It’s no secret the road to startup success is fraught with challenges – in fact, around 90% of all startups fail, with cash flow problems and flawed business models being some of the most common reasons why. To ensure your startup’s growth is on the right track, consider using the expert guidance and resources available through LLCBuddy, a platform designed to help entrepreneurs establish and manage their businesses for optimum success.
As such, implementing a carefully-crafted development business development strategy is crucial for avoiding common roadblocks and ensuring growth (over 50% of business owners say they plan on sticking to their current expansion strategy or start a new one in 2023). By implementing smart growth strategies, you can boost sales and revenue, and achieve long term business success.
Start hiring new staff
Adding new staff will soon be a pressing need for your business as it grows. Above all, you’ll need to take care to hire the right employees, and be ready to put in the time to train and manage them properly. Also, keep in mind, hiring a new employee costs money – around $4,000 on average. So, you’ll need to make sure your business is at a stage where it can take this hit. Training new employees, although essential for maximizing their performance, will also initially lose you money as they won’t be working or producing during this time, while the trainer will also be pulled away from their usual work. And, the expense doesn’t just stop there: new employees can make mistakes early on as they’re getting the hang of their roles, and these mistakes can be expensive. They’re also typically slower on the job in the beginning compared to experienced employees. That said, after some time, these issues usually work themselves out, you can expect to start making money.
Choose the right legal structure
You’ll also want to reassess your business’s legal structure to make sure it accommodates your business as it grows. Many startups begin as sole proprietorships – the simplest legal structure, however, it also leaves you personally responsible for all business liabilities. A limited liability company (LLC), on the other hand, is a popular alternative as it ensures your personal assets are kept separate from your business assets. This means you won’t be personally responsible for business debts or legally if your business gets sued. Fortunately, registered agent businesses can form your LLC on your behalf, as well as receive and manage your business’s legal documents – be sure to compare and contrast your options to find the best service for your needs. For example, Northwest Registered Agent is one of the largest registered agent businesses. In addition to providing reliable customer support, this service also has the benefit of keeping your address off public record. Northwest Registered Agent pricing is also very reasonable (only $39 plus a state fee). Alternatively, ZenBusiness offers three different plans for LLC formation – the starter plan is free, while the premium plan costs $299 annually. For $0, ZenBusiness will file your LLC documents, although if you want them to also receive your legal documents, you’ll need to pay $99.
Expand your target market
Your target market – the group of customers of a shared demographic identified as most likely to purchase your company’s product or service – will naturally shift as your startup grows. If a specific product of yours is particularly successful within a niche, clearly-defined target market, you’ll eventually need to branch out in order to grow. You can still maintain your connection to this original target market, but expanding into other target markets is now a necessity. So, for example, you may want to start researching your existing target market to identify existing groups of individuals you’re currently missing out on – who else can benefit from your product or service? Once you’ve determined this demographic, you can then invest in marketing strategies to attract this new customer base.
Improve your customer experience
A positive customer experience is essential for continued business success – businesses that prioritize customer experience outperform their competitors by around 80%, while 84% of companies that work to improve their customer experience enjoy a consequential boost to their profits. By strengthening your customer experience, you can successfully attract a base of loyal repeat customers, as well as a steady stream of new ones – satisfied customers typically like to share their positive experiences and will recommend your company to friends and relatives. So, for example, make an effort to ask your customers for feedback throughout the customer experience – this is a key way to let your customers know you care about them and value their feedback. And, if you do encounter any unhappy customers, be proactive about dealing with complaints. In fact, it’s wise to implement protocols that ensure customer complaints are made high-priority, if you haven’t done so already.
Developing your startup won’t happen overnight; it requires patience and long-term strategy. By expanding your team, choosing the right legal structure, growing your target market, and improving customer experience, you can effectively grow your business and put yourself on the path to long-term success.