You’ve got a great idea for a startup. There’s a gap in the market, and your product/service is solid. You’re hard-working, and the passion is 100% there. You think your success is guaranteed.
Not so fast.
We’re going to give you the painful truth first: even if you manage to get out of your first year in business, the odds are still stacked against you. In fact, 71% of businesses fail within the first ten years. That’s why it’s incredibly important that you make good decisions early and lay the foundations for a successful long-term business. The following small investment tips can help maximize your results.
Leverage Apps and the Cloud
Business owners are often tempted to invest in tangible infrastructure they just don’t need. It’s expensive and prevents your business from being lean and flexible. Instead of getting out the checkbook for bulky hardware, leverage modern technology and go for apps and the cloud wherever possible.
For example, use cloud technology as a backup solution for your data. Instead of an expensive local server, use an automated service like Backblaze. For shared documents and files, think Google Drive and Dropbox. You still need to go old school and print off documents? A host of dedicated applications can allow you to wirelessly print across your organization (instead of the antiquated USB cable!) and sync them with the cloud for automated remote printing.
Yes, these apps may require a little up-front investment. But it pales in comparison to physical hardware you can’t get rid of if you suddenly need to drop costs.
Surround Yourself with a Solid Team
Motivational powerhouse Jim Rohn’s most famous idea is basically this: you are the average of the people you surround yourself with. This works on a personal level, but also in business. With a startup, it’s crucial that you put a solid crew together to weather those early storms.
Most startup companies require small teams. They often can’t afford anything else. We recommend a combinational approach. First, find a handful of people that have the determination, drive, and ability to work in a close-knit team. Don’t be tempted to simply hire people you know. If things don’t work out, make quick decisions and find someone else.
We’re otherwise also huge fans of the gig economy. It allows you to find experts all over the world for a one-off price. You can also work with companies that will assign a specific individual to your project, meaning they’re essentially working as part of your team. Sites like Upwork are perfect for this kind of thing. You may pay more per hour compared to a full-time employee, but it’s far more flexible and you’ll be hiring an expert for the job.
Become a Marketing Ninja
When it comes to startups, the marketing angle is arguably more important than what you’re selling. It’s perhaps a sad indictment of how business works, but that’s the game. If you want people to find out about your product or service, invest in learning about digital marketing. These are some of the essential topics you’re going to need to cover through either books or online courses:
- Affiliate Marketing
- Content Marketing
- SEO (search engine optimization)
- SMM (Social Media Marketing)
- PPC (Pay-per-click advertising)
- Email Marketing
In general, we recommend staying away from traditional methods such as television commercials, radio advertisements, and billboards. They’re expensive and don’t offer bang for your buck. The only exception is snail mail; if you send your (potential) customers decent marketing material through the post, it’s possible to get those coveted conversions.
Build Your Tribe
Every startup needs a tribe, a group of loyal customers that support your brand through thick and thin. This type of customer won’t just spend money but will bring others to your business.
It’s important that you treat them right and invest in keeping them happy. It’s far, far easier to keep a customer than getting a brand new one. And it’s cheaper too. For example, send random customers a personalized gift through the mail. Even cheap trinkets like pens or candy are appreciated. When you run a sale, give your loyal following an extra perk (most businesses mistakenly focus on attracting new customers). If someone who has been with you for a while has a complaint, take it seriously.
Bottom line, don’t take your customers for granted. If they’re spending money with your business, treat them right. Make them feel special. They’ll pay you back!
Work Hard, Be Patient
We all dream of the 4-hour workweek. Shame it’s not really a reality for most people. We leave you with a little bit of business advice: if you want to succeed, be prepared to invest some serious time, blood, sweat, and tears.
Don’t expect overnight results either; you’re going to be working harder than you’ve ever worked and you’ll be tested in every possible way. Remember, there are no shortcuts.
