Entrepreneurs who start new businesses may be able to succeed even if they lack material resources or in-depth plans at the beginning. According to the founders of one of the largest wine brands in the United States, Barefoot Wine, there are a number of critical strategies that could contribute to long-term profitability. The winemakers, who admit to not having much direction when they started, told an interviewer that paying attention to details and acquiring business knowledge were both important parts of their own success story.
The wine company founders also told startups to pursue alternative or non-traditional marketing channels. They cited an example of being unable to contribute financially to a local charity yet donating their wine products for the nonprofit to auction off. The event generated positive publicity and increased sales in multiple markets. The pair also concentrated their efforts in small communities and relied heavily on word-of-mouth advocacy to garner lucrative publicity.
Other pointers from the winemakers included not ignoring seemingly incidental details, such as obtaining the proper business licenses. New businesses may also have to spend time researching what potential partners need to fully understand the market niches they fulfill. In terms of management, would-be founders and business leaders are advised to balance their workloads and learn from their early mistakes.
Effective business planning involves many critical considerations. For instance, entrepreneurs who come up with business models they think might prove profitable also need to decide what kinds of business entities they want to form. As they expand, they could run up against legal concerns with growing a business in certain markets or fields, such as maintaining compliance with consumer safety regulations. Those who want to launch new ventures may find it helpful to talk to a lawyer about the ramifications of their plans at the outset.