How to Launch a New Business? GoodFirms Survey

Updated on :June 13, 2024

ABSTRACT:

“Launch a business that you love, and in a couple of years, it will launch you into a grand profit.”

Although the quote appears to be simple, launching a business by itself is a huge task that demands systematic approaches. Undoubtedly, apart from the structured planning and the infinite state of flux, there are a few entry-level touchpoints and tips that can promise you a successful launch.

GoodFirms’ survey titled “How to Launch a New Business?” aims to gather metrics to formulate what it means to launch a “modern business” successfully. The survey aims to draw vision, strategy, technological readiness, and sustainability.

This survey will help entrepreneurs to understand the nitty-gritty of launching a new business, brand, or service.

Introduction to the Best Way to Launch a New Business

Launching a business is quite overwhelming due to the tremendous amount of effort and money invested. The success of a business depends on a number of factors, and each one has its own significance that cannot be overlooked.toes to grab the opportunities to scale their business and stand out from the immense competition.

Launching a business successfully takes a lot of determination and an entrepreneurial mindset, along with other supporting factors.

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This survey by GoodFirms attempts to reveal the factors that both budding entrepreneurs and established businesses who wish to launch another one should consider for launching their ventures successfully while overcoming all the challenges and staying relevant in a current competitive market.

Factors to Consider While Planning to Launch a New Business

To begin with, entrepreneurs need to consider a number of factors when planning their venture. Appropriate planning and meeting the requirements will help in establishing a business. Knowing “What to do,” “How to do it,” and “For whom to do it” can help in launching a business and seeing success.

“Launching a successful new business involves defining your concept, conducting thorough market research, and prioritizing user-friendly design. A strong brand, effective marketing strategy, and adaptability are crucial for sustained growth and customer engagement,” said Turum - burum.

Participants of the GoodFirms survey mentioned a few factors that they consider crucial when setting up a new business.;

what factors must be considered when launching a new business


Feasibility of the Business Idea

About 93.8% of the respondents believe that the feasibility of the business idea is a major factor to be considered before planning to launch a business.

Setting up a business begins with an innovative idea that can thrive in the race. To launch a business, businesses need to check the feasibility of their business idea. Verifying the feasibility of a business idea gives the practicality of the proposed project.

According to RemotePad, “Starting small and validating your idea before scaling up is essential. The feasibility of a business idea involves analyzing the demand for the product that will be offered, competitors in the market, the pricing of the product, and the investments that would be required for setting up the market. Feasibility analysis helps break down the formal business plan, define the project parameters, and evaluate several factors that will contribute to the business's success.

“Creating a thriving business requires more than just a good or exceptional idea. It necessitates effective organization, adaptability, creativity, and a keen focus on both the finer details and the broader perspective,” mentioned Techinfini.

If the business idea is not feasible to stay in the market, business owners may face financial losses along with disappointment. A feasibility study of a business idea can give a clear picture of the potential of the business and the challenges that may arise.
Target Audience for the Business

Around 89.5% of the survey participants believed that the target audience of the business must be considered as the key criteria for launching a business.

Along with the knowledge of the product or service that is being launched, understanding the target audience for the business is equally important. By knowing the preferences of the target audience, businesses can excel and be sure of the potential response for the business.

TouchZen Media LLC said, “Who are you building this business for? Understanding their needs and pain points is key to crafting a valuable experience.”

Defining the target audience is necessary for gathering actionable data and understanding the choices and pain points of the target audience. It gives an opportunity to design a marketing strategy for the right people.

Scalability and Potential

Scalability and potential are important factors to be considered when launching a business, according to 75.9% of survey respondents.

Analyzing the potential of the business to grow in the future is quite crucial when starting a business. The scalability of a business is associated with its ability to grow irrespective of the available resources when the demand for the business rises in the future.

To meet the rising demand without falling short of resources makes it more sustainable. Analyzing the potential of a business helps the owners plan accordingly and invest wisely, keeping the risks at a minimum.

The scalability of the business can be in terms of offerings, expanding the reach, or even entering diversified markets. It is, therefore, better to make the business model flexible and adaptable to accommodate the evolving dynamics.

Competition

63.1% of the surveyed businesses feel competition in the industry must be prioritized taken into consideration before launching a business.

