A 2 week sprint to launching your next business

The Amazing Race:

A 2 Week Sprint to Launching Your Next Business

The

team at Successful Startup 101 has created this guide for anyone who is serious about starting a business. If you’re ready to start your new journey to becoming an entrepreneur, we’ve made sure this guide covers everything you need to take into consideration from coming up with the ideal business idea to developing your business and marketing plans plus lots more.

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DAY 1:

Decide What Type of Business to Start

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he first order of business is to determine which type of business is right for you. Of course, you’ll have an advantage right from the start if you choose a business that matches your experience or background. It would also be to your advantage to choose an area of business that you are passionate and interested in even though you may need to take some leadership or professional training to ensure you have the skills needed to be your own boss.

Devise a Personal Resume for Your Eyes Only Take the time to write out a personal resume of sorts that includes all your past personal and professional experiences and areas of expertise. A good starting point is to write down your skill set. Include the things you enjoy doing with your time.

Do you have any special skills

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you’ve developed or learned over the years? What about your hobbies and interests that could carry over into your new business? When you write down past jobs you’ve had, make a note of the things you were responsible for and how successful you were at each.

Also jot down your unique personality traits. Do you enjoy working on a team or do you work better on your own? Is working outside something you’ve always dreamed of or do you prefer to be indoors most of the time? Can you see yourself working at all hours of the day and night or are you a strictly 9 to 5 sort of person? Every business has a personality that is all its own and your personality should complement the type of business you choose to run.

Get Feedback from Others

Take

the time to write out a personal resume of sorts that includes all your past personal and professional experiences and areas of expertise. A good starting point is to write down your skill set. Include the things you enjoy doing with your time. Do you have any special skills you’ve developed or learned over the years?

What about your hobbies and interests that could carry over into your new business?

It’s also a good idea to speak with other people who are running businesses similar to those you are considering

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Once you’ve come up with a business idea, ask people you know what they think about it.

The feedback you receive from family, friends, co-workers and colleagues should give you a good idea as to whether or not your business concept is a viable one. When speaking with people about your idea, ask them if they would be willing to buy or use the products/services you want to offer and if so, how much they would be willing to pay.

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running. Ask these people what personality traits they think are important for success.

Do their responses line up with your own interests and personality? Continue doing this type of soul searching until you find a business idea that pairs your passion for the work with the marketable talents you have. Don’t fall into the trap of believing your business idea has to be one-of-a-kind and something nobody else has ever done. This type of thinking will get you no-where fast and may even result in you giving up your dream of becoming an entrepreneur all together.

A more logical and realistic approach to take is to ask yourself how you can improve upon a business idea that interests you.

you in the direction toward a particular type of business that’s well suited for you.

Note Your Likes and Dislikes

Once you’ve come up with a business idea, ask people you know what they think about it. The feedback you receive from family, friends, co-workers and colleagues should give you a good idea as to whether or not your business concept is a viable one. When speaking with people about your idea, ask them if they would be willing to buy or use the products/ services you want to offer and if so, how much they would be willing to pay.

Next, think about what you like and dislike about your work life as well as your personality traits other people like and dislike about you. Then be honest with yourself as to why you want to become an entrepreneur.

Once you’ve done all this, you should see some type of a pattern emerging that will point

If you’re still having trouble coming up with a business idea, remember that you can take basically any idea and customize it by adding your own creativity. Do keep in mind that customizing your business concept is actually a necessity as there are very few businesses that work with a cookie cutter approach.

Run Your Idea Past Friends, Family and Co-Workers

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DAY 2:

Research Your Business Idea

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t’s all-too-common for someone to have a wonderful idea but to find out later that their business struggles because there really isn’t a market for their particular product or service. This is why it’s so important to research your business idea to make sure there is a market for what you’d like to sell. When you take the time to thoroughly research your business idea, you will reveal any shortcomings in your thinking while helping support your expectations about your business’s success.

The way to begin this research is to ask yourself some key questions which include: • What problem will my product or service help solve?

• What type of consumer will likely buy my product or service?

• What would motivate people to buy my product or service?

• Where will people buy my product or service? In a brick-and-mortar store? An ecommerce site or both?

• How much should I charge for my product and service

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so that people are likely to buy it and I can profit from it?

• What other products and services out there will I be in direct competition with?

