How to Start a Small Business: 3 Essential Tips

Small businesses form the backbone of the US economy, creating countless jobs and driving innovation. However, starting a small business can be a daunting endeavor. Serial entrepreneur Phaon Spurlock, founder of Prototype Marketing and BKLYN LEAGUE, shares his top three tips for aspiring entrepreneurs.

1. Define Your Target Audience

Understanding your potential customers is crucial. Conduct thorough market research to gather at least 25 data points on your audience, including demographics and psychographics. This information will guide your marketing efforts and increase the effectiveness of your campaigns.

2. Create a Budget with a Reserve

Startup costs always exceed initial estimates. Prepare a detailed budget and set aside a reserve for unexpected expenses. Consider maintaining a full-time job during the initial stages to provide financial stability. Keep your business and personal finances separate to avoid potential conflicts.

3. Launch Your Business

Instead of striving for perfection, launch your business with a viable plan or strategy. Your audience will provide valuable feedback to help you refine your product or service over time. Despite potential setbacks, the failure rate should not deter you. Many new businesses succeed where others fail, so don't be afraid to take the plunge.