The intention is to minimize risk. A staunch competition is evident in every sector, making it a factor to be readily considered when planning to launch a business. It is equally important to understand the market and the target audience. Competitor analysis will help you know the industry, the demand, and the challenges and assist you in preparing your project for that level.

According to Or & Zon, “Business failures often stem from a myriad of causes, but in my experience, underestimating market competition ranks highest.”

Newcomers in a field must thoroughly study the target market and the giants in the industry and think of ways to stand against the fierce competition.

Researching the competition in the market involves knowing the competitors, their marketing strategies, their prices, and offerings. Evaluating the strengths and weaknesses of the established companies gives a picture of the areas one can focus on and strategize how the supply gaps can be filled to create a hold in the market.

Brand Identity

Around 61.5% of surveyees feel brand identity is a crucial factor to consider before launching a business.

Brand identity is something that can help a business define its X factor. By understanding the character of the business and the distinguishing factors of its products, companies can grow to their fullest potential.

The way customers perceive a business decides its success. Having a brand identity is a way to establish customer loyalty. It is an essential element of a marketing campaign for a business.

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Maintaining consistency in the brand image throughout channels helps in building trust among the customers and spreading the brand message.

Economic Condition

Economic conditions of the market must be considered when launching a business, said 59.7% of the surveyed businesses.

The Economic condition of the market is influenced by several factors. These conditions often fluctuate, which heavily impacts a business's revenue and profitability. It is a calculated and strategic requirement for any newcomer to analyze the economic conditions to launch a new business.

There are several economic factors, such as inflation, income, GDP, infrastructure, exchange rates, trade, energy, supply and demand, etc., that typically impact how businesses can benefit and be productive with utmost efficiency. Companies that are planning to launch their new business should study these factors to predict consumer spending, which is primary to the success of a business.

“Businesses need to prepare for potential economic downturns or inflation spikes by building resilience and agility in their operations.”--Crynet Marketing Solutions

Business aspirants have to consider the current state of the economy and the volatile nature of the market and strategize the actions that can be taken to handle any uncertainties that may arise due to market fluctuations.

Industry Connections

Nearly 48.1% of businesses believe industry connections matter when it comes to launching a new business.

A strong network of professionals and mentors from the same industry can be of immense help to a business. Establishing connections and creating a strong relationship with the industry affiliations stands as a critical component of a business's success.

Having relevant industry connections can assist in gaining access to valuable resources, expanding reach, collaborating, generating partnerships, gaining referrals, and improving recommendations. Networking in the industry can also increase the probability of having proper guidance in tough times. It also helps in firming up the business position in the market.

“I believe a solid professional network and diligent marketing efforts go a long way, too,” suggests SeaSia Infotech.

Attending industry events and joining professional organizations and communities can help new business owners build their industry network.

Raising Funds for the Business

According to 36.9% of the survey respondents, ways to raise funds for the business must be thought of while launching a new business.

Launching a business requires the owners to invest time and money in the business. Securing funds from the investors is critical. Although the money to be invested varies based on the type and scale of the business, it is a very prime component.

There are several ways that business owners can opt to raise the required capital to sustain their business unless it reaches a point when they yield profits. It is, however, necessary to analyze the financial resources available and the requirement of the finances for covering the initial cost of the business and then decide on the ways a business can raise funds.

“For those preparing to launch in 2024, I advise them to not just be passionate, but also become an expert in their area of business, ensure financial backups,” suggested ECD Auto Design.

Various ways that a business owner can think of for raising funds include business loans, government schemes, bootstrapping, incubators, crowdfunding, and trade equity or service.

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Challenges of Launching a New Business

Setting up a business is a tremendous task. While doing so, there are several challenges that can pose a threat. Although by planning well one can be proactive, predict, and overcome these challenges.

Participants of the GoodFirms survey shared the challenges they faced when they launched their new business.

survey challenges in launching a new business

Insufficient Planning

Around 83.1% of the businesses surveyed believe insufficient planning is the top-most challenge when launching a new business.

The desire to launch a new business might result in insufficient planning before launching the business. This, however, can lead to severe problems in the coming times.

Lack of a proper business plan can land a business in serious financial problems due to cash flow crunches. It is also a threat in times of emergency or loss.

