How to Make Your New Business a Success in 2020, 2 Ways

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By: | February 12, 2020 | Tags: , ,

Contributing Author and Janice Wald

Have you heard of the lean strategy?

Let’s say you have a new idea for a business.

How are you going to get your new startup off the ground?

Will you follow a business model or a business plan?

Today’s post is in a point-counterpoint format.

I will share the reasons you should follow the lean strategy business model.

Today’s guest author shares how to make your new start-up business idea a reality using a business plan.

Let’s get started.

Business Plan vs Business Model

What is a business model?

According to Wikipedia, “A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of a business model forms a part of the business strategy.”

In other words, a business model is a way of thinking about your business. It’s a logical rationale, a philosophy.

What is the lean strategy?

The lean strategy is a way to think about the start-up process that encourages a process of customer discovery and development, and ideas to achieve the right product or fit.

If you wanted to follow the lean strategy business model, you would find other startups and use them as model businesses to follow.

Mission statements state the rationale of businesses. These are normally found on their websites.

For example, you might study one of the most successful businesses of all time, Amazon. Jeff Bezos, Amazon’s CEO, is worth 111.3 billion dollars at the time of this writing.

Amazon’s Mission Statement states the company’s core value is to focus on the customer.

To recap: The lean strategy states you should follow a rationale, a way of thinking to make your new business a success.

In contrast to the lean strategy, you could instead choose to follow a series of steps, a plan instead of a model.

Today’s contributing author offers you the steps entailed in a startup business plan.

Making A Business Dream A Reality

Contributing Author

Many of us have dreams about running our own business or even just becoming self-employed.

But it’s only brave and bold people that are truly able to take the step towards owning their own business.

There are many avenues that you can take to building a new empire, and it can often start with just a simple idea.

It’s true. There are many people who have set up shop and become incredibly successful overnight. This doesn’t necessarily mean that everybody is going to be a success, but hard work pays off and this is a fact that we all know.

Once you have a good idea of what type of business you would like to begin, then you can set the ball rolling.

Here are some of the key steps to owning and running a successful business for the first time no matter what business type you have.

Photo by Markus Spiske on Unsplash

3-Step Business Plan

Finances

Finances are of course incredibly important, for making sure that your taxes are up-to-date, to chasing customer invoices. You can’t afford to drop the ball on this one.

Having an accountant in place sooner rather than later is something that many seasoned business owners recommend from the offset.

It’s also important to research and low rate payment processing so that you don’t end up with large charges, or something that you weren’t expecting to have to pay for occurring.

Ensuring that your finances are in order from day one is certainly something you will thank yourself for years down the line.

Premises

Finding the perfect premises for your own business is something that takes time.

Unless you’re very lucky you will need to do plenty of research about the area you are wishing to set up a business, the suitability of the premises you are looking to rent or buy, and of course whether your customer base will actually visit you there.

Ultimately ensuring that you are setting up in the right place at the right time is again something important. Studies have shown that getting this right does and can have a huge effect on your overall success.

USP

Making sure that your business has a unique selling point is essential.

Working out exactly why a consumer would choose you through your market research is certainly something that you won’t regret. It’s no good test in the water as this can cost you time and money.

So before you even start you have to carefully consider what it is that customers will be drawn to you for. Essentially this means doing your homework early and leaving no stone unturned.

There are going to be very many more things to consider than this, but getting your business plan in order and ensuring that you have thought through these points at the very least, will set you on the right path, and hopefully a successful path at that.

We can’t always know what the future holds, but if you are setting up a business then making very sure that you don’t miss anything Is essential.

Wrapping Up: Lean Strategy Business Model vs Business Plan

Takeaways:

When starting your new business, you need to make many decisions.

You can’t just rush in blindly and hope your new business is a success.

The contributing author provided a 3-step action plan for starting your new business.

I provided an alternative idea: Follow a successful entrepreneur’s business model.

Now that you’ve read this post, if you were starting a new business, which will you choose to follow: the business model or the business plan? Why?

I look forward to your views in the comments section.

Readers, please share so people considering starting new businesses in 2020 know their options regarding the lean strategy business model and the business plan.

This post was made possible by the support of our readers.

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