Running your own business is stressful but a great career and life choice. It demands your time and focus. Start by expecting to live your work until finally standing up so that it can operate. There are many opinions on how to start a business. Read below for some basic ideas and guidelines to get you started.
Step
Part 1 of 7: Getting Ideas
Step 1. Generate ideas
You will need an idea for the venture before you do anything else. This should be something you are interested in, as this new business will cost you a lot of time and money.
Generate business ideas by identifying things people need that no one else has provided, that aren't available where you are, or that you can provide better than anyone else
Step 2. Consider whether it is possible
Before getting too deep into it, think about whether your idea is feasible enough. Are people really willing to spend money to get it? Will it generate enough profit for it to last? You also need to make sure the idea is workable. While having a computer that magically generates food out of nothing is fun, it's impossible (unless you're Doraemon.)
Step 3. Make sure the idea is unique
Whatever your idea, make sure it's as unique as possible. This will help you significantly eliminate or fight your rivals, this will make your business more successful. Slightly changing the concept of an existing product (eg making a blue ribbon from a red ribbon concept) is usually not enough to turn it into a business, be creative as possible!
Part 2 of 7: Creating a Business Plan
Step 1. Determine your operating costs
You will need a solid business plan to present to any investor and the best way to start is to determine your basic operating costs. This will set a lower limit and help you determine how much money is needed to produce the product or offer the service you want. This includes production costs, shipping, taxes, employee salaries, workplace rent, etc.
Knowing your operating costs is important in determining whether your business will be profitable, as you will need more than these basic costs to keep your business running
Step 2. Determine your potential target market
Be realistic. Realistically how many people will use your business? How much are they willing to pay for your services? If the numbers are too small for the costs of running a business, you should reconsider or change your plans.
Step 3. Determine the hitch
You will need to plan ahead for any issues that could get in the way of your efforts.
- Evaluate your rivals; if their market share or their product offerings are too strong and stable, then you will have a hard time entering the market. No one wants to buy an equal or more expensive version of a product or service that already exists.
- You also need to research the relevant rules and laws, especially regarding taxes. You should ask the authorities, as well as get information from the tax agency.
- Make sure there are no impeding costs, for example the equipment is too expensive to make the business profitable. For example, the car was not launched by Ford until it found a way to produce it cheaply by building more efficient equipment.
Part 3 of 7: Creating a Marketing Plan
Step 1. Determine the budget
Once you have a general idea of how much money you should spend, write a budget for marketing that shows the amount of money available for advertising.
Step 2. Create an idea that fits your budget
Once you know how much money you have, figure out the costs of different types of marketing and come up with ideas that are appropriate and cost-effective for their range. If for example you have a lot of money for marketing, you might consider advertising. If you have almost no money, you need to think about how to use social media effectively, which is a very effective way that doesn't cost a lot of money.
Step 3. Determine when and where to market
Once you know the type of marketing you want, think about the most effective places to market and at what time, day, month or year is the most optimal for reaching your intended market.
- You should make sure that you are using marketing that is appropriate to the type of people you expect to be interested in your product or service. For example, there is almost no point in using social media to advertise cruises for ships aged 55 and over. On the other hand, if you're advertising your new dance club, the print newspaper may not be your best option. There's no point in advertising a business that's only available in Chicago to people in Seattle, so consider the physical location as well.
- If your service is seasonal, you should consider the best time to advertise during the year. In addition, television commercials need to be timed so that the right demographic will watch them when they are broadcast.
Part 4 of 7: Getting Funds
Step 1. Talk to your bank
Talk to a bank that is already on good terms with you. Ask about what types of start-up loans they offer and how they can benefit from your business. By using a bank that you already know, that bank will have easy access to your financial records and will be more willing to invest with you.
Step 2. Find local investors
If a bank loan won't be enough, find a local investor. There could be local business tycoons or other wealthy people who have an interest in your success. Look for people in your area who may have the funds and motivation to help you.
Step 3. Find a capitalist or generous investor
The donors are high net worth people and the capitalists are companies. Both fund high-risk ventures for partnerships and often include experience, management expertise and contracts. They usually work through networks or associations.
Step 4. Approach friends and relatives
People who have known you for a long time are confident in your abilities and the sincerity of your intentions. They are also people who are more likely to be in solidarity with you if things are difficult in the early stages of your business or you need extra money. However, explain that the money is allocated as risk capital and they could lose the money completely or not be returned in the short term.
Step 5. Use crowd-funding
If you still can't raise enough funds, use a website to raise the funds you need to get started. These sources of funding have several benefits: you don't have to pay interest on the money you earn (because it's money used to provide the real product or service) and will not only help you attract interest in your offer but will also help you build a customer base.. You will start a business with hundreds or thousands of customers who are ready to queue up and willing to tell others about your offer.
Step 6. Report
No matter where your funds come from, be sure to provide your funders with key operating, strategy and accounting information periodically, usually twice a year. It's a good idea to hold a board meeting if everyone can physically attend. If not, do so by teleconferencing.