A well-written business plan is a solution to this problem. By thoroughly analyzing the market and estimating the cash flow required in the future, a good business plan with all the potential risks can be of help when starting a business from scratch.

having a business plan is necessary for a business

When asked about the necessity of a business plan, more than 87% of the business owners mentioned that a business plan is necessary for a new business, while 9.2% of businesses thought that a business plan is not required.

3.1% of the survey participants said that a business plan is essential for only well-established businesses.

Failure to Understand the Market Demand

79.5% of the survey participants consider failure to understand the market demand a major challenge when launching a new business.

Lack of demand for the product or service that the business is coming up with can be threatening to a business. It must be a priority for any business to think of whether there is demand for the product or service and whether consumers are willing to pay for the product.

Understanding the market demand also consists of understanding the competitors providing similar solutions and if there is scope for the new business to be established in the market.

Twelvenets said, “Above all, it's important to thoroughly research and understand your industry before you embark on any project. Prior work experience in the field is highly advised.”

Failure to understand the market demand can be a risk to the business as it may cause demand and supply issues.

“The biggest challenges result from having product knowledge, but not customer knowledge and understanding the buyer persona and their core human desires and motivations that will result in a purchase.” said The Source Approach.

Inefficient Marketing Strategy

About 78.5% of surveyed businesses find inefficient marketing strategies a major challenge when starting a business.

With a competitive landscape, every business has to have an efficient marketing strategy to promote their goods or services.

“Effective marketing and branding are crucial in establishing a presence in the market. This involves developing a strong brand identity and executing a marketing strategy that resonates with your target audience.” pointed out Omega Digital.

Marketing is a critical part of the success of any business. With efficient marketing strategies, businesses can reach the target audience and help increase conversions. An inefficient marketing strategy can result in lower conversion rates and decreased sales, leading to a financial crisis.

Lack of Knowledge

Lack of knowledge is a major challenge faced by entrepreneurs when launching a business, according to 69.2% of businesses.

When starting a new business, entrepreneurs can face a number of challenges. It is very likely that newcomers will have certain knowledge and skill gaps. A lack of knowledge can lead to certain complications and can cost money.

“The essence of launching a successful business lies in crafting a vision that meets the pulse of the market, strategically navigating through challenges,” mentioned ORBIS Production.

It is, therefore, advised that budding entrepreneurs absorb as much knowledge as possible from various sources available. Not only about the particular sector, but basic knowledge about financing, accounting, marketing, and other fundamental areas of a business must also be acquired.

Agicent Technologies suggests, “Do focus on the latest tech and AI but at the same time don't overlook the basics, which is your customer should see and buy value in what you offer.”

Recruiting the Right People

About 67.7% of the survey respondents found recruiting the right people challenging when launching a business.

The success of a business lies in the efficient working of a team. A team with the same mindset and working towards common goals is a great asset for the company. Investing in the best AI-based HR software or outsourcing the recruitment activities to an agency can help save time and effort.

“The demand for skilled tech workers is outpacing supply, leading to fierce competition for talent. Businesses will need to invest in training and development programs to upskill and reskill their workforce while also offering competitive benefits and flexible work arrangements to attract and retain top talent,” said Softxaa

Especially for a new business, their first hires are responsible for making or breaking the culture of the business. The investments made in training new hires are huge, and leaving those employees for some reason is responsible for draining the company budget. It is, therefore, necessary to design the selection process to find the best fit for the company.

Raising Funds

Raising funds is a major challenge for nearly 36.9% of the survey participants.

Starting off a business is an overwhelming task, and a major challenge that new business owners can face is that of raising funds for the business. Although some startups might not require a lot of capital at the beginning, entrepreneurs need to think of monetary support to sustain the business until profits start coming in.

Williams Web Solutions suggests, “Don't start with a bunch of loans. No matter what, that money has to be paid back whether you're making millions in sales or ten dollars.”

Raising funds can be done through various options, although investors think before investing in a startup. New business owners must be able to pitch in their ideas with utter conviction for raising funds that can help their business get off the ground.

Tough Competition

Tough competition in the industry is a challenge for launching a business, according to 29.5% of survey respondents.

Knowing the competitors is critical for a new business. One of the main goals of a new business should be to gain market share. Tough competition in a particular industry is a hurdle for a new business to gain a considerable market share.

“Companies that adopt AI-based technologies will gain a competitive edge. On the downside, there will still be a shortage of experts in the market capable of implementing these technologies,” said Umbrella IT.

