How to Start a Small Business: 3 Essential Tips for Success
Small businesses are the backbone of the US economy, creating countless jobs and contributing significantly to economic growth. However, starting and running a small business can be a daunting task. Enter Phaon Spurlock, a serial entrepreneur and founder of Prototype Marketing and BKLYN LEAGUE, who shares his top three tips for budding entrepreneurs just starting out.
1. Know Your Target Audience Thoroughly
Before launching a business, it's crucial to understand your potential customers. Conduct thorough research to gather data points on demographics, psychographics, and their specific needs. This knowledge will help you tailor your product or service effectively and develop successful marketing campaigns.
2. Establish a Budget with a Reserve
Budgeting is essential for any small business. Plan carefully, anticipating all potential expenses. Establish a reserve fund for unexpected costs to avoid compromising personal finances or vice versa. Separate business funds from your personal savings to maintain financial clarity and avoid dipping into business capital for personal expenses.
3. Launch It, Then Refine
Don't delay launching your business in the pursuit of perfection. Develop a solid strategy or hire experts to create a go-to-market plan. Get your product or service into the hands of customers and use their feedback to refine and improve your offerings. Failure rates may be high, but new business creation outpaces failures, so don't let fear deter you.