You have a brilliant business idea and a passion that drives you. You’ve studied your market, done the math and decided your idea could be profitable. Maybe you’ve even scoped out a location, enlisted team members and dreamed up a “sticky” slogan.
Good news – you’re innovative, smart and creative. (Yay!) But now for the hard part.
80% of new businesses fail in the first 18 months. Why? A new venture has to pull off a pretty neat trick: Convince enough people you’re solving a problem for them in such a compelling way that they’ll stop giving their time and money to someone else – and hand it to you instead.
But with the right idea, the right plan, and the right next steps, you can make it happen! These 5 questions can help you navigate the startup maze:
If your business idea has virtually no startup costs, overhead or setup time, you’re lucky! (Are you hiring?) Most businesses take at least three years to earn a profit. It’s good to have a realistic idea of when you’ll be in the green.
If you haven’t put together a really solid business plan, now’s the time. You can get a head start on plans for a wide variety of businesses by finding a free template online. (Warning: what you write today may look like science fiction to you after a year in business – that’s okay. Give it your best shot now.)
You probably already know you'll need a website (and may have already built one if you're an up-and-coming digital retailer). Check out the many webpage builders available online that offer easy-to-use templates and charge affordable hosting rates. Of course, You’ll want to let the world know about your biz in as many ways as you can.
List your business (with engaging pics) across online directories like Google, Yelp, Yahoo, Bing and Yellow Pages
Figure out which social media platforms your target customers (and your competitors!) are hanging out on. Don’t just promote your business. Share fun content and engage with other people’s posts to make a personal connection.
If you decide it’s worth it to pay for ads, make sure they’re in front of the right people (Most platforms let you filter who sees what) - and try to track where business is coming from so you can revamp your strategy as you discover what works best.
Setting up an LLC (Limited Liability Corporation) can be a great idea for a startup. It helps ensure you won’t be held personally responsible if your business is sued. Let’s say you’ve launched a smoothie shop, and a customer slips and falls on a spilled Merry Berry. You won’t have to pay out of your own pocket for her medical expenses.
But if you don’t have business insurance, that single slippery smoothie could bankrupt your business. The right insurance coverage helps your business stay on top of the game. You have lots of options (a business owner's policy combines two most important coverages – property and general liability – in one affordable package), and you can tailor coverage to your specific business.
Friendly plug: When you're ready, you can get coverage recommendations in minutes from Mylo.
Your business may not require any license at all, but you'll want to do your homework to make sure you're operating legally.
Typically, you'll also need to obtain an Employer Identification Number (EIN) from the IRS.
You might already have money to get started. And it might be a good idea to fund your business yourself if it’s a small, inexpensive startup. But if you have large startup costs, it’s wise to find investors so you’re not taking on all the risk.
Important: every type of investor (even your beloved Aunt Cheryl) will have specific expectations about what they’re getting out of this, so do your homework on what you’re willing to pay out … or what control (if any) you’re willing to give up!
Friends and family (often a good place to start until you build your credibility)
Small business bank loans
Incubator/accelerators (organizations that provide free resources to startups, including office facilities, consulting and seed funding)
Crowdsourcing (campaigns to solicit money from multiple people who pledge to pre-buy your product or donate in other ways)
Other businesses (you can offer to barter your services for theirs)
Angel investors (individuals who invest their own money in startups)
Venture capital investors (groups who usually invest in the growth phase of businesses)
Small business grants (government funds to support new technologies and important causes, such as education, medicine and social needs)
If being your own boss sounds great – and you’re committed to working harder, moving faster and thinking bigger to make your dream a reality – then Mylo’s friendly licensed agents can’t wait to help you protect what you’re building!
We’ll make that part easy. Just give us a call!