Establishing a relevant position for a business in a market is a huge challenge for them due to the existing competition in the market.

How to Launch a New Business?

Launching a business requires a few factors to be considered. There are some basic requirements that should be met before starting the business. GoodFirms gathered a few tips and strategies from the survey respondents. Here are a few;

Effeect shared, “According to me, to launch a new business successfully, you should consider the following factors: market research, target audience, business plan, Branding, website, social media profiles, finances, digital marketing strategies, network, learning, loving what you do and not stopping.”

“Market Research, Planning, and Alternative Marketing are required to launch a new business,” mentioned OS Digital World.

“Start with a solid plan, know your market, and offer something valuable. Market yourself well, adapt as needed, and keep customers at the center. Build a great team, manage finances wisely, and stay on top of industry trends,” advised TechStaunch Software Solutions Pvt. Ltd.

basic requirements of starting a new business

Online Presence

Online presence is a basic requirement for launching a business, said 76.9% of the surveyed businesses.

The post-pandemic era has seen the majority of businesses going online. With the rising penetration of the Internet, customers seek services from businesses online.

“I think a website is still the most important asset you can have for a business. You don't own Facebook, Instagram, etc. They could shut down tomorrow, and you have no control over that, whereas, with a website, you own it,” said Digimark.

Having a website is of utmost importance as it represents the business digitally. A user-friendly website can serve as a marketing tool as well as an online marketplace for the business.

Due to the changing digital landscape, businesses should leverage social media and other online platforms to promote their products and services. A relevant online presence is a must for businesses to improve their conversion rates.

A Business Plan

For 71.5% of the surveyed businesses, a business plan is a primary requirement for launching a business.

A business plan is a vital requirement for a business, irrespective of the stage and size of the business. A business plan helps entrepreneurs navigate through the path they would require to meet their goals.

“A solid business plan is the roadmap that will guide your growth. Define your mission, target audience, competitive landscape, and financial projections. Think of it as your compass in the entrepreneurial journey,” said SPCTEK

With the several elements that are present in a business plan, businesses can have a brief overview of all the business functions and the roadmap for attaining the objectives. A business plan is also a critical document for raising funds for a business.

According to a survey conducted by GoodFirms, around 70.4% of business owners have a proper business plan for their companies.(1)

A Thorough Market Research

Nearly 64.2% of the surveyees feel that thorough market research is required for launching a business.

Market research forms an essential element when starting a business. A thorough market research ensures a clear understanding of the target audience, market demand, and current market trends.bsp;

Dexoc Solutions said, “Validate your business idea through surveys, focus groups, or pilot programs. Ensure there is a demand for your product or service before launching a new business.”

Studying the target market thoroughly can be beneficial for new business owners to understand the market competition and provide a clear view of the steps that should be taken to gain a market share.

Financial Requirements

53.6% of survey participants asserted that financial requirements must be taken care of when launching a business.

Not every business can be explored with no money. Yes, a few businesses can be launched with minimal upfront investments, but the reality is that most businesses require money. Finances need to be taken care of from the very beginning of a business. Having a sufficient amount of funds to cover the initial expenses of the business, maintaining the required cash flow, and fulfilling the essential requirements can lead to the success of a business.

“Adaptable strategies, a strong online presence, and effective financial management contribute to sustained growth and viability,” said World Web Technologies Pvt. Ltd.

Having a plan to acquire funds for the business and an idea of covering all the expenses must be thought of before the launch of a business.

License and Permissions

Obtaining the necessary licenses and permissions is one of the most basic requirements, according to 49.2% of surveyees.

Every industry has its own rules and regulations that mandate some licenses and permissions for ensuring the authenticity and transparency of the business.

It is important for business owners to get all the required permissions and licenses before commencing any business. Also, these permissions may vary from country to country, which becomes a challenge for businesses if they are not taken into consideration. Beginners must go with guidance about the legal requirements and licensing to avoid any complications in the future.

“There are difficulties in adapting to local legal regulations, licensing, and compliance with data protection laws,” pointed out Start Mobile, Inc.

Proper Customer Service

Proper customer service is a basic requirement for launching a business, said 44.6% of the survey participants.

The success of a business depends on how the customers perceive the business. Customer experience is an important aspect of a business's growth.

