When starting a new company, it's easy to get carried away with visions for future success. Having a great product or service is a good start, but there is more to supporting a growing business. For many challenges that a startup will face, owners need to be salespeople, according to Entrepreneur.
In addition to moving products or getting people to sign up for services, small-business owners need to sell their stories. They have to secure funding initially, and then they need to attract top employees to help the company grow. Recruiting high-performing workers can be challenging for newer companies. New hires need to feel as though they are working toward something important.
Business models need to be based on more than just the product
Even if a new company delivers a great product or service, it may still end up losing market share to competitors without an effective business plan. Startups can fail because owners try to go after a consumer segment that is too broad, so companies need to identify the group of people they can deliver value to, Inc. magazine said.
New businesses should also determine what kind of relationships they need to form with their customers, which communication channels clients are using and the activities the value proposition includes. Creating the right business plan can help new firms reach relevant consumers and start forming relationships with loyal customers.
A user-friendly management system can help startups reach their target market. Owners need to build a solid foundation with the right staff members and value proposition before they can rely exclusively on sales to fuel growth, Entrepreneur said. Building value can help companies sell more products and services.