Starting a business from scratch requires a lot of courage, determination and skill as well. Here are some tips to help make that transition easier and to increase the profitability of the startup much earlier than usual.
- You should brand with a purpose. All kinds of branding should be done and that too using different channels. The faster your brand is known and recognized, the more business you will be able to do. You should target not only word of mouth, friends, referrals, clients but also SEO, website design, mobile apps and community building channels. In this day and age, the most important is perhaps the mobile branding.
- If you have people on your team that are not pulling their weight or are weighing you down, you are better off parting ways with them rather than carrying them with you. This will be a lesson for the others on the team and will help stem negativity.
- You should charge flat fee if the work is well defined and discrete. If the project is more complex, needs a lot of customization and has elastic boundaries, you would do better with hourly rates or fees for the project.
- For startups, it is advisable to be paid upfront. Usually clients may ask for 90 days to clear the bills – this may lead to expenses being piled up which a startup company cannot afford.
- If clients ask for deep discounts or tries to lowball you, the startup would do well to avoid such clients. The clients that ask for deep discounts usually end up being the most demanding and are always unhappy with the work.
- You need to build products that are lean. Not only does the product need to be lean, the processes and the entire organization should be lean as well.