According to a recent survey conducted by Intuit, around 17 million new businesses are expected to launch in the U.S. in 2022. In the aftermath of the COVID-19 pandemic, new business opportunities and a desire for a better work-life balance could be inspiring people to give up the 9-5 and try something new, but how easy is it to get a new venture off the ground?
Here, we take a look at three things every new business should have to get them off to a successful start:
1. Target Audience
No matter what type of business you’re going to launch, you’ll need to know exactly who your target audience consists of. A B2B software development business might be targeting mid-size and enterprise-level companies, for example, while a B2C clothing retailer might be aiming to sell to females between the ages of 25-40.
Defining your target audience allows you to learn more about your market and develop specific strategies to reach, engage, and motivate your audience. As a result, you can optimize your business performance from the get-go and build a thriving customer base.
Taking out the correct type of insurance before you start trading is essential, particularly if you want to avoid costly lawsuits and expensive payouts. Of course, the exact types of insurance you’ll need will depend on what type of business you’re operating, so consider this carefully before you launch your brand.
For example, if you plan on hiring employees, Illinois worker’s compensation insurance is vital for local businesses. Illinois workers’ comp insurance will limit your liability if employees suffer workplace injuries or illness. Similarly, general liability insurance will ensure you’re covered if a member of the public is hurt on your premises, while commercial auto insurance will provide cover if you or your employees are using company-owned vehicles.
Not all businesses require substantial funds to begin trading, but any disruption to your cash flow could bring your venture to an abrupt end. Due to this, you’ll want to have sufficient funding in place to ensure you can finance your operations and an established cash flow strategy to keep your business solvent.
Some entrepreneurs use their personal savings to fund a startup, but other options are available too. For example, a regular business loan, selling shares in a new company, and even P2P lending can be viable ways to acquire the funding you need to launch a new business.
Growing Your Business
Suppose you’re launching one of the 17 million new businesses in 2022. In that case, you should already be thinking about how to grow your venture. Transitioning from a startup to an SME, national corporation, or international enterprise will keep you motivated and ensure that you always work towards a clear goal.
From scaling your business and opening in new geographical locations to adding new products or services to your existing range, there are numerous ways to grow your business and optimize your success as a new business owner.