beyond just aesthetics. For many businesses, branding is key in reeling in new customers and making your business recognizable for everyone. After establishing your target market, you have to choose the elements of your business’ brand carefully. Whether it’s as simple as your signature color scheme to something as complex as creating your business’s online identity, all aspects of your branding should be consistent. When creating your online branding strategy, you should learn how to curate content like write-ups, graphics, and videos to help you thrive on social media and online marketplaces. This way, you can strengthen your digital presence, as most businesses’ branding strategy revolves around how they present themselves in the online sphere.
Refining Your Business Plan
Despite having a visual of what you want your business to look like, creating a business plan can further refine it. Here you can iron out your business’s major details, from how you want to spend your budget to the key positions you need to hire. Furthermore, part of this planning process is also deciding your legal business structure. This can determine everything from how much tax you have to pay to your personal liability if anything goes amiss.
Most entrepreneurs start as a sole proprietorship, but many small business owners have been catching onto the benefits of becoming a limited liability corporation. For one, LLCs are pretty easy to set up, especially compared to corporations, and only entail 5 key steps: finalizing your business name, choosing a registered agent, filing your articles of organization, creating an operating agreement, and applying for an EIN. Much of the paperwork should have already been decided on when you were making your business plan. The benefits of setting up an LLC include limited personal liability, tax advantages, and less paperwork. If you’re a new entrepreneur, consider changing your business structure to an LLC shortly after establishing your business.
Outsourcing Vital Processes
When you start your business, it’s understandable that you’ll be running on a limited and strict budget. Managing your resources is one of the hardest things every new entrepreneur faces — especially if they have a tiny team. To better grasp your resources, you should determine what you can do yourself and the kinds of jobs you have to outsource.
For instance, you can cut costs simply by outsourcing your accounting and bookkeeping staff. Plenty of firms offer this service, and you guarantee a job well done knowing that these are experienced professionals. Other key processes that your business can also outsource are customer service and advertising. So, be sure to outsource your business’s vital processes if your budget is a little tight.