business planning

Why 1 Out of Every 10 Startups Will Succeed

Why 1 Out of Every 10 Startups Will Succeed

As a startup founder and the owner of three businesses, I know all about failure. I’ve made my fair share of really dumb mistakes throughout my career, especially in the early years; however, I’ve also been fortunate enough to learn from those mistakes and never to make them again.

And so, I’m going to share my insight on why only one out of every ten startups will succeed and make it see its second and third birthdays.

1). Strong Market Research and Target Audience Definition - The founders and business owners who have conducted the proper market research are more likely to have startups that succeed because they made sure there’s a demand for their product or service. They don’t spend weeks or months trying to guess what their market(s) want.

2). Product or Service Differentiation - Founders and businesses owners who have a product or service that’s different from the rest of the competition (it’s unique, better, or innovative), have a pretty good chance that it’ll sell, which means their businesses will probably be successful.  

3). Business and Marketing Planning - Smart founders and business owners plan each stage of their businesses. They have short-term and long-term plans including measurable goals and results. Without a plan, a business is more likely to fail.

4). Strong Leadership - Businesses with strong managers and founders do better because employees feel appreciated and, therefore motivated to perform better.

5). Scaling at the Right Time - Many business owners fail because they scale their businesses too quickly by hiring too many employees or spending too much money on marketing in the beginning. However, business owners and founders that control their growth are the ones that win.

6). Knowing the Numbers and Showing Profitability - Business owners and founders who know their numbers and show profitability are more successful than business owners who don’t a sense of their customer acquisition costs and the lifetime value of their customers. They also understand the differences between revenue and profit as well as know how to read financial statements.

7). Clear Core Values - Businesses with clear core values and communicate them through marketing are more often successful than businesses that don’t have them. Core values often times include honesty, transparency, integrity, quality, respect, among many others.

8). Business Owners/Founders are Accountable - Successful business owners and founders hold themselves accountable for their actions and write down their goals to make sure they stay on track.

9). Business Owners/Founders are Action Takers - Successful business owners and founders plan and then take action. They don’t let procrastination or perfectionism get in the way of launching a new product or service or growing their ventures.

If you’re in the 10 percent of businesses that are succeeding, we’d love to hear what you’re doing in the comment section below.

WHY YOUR CREATIVE VENTURE NEEDS A BUSINESS PLAN TO LAUNCH AND THRIVE

WHY YOUR CREATIVE VENTURE NEEDS A BUSINESS PLAN TO LAUNCH AND THRIVE

Did you create a business plan for your creative venture? If so, how long did you take you? What does it entail? If not, don't fret! You still have time to create one before the new year is here!

Your business plan doesn't need to be a formal 75-page document, but rather a one-pager that outlines how your business operates and plans for future growth.

If you're like most creative entrepreneurs, putting together a business plan can seem overwhelming and (even unnecessary in some cases). However, if you want to have a successful business this new year, then you need to have a plan of action.  

Be sure to ask yourself these questions before writing your next business or marketing plan! 

To help make the task less tedious, I'm going to show you how to create a simple yet complete business plan that you can create in an hour or less.

First, let's look at what business plan is and why you need one.  

A business plan is an overview of your business and generally, contains the following sections (each of these sections can be summed up in a paragraph or less). And you primarily need one because it serves as a roadmap for your business's future.

Business Overview and Value Proposition

Describe your business in one sentence. What makes your business different from all of your competitors? Remember, your business doesn't have to be completely innovative to be different, but it does need to be unique in some way.

Problem and Solution

What problem does your business solve or what gap does it fill? Why is there a need for your business? Explain the problem and solution in a paragraph or less.

Products and/or Services

What products or services does your business offer? What is the price range? How will your products/services be different from all of the competition? 

Target Markets

Who is your core customer? Include age, gender, occupation, household income, location, hobbies, and lifestyle (and whatever else is necessary to define your core customer).

Marketing Activities

How will you market your business? Will you use digital advertising, influencer marketing, public relations, social media marketing, SEO, blogging, guest blogging, podcasts, etc? 

Sales Distribution

How will you sell your products? What channels do you plan to use? Will you sell online or in retail? 

Management

Who is the boss? What are this person's qualifications? Who are the rest of the managers?

Financial Projections

How much money do you need to start your business? What will your salary be? What are the operating expenses?

Did you create a business plan for your creative venture? How long did it take? Share your comments in the section below.

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