What It Takes to Make a Startup in 2021 [Updated 2021]
Everyone has an idea that they want to bring to life. The thought of creating an innovative product, making lots of money, making an impact are definitely all on the new founder’s bucket list. However, the dream is way different from reality. This is why the majority of startups fail, and only a few succeed.
According to Neil Patel, 71% of businesses fail within ten years. Even if the entrepreneur launches a startup and hits the ground running, it still takes a lot of hard work and dedication to keep it going.
It is one thing to create an amazing website, product, and service, but to actually scale the startup and maintain a business model are both a different story. As the years go by, the startup industry gets even more competitive, and it gets to the point that having passion and enthusiasm is not enough to launch a new business successfully. Startup individuals need to have all the right strategies and people to get to where they need to be.
Fortunately, the experts have all the insight that anyone would need to turn their business into success in the year 2021.
Make a Business Model
A proper business plan or model can be a significant advantage over those who don’t have one.
So the question is, how to make a business plan? A business plan entails a written description of the startup’s future. It’s basically an outline of what is going to happen and how it is planned. These plans typically occur around the first 3 to 5 years of the strategy. Keep in mind that the plan is to be the first thing on the list because it provides a clear insight on how to tackle the remaining steps. It is important to lay out the startup process step-by-step so that you don’t get ahead of yourself.
One of the biggest challenges in launching a business is securing funding. Every entrepreneur person is going to need the proper funding to run a startup. It’s hard to determine how much one should save because various factors affect the cost, but making an Excel spreadsheet is a start, and using a platform like mata will make life easier.
For example, a small part-time startup with no employees, equipment, or overhead, will most likely cost less than $10,000. However, startups with employee salaries, equipment, and overhead will cost way more.
On average, there are around 565,000 start-up companies launch in the United States every month, and these companies combined have earned approximately $78,000.
The worst part is that the cost of doing business is much higher than we initially think, so financial backups are important when launching a business idea. Keep in mind that all business plans have a financial policy. This consists of a balance sheet, sales forecast, profit and loss statement, and cash flow statement. Unfortunately, 82% of businesses usually fail due to cash flow issues. The purpose of the financial statement is to determine how much funding is needed to start a business adventure. Maintaining funding is highly important in building a startup.
For example, a small app shop may cost anywhere from $50,000-$100,000. Unfortunately, that is only the cost of making the app. This doesn’t include the price of running it with customer service, marketing, and employee salary—all steps in helping a startup to grow as time passes. Basically, to obtain the proper funding, everyone will need to find out how much money would be needed.
Let’s say, for example, a start-up needs $100,000 to get off the ground, but no one has that type of money. Luckily, there are some viable options that don’t require massive interest rates.
22% of business loans usually go to small business, and the vast majority of funding goes to larger ventures and corporations. Banks are less likely to give a massive amount of new businesses or companies that have no assets or income. That is why, bank funding should be the last choice.
If the bank wrote a rejection request or that the interest rate is too high, then another option is to search for investors like friends, family, venture capitalist, or angel investor to get started.
Surround Yourself with the Right People
When it comes to startups, it’s important to be surrounded by the right people. This includes employees, executives, and the right team. This will entail individuals with a positive mindset and specific knowledge that you don’t have that can positively impact the business.
Usually, the majority of startups are a small team of individuals that worked hard to get the business running. Before anything, it’s best to register the business name and get a federal tax ID.
In order to make sure that everything is done properly, it’s vital to consult with an accountant, lawyer, and financial advisor. They can explain the legal requirement and tax application, so business owners don’t get into any serious trouble.
Related: How Does Equity Work in a Startup?
Find the Right Spot and Launch a Website
Every startup requires a physical address and a web URL. As for physical address, a coworking space, office, manufacturing location, or anything professional is an adequate location.
Once the proper location and URL has been established, then it’s time to market the business. Keep in mind that it’s essential to utilize a social media platform like Facebook, Instagram, Twitter, and Snapchat to spread brand awareness and to establish a presence.
Be a Marketing Genius
If you don’t know anything about marketing, then it’s time to learn. Even with the best product or service in the world, anyone will fail without the proper marketing strategy.
Digital marketing plays a significant role when it comes to making a presence and bringing in customers. Since digital marketing encompasses various fields such as affiliate marketing, content, email marketing, SEO, search engine marketing, social media marketing, and pay-per-click click, it’s essential to get the expert on the team.
The right marketing strategies help get your business off the ground, transforming from a small startup to a successful business venture.
The steps that it takes to have a successful start-up in 2021 include having a solid business plan, appropriate funding, surrounding yourself with the right people, finding a location and website URL, and being a marketing expert. Mata is one new platform that can help with all of those things and makes starting your own business seem very easy.
Unfortunately, more startups tend to fail than succeed, but with the right perseverance and support, it is possible to turn that startup into your dream business that can grow and flourish in the competitive 2021 digital world.