What to Know Before Launching a New Business in 2023
Are you thinking about launching a new business in 2023? We like to think of starting a new business as a journey. Launching a business is a big step and one with the potential to help you realize your dreams. Taking your time and launching your business the right way is wise. So, having patience and discernment will prime your business for growth and success.
Still trying to figure out where to start? We’ve got you covered. At Extraco Banks, we think of you like family. We want you to succeed and cheer you on when you do. So, to better position your budding business to blossom and grow in 2023, we’ve rounded up some expert tips to get you started.
Start with a Business Plan
It’s essential to ensure your business grows in the right direction. But first, you’ll need a solid plan outlining everything you need to start, grow, and track progress. Here’s what you need to know to overcome the hurdles common to entrepreneurship.
Know Your Market
While you may love your business idea, and your support network might also agree it’s a great one, market research is essential to ensure a need for it. Without proper market research, too many things can go wrong, such as:
- You put your business into an oversaturated market.
- There is not enough need to support your business.
- Your business is in an underperforming market.
Proper planning and research can help gauge whether your business idea will overcome these potential obstacles.
An oversaturated market often happens when too many other businesses in the area offer the same or similar products and services. Unfortunately, oversaturation also means high competition, making it more challenging for your business to succeed and grow.
Additionally, an underperforming market isn’t good news, either. Consider the housing market, for example. During the COVID pandemic, the housing market exploded with opportunities for agents, brokers, etc. It seemed like everyone was buying at nearly any price; this drove the average home prices up across the nation, and those in the real estate business made a lot of money selling homes. However, the market has cooled considerably since then. The lesson? Know your market and how it’s performing before launching your business. Launch at the right time to maximize your chance of success.
Find a Need to Fill
Another top mistake to avoid is coming up with a great business idea but forcing it before it’s needed. Instead, start by finding a need. Identify a problem your ideal customer has and how you might solve that problem; this allows you to prime your business for ready-made customers who are already looking for a solution to that problem. The bigger the problem, the better your solution will look.
Find Your Funding Source
Different types of businesses require different amounts of starter funds. Know how much you need to launch and maintain your business long enough for it to see money flowing in. Different sources used to fund a business include self-funding, angel funding, crowdfunding, business loans, and more. You can use multiple funding sources, but before you sign on the dotted line, research the expectations of each source and the implications should your business fail.
Create a Realistic Budget
Just as you need a realistic and well-thought-out business plan, you’ll also need a manageable budget to carry your business through the launch phase and the start of growth. Keep it simple but realistic, and most importantly, stick to your budget. Running out of funds too soon is one of the top pitfalls for many entrepreneurs. But if you create a viable budget within your business plan and carefully track and monitor spending, we’re confident you’ll do well. And should you need any help or guidance, our experts are a phone call away.
Determine How to Structure Your Business
There are different ways to structure a business, and each has pros and cons, from a sole proprietorship, limited liability company (LLC), partnership, corporation, and S-corporation. Each business type differs in structure and taxation.
Network with Community Business Resources
An adage says, “If you want to be successful at something, surround yourself with others who have already made it.” The same holds for entrepreneurs.
The best business resources do more than serve as a source of inspiration; they can also help you and your business grow and develop in many ways.
Best of all, we have an entire community of business professionals happy to network with you and help with many things your business might need. As a member of the Extraco Banks business community, you’ll have access to a ready-made network -- Leadership Innovation Networking Community (LINC for short) -- just waiting to help you with your business journey. So, be sure to check it out.
The Final Word
Starting a business is exciting, and we’re thrilled to help you on your journey. Congratulations on making this huge decision! We can hardly wait to cheer you on as you reach your goals and make your dreams come true. May your journey be filled with success!