It’s very important for you to realize that your business cannot be everything to everybody and particularly if your business is going to be on the small side. It’s best to clearly define your target market as that is the key to success for any business big or small. Think about what consumer segment you will be targeting your product or service toward. Is this segment of the population big enough for you to get your fair share of the market?

Collect Information Now it’s time to gather info concerning a few key aspects of your business which includes: • Information about your industry • Information about your targeted market • Information about your direct competitors

Finding this information involves visiting a few websites such as the US Census Bureau and any associations/ organizations within your industry. Once you’ve gathered all this information you should be able to see whether or not your business idea is viable. If it is viable, you can confidently move ahead to your next set of tasks.

It’s

very important for you to realize that your business cannot be everything to everybody and particularly if your business is going to be on the small side.

It’s best to clearly define your target market as that is the key to success for any business big or small.

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DAY 3:

Determine What Your Startup Costs Will Be

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efore you can start your new business venture, you must determine how much money you will need to open and operate your business.

In the beginning of your new startup, you must have enough money available to cover all your expenses until you come to the point where you break even.

Experts recommend having enough cash to take care of your projected expenses for at least six months. Do not think that you are going to make a profit early on because you most likely won’t as you need to be ready for the unexpected.

Now it’s time to create a checklist of expenditures. Here is an overview of what you need to do in order to get started with this.

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• Make a list consisting of the equipment, supplies, furniture and staff needed to run your business and how much these things will cost.

• Write down the startup costs associated with your inventory, sales & marketing materials, signage, licenses & permits, operating capital and legal or professional fees you will have to pay.

• Calculate and write down your monthly overhead for rent, supplies, utilities, insurance, taxes, internet

access, shipping and other services you will need.

When making a list of your expenditures, it’s always best to make the assumption that everything will cost you more than you initially thought as doing so will serve as a safety net if things do end up costing you more than you expected.

Once you’ve done all this, add up and double check all your figures before creating your business plan and seeking startup financing.

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DAY 4:

Draw Up Your Business Plan

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t’s always a good idea to have a business plan in place as this document will help keep you on track. Your business plan is also what will help you secure a loan. Additionally, your business plan will you help ensure you’re well prepared for any new opportunities you run across as well as for any difficulties you may encounter as you build your business. Even though having a business plan in place is no guarantee for success, it can help you avoid many common pitfalls most startups face. By creating a business plan, you’ll also be able to see those vulnerable areas of your business you may have missed before writing up your plan which is always positive as it’s to your advantage to pick up on any shortcomings or miscalculations as early as possible.

The three key aspects to a successful business plan are:

The Business Concept This is the part of your business plan where you spell out how

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you plan to make your business a success. This is also where you describe your business and explain how it is unique and will fill a need in your industry. You need to include an overview of your business’ general structure as well as a synopsis of the target market you are aiming at.

The Marketplace Section In this part of your business plan you need to describe your potential customers and include information like who these people are, where they are located and what prompts them to make purchases. You will also need to include information as to whom your direct competitors are and how you plan on competing with them.

The Financial Section Because this part of your business plan contains detailed financial information, you may need to seek the assistance of a

trustworthy accountant who is armed with a capable spreadsheet software program. In this section of your business plan, you should include your income and cash flow statement, balance sheet and other pertinent and relevant financial information.

Creating your business plan is a task not to be taken lightly.

Why? Because your business plan will enable you to address on paper all the many variables that cause businesses to fail.

Plus, considering the fact that lenders and investors are more particular than ever, an inadequate plan can keep you from getting the financing you need.

You should revisit your business plan regularly as your business grows so you can rewrite and adjust it as necessary. Just be sure that your business plan is realistic in terms of properly identifying opportunities and obstacles with a strong focus on the latter.

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DAY 5:

Getting the Financing You’ll Need

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nce you have chosen the type of business you wish to start and have your financial projections in order and your business plan devised, it’s time to figure out how you’re going to finance your new venture. Here is a brief overview of where you can begin the task of acquiring the financing you will need to get your business up and running.

Personal Sources of Finance It is likely that you will get most of your startup funding from your personal savings, inheritances, friends or family as most startup founders do. If you can, aim to fund 25 to 50 percent of your business from your own pocket as doing so shows prospective lenders and investors that you are personally assuming some risk and are committed to the success of your new business. This is also a requirement for many small business loans which are usually secured or backed by assets.