Part 5 of 7: Building Infrastructure
Step 1. Get an office
You will need space to run your business. It can take the form of a home office if you really need a small space and don't have employees, or it can be a workshop or warehouse. Look for rentals in low-cost neighborhoods or business incubators rather than fancy addresses. Some universities provide low-rent space for new business ventures based on innovative scientific ideas. This depends on what you are going to do and how much you intend your efforts. Make sure the space is coded and legal for your intended use and is under budget.
Step 2. Purchase equipment
Buy everything you need to get started. These can be mechanical equipment, computers, telephones, or craft supplies; depends what you do. Try buying from a business supply company as they will have a hefty discount. If you are short on capital, renting is an attractive option too so you don't waste your money.
Step 3. Create a recording system
From dealing with taxes to finding out why a $2000 was mysteriously missing to searching customer records to find out whether Mrs. Jones has paid her bill or not, you want a good record-keeping system to help your business run smoothly and efficiently. Invest in file cabinets, labels and digital note-taking software to keep you organized and in control.
Part 6 of 7: Building a Customer Base
Step 1. Use marketing and public relations
You want to reach potential customers in ways that make them want to use your business. This is especially important when you are just starting out, i.e. before you have a certain repeat customer base.
- Advertise in a way that grabs the customer's attention with a minimum of effort and hopefully it will more than capture their imagination. Be creative and seduce the right aspects of the customers you want to use for your business.
- Offer free samples of what you do to the right people, to get people to compliment what you have to offer. Word of mouth (ie good public relations) is the best way to attract new customers. If you get negative feedback, respond positively by fixing the problem. People will be less judgmental of mistakes if you are willing to correct them.
Step 2. Use a bit of old-style meshing
Go to conferences, charity parties, meetings with complementary businesses and anywhere else where your customers are likely to be concentrated. In other words: go out in public and interact with people. Use your friendships to meet people who might be able to help you. This kind of interaction is very important for starting a business. After all, you can't live in a vacuum.
Step 3. Get good customer service skills
Be good at interacting with people. Train yourself to read between the lines of what people say. Learn how to meet needs that they themselves are not aware of. Find out how to make people happy. Be charming. Most importantly, be humble. The customer is not always right but you need to be able to convince the customer he is right.
Step 4. Have a network site
The world has gone online. Any business that wants to survive the next ten years must have a website. People will use it to contact you, find your location, find out your hours of operation, ask you questions, make suggestions, and maybe even buy your product or service. By having a network site and services available on the internet, you will be able to expand the breadth of your services across your local borders or even worldwide.
Part 7 of 7: Receiving Payments
Step 1. Have to pay
Don't let people use you. Require payment within a certain period of time (however according to your service). Bill people as fast as you can. If someone is late paying, talk to them. If you ignore these problems hoping they will go away on their own, you will become free work for people and your business will collapse.
Step 2. Get a credit card
Few people still pay consistently for your product or service with cash. It will make your business easier, as well as your record keeping and accounting if you accept credit and debit cards. If you want to avoid overcharging or keep your business more flexible, consider using the Square. This tool can be installed on a smartphone or tablet and allows you to scratch your customers' credit cards.
Step 3. Set up an online system
If you plan to sell products online you need to make sure to set up an online payment system. Services like Paypal make this very easy. Find out what method works best for you. However, make sure whatever system you use is secure. You do not want your information or your customer information to be hacked or misused.
Tips
- Make sure your product/service appeals to the general public, region and community not just from your own perspective. If not, how do you make it interesting? Be wise.
- Ask people you know who run businesses from home. They can help you get started.
- Make sure that your business looks professional and pleasing to the eye. Create a professional logo, a consistent brand and a professional networking site to back it up. There are several groups that will help you with this, for example: Startyourownbusiness.net.au and vistaprint.com.au.
- Realize that launching your business will take time. Most businesses don't make a profit right away, so plan for that in your personal life too. You will make sacrifices to be your own boss.
- Use free resources. Your local library contains many useful references on starting a company, writing business plans, marketing, as well as information specific to your industry. The Small Business Association, the Chambers of Commerce, the AMEX Small Business website, associations for your industry, associations by ethnicity…all of these offer training, materials, networking and sometimes funding. Another good option is SCORE, a group of retired executives who provide business start-up advice.
- When hiring people, make sure you have thoroughly reviewed and interviewed the worker. Make sure you get their real information, passports, IDs, previous jobs, licenses and many others that show they are completely honest and reliable.
- Make payments easy and affordable. Accept credit cards, offer monthly installment plans, promote products with buy one get one free offers or discounted prices.
Warning
- Make sure you give yourself enough time for personal life. Make sure you have enough time to stick to an exercise program or make time to meet your family.
- Watch out for overly friendly shareholders. They can trick you. Business needs your resources which you must give with passion and voluntarily….. Avoid procrastination, because many great ideas die as a result. Once you have made up your mind on something, go for it, find out and talk to a professional in that field about it even if you need to make an appointment.
