You have thought of the perfect business idea. What’s next? Coming up with a brilliant and original idea is easy, but it is what we do next that truly determines how successful the idea will be when turning it into a business. Starting a business is never an easy task. It involves difficulties such as raising funds, generating revenue, and building a reputation. Here are five tips to help you build a successful startup. 

1. Plan

At some point in our lives, we have all heard of Benjamin Franklin’s quote: “If you fail to plan, you are planning to fail.” The most fundamental tip when starting a business would be to have a plan. This is important because before you invest time and money into it, you will need to first understand your business. To do so, a common method would be to use the Business Model Canvas.

You might be wondering, what is a Business Model Canvas? It is a method that breaks down your business model into nine simple segments:

• Key Partners: A business needs to have reliable partners to facilitate key activities and bring value to customers.

• Key Activities: This refers to the product or service that your business chooses to sell to bring value to your customers.

• Key Resources: These are the realistic resources that a company will need to facilitate the key activities of the business.

• Value Propositions: Value proposition refers to the value your business can provide to your customers or clients.

• Customer Relationships: This is defined by the way a business communicates and interacts with its customers when selling its product or service.

• Channels: Channels are defined as avenues through which potential customers can be exposed to your business.

• Customer Segments: This refers to the classification of your customer base into different groups with a common aspect. 

• Cost Structure: A business cost structure is defined as the monetary cost needed to run a business.

The right side of the BMC focuses on external-facing segments, while the left side focuses on internal segments. Both external and internal segments meet in the middle to form the value proposition. Value proposition refers to the value your business can provide to your customers or clients.

By using the Business Model Canvas, you will be able to have a clear target and narrow your focus. A business may be able to survive without a plan, but ensuring you have a solid business plan will result in greater success, and perhaps even double your chances. Make sure to conduct proper market research and identify key stakeholders when filling up the Business Model Canvas.

2. Analyse

To build a successful startup, you will need to continually analyse the market. In this ever-changing world, nothing is static. From prices to quality, starting and managing a business requires you to be adaptable. In the beginning, your business may be unique, but it is important to stay competitive. Trends come and go, and many companies go out of business because of one simple reason 一 they could not keep up with the trends.

Why do you want to set up this business? Can this business make money for you? Who are your competitors and customers? And most importantly, what is your Unique Selling Point? Does your business make an impact or solve a problem in the world? Make sure that your analysis can answer these questions before you start to invest time, money, and effort into your startup. 

3. Employ

At the initial stage, a new business will start with a few employees, perhaps only the founders and co-founders. However, once the business starts to grow, hiring the right people for the team is crucial. No matter how talented your founding team is, you will need some help by relying on the expertise and assistance of others. Richard Branson, the founder of the Virgin Group, is famously known for putting employees first, customers second, and shareholders third. He believes that prioritising employees will thereafter lead to good customer service. 

Successful entrepreneurs will take the necessary time to headhunt and train employees. These employees will be the ones who drive change and innovate within your company. 

Hire employees who have the right mindset and positive qualities, such as professionalism and being a team player, in order for them to fit into your company culture. Hiring the right people will lead to greater success in future. 

4. Finance

Many people want to start their own business because of how charming entrepreneurship is — flexible work timings, being a CEO, or even earning lots of money. However, realistically speaking, while starting a business is exciting, it costs money. From paying legal fees to renting the office, the different expenses can add up to a large sum. 

As such, many companies aim to raise capital through many different ways, from pitching to venture capitalists or simply taking out money from your pocket. However, as a startup founder, it may be tempting to believe that money is all that matters. Having more money can solve some problems, but not everything. It is hence important to ensure that your product fits the market well and that there is a demand for it.

If you are starting a business in Thailand, do adequate research about financial funding programmes or grants provided. There are many programmes available provided by the government, banks, to even private angel investors or venture capitalists. The Thai government offers incentives such as tax breaks and tariff reliefs. You can also lookout for the BUILD Entrepreneur scheme, whereby Startup in Thailand provides funding to potential entrepreneurs. This is often a better idea than sourcing for private funding from money lenders (with higher interest rates).  

Before starting your business, be sure to carry out proper financial planning in order to ensure that your business can be sustained, and will have the funds needed during the course of business. Check out Startup in Thailand’s website here for more details.

5. Network

With a solid plan and employees, as well as sufficient finances, what else is there? The final tip would be to get to know people. In this era, professional networking is important to move your business forward. 

Networking does not need to be a step-by-step plan. It can be as simple as signing up for a LinkedIn profile, joining groups, or even claiming your profile on SPHERE 8’s Finder platform. Claiming your profile will help to increase your startup’s confidence score on the platform, ranking it at the top. When potential investors visit Finder, those companies with a higher confidence score will be more likely to be seen. On top of that, surround yourself with relevant people by attending events and making meaningful connections. 

Running a startup may be difficult, but you do not need to do everything by yourself. With extensive networking, find mentors and strategic partners to help you along the way. Most founders may not be an expert in their company’s field of work, and as such, it is even more important to seek out a professional that can guide you throughout your startup journey.

These are the five tips to help you build a successful startup. While these tips may help to increase your chances of starting a successful business, your product or service must be well-researched and highly sought after by the current market. 

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Links & References:
https://blog.onefire.com/why-a-business-model-canvas-is-important-to-organizational-innovation
https://medium.com/seed-digital/how-to-business-model-canvas-explained-ad3676b6fe4a
https://excellentbusinessplans.com/a-business-plan-creates-30-greater-chance-of-growth/
https://www.nytimes.com/2009/09/03/business/smallbusiness/03sbizguide.html
https://www.startupgrind.com/blog/5-tips-to-help-you-build-a-successful-startup/
https://www.businesstown.com/hiring-the-right-people-for-your-new-startup-is-crucial/
https://www.entrepreneur.com/article/315095
https://www.inc.com/oscar-raymundo/richard-branson-companies-should-put-employees-first.html
https://www.entrepreneur.com/article/207270
https://www.businessnewsdaily.com/5-small-business-start-up-costs-options.html
https://www.forbes.com/sites/abdoriani/2021/05/17/the-importance-of-money-in-the-different-startup-stages/?sh=2e31bda77fc1
https://www.forbes.com/sites/biancamillercole/2020/07/29/17-questions-you-should-ask-yourself-before-starting-a-business/?sh=780e36642c7a
https://startupinthailand.com/how-to-obtain-financing-for-your-business-in-thailand/