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5 Business Choices You Need to Make Right Now

April 28, 2025

5 Business Choices You Need to Make Right Now

Starting a new business involves making many critical decisions. In 2024, the environment for startups is both challenging and full of opportunity.

For example, digital marketing budgets grew about 10% year-over-year between 2023 and 2024, and 94% of small businesses plan to increase their marketing spending in 2024.

At the same time, venture funding has tightened: recent reports show U.S. angel and seed investments hit a 2.5-year low.

Technology adoption is also surging – for instance, ChatGPT reached 100 million weekly users in late 2023 and a poll found 58% of small businesses plan to invest in AI in the coming year.

As the title suggests, this blog post covers the five key choices every aspiring entrepreneur faces. From choosing your business model to deciding how you will fund, market, and staff your company – and which technologies to leverage – each decision can shape your path to success.

We’ll refer to these areas collectively as the “5 business choices.” Let’s dive into each of these important decisions, beginning with the business model.

5 Business Choices You Need To Make Right Now

1. Business model

Your business model is the core way you plan to deliver value and generate revenue. It answers questions like What are we selling? Who is paying us? and How do we charge?

Picking the right model is crucial because it shapes nearly every other decision you make. There are many common approaches. For example:

Subscription model – Customers pay a recurring fee (monthly or yearly) for ongoing access to a product or service. This creates predictable revenue and can build strong customer loyalty. Many software startups use this (think SaaS products, streaming services like Netflix, or membership clubs).
Freemium model – Offer a basic product or service for free, and charge for premium features. This strategy can drive rapid user growth, with a portion converting to paid plans over time (examples include Spotify or Dropbox).
Marketplace or platform model – Build a platform that connects two groups (such as buyers and sellers) and earn revenue from fees or commissions on each transaction. Notable examples include Uber (drivers and riders), Airbnb (hosts and guests), and e-commerce marketplaces.
Direct sales model – Sell products or services straight to customers, either online or in a physical store. This traditional model might involve holding inventory (as in retail) or simply selling services. Profit comes from the margin between cost and sales price.
Service/consulting model – Charge customers for your expertise or time (hourly fees or project rates). Many freelancers and consultancies start here. The challenge is scaling, since revenue is directly tied to hours worked, but recurring service contracts can provide stability.

Each model has trade-offs. For instance, subscription models can lead to steady monthly income, while one-time sales rely on continual customer acquisition.

Before you pick one, think about what fits your idea and customers best. A model that aligns with your value proposition and market can set you on a path to growth.

2. Funding strategy

Deciding how to fund your new venture is one of the most important choices you will make. In recent years, raising traditional startup capital has become tougher.

Given this environment, think carefully about how much money you need and where it will come from. Some founders start by bootstrapping (using personal savings or early revenue) to keep control. Others mix in external funding sources. Common funding options include:

Bootstrapping (self-funding) – You use your own savings or reinvest early profits to grow the business. This approach lets you retain full ownership and avoid debt interest, but it can limit how quickly you can expand.
Friends & family – Raising money from people you know well. This can be faster and come with flexible terms, but it’s crucial to handle it professionally (clear agreements, expectations).
Loans and grants – Traditional bank loans, microloans, or government grants are another path. A loan gives you capital without giving up equity, but you’ll need to pay it back with interest. Grants don’t require repayment but can be competitive to obtain.
Angel investors / venture capital – Wealthy individuals or investment firms provide capital in exchange for equity in the company. This can inject large amounts of cash for rapid growth, but you will share ownership and decision-making. In today’s market, some investors are very selective, so you’ll need a strong pitch and traction.
Crowdfunding – Raising small amounts from many supporters online (through platforms like Kickstarter, Indiegogo, or equity crowdfunding sites). Crowdfunding campaigns can also double as marketing, generating buzz. The global crowdfunding market was about $1.6 billion in 2024 and is projected to grow, reflecting its increasing popularity.
Accelerators/incubators – Participating in startup accelerator or incubator programs can provide seed funding, mentorship, and resources (often in exchange for equity). Renowned programs like Y Combinator, Techstars or local incubators offer guidance and networking, helping you refine your pitch and business model early on.

Each funding route has trade-offs in control, risk, and timing. Often, entrepreneurs use a mix: for example, starting lean with bootstrapping or crowdfunding to prove the concept, then bringing in investors later.

No matter what, align your funding strategy with your growth plans and how much ownership or debt you’re comfortable with.

3. Marketing approach

Once you have a product or service, you need a plan to reach customers. In today’s market, digital marketing dominates. About 72% of marketing budgets go to digital channels.

In fact, online marketing spend has been rising (for example, digital budgets grew ~10% from 2023 to 2024) and 94% of small businesses plan to increase their marketing spend.

Good marketing strategy often involves multiple channels. Common approaches include:

Social media marketing – Build your brand and engage customers on social platforms (Facebook, Instagram, LinkedIn, TikTok, etc.). Surveys show roughly 52% of small businesses use organic social media and 47%. Short-form video is especially popular – 91% of businesses used video in marketing in 2023. Video content (YouTube, Instagram Reels, TikTok) can drive awareness and engagement.
Content and SEO – Publish helpful content (blogs, guides, podcasts) to attract customers. This also helps your site rank in search engines. In one study, 49% of businesses said organic search (SEO) brings the best marketing ROI. High-quality content also builds authority over time.
Email marketing – Communicate directly with leads and customers via email newsletters and offers. Email is extremely cost-effective: research shows email marketing returns about $36 to $40 for every $1 spent. Use it to nurture leads and generate repeat sales.
Paid advertising – Pay-per-click (PPC) ads and social ads can target specific audiences. Platforms like Google Ads and Facebook Ads allow you to set budgets and reach users searching or browsing relevant topics. These require budget, but can yield quick traffic and sales if targeted well.
Referral and partnerships – Word-of-mouth referrals are powerful (nearly two-thirds of small businesses say referrals are their best source of new customers). Partnering with complementary businesses or influencers can boost credibility and reach.

