The Three Bs of Building a Company: Budget, Business & Brand

I have worked with a multitude of entrepreneurial people with creative ideas for products. Most of them have come to me wanting to start by creating the product, with little-to-no thought put into building the necessary foundation required to give this product (that they will be investing in) the best shot at success… or to even understand if they can afford to go down this path and what it will take to reach their goals.

I created three straightforward steps that you must consider regarding your company before you start spending money on your product: your budget, your business and your brand.

Your Budget

Budget is the first thing you need to think about because what you can afford to spend, or are willing to spend, will determine every step after. And this in not just your initial spend. This is what you will spend year one, year two and year three. This is also not just what you’ll spend on the product itself, but on everything else you’re going to need, including rent, supplies, your website, your ad spend, etc. 

Many people think they are going to create an amazing product and be profitable within the first year, but according to Freshbooks it takes two-to-three years on average for a business to become profitable. You must understand what’s ahead of you and know what you have to work with so you can keep your company up and running while you work toward profitability.

Your Business

Next up is the overall structure of your business. What kind of business are you going to have (LLC, S-Corp, etc.)? How much insurance will you need? Do you plan to hire employees, or perhaps freelancers, or are you able to do it all yourself, at least to start (and have the time and commitment to really do it all)? Having first figured out your budget, you’ll be able to answer these questions. You also need to think about all the organization you’ll need to run your business smoothly, such as how you’ll invoice, bank, handle your taxes, etc.

This is the point where you need to write a business plan. It doesn’t have to be 30 pages long, but you need to make sure you’re answering all the important questions. Googling Business Plan Templates brings up a host of options with many that you can download for free. 

Your Brand

Your brand isn’t just about your logo or a pretty website. You must determine what your company and its products are all about. Who are you trying to reach? And why? Why do these people want and/or need your product? What are they dealing with? What are they willing to spend? What is it about your look, feel and voice that is going to click with them and make them feel like you are what they need (and trust you in the process)?

Of course there’s much more to building and growing a company, but this is where you start. Once you have all of the above information, you can start talking about creating your product because you’ll know how much you can initially spend on it, a business plan that shows your path forward and the people/vendors you’ll need to bring the product, and all the support around it, to life, and you’ll be sure your product vibes with not only your brand but also your target audience that will be buying from you.

According to the Chamber of Commerce, some of the most common reasons why small businesses fail are due to a lack of startup capital funding, a faulty business model or infrastructure, retaining an inadequate management team and unsuccessful marketing plans or initiatives. By focusing on budget, business and brand, you will be doing everything you can to be one of the businesses to succeed.