“If I were to advise entrepreneurs planning to launch a business or brand in 2024, I'd say it's crucial to know who your customers are and what they need,” said Uplift Legal Funding.

Proper customer service leads to gaining trust among the customers and helps in making the brand popular. Keeping the customers satisfied is a necessity for maintaining the customer base and having a positive cash flow in the business.

Legal Structure

The legal structure or business structure decides various operations of a business, right from day-to-day operations to the amount of taxes that the business needs to pay.

A business structure must be chosen based on keeping in mind the right balance of legal protections and benefits for the business.

Insurance

Having knowledge of the required insurance for the business is a basic requirement for launching a business, said 19.4% of the surveyees.

Businesses must seek proper guidance about the insurance requirements related to particular industries. Being ready for any insurance requirements from government authorities is helpful for the smooth running of a business.

Office Space

About 12.3% of the survey participants think that office space is a basic requirement for the launching of a business.

Office space is a requirement for the proper operation of the business. Although the trend of hiring remote employees and launching businesses exclusively online has led to a decline in the necessity of dedicated office space, new business owners must consider the requirement and get the workspace ready for the business.

Some of the legal documents that are required for a business include a business plan, partnership agreement, business licenses and permits, trademark, non-disclosure agreement, and privacy policies.

“Ensure that your business complies with all relevant laws and regulations. This includes registering the business, obtaining necessary licenses, and understanding tax obligations,” shared Softqubes Technologies LLC.

Top Reasons for the Failure of a New Business

Around 33% of small businesses wind up in the first two years after launching their new ventures.(2)

While many business owners often manage to launch their business, there are several reasons that lead to the failure of the business. Let us analyze a few prime reasons for the failure of a newly launched business with the inputs that we received from our survey respondents.

common reasons for the failure of business

Inadequate Market Research

Inadequate market research leads to the failure of a business, according to 81.5% of survey respondents.

Market research is a crucial part of setting up a business. A thorough market research gives a business a clear view of the current market trends, required finances, the overall business landscape, and the potential risks for the business.

“ Many businesses fail because the owner created an innovative product or service, but there was no market for it,” said Sttark.

Inadequate market research poses a major threat to a business's thriving as businesses fail to get an idea about their target audience, the demand for the product, current trends of the market, and several other factors.

The lack of knowledge about the competition and areas to be focussed on creates a major reason for the failure of the business.

Lack of Marketing Efforts

76.9% of the survey participants believe that a lack of marketing efforts can lead to the failure of the business.

With the tremendous competition evident in all sectors, businesses have to enhance their marketing efforts. Expanding the reach of the business and promoting the product/service to attract the customer is a tough challenge.

Lack of marketing efforts can be a result of anything ranging from unavailability of expertise to a shortage of financial resources. This impacts the number of customers buying the products, which is a major setback for a business trying to sustain itself in a competitive market.

Leadership Failure

A leadership failure can lead to the failure of a business, according to 71.6% of the surveyed businesses.

A strong leadership is essential for a business to flourish. Without capable leadership, acknowledging the shortcomings of the business and working on them can be subsequently delayed.

SyedBNB mentioned, “Another significant factor is the need for leadership skills at the top. Making smart calls, guiding staff, and tackling issues head-on takes capable management.”

Making informed decisions at the right time can be of immense help for a business to sustain. However, weak leadership lacks in decision-making, which leads to the failure of the business. A failed leadership can also be because of partnership issues and higher management disagreements.

“The right leaders, with the right mindset, is very important to start a business,” pointed out Joseph Studios.

Lack of a Strong Team

About 67.7% of the surveyed businesses think that the lack of a strong team can result in the failure of a business.

A strong team is very critical for the success of any business. For the growth of a business, employees of the company must collaborate and work to achieve the same objective.

Nationwide United Auto Transport said, “For entrepreneurs gearing up for a 2024 launch, I would advise establishing a robust and flexible business plan and gathering a strong and diverse team.”

The lack of a strong team can lower the efficiency of the business, leading to its failure. Investing in the training and skill improvement of the workforce must be prioritized by the businesses to improve the productivity of the employees.

Dependency on a Few Number of Clients

About 52.8% of businesses said that dependency on a very few, chosen number of clients is a threat to the success of a business.