Banks and Other Lenders In the past, banks and other

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lenders would provide startup funding through credit or a loan, provided the founder had invested some of his or her own money.

Nowadays however, traditional sources of finance including loans, overdrafts and credit cards are more difficult to obtain as you face a much more rigorous application process to ensure you can meet your repayments.

Some startup founders remortgage their homes as this is often a less expensive route to take as opposed to a loan because the payments can be spread out over a longer term.

However, the mortgage market is also tighter than it used to be which may result in you not qualifying for a remortgage. Plus, you may feel uncomfortable doing this as putting your home ownership on the line is risky.

Most investors are not interested in the typical startup including angel investors or venture capitalists. Why these investors are disinterested in typical startups is because they are usually are only focused on investing in very unique, outstanding ideas that can translate into highly profitable businesses. If an angel investor or venture capitalist is interested

If

you can, aim to fund 25 to 50 percent of your business from your own pocket as doing so shows prospective lenders and investors that you are personally assuming some risk and are committed to the success of your new business. This is also a requirement for many small business loans which are usually secured or backed by assets.

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in backing your idea, they may want a large chunk of equity of anywhere between 25 to 40 percent.

SBA Loans

The

lack of credit

history, collateral or the inability to secure a bank loan doesn’t mean you are out of luck. You can apply for a microloan which is a small business loan ranging in size from $500 to $35,000. Microloans are often so small that commercial banks simply cannot be bothered with lending the funds.

You will need to find a microlender which is a non-profit organization that works differently from a commercial bank.

Because banks and other lenders are reluctant to take chances on new businesses due to the credit crunch, loans guaranteed by the U.S. Small Business Administration have become very popular ways for startups to get the funding they need. SBA-backed loans are open to any small business but there are many qualifications a business must meet in order to secure a loan including: • The law in the US dictates that the SBA cannot guarantee loans to businesses that are able to get the money they need on their own. This means you would have to apply for a bank loan and be turned down in order to qualify for a SBA-backed loan.

• To be considered a small business, your company needs to meet the government’s definition of a small business for your industry.

• After determining that

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your business meets the qualifications, you will have to apply for a commercial loan from a financial company that processes SBA loans since the SBA does not directly provide loans. You may find that the bank’s qualifications are tough to meet.

Microloans The lack of credit history, collateral or the inability to secure a bank loan doesn’t mean you are out of luck. You can apply for a microloan which is a small business loan ranging in size from $500 to $35,000. Microloans are often so small that commercial banks simply cannot be bothered with lending the funds. You will need to find a microlender which is a non-profit organization that works differently from a commercial bank. Microlenders provide small loans that require less documentation than banks with often more flexible criteria.

Since there are hundreds of microlenders in the US, finding one is easy as you only need to search online.

Whichever funding route you take, be cautious about incurring debt as you don’t need the added pressure that comes from being heavily indebted.

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DAY 6:

Coming Up with a Great Business Name

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f the many decisions you will have to make, none hold more importance than choosing a great name for your business. After all, your business name is the first impression people will get about your business and it is what customers will remember (good or bad) about you that either draw them to your business or send them to your competitors.

Keep It Short and Simple When choosing a business name, stick with words people can easily spell. Some people do try using unusual word spellings but this can cause problems when people search for your business online or try to refer you to others. The name you choose also should be easy to pronounce and remember as confusing people is not something you want to do. And, the shorter your name is, the better.

Do avoid using special characters like hyphens and be very sure that the name you choose provides people with some information about what your business is about.

This is important as a business name that matches your business will remind people what services/ products you provide.

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Avoid Including a Geographic Location or Specific Product/ Service in Your Name Too many startup founders make the mistake of using a geographic location in their business name.

Then later on when they expand to different locations their name confuses consumers. For example, naming a business something like “San Antonio Hard Drives” will box the business in both in terms of geographical location and product selection. If the owner of this business were to expand later, people living outside San Antonio will wonder if they can shop there. And, if more products and services are offered later on, the ‘hard drives’ portion of the name will surely hurt marketing and sales.

Seek Out Opinions Once you have a shortlist of a few names you like, run them by people you know. Ask people if the names give off the impression you’re trying to make. You may find out that all the names on your shortlist are not very popular among your friends, co-workers, potential customers and investors.

If that is the case, it’s back to the

drawing board to start over!

