3 Keys To Startup Success

Here are 3 keys to saving yourself an enormous amount of time and expense as you prepare to start your own business.

1- Don’t Spend a Lot on Marketing…at First. This may sound like a crazy notion, but don’t spend a lot on marketing until you’re clear about your business. This sounds crazy because, if you’re starting your own business, then you should know exactly what your business is about. But part of starting your own business is running into brick walls and changing directions when necessary. What this amounts to is the fact that your business will look very different one year out than it did on your first day. So don’t spend a ridiculous amount of money on marketing until you’ve hit those brick walls and are very clear about the direction you’re heading.

There are some things you can spend money on at first. These things are critical items that don’t cost much money. These things include business cards and brochures. Try printing your own business cards on your computer instead of paying a printing company to do it for you. You can also create a text logo rather than a full color graphic, at least for the first year. Or you can get a starving graphic design student to create a logo for you on the cheap. Rather than spending a fortune on your website, purchase a domain name and start a blog. Later, when you’re clear about your vision, you will be able to work effectively with a web designer to get exactly what you want.

2- Sell Quickly. When you first start out, you need the shortest sales cycle possible. Make sure that at least one of your products or services costs between $100 and $300. This gives prospective customers the option to check you out and see what you have to offer. The risk is minimized for both of you. Additionally, avoid the trend of not publishing your prices online. Let potential customers know at the beginning what your products or services are going to run them. When you’re ready to offer bigger-ticket items, those prices can be negotiated, but let customers know what to expect right away at the beginning.

Another important thing you can do is keep track of your processes as you go along. Resist the temptation to “go with the flow” as each new project comes along. Every time a client asks you about a new project, you should have a clear idea about the steps it will require and the time it will take. This will ensure that you can set your prices early and accurately.

Finally, make sure that you have at least one product or service that you’re willing to sell for a low amount or even give away. Ideally this is something you can upsell, or a product that will cause your customers to refer others to your business.

3- Be Technologically Proficient. It’s no surprise that fluency in technology goes a long way toward a successful business. But you really can’t overestimate the importance of technological proficiency. Start by taking a class in any programming language. This will make it easier for you to communicate with programmers and understand the limits of available software. It will also help you get over a potential fear of technology that can limit you immensely.

You can also make a big difference by making small moves. Update one page of your website every week instead of tackling the whole thing at one time. Use electronic billing rather than waiting until you have the resources to automate your receivables and payables.

You’ll find that, as your business grows, hindsight will tell you how you should have done things differently. But if you follow these three steps, you’ll start out ahead of the curve and see profits more quickly.