Starting your own business can be a stressful, complicated, and yet rewarding endeavor. However, if you don’t have much experience launching and growing a company, you surely have more questions than answers.
Increase the odds of your startup’s success by considering these five key elements of growing a new business:
1. Be sure you understand every aspect of your business
Every entrepreneur has a bent toward one or two specific areas of business. Some people like the creative side of things and prefer to spend time on marketing, branding, and design. Others are more analytical and enjoy programming and data. But regardless of your interests, you have to be involved (on some level) with every aspect of your business.
Over time, this will change. As you hire people and the company grows, it becomes healthy to step back and release control. However, the early days are different. You need to understand how your company works and the only way to do this is by being directly involved in sales, marketing, logistics, manufacturing, payroll, management, etc.
2. Set your business up with the right legal structure
Business ideas can develop slowly over many months. And before you know it, your idea has become a reality. In the process, it’s easy to forget how important it is to add the proper layers of legal and financial protection.
Experts recommend legally incorporating your business. Incorporating will protect you from personal liability from any business debts and obligations, and can provide tax advantages as well. To learn more, see Why Your Startup Should Be a Corporation.
Do your research and find out the best type of legal entity for your business and goals. Options include LLCs, corporations, and even nonprofits.
3. Seek advice from other successful entrepreneurs
No matter how many books you read or podcasts you listen to, there’s nothing more valuable than having one-on-one conversations and relationships with other entrepreneurs. And believe it or not, most are generous enough to help young entrepreneurs who are bold enough to ask.
“Sitting down and speaking with other founders who have already been through the process is invaluable and will save you from making unnecessary mistakes,” writes Kolton Andrus, founder of Gremlin. “I couldn’t be more grateful to the numerous people who have served as mentors, providing advice and helping to calibrate the direction of my company, and now I feel a strong responsibility to pay that forward.”
You can find other entrepreneurs and business owners in your own personal network, on LinkedIn, in local business groups and startup clubs, etc. The key is to put yourself out there and take chances.
Other Articles From AllBusiness.com:
- The Complete 35-Step Guide for Entrepreneurs Starting a Business
- 25 Frequently Asked Questions on Starting a Business
- 50 Questions Angel Investors Will Ask Entrepreneurs
- 17 Key Lessons for Entrepreneurs Starting A Business
4. When you’re ready to grow, hire strategically
You’ll eventually outgrow yourself and need to bring on other team members and employees. And once you start hiring, your growth potential goes through the roof. However, you must hire strategically.
Some business owners and venture capitalists say good founders should spend at least half of their time hiring (meaning networking, recruiting, vetting, and interviewing). If you’re not dedicating at least a few hours per week to onboarding the right people, you’re not setting your company up for success.
People make a business. Don’t hire strictly on past experience or degrees. Get to know people and find out how to identify passion, drive, discipline, and selflessness. These are the qualities you want in your startup team.
5. Stay open to pivots and new ideas
Every entrepreneur has a certain amount of pride baked into the business. Admitting that your idea might not be successful or profitable can be sobering. However, the most successful founders remain open to pivots.
Whether it’s two weeks from now or two years down the road, keeping the door open to a pivot allows you to embrace the best opportunities and maximize your chances of success.
Set yourself up for success
Success means different things to different entrepreneurs. But for the purposes of this discussion, we’ll assume that it means starting and growing a profitable business that adds value to all stakeholders: you, your employees, and your customers.
If you want that kind of success, you need a plan. Hopefully this article has given you some ideas and techniques that you can use to put your young business on the right path.
RELATED: 7 Startup Mistakes That Will Doom Your Small Business
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