Having a shorter customer base yields lesser revenue. It is difficult to manage a positive cash flow with less revenue.

Dependency on a few clients becomes risky as backing out of even a single customer can heavily impact the revenue of the business. It is necessary for businesses to have diversified revenue sources.

Having a significant number of clients helps maintain a strong network in the industry, which is beneficial for growing a business.

“A good digital strategy is key to reaching more people and improving conversion rates in your funnel,” mentioned Intricare Technologies.

Scanty Finance

According to 44.8% of the surveyees, scanty finance can be a reason for the failure of a business.

Finance is critical for carrying out the initial steps of the business. An adequate amount of funds is necessary for hiring employees, creating an efficient marketing campaign, maintaining the supply and demand of the products, and improvising the current products and services offered.

“The major reasons for business failure often involve lack of capital,” said The Credit Review.

The unavailability of finance can become a hurdle for a new business to execute the planned strategies at the decided time. This could be a problem for growing the business at the estimated pace. All the possible options for raising funds must, therefore, be explored.

Trying to Expand Too Quickly

23.1% of the survey participants said trying to expand faster is a risk for a successful business.

Although the scalability of a business is essential for its success, trying to expand the business too quickly can be a risk factor for a startup business as they can run out of resources and lose focus, and control over the business operations.

Investing too much financially to scale a business can be disappointing since there are always some uncertainties that may land the business in trouble. Generally, scaling a business includes hiring more employees, spending on marketing, and investing in a larger office space. However, investing in unknown possibilities can lead to a financial crisis if things don't go as planned, resulting in the failure of the business.

Victoria Digital Marketing said, “Have a clear plan on how you intend to grow your business in a meaningful and realistic way - rapid growth can be detrimental to a business.

Changing Business Landscape in 2024

The year 2024 and the future years clearly seem to undergo a transformation in the way businesses are operating. There are several factors that are fueling the changes. With the rise in the use of technologies like generative AI,automation, Blockchain, demanding customers, adaptable workforce, and changing business models, the business landscape is set to evolve at an unprecedented pace.

According to 42flows.tech, “The digital transformation of business will increase, as will changes in consumer behavior. Thus, new business models will be born.”

“2024 promises a transformed business landscape fueled by tech (AI, automation, XaaS), shifting global power, sustainability demands, and remote work norms. Expect leaner structures, data-driven insights, and evolving leadership to navigate challenges and seize opportunities in this dynamic new era,” expects Skytech Solutions.

Various trends are predicted about the business landscape that will be evident in 2024. With many trends that are expected in the coming years, some of the most common trends include:

  • Being more environmentally conscious and working towards improving sustainability.

  • Increased importance of cybersecurity to tackle the concerns of cyber threats.

  • Seeking guidance from consultants and professionals for making informed decisions

  • Delegating work or outsourcing over trying to do everything in-house.

  • Automating

  • Crypto Payments

  • Generative AI (Artificial Intelligence)

Following are the views of some of the survey respondents on the changing business landscape in 2024:

“Anticipated trends in the business landscape include continued digital transformation, persistent remote work, a focus on sustainability, ongoing technological advancements, e-commerce growth, and considerations for health and well-being. Global economic shifts and specific industry developments may further shape the business environment in 2024 and beyond,” mentioned CleverDev Software

PerfectionGeeks Technologies shares, “This includes clean technology, green technology, and climate technology. As one of Gartner's top strategic technology trends for 2024, sustainable technology is a framework of digital solutions that drive environmental, social, and governance (ESG) outcomes. It's important not to miss out on this trend.”

“As reliance on digital technologies increases, so does the risk of cyber threats. Businesses will need to invest more in cybersecurity measures to protect sensitive data and maintain customer trust,” mentioned Newman Web Solutions Agency.

“With new businesses, the biggest mistake entrepreneurs make is trying to operate independently and do everything themselves. As it grows, you will not get time to check or fix everything. The key to smoothly launching a new business and keeping it afloat lies in finding and bringing on board trusted, seasoned advisors to discuss ideas, strategy, challenges, and progress,” shared SunTecIndia.

Solvios Technology mentioned, “Market dynamics and consumer behaviors will likely shift, necessitating agility and strategic planning for businesses to thrive in the changing landscape.”

technological trends to help a business grow

With the rising penetration of the Internet and hand-held devices, social media platforms have grown even more prominent. Social media marketing and digital marketing have gained traction in recent years.

