The 4 Business Basics Every New Entrepreneur Should Know

The 4 Basics For Starting a Successful Startup Business

Entrepreneurs know that starting a business can be both exciting and overwhelming, especially if you’re new to the game.

With so much to consider, it’s easy to feel nervous and unsure about where to begin. But don’t worry, you’re not alone! In this article, we’ll be discussing the four essential basics that every new business owner should know before taking the plunge. These basics will help you avoid common pitfalls, stay focused on your goals, and set yourself up for success.

1. Have an Income Source

It’s important to have a steady income source to keep you financially stable until your business can supplement your earnings. In other words, keep your day job, or get one. Sorry folks, this is the hard truth!

2. Understand the Market Demand

Before you start a business, it’s crucial to understand the market demand for your product or service. Researching your target audience and competitors will help you determine if there is a gap in the market that you can fill, and what the market is looking for.

3. Have a Practical and Sensible Marketing Strategy

A practical and sensible marketing strategy is key to attracting and retaining customers. It’s not enough to say “I’ll run ads and do social media” That’s easier said than done and learning to run ads without losing all your money is not simple. More on this below.

4. Get the Funding and Help You Need to Execute Your Plans

Starting a business requires funding, and having a solid plan for securing the necessary funds is critical. Additionally, having a support system, such as a business mentor or a group of like-minded individuals, can also be invaluable in helping you execute your plans and achieve your goals.

Let’s expand on each of these important areas – and I’ll include actionable steps you can take to make sure you’re working smart! 🙂

1. Have an Income Source

Having a steady income source is crucial for the success of your new business. Not only does it provide financial stability, but it also allows you to focus on growing your business without the added stress of needing to rely solely on it for income.

Here are a few actionable steps you can take to ensure you have an income source while starting your business:

• Keep your day job – or get one: Whenever possible – keep your current job while starting your business. This will provide a steady income while you work on building your business on the side.
  
  I cannot overstate the importance of this step enough!

  When you are desperate for cash, you can’t make good decisions as you build your new business. You need enough time to develop the business and help it grow, sort of like with a child.

  Having a source of income so you can pay your bills will allow you to sleep at night and make good decisions instead of desperate ones, with your new business. Please have a day job!

• Create multiple streams of income: Consider starting a side hustle or finding other ways to earn money while you work on your business. This could include freelance work, consulting, or renting out a room on Airbnb.
• Have a savings cushion: Make sure you have a savings cushion to fall back on in case of unexpected expenses or slow business growth. Aim to have at least three to six months’ worth of living expenses saved up.

Remember, starting a business takes time and patience, and having a steady income source will provide the peace of mind you need to focus on your goals.

2. Understand the Market Demand

Understanding the market demand for your product or service is crucial for the success of your new business. By knowing your target audience and what they are looking for, you can tailor your offerings and marketing efforts to meet their needs.

Actionable steps you can take:

• Conduct market research: Conduct thorough market research to determine the demand for your product or service. This may involve surveying your target audience, studying competitors, and analyzing market trends.
• Identify your target audience: Get to know your target audience by understanding their needs, preferences, and buying habits. This information will be critical in tailoring your offerings and marketing efforts to meet their needs.
• Stay up-to-date with industry trends: Stay up-to-date with industry trends and market developments to ensure that your offerings remain relevant and in demand. Attend industry conferences, read trade publications, and join industry groups to stay informed.

Staying knowledgeable about your target audience and industry trends will be key in ensuring the success of your new business.

3. Have a Practical and Sensible Marketing Strategy

Having a practical and sensible marketing strategy is crucial for the success of your new business. A solid marketing plan will help you reach your target audience and build awareness for your product or service.

Actionable steps you can take: 

• Define your marketing goals: Clearly define what you hope to achieve with your marketing efforts. This may include increasing brand awareness, driving sales, or building a community of loyal customers.
• Know your target audience: Make sure you have a deep understanding of your target audience, including their needs, preferences, and buying habits. This information will be critical in developing a marketing strategy that resonates with them.
• Develop a content marketing plan: Develop a content marketing plan that includes a mix of content formats (such as blog posts, social media posts, and email marketing) and a content calendar to ensure a consistent flow of content.
• Utilize multiple channels: Utilize multiple channels to reach your target audience, including social media, email marketing, and influencer partnerships. Experiment with different channels to see what works best for your business.

Remember, a well-planned and executed marketing strategy will be absolutely necessary in building awareness and driving success for your new business. Get in touch with a marketing strategy that you know you can execute or accomplish, even if it’s simple to begin with.

4. Get the Needed Funding and Help to Execute Your Plans

Having the needed funding and help to execute your plans is crucial for the success of your new business. From securing funding to finding the right team members, it’s important to have the resources you need to grow and succeed.

Actionable steps you can take:

• Create a business plan: Create a comprehensive business plan that outlines your goals, strategies, and funding needs. This will help you secure funding and communicate your vision to potential partners and investors.
• Secure funding: Secure the funding you need to start and grow your business. This may involve seeking out loans, grants, or investment capital.
• Build a team: Build a team of talented individuals who can help you execute your plans and grow your business. This may involve hiring employees, outsourcing work, or partnering with others in your industry.
• Seek out mentorship and support: Seek out mentorship and support from individuals who have been successful in your industry. Attend networking events, join industry groups, and connect with successful entrepreneurs to gain valuable insights and advice.

By taking these steps, you can ensure that a higher degree of success of your new business and executing your plans.

What can you do next?

These four startup business basics – having an income source, understanding the market demand, having a practical and sensible marketing strategy, and having the needed funding and help to execute your plans – are essential for setting your new business up for success.

By following these basics, you can avoid common pitfalls, stay focused on your goals, and increase your chances of success. Remember, starting a business is not easy, but with the right mindset and preparation, you can turn your entrepreneurial dream into a reality.

Here’s what you should do right now:

Get a piece of paper or open your laptop. Put numbers 1 through 4 down the side of the paper, and take stock of where you are, regarding  each of these 4 startup business basics.

Make notes: Are you in good shape? Is this an area you need to focus on, think about more, or get help with? Perhaps you need to do some skill-building or learning to make sure you nail down some of these areas?

At the end of each section make a small checklist of the things you should do next, to ensure you’ve covered yourself and your new business, and are working to ensure your ultimate SUCCESS with your efforts.