Making the Final Decision When you do finally end up with a few names that you think are good fits for your business, it is time to make the final decision.

To do this, think about your initial criteria. Which names best match your goals? Which most accurately describes your business? You may end up going with your gut feeling here or you may need to do some consumer research or testing with focus groups to see how people perceive the names. It’s a good idea to think about what each name will look like on signs and business documents. Say each name out loud and listen to how it sounds. Do you like the sound of it? Does it sound the way you think it should when being broadcast?

It may take you quite some time to come up with a killer name for your business. But once you finally do find the perfect name, all that time and effort will be well worth it as having a great name is very important as it will be your business’s life-long identity.

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DAY 7:

Develop Your Marketing Plan

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our marketing plan is a key part of your overall business plan. Not only will lenders will want to see how you are planning on making money but your marketing plan will also assist you in: • Assessing the needs of your customers when developing your products/services • Conveying the features your products/services offer to your target market • Establishing your distribution channels • Determining the best ways to go about promoting your business • Pinpointing the best forms of advertising to use

There are all kinds of opinions out there concerning what makes up a good marketing plan so coming up with yours can be daunting. Some people end up with long, detailed marketing plans consisting of dozens of documented

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pages. However, your marketing plan doesn’t have to be long or extremely detailed as you can get straight to the point by using bullet points which spell out your plan step by step. Here is a rather straightforward approach to creating a marketing plan that will suffice for most businesses:

Step 1: Define Your Current Situation The first step toward developing your marketing plan should include what is called a “situation analysis”.

This is where you define your business and the products and/ or services you will offer. You should include the benefits associated with the things you sell to show how your business is different from your competitors. The goal here is to show how your products or services provide a better value than do those offered by your direct competitors.

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re are all kinds of opinions out there concerning what makes up a good marketing plan so coming up with yours can be daunting.

Some people end up with long, detailed marketing plans consisting of dozens of documented pages. However, your marketing plan doesn’t have to be long or extremely detailed as you can get straight to the point by using bullet points which spell out your plan step by step.

In this section of your plan, include all the strengths and

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opportunities your business has. How do you do this?

By considering and laying out the ways your products and services are better than than others on the market.

Maybe your products come with more features or perhaps your services are more comprehensive than what your competitors’ are.

You also need to include any weaknesses your business has as well as any threats you face.

Weaknesses can be anything from having inexperienced personnel to entering a highly competitive niche. Threats you face can include things like competitors that are quickly gaining ground in new product/service categories or competition that is doing very well by marketing on TV and radio.

Step 2: Describe Your Target Market Now it’s time to write up a short profile of what your prospective customers look like. How old is your targeted audience? What is their gender, earning capacity,

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geographic location and family status?

Are your targeted customers timid and shy or aggressive and bold? Are these people traditional or more conservative in nature?

How often do they buy what you are selling and in what quantity? What you come up with here will guide you later on when you begin planning your media and PR campaigns.

Therefore, it’s important to define your target market as narrowly as you can.

Step 3: List Your Marketing Goals What do you want your marketing plan to achieve?

Are you hoping to make a 25 percent increase in sales of your products/services within the first three months? Jot down a short list of your marketing goals and be sure they are goals you can measure so you will know when you’ve achieved them.

Step 4: Describe How You Will Reach

Your Target Market and Accomplish Your Goals This is the “meat” of your marketing plan. In the previous steps, you outlined what your marketing strategy must accomplish and identified your target market. Now you need to describe how you’ll reach your prospective customers and accomplish your goals. There are many communication channels to use to spread the word about your business including signage, fliers, blogs, email, PPC ads, radio, TV, print ads and social media. The ones you choose should be those which you’ve found to be the most effective for reaching your targeted customers.

You will need to state what your primary marketing strategies will be and then include the various tactics

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you’ll use to reach your prospective customers at any point in your sales cycle.

For example, you might use a combination of outdoor signage and PPC ads to reach cold prospects but use direct mailing to get in touch with warm prospects. To find your ideal marketing combination, do some research so you can discover what communication channels your prospective customers use for information about the types of products/ services you sell.

Step 5: Set Your Budget Now it’s time to set your marketing budget. To do this, find out how much it will cost to cover the marketing tactics you plan on using. It is likely that as you proceed, you will see that some of the marketing tactics you want to use will cost you too much to employ, at least in the beginning stages of your business. If this is the case, simply go back a step and adjust your tactics until you come up with a combination you can afford.

startups to spend as much money as they possibly can afford on marketing because of the importance of getting the word out. A simple method for determining your marketing budget is to use a percentage of your projected yearly gross revenue as a starting point.

