updated - January 19, 2020 Sunday EST
Starting a business is easier said than done, and many entrepreneurs and small business owners can attest to that. While having a business idea is a great place to start, the realization of your business doesn't happen without putting in effort in the equation. There are a number of tasks that you need to do in order to get your business idea well underway to becoming an actual business.
To help you out on how to start, we'll discuss some of the basic steps in starting a business.
Having a great business idea is a good starting point, so you need to follow it up with research and a feasibility study. Back your idea up with a validation process through market research. Your idea might already include products you want to sell and the market you want to enter, so do research on existing companies in your chosen industry. Study the services or products that existing businesses are providing and think of ways how your business can be innovative in this field like providing something other companies don't or improving the same product's price and delivery time.
Always think about who your customers will be in your research. Go back to the why's of your business idea. Revisit why you want to start a business and how your customers fit into the equation. After all, how your business effectively provides services or products and value for your customers can define how your business will fare in the long run. The ideation phase is a good time to iron out the major details before you decide to proceed to the next phase.
A well-formulated business plan answers the basic questions about your business. It must answer what the purpose of the business is, who are the customers, what is the goal of your business and how the startup costs will be financed. It is must-have for all new businesses.
One of the common mistakes of starting a business is rushing things without giving due consideration to major aspects of the business. This is why a good market research and feasibility study can help to further strengthen your business plan. It should include search engine optimization as one of the marketing strategies. Your business plan should include the online aspect since it comprises a major avenue in the possible growth of your business. You can expand your market visibility and increase your customer base through an effective SEO strategy. Having a business plan can help you figure out the direction where your business is going, how you can overcome potential difficulties and how you can keep your business afloat.
Your business needs to have a cost to in order for it to start operating, and you need to figure out how you're going to cover the costs. Before you jump into deciding with borrowing money or funding your own startup, you have to put together a spreadsheet that considers the one-time startup costs for your business (includes branding, licenses and permits, equipment, legal fees, insurance, trademarking, property leases, etc.), and also the costs that need to keep your business running for at least a year (rent, utilities, marketing and advertising, production, supplies, employee salaries, etc.). Starting with the combined numbers from one-time and operational costs is the initial investment you will need.
Starting your business can be one of the crucial financial stages since it involves a lot of spending. One of the common mistakes people make when starting their business is overspending and incorrect spending. You need to carefully consider what things are necessary and important in helping your reach your business goals. Keep in mind that it can be a while before your business begins to bring in sustainable profit.
Starting with a business idea and a solid business plan to reinforce that idea is a great foundation when starting a new business. Of equal importance is to also figure out your finances to get your business to take shape. Knowing these few basics can help you determine if you should pursue starting your business or not. Remember to take things one at a time, and focus on how you can effectively start and establish your business. Growth and success will eventually come once your business stabilizes after it begins.
TOP 10 FRANCHISES OF 2020