With its cost-effective nature and wider reach, social media marketing has proven beneficial for businesses to improve their customer base. An increasing number of businesses are investing in social media marketing due to the benefits it offers.

GoodFirms survey reveals that a whopping 64.2% of the surveyed businesses will allocate a higher budget for social media marketing than what was allocated in the previous year.(3)

AI and Machine Learning

About 78.5% of businesses believe that AI and Machine Learning are the technologies that can help a business grow.

Artificial intelligence and machine learning have taken all industries by storm in the past few years. AI has become a popular choice for offering personalized experiences to customers.

With the introduction of tools like ChatGPT, generative AI has become an essential aid for content creators in creating social media campaigns.

“Generative AI will become increasingly commonplace across small businesses as they learn how it can benefit them and help them scale their operations. In turn, this will lead to reskilling and workforces becoming more adaptable,” mentioned Pixated.

Technologies like AI and machine learning can process large amounts of data for a business and analyze the patterns and customer demands to make better-informed decisions. Data analysis has helped businesses forecast sales and any uncertainties with accuracy to help businesses [plan accordingly.

INNOVATE360 LDA asserted that, “Specifically data analytics will enable businesses to personalize their marketing strategies even more strongly. Tailoring products and services to individual customer preferences. The rise of innovative social media platforms such as TikTok and X will play a pivotal role in shaping the business landscape.”

Tools

Software tools can be of great help for growing a business, said 70.8% of the survey participants.

A business involves several functions that need to be carried out effectively for its growth. Various service providers offer a number of tools that help business owners manage all the critical functions with ease.

“We need to adapt to the changing business landscape and be up to date with the latest technologies. Use of latest tools to enhance the productivity of the employees as well as tools to serve customers better,” according to Linguidoor Translation Services.

Some of the essential tools that can help improve the productivity of a business include customer relationship management (CRM) tools, social media tools, internet security solutions, designing tools, marketing tools, accounting tools, and finance tools, to name a few. Business Management software is an essential tool that can help business owners manage all critical business processes efficiently.

Remote and Virtual Teams

61.9% of the businesses are of the view that remote and virtual teams can help a business grow.

Although remote work has existed for quite some time now, it was majorly promoted by the COVID-19 pandemic. The new form of work models has led to a number of changes in the business model for many businesses.

There are companies that have completely virtual teams. Irrespective of the fact that remote work models have their own advantages and disadvantages, the business model is here to stay in the coming times.

“Remote work, initially propelled by the COVID-19 pandemic, is likely to persist in various forms, shaping the workforce structure with hybrid models becoming more prevalent. This shift not only impacts office dynamics but also necessitates a reevaluation of collaboration tools, cybersecurity measures, and employee well-being initiatives,” shared Promatics Technologies.

Efforts are being made with the help of collaboration tools to monitor and improve the efficiency of teams working remotely.

Cloud Computing

Cloud computing can assist businesses in growing, said 33.6% of survey respondents.

Connected servers and software, widely referred to as cloud computing has its own advantages in business management. With the humongous amounts of data that businesses deal with, cloud computing has emerged as an important technology that can help businesses to manage their data, backup, recover, and share securely Cloud computing makes it easier to collaborate among employees and keep them on the same page.

According to Cynoteck Technology Solutions, “Businesses will increasingly leverage data to gain insights into customer behavior, market trends, and operational efficiency. The Cloud-based solutions will offer businesses greater flexibility, scalability, and cost efficiency.”

Cloud computing makes the storage, processing, and sharing of data easier and faster. Cloud computing facilitates the remote working models that are evident in the post-pandemic years.

Cloud computing has also helped in the flexibility and scaling of businesses while being cost-effective.;

Blockchain and Cryptocurrency

Technologies like Blockchain, cryptocurrencies, crypto wallets, etc., have emerged as critical investments for several businesses. Blockchain brings transparency and decentralization. Cybersecurity is a major concern for businesses, and blockchain promises to offer the next-level security for online transactions due to controlled access to sensitive information.

Cryptocurrencies are digital assets that are developed and maintained by decentralized blockchains. Business owners are embracing cryptocurrencies as it is believed that the use of digital currency will expand in the future. Around 85% of business owners are of the view that the use of cryptocurrencies will become widespread in the coming times.(4), we encourage Bitcoin orders by offering a 3% discount.”

