Profitable companies don’t just happen. They are built from the ground up with work, cash, effort, and dedication. And to build a successful business, you must use these elements where they’ll be most effective.
Concentrating your time and energy on specific tasks is necessary when laying the foundation for a successful business. Activities including learning everything there is to know about your industry and target customers, developing an original and distinctive brand identity, and starting a naming contest to discover the best customer-friendly name all contribute to your company’s success.
1. Be proactive, adaptable, and imaginative
Starting a successful business involves more than just devising a plan to capitalize on an existing idea. Numerous companies that have attempted to recycle and resell popular ideas without making adjustments and improvements didn’t succeed. By using the same strategy for your business, you’d also be at a very high risk of failing. This is because, in a crowded market, a company providing a generic service has fewer opportunities to set itself apart from other businesses providing the same service. Instead, make it your mission to offer innovative answers to the pressing problems your target market is experiencing, just like companies like Netflix, Amazon, and Under Armour. If these companies had sought to offer the same service as other businesses, they would have had difficulty competing in their markets. Instead, they created their own innovative products and services to solve problems in the market.
2. Secure cash flow
Many company owners have trouble raising the capital they need to operate their enterprises. Oftentimes, an entrepreneur realizes that sales generated by a young business usually aren’t enough to keep the company afloat. Likewise, you might encounter a similar case when starting your business. Many companies launch with less capital than they thought they’d need, resulting in cash flow issues and, ultimately, their collapse. Your company needs a consistent cash inflow to survive, and you need to focus on sourcing funding for its operations. Keep an eye out for international organizations that might help you finance your business operations. But don’t stop there. Find government agencies, NGOs, for-profit businesses, or private investors that can provide the capital your firm requires. A reliable source of assistance for company owners has always been the U.S. Chamber of Commerce and their Save Small Business Initiative. Their primary goal is to offer financial assistance programs, resources, and advice to struggling small businesses.
If you’d prefer to secure funding from a different source, consider these possibilities:
3. Use a pre-order marketing strategy
Most company owners believe that the most practical way to start a business on a tight budget is to offer their services as independent contractors or freelancers. However, these business owners overlook the possibilities of pre-orders and Kickstarter funding, which could provide them with more than enough capital to launch their new business. Through pre-orders, customers can purchase your products long before they are available for sale, providing your business with the startup capital it requires. Both old and new companies, including Sony and Jeremy’s Razor, have used and benefited from pre-order marketing.
4. Make use of viral marketing
The average end-user sees between 4,000 and 10,000 pieces of advertising every day, including those from billboards and internet platforms like Google. However, despite this massive amount of advertising, fewer than 100 companies per day can capture their clients’ attention. Every brand has to strengthen its image with a great company name, a gorgeous logo, eye-catching colors, distinctive catchphrases, and awesome ads to stand out and draw the attention of its target market. How your customers view your business affects how they engage with it. However, remember that every customer will engage with your business differently; therefore, your brand’s image won’t be static but dynamic.
A successful business must win the affection, trust, and loyalty of its online and offline customers to thrive in any market. Companies that focus on only their offline customers are only communicating with half of their market. Creating an engaging online persona is crucial since many transactions start and frequently end online. By doing so, you’ll raise brand awareness and conversion rates.
Grant Polachek is the head of branding at Squadhelp.com, a 3X Inc. 5000 company and trailblazing naming agency. Squadhelp has researched over 1 million business names and generated a list of the best available business and domain names on the Internet. As the world’s finest crowdsourcing platform, they have served clients ranging from small startups to Fortune 500 businesses.