The innovative home renovation service that Solly has developed is about to enter its riskiest phase on the Business Lifecycle – the start-up stage. On the advice of his accountant, he has already decided to utilise a few Xero Apps to help control the new projects and sales, but there are many other considerations before he launches his new business. What should Solly prioritise at the start-up phase?
Understanding your position in the business lifecycle will help you stay ahead of the game as you anticipate the potential challenges and obstacles depending on what phase you are in or about to transition to. Throughout this series, we’ll provide an overview of each stage, and important considerations for each.
Once you have thoroughly planned and tested your business idea and are satisfied that it is ready to go, it’s time to launch your start-up. This is possibly the riskiest stage of the entire business lifecycle. Mistakes made at this stage can impact the company for many years down the line and are the primary reason why a quarter of all start-ups never reach their fifth birthday.
Adaptability is key here. Much of your time will be spent tweaking your products or services based on the initial feedback of your first customers. Set yourself realistic targets and meet with your support team as often as possible – from marketing to sales, and finance. Cloud Accounting tools such as Xero and Receipt Bank have excellent apps that not only help with taking payments and sending invoices – they also track your progress and give you a great idea of your income and expenses. Many entrepreneurs will attest to the fact that it’s easy to get carried away with expenses at the very beginning.
Dedicate yourself to finding the optimal product-market fit and remain open to cultivating mentorship and seeking advice. Entrepreneurs with a flexible mindset are better equipped to look at data objectively and focus on developing good processes rather than focusing only on reaching a specific goal. Good processes require good data, and fortunately we live in an age where data is easy to harvest, be it from online marketing analytics, to customer feedback and the financial statements and management reports generated by cloud-based accounting services.
Raising money is always a major consideration in the start-up phase and everyone has their own way and ideas on what’s best to do. Remember that any potential investors will look for founders that are open to feedback, who will take input and continue to evolve their mindset, instead of thinking that they already know everything there is to know about developing their idea. They also look for ideas that are compelling, suitable to the market, and scalable.
If you need more information about cloud accounting and payment solutions as part of your successful start-up, you can book a call or appointment so that we can talk, obligation free, about your business needs, or send us an e-mail.