Ultimately, the best marketing approach depends on where your customers spend time and what works for your industry.

Some entrepreneurs learn and do much of their own marketing – about 47% of small business owners handle marketing themselves – or they hire freelancers/agencies for help.

The key is to set clear goals (e.g. brand awareness, website traffic, or sales) and track performance, adjusting your approach for maximum impact.

4. Team building

No entrepreneur succeeds alone. Deciding on your initial team and hiring strategy is a key business choice. Early on, you typically rely on a small founding team with complementary skills.

For example, one founder might focus on product and technology, while another handles sales, marketing, or operations.

Think about what core roles your startup needs and fill those first (e.g. engineer, designer, marketer). Here are some team principles:

Complementary skills and diversity – A strong startup team has diverse talents and viewpoints. Combining different backgrounds (tech, business, creative) can spark innovation. Studies consistently show that diverse teams often achieve better results, so hire with a mix of experience, gender, or cultural perspectives.
Culture and values – Even with a small team, define your company culture (work style, communication, values). Early hires should share your vision and commitment. A positive, transparent culture makes it easier to work through challenges together.
Remote vs. local – Decide whether to hire locally or allow remote work. Many startups now use remote or hybrid models to tap into a wider talent pool and save costs. Remote teams can work effectively with tools like Slack or Zoom, but require clear communication and trust.
Lean hiring – In the beginning, hire only the people you truly need. Being scrappy often means wearing multiple hats; many founders do a lot of the work themselves or rely on contractors/part-time help until revenue grows.
Flexible staffing & incentives – Use freelancers, contractors, or interns to fill roles as needed while keeping payroll lean. Offering equity, profit-sharing, or performance bonuses can also motivate early team members when cash is tight.
Advisors and mentors – Consider forming an advisory board or seeking mentors. Experienced advisors can give guidance and credibility, even if they are not full-time.

As you grow, continue to add members who fit your goals. Keep lines of communication open and be clear about roles and expectations.

For example, tech startups often begin with a co-founder team that has both technical and business skills, as this balance helps product development and growth go hand-in-hand. Ultimately, building the right team is about aligning skills and culture to drive your startup forward.

5. Technology adoption

Technology choices underpin almost everything in a modern business. In 2024 and beyond, having the right tech stack can set you apart. Some key areas to consider include:

Online presence (website & e-commerce) – Every startup needs a professional website at minimum. If you’re selling products, an online store (using platforms like Shopify or WooCommerce) is essential. For service businesses, an informative site and lead-capture forms are important. Mobile-friendly design and a good user experience are a must, since customers expect instant access on any device.
Cloud infrastructure – Hosting your data and applications in the cloud (AWS, Google Cloud, Microsoft Azure, etc.) is common for scalability and cost-efficiency. Cloud services allow you to start small and grow without heavy upfront hardware costs. For example, many fast-growing startups rely on Amazon’s cloud. In fact, well over 90% of organizations worldwide use cloud technologies for some part of their operations (Statista digital transformation data).
AI and automation tools – Many startups leverage AI to enhance their offerings and productivity. This could include chatbots for customer support, AI-driven analytics, or automated content tools. It’s a growing trend: one poll found 58% of small businesses plan to invest in AI over the next year. Tools like ChatGPT have become mainstream (100 million weekly users by late 2023), highlighting how quickly AI adoption is spreading. Even simple automation (email autoresponders, scheduling software) can save time for a small team.
Business software (SaaS) – Many business functions can be outsourced to software-as-a-service tools. For sales and customer relationships, use a CRM (e.g. HubSpot, Salesforce). For finance, use accounting software (QuickBooks, Xero). Project management (Trello, Asana) and team collaboration (Slack, Zoom) tools help operations run smoothly. Using reliable SaaS tools means you spend less time on routine tasks and more on growth.
Security and compliance – Don’t overlook basic cybersecurity. Protect customer data with secure payment systems, SSL certificates on your website, and antivirus software. For many industries, compliance (privacy laws, payment standards) is mandatory.

Adopting new technology can boost efficiency and give you a competitive edge, but do it strategically. Start with essentials (a solid website and basic tools) and add innovations as needed. Stay aware of tech trends, but always tie technology choices back to customer value and ROI.

Conclusion

Every new business faces a set of tough decisions. Keeping these 5 business choices in mind can help clarify your path. By thinking through these five choices and adapting as you learn, you build a strong foundation.

For each of these areas, keep gathering feedback and be ready to adjust your plan. The first decisions you make set your direction, but flexibility and iteration are vital as you learn what works in the real world.

Starting a business is a marathon, not a sprint. Use these five choices as a roadmap: revisit them regularly, adjust based on feedback, and keep learning. Every successful entrepreneur tweaks their strategy along the way.

With thoughtful planning and flexibility, you’ll increase your odds of success. Starting a startup is a learning journey, so use resources and mentors, and stay customer-focused.

With the right model, funding mix, marketing strategy, team and technology, you’ll be well-prepared to turn your idea into reality.

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