9 Things You Should Never Ignore As a Startup Owner – A Checklist

Did you know that the U.S. Bureau of Labor Statistics data shows that over 55% of all new businesses fail before their fifth anniversary? The statistics are alarming. However, while it's true that starting a business isn't easy, there are numerous things you can do to increase the likelihood that your company will survive and thrive beyond its first year.

CONSULTAR has compiled a startup owner checklist of essential things that can derail a startup when ignored. As the leading business and personal development consultant, we have helped numerous entrepreneurs get their businesses off the ground. Our lead consultant, Pedro Rosales, can do the same for you. Check out CONSULTAR services and read on to learn about 9 things you should never ignore as a startup owner.

1. Business Plan

Too many companies launch with only a vague idea of what they hope to accomplish, and it is a surefire recipe for failure. A business plan is essential for a new venture, even if it's only one page long. Details like operating expenses, projected sales, target market, and product benefits should all be included. It allows entrepreneurs to focus on their business's short- and long-term goals to ensure long-term sustainability.

2. Target Market & Customer

Starting a business demands you to understand and interact with your ideal customers. Not learning about the target audience is a common error new businesses make. Without regular customer input, it is impossible to tell if you are heading in the correct direction. It's crucial to keep in mind that creating a fantastic product doesn't automatically result in a thriving enterprise. For many businesses, the target market is too limited to support significant growth.

3. Legal Company Structure

Not registering a firm, choosing the correct business entity, and failing to secure intellectual property are the three most common blunders made by new ventures. If you don't get these three things right from the start, your firm is very highly likely to fail, and you'll waste a lot of time and money fixing it. It is best to opt for business consultation if you are unclear on your company's legal structure. But whatever you do, do not ignore registering your business entity and securing intellectual property rights.

4. Legal Binding Agreements

A failure to establish written agreements amongst all parties is among the most common rookie errors made by new business owners. According to the founder and CEO of CONSULTAR, Pedro Rosales, “Legally binding agreements can be lifesavers. If company rules and partnership agreements aren't in place, even the healthiest business relationships can come to a crashing halt. So, do not be afraid to enter legally binding agreements. However, make sure you fully understand all terms as well as the implications of the agreement.”

5. Part-Time & Third-Party Contractors

A startup's biggest error is making hires too soon, whether it's a full-time worker when a part-timer would do or an employee when a subcontractor could have done the same job or function. It sounds exciting to build your own team, but utilizing part-time workers, subcontractors, and the expertise of other specialists makes managing a small business a breeze. It can also help you save a lot of money down the road.

6. Reliable Accounting System

In order to keep tabs on the financial well-being of your company, you need to have a firm grasp on the numbers. Good bookkeeping practices allow you to prevent problems from getting out of hand, as well as improve the decisions you make for your organization. It's also important to keep up with your taxes and insurance payments, both of which may land even the best firms in hot water if they're not properly tracked.

7. Marketing Strategy

Once you know that there's a market for it, you should develop a strategy for attracting your first customers and expanding your customer base as quickly as possible. Here's where a well-thought-out marketing plan comes in handy. It is recommended to reach out to a CONSULTAR consultant to discuss your marketing strategy. You can book your first no-obligation consultation here.

8. Product / Service Value

Many new business owners start by giving away their products or services for free in the name of charity, community, or exposure. Avoid becoming identified as a giveaway source at all costs, and price your offering fairly from the beginning. Don't undercut the competition by charging too little, but also avoid setting your prices too high. Put the right value on your skills and products if you want to get paid fairly.

9. Rapid / Expansion

When things start going well, it's tempting to think that the upward trend will continue and the best approach to capitalize is to replicate what's already working. But if you expand your company too quickly, it could have disastrous results. That's why you shouldn't rush into expansion based on recent successes; instead, take things at a steady, methodical pace. Understand the drivers of success before jumping into expansion.

Are You Ready to Launch Your Startup? Work with CONSULTAR for Results!

Remember that many successful business owners experience initial failure before achieving lasting success. Therefore, it's important to find mentors and consultants to learn from.

Don't give up if you don't succeed at first. Instead, adapt your business strategy as you go. CONSULTAR can help you put your product to the test and listen to what the market has to say so you can make adjustments to make it more suitable for the needs of your target audience.

We can also help you prevent blunders early in your company's development. On the other hand, in case of a slip-up, our consultant will take what at first seems like horrible news and turn it into something positive. It is one of the best traits of successful business personnel. Contact us today at info@consultarusa.com or 850-923-8423 to learn more about our services or book a consultation.