Tips for entrepreneurs to make your new business a startup success
In part one of Joe's journey into business we discovered his passion for coffee and explored if he was really cut out for small business.
Let's now look at what is involved in starting your own business from the ground up, to see if it's your cup of tea?
Supply and demand
You can build or buy as many different products as you like, but that doesn't mean anyone actually needs or wants to buy them from you. Joe is pretty lucky, with his business dream, as there's a constant demand for coffee, which gets customers through the door where he also sells complimentary items like macaroons, muffins, etc. What need or demand is your business going to supply?
Convey your value proposition
Your value proposition is what differentiates you from everyone else in your field. Clearly defining "Why should I buy from you?" will not only help you stand out in the marketplace, but connect your customers with your vision. Joe's too old school to be a hipster - so he aims to focus on quality products & superior customer service, to keep his customers perked up. His motto is "Taste the difference experience makes". So consider what makes you different from your competitors and why should I buy from you?
Make it a Side Hustle
Starting a business on the side, while still working as an employee, is a great way to see if your entrepreneurial idea is more than just hot steam. This is great during your initial growth phase when you don't yet have regular cash flow. You can give your business the opportunity to build regular sales to the point where it can replace your wages.
Not sure if you have enough spare time? Well STOP watching Masterchef and get some inspiration from startup guru Gary Vaynerchuk. Gary is the epitome of time management and has created unique YouTube content to build his brand. He has since launched into public speaking, publishing books and runs a media business with his brother. Gary has a unique search engine where you can quickly access tips that will help with your business.
A side gig might be all you need, as Tim Ferriss, author of four hour work week, shows in his #1 rated business podcast. He examines world-class professionals, so that you can learn from their path to success and generate value in your own business.
Start small & then scale up
Why just rent an empty shop? When you can partner with a complementary business. Joe teamed up with his local bike shop and put a cafe in the showroom - Après Vélo. Doing something like this lets you leverage an existing customer base and limit your initial outlay.
If this isn't realistic then consider bringing your goods to where the party's at with a completely mobile business like Luxury Van - that sells right to your door. Can your business go mobile?
I've covered some helpful ways to avoid the common pitfalls of starting a business from scratch. By considering these questions you'll avoid getting the jitters when the caffeine wears off.
Need a refill? Stay tuned for the next instalment where Joe looks at buying an existing business.
Do you have an idea brewing for a small business? Call the barista's of books at Logan & Hall Accountants on 03 5032 1121. Because our business is more Starting your business from scratch than just counting beans and we're pretty grounded in your passion, whatever that might be.