As an entrepreneur, you may have experienced some financial setbacks, but don’t let these stop you from chasing your dreams and starting another business. You’ve grown as a person through what has happened, and you can learn from your mistakes and do things differently this time around. Read on for some tips and tricks from The Business Project for building a new and even better business.
Know What Went Wrong
Even though it may be painful to look back on your past mistakes and failures, you need to do so. As OnStrategy notes, only then can you identify what went wrong so that you don’t make the same mistakes in your new venture. Perhaps you didn’t budget thoroughly enough the first time around. Maybe you failed to organize properly, learn tax regulations, hire the right people, or market effectively. Spend some time honestly figuring out why your first attempt failed so that your second attempt succeeds.
Structure Your Business Right
This time around, structure your business right. Depending on the size and nature of your company, you may be able to start as a sole proprietorship. Be aware, though, that you’re personally liable for your business with this structure.
If you’re working with another entrepreneur, you can form a partnership. Several options are available with differing levels of liability, so research carefully.
You may also consider forming a limited liability company. This structure offers benefits, such as tax breaks, less paperwork, more flexibility, and limited personal liability (LLC) if something goes wrong in your business. LLC formation rules vary from state to state, so read up on all the regulations before going ahead. Consider hiring a formation service to save you time and legal fees.
Build a Business Plan
Once your business structure is in place, the SBA says to create a detailed business plan. This is a necessary step if you want your business to flourish this time around, so take the time to do it right. Begin with a summary of your business, focusing especially on its purpose, then describe your products or services, tasks, roles, and staffing needs in detail.
Write a section reflecting on your competition in the market and how you plan to make your business stand out from the pack. Write up your initial marketing strategies, and end with a comprehensive budget. This business plan helps you stay organized and focused and keep your new company on track, so don’t skimp on it.
In terms of marketing, begin by building a website and setting up social media pages for your company. You can also print up business cards, posters, and fliers to distribute and take out an advertisement in your local newspaper. Don’t neglect word-of-mouth marketing either. Ask your friends and relatives to spread the word about your business, and request that your first satisfied customers give you positive referrals. You can even work with other non-competing businesses to support and promote each other.
Part of your marketing strategy should include creating a standout logo that customers will remember. Instead of hiring a graphic designer or a logo designer, you can use an online logo design maker to create a one-of-a-kind logo. Choose a logo template and then experiment by adding your own backgrounds, color schemes, and typography.
Embark on a New Adventure
Your new business is a new adventure, and don’t be afraid to embark on it with confidence. Your experience this time around can be much different if you plan carefully and stay positive.