The British business scene has been growing exponentially in recent years. According to business statistics, the pace at which startups have been appearing in the British market has been over one business formation a minute, which equates to over 1,800 new companies in a day.
However, while startups appear rapidly, they can disappear pretty rapidly too. Almost 6 in 10 startups do not survive past their first 5 years, and a little under 90% manage to remain in existence after 12 months. Contrary to common belief, the first year is not an indication of whether a business will become profitable. In fact, the first year is essentially designed to help establish your startup and ensure it can position itself as a successful business. When you think that a lot of your first months or even years are dedicated to building networks, creating income-generating operations, and finding talented staff, it’s easy to see how fast 5 years can go by! So, what should a startup do to remain relevant after those 5 years? The answer is as simple as ABC.
A for Ambassadors
A brand ambassador is a partner who not only believes in your products, but also helps spread the word about them. Building a brand ambassador programme is a popular strategy for big companies. But it can also offer startups a unique marketing insight into their customer base. Where do you find ambassadors as a startup?
Some of your first ambassadors could be part of your audience research, or they could even be investors who are interested in your progress. Typically, ambassadors will need to be customers. Yet, it can be tough to find customers when you’ve just launched a new business. That’s where carefully selected brand ambassadors who get to enjoy your products before anyone else can be a game-changer in growing your brand awareness.
B for Business plan
Your business plan acts as your navigational direction for the next years to come. But, the most common mistake startups make when it comes to the business plan is to begin with their strategy to approach and conquer the market.
The first question you should ask is not how can I make it a success. The first question needs to be: Do people actually need my product/service? Does it answer a real and tangible need? Indeed, the crucial step of your business plan is market research, which will evaluate the need for your idea, its viability, and whether the market as it is is ready for it.
C for Costs
Starting your startup venture can’t be that expensive, right? Don’t be fooled into thinking you can face the many business costs without an appropriate startup funding strategy. Indeed, there are many costs to consider regardless of the size of your business:
- Legal and business advice
- Company incorporation
- Premises costs, ranging from rental expenses to setting up a home office
- Insurance — never try to save money by skipping business insurance cover as it could put you at serious risk
- Marketing costs — if you don’t talk about it, who is going to know about your business?
- Outsourcing or hiring
If you are considering launching a startup, take the time to prepare your business for success, seeking brand amabassords who will su pport and promote your, building a strategic business plan for your go-to market steps, and carefully considering financing options.