This percentage can vary considerably depending on factors like your industry, the size and type of business you’re starting and the size of your geographic market. As a general rule of thumb, small businesses with less than $5 million in annual sales should allocate between 8 and 10 percent of their revenue to marketing. But, since you’ll be launching a brand new business, you may need to allocate even more of perhaps between 15 and 20 percent.

This is because your marketing strategy will have to be on the aggressive (and more costly) side in order to spread the word and create awareness about your new business.

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re are many

communication channels to use to spread the word about your business including signage, fliers, blogs, email, PPC ads, radio, TV, print ads and social media.

The ones you choose should be those which you’ve found to be the most effective for reaching your targeted customers.

Marketing experts advise

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DAY 8:

Put Together Your Team

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ou are going to need a team behind you that will help you create a successful business, even if you view yourself as a one-person operation. Now is the time to get out there and do some networking with business associates, friends, family and the professionals you know so you can expand your network and pick the right people for your team.

You should plan on developing an advisory board consisting of people who will serve as your advisers or mentors. This group of people should have business

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experience, knowledge and talent for helping you with the various aspects of your business. Because these are the individuals you will be turning to for advice, be very sure they’re qualified to give you advice and are willing to stand by you no matter what.

If you plan on hiring employees, you can save a considerably amount of money by going with part-time workers in the beginning. Check with local temp agencies for part-time

help and even contact local universities to see if you can pick up a student intern. If you do need to hire full-time staff from day one, be sure the people you hire are the right fit for your business. The last thing you need when starting out is trouble with an employee who either doesn’t have the right personality for your business or whom simply isn’t putting forth much effort.

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DAY 9:

Put Your Marketing Plan into Action

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our marketing plan has been put together to guide you in your marketing activities. Your plan helps you understand how each activity works in conjunction with your other marketing strategies and it ensure you are sending out a consistent message. However, the real key to successful marketing is the ability to execute the plan which involves undertaking each activity until you have attracted more customers than you can handle.

By now, your website, business cards and marketing materials should be ready to use. Make sure you have a phone system in place so your customers can easily contact you. Your website should provide visitors with all the information they need about your new business and the products/services you sell.

For customer email queries, set up auto-responders as you will be too busy to promptly answer emails. Now it is time to put

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your marketing plan in action.

Announce the opening of your new business via a PR sent to the local media. Write up and contribute an article to a trade journal. Come up with a generous coupon offer for your new customers. Distribute fliers, put up signs and send out direct mailings. Take the time to make yourself known by getting out there and rubbing elbows with people at industry events like trade shows, exhibitions, meetings, etc.

You need to hustle and work hard now at making people aware that your business is up and running. Don’t make the mistake that many startup founders do which is to sit back and wait for customers to find you. It’s up to you to put your business in front of your prospective customers and the only way that is going to get done is through good old fashioned hard work.

Your

website, business cards and marketing materials should be ready to use. Make sure you have a phone system in place so your customers can easily contact you.

Your website should provide visitors with all the information they need about your new business and the products/services you sell.

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DAY 9:

Sell, Sell, Sell!

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ow that you have done all the legwork in order to get your business up and running, it’s time to concentrate on making those sales. You need to take good care of yourself now as you are going to be expending a lot of time and energy toward selling your products and services. Eat well, gets lots of sleep and keep your energy levels high because there’s no time for running out of steam now!

You should create a sales checklist so you have a guide to follow that helps you remember

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the most essential aspects of selling. This checklist should include a list of all the sales materials you are using as well as a sales script that covers the most important selling points of your products/services.

A great sales professional puts forth a whole lot of time and energy into making him or herself an expert in their industry. Great salesmen and women also understand who their customers are. Take the time to learn what makes your customers tick by doing things like interacting with them on

social media, asking questions on your blog, speaking to them in person, etc.

Whenever you speak to your customers, do so with enthusiasm as you want your customers to know that you believe in your business and what it has to offer. An upbeat, positive salesperson is much more successful than a lackadaisical salesperson who grudgingly greets customers so keep a smile on your face and show your customers how much you appreciate them!

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