As we know, starting a business venture is a huge risk. It is a fact that most startups fail within their first three years, and that statistic alone can often cause people to think twice – or three times – about taking the leap and following their dreams. In addition to the risk factor, there is also the issue of the costs it takes to start a business.
Traditionally, the founder of a business ends up paying a lot of startup costs before they even launch anything, burning through their cash at lightning speed, immediately impacting their free cash-on-hand. For example, some business owners have been known to pay thousands of dollars just to get an ABN set up via an accountant.
But it is far more efficient and cost effective to launch a company nowadays, especially with online services like Honcho available, which allow users to do everything that it takes to launch a business, whether it’s getting an ABN, registering a company, and setting up marketing and invoicing systems for as little as a $29.00 subscription each month.
Using a platform like Honcho from the beginning helps founders ensure that they not only get started faster, but also select the appropriate corporate structure for their business – getting that right has significant legal and tax implications on a business. In fact, the structure chosen by a startup can also impact on the success of future decisions, such as raising capital or exiting a business.
The service is reshaping the way that businesses are started in Australia, allowing entrepreneurs to forgo what would usually be significant upfront costs that in many cases a founder would have had to save for and instead spread them over an extended period of time.
In fact, launching a startup shouldn’t have to be an expensive process at all. With some lean thinking and in-depth planning a founder can experience a rather thrifty but successful start.
After initial setup of a company via a service like Honcho – preferably even prior to this – a founder should be testing the market to figure out whether or not their product is viable. That is going to require getting out in public and talking to people that they think are going to be potential customers.
It is important to get to know this market before launching, as not doing so is a major reason that startups fail and go broke quickly: spending money on marketing a product that was never viable in the first place.
To do this a founder should ask questions and conduct research to see what their target demographic wants, what they are willing to pay for it and, if applicable, what their competitors are currently doing in the market.
Having a deep understanding of what your future customer will look like is going to be key when it comes to launching a company with a smooth start.
This post is powered by Honcho. Making it easy for business owners everywhere to be set up for success so they can focus on doing great business and achieving their dreams.