How to Plan for a New Company
- 1). Establish that the venture is feasible. Identify prospective customers for your product or service and solicit their candid opinions. Find out whether these prospects have a compelling need for what you will be offering. Don't assume that if you would enthusiastically purchase your products or services, significant numbers of other people would as well.
- 2). Gauge the strength of your competitors. Analyze what they are doing well that enables them to succeed in the marketplace, and then determine what you can do even better--what differentiates you from the other companies in your market space.
- 3). Think about what will motivate customers to buy from you. This message must be clear and direct. If the primary benefit they will receive is saving money, emphasize that. Saving them time, improving their health, providing convenience--all of these are potential themes for you to use in your marketing message. If customer prospects are unsure about how your products or services will benefit them, they are unlikely to purchase from you.
- 4). Be realistic about the time and capital needed to build a new company. Make sure you don't fail because you could not sustain the venture through the always difficult start-up phase and because you did not have enough capital for aggressive marketing and promotion. If you believe it will take six months for the company to reach positive cash flow, ask yourself how you will cope if it takes twelve months instead. Be prepared for sales to build more slowly than planned.
- 5). Devise a winning business model. Think of this as your formula for profitability. Consider both the revenue streams you want to establish and the operational factors that will allow you to earn a higher profit than your competitors. Efficiency in the manufacturing and delivery of your products and services, scalability--revenues growing quickly once the marketing plan goes into high gear--and operating with relatively low overhead expenses are examples of factors that lead to profitability.
- 6). Determine the human resources you need. For your venture to succeed, it is critical that you attract the best management team and staff members possible. Look for individuals excited about the challenge of building a company from the start-up phase. Consider candidates with prior entrepreneurial experience. Design your staffing model with the specific success requirements of your type of business in mind. Depending on your venture, you may want to emphasize marketing or brand-building experience, manufacturing efficiency, or product research and innovation.