Bitcoin isn't just money; it is a decentralized virtual trust that many today are ready to invest in and trade.(5)

How to Launch a New Business Online?

As more and more businesses are progressing towards digital operation, there are many who consider launching a business only online. Several startups and individuals are directly trying to sell their products and services only through online mediums. In this context, GoodFirms attempted to find out from its survey participants if they intend to launch their business exclusively online, and surprisingly 70% of the survey respondents are in favor of launching their business online.

services the business deals in.

“Depending on the type of your business, it can be decided whether it needs only online presence or does it require an offline presence too” –ACE Software n Web Solutions.

Following are some of the comments by the survey participants about launching the business online.

“Online platforms offer immense flexibility, wider market access, and reduced overhead costs compared to a physical store. This allows for quicker adaptation to market changes, a broader audience reach, and the ability to engage with 24/7 customers. Given the dynamic nature of the digital landscape, it makes sense to focus primarily on online initiatives. Plus, with the rising trend of e-commerce, establishing a strong digital presence can offer substantial growth opportunities,” pointed out Digtize.

SeeResponse said, “Online platforms provide valuable data and analytics tools, allowing businesses to understand customer behavior and optimize strategies.”

“Launching a business only online can be beneficial due to lower overhead costs, global reach, and scalability. This approach suits businesses whose products or services can be effectively marketed and delivered online.” said PerfectQA Services.

The Best Online Platform to Launch a New Business

When queried about the best platforms for launching a business online, around 72.8% of the businesses preferred to have their own business online with a well developed website.

what are the best platforms for launching a business

While LinkedIn was a choice for launching a business for 37.9% of the survey respondents, eCommerce websites are the choice of 31.7% of surveyed businesses.

Around 18.4% of the respondents chose YouTube for launching a business online, whereas for 15,3% of the respondents, it was TikTok. 12.5% of the respondents went for Facebook, while 9.8% of the survey participants believed Instagram was a good option for launching a business. Merely 4.2% of the businesses surveyed chose Snapchat as a platform for launching business.

Key Findings:

  • 93.8% of the survey participants asserted that the feasibility of the business idea is one of the most important factors to be considered when launching a business.

  • 89.5% of the survey respondents mentioned the target audience of the business as a major consideration..

  • Insufficient planning is a major concern when launching a business, according to 83.1% of the survey participants.

  • Around 79.5% of surveyees said that failure to understand the target audience can be a challenge when launching a business.

  • According to 81.5% of the surveyed businesses, inadequate market research can lead to the failure of the business.

  • 76.9% of the survey participants believe that a lack of marketing efforts could lead to the failure of a business.

  • 89.2% of the survey participants said that social media and digital marketing are the prime factors that can help a business grow.

  • Almost 70% of the surveyees responded that they would want to launch their business exclusively online.

Conclusion

Launching a business requires a lot of dedication and hard work. Following the roadmap to success with proper planning and management is the key to success.

With the changing digital landscape, businesses are set to see a revolution in the coming times. Technologies like AI, machine learning, Augmented Reality, the Internet of Things, and cryptocurrency can help businesses grow to their fullest potential.

“In summary, launching a successful business demands a combination of a unique and viable idea, meticulous planning, effective execution, a talented team, strategic marketing, financial prudence, adaptability, and unwavering determination. While there's no one-size-fits-all formula, these elements form the pillars upon which successful businesses are built.” according to Tailwebs Technology.

looking for a business management software for your new business

Although there are challenges that new business owners from any industry may face, proper planning, adequate funds, staying updated with the current trends, and thorough market research can help businesses stay relevant in a competitive market.

We sincerely thank our Research Partners for their valuable insights.

References

  1. https://www.goodfirms.co/resources/business-planning-process-principles-importance-scope-startups

  2. https://www.investopedia.com/articles/personal-finance/120815/4-most-common-reasons-small-business-fails.asp

  3. https://www.goodfirms.co/resources/social-media-marketing-top-tips-challenges-trends

  4. https://www2.deloitte.com/us/en/pages/consulting/articles/digital-currency-payments-merchant-adoption-survey.html

  5. https://www.goodfirms.co/blog/best-bitcoin-wallets

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