Becoming a business owner is probably one of the best ways to earn some extra cash and taking control of your life. You are not at the mercy of your boss because you do not have to deal with one and you can set your working hours. All of this may sound tempting, but you might not have the sufficient funds required for the startup. Well, you do not need to worry because you can get hold of various types of SBA loans to start your business endeavour.
In this modern era, businesses are found everywhere. They can range anywhere from small home types to multinational ones. Here is the catch though- Not all of them are set for success. According to a recent study, only 65 per cent of businesses with employees last at least two years and only 50 per cent reach the five years mark. So, planning to start a business is a gamble that may or may not pay off, but if you know how to initiate it properly, it can be a very rewarding endeavour.
Here are some few tips that will help you start a business successfully. Do not rush the process and take one step at a time, and you will be on to a successful start.
Do Some Research
After you come up with a business idea, you need to give it a little reality check. You need to ensure if your idea is practically feasible or not. Does it have the potential to succeed? What are the risks involved? You need to go through a proper validation process before proceeding any further. If you want small business to succeed, you must solve a specific problem or target a specific audience. You can do this by doing some research about the audience or demographic you are trying to target or just by trial and error. Keep asking yourself different questions before you go all in.
Come Up With A Plan
Your plan is going to be the basic building block on which your business is going to thrive. Your business plan is kind of a blueprint that it will have to follow through all the phases, whether it be the startup phase or the business growth phase. It is a must-have if you are planning to start a new business. If you are running low on cash, you may want to seek some financial support such as a small business loan from SBA. You can even create a business plan on a small piece of paper then upgrade and improve it later down the road. Something is always better than nothing, and a good business plan will take your business a long way.
Search For Clients
Client hunting may come as a daunting task, but it does not have to be that way. You need to keep in mind that your competition is not doing that good of a job either. Just that little more effort can separate you from the majority of your competitors.
Keep Finances In-Check
Huge financial backup is not a necessity when it comes to starting a small business, but still, you will require some amount of money to cover the expenses till you reach the break-even point (The point at which you start making a profit). Good knowledge of spreadsheets may come in handy. This way, you can easily estimate the startup costs, insurance, equipment cost, leases, marketing cost etc. Other types of costs that will ensure your business keeps running for at least a year such as rents, utility bills, employee salaries, production, advertisement etc. should also be kept in mind. The primary aim here is to come up with a plan and keep track of your finances so that your business can ease through the honeymoon period.
Registering Your Name
The name of your business will play a crucial role in every aspect of your business. You may not have the luxury to change it, so you would want it to be a good one. So, try not rushing it and take your time. Think through all the necessary implications.
So, you finally decided the name of your business and you may be thinking you are all set to go- But wait!! You need to make sure the name does not have any copyright or trademark issues. After making sure you will want to register your name, it does not get stolen and file all the necessary paperwork.
Decide On Your Business Location
You need to set up your business place in a location through which you can easily run all your business operations. It can be a rented space or even your home whichever seems the most feasible. You will need to make sure there is enough room for equipment and other setups. If you are planning to hire some employees, you will want to have a place that is not congested. You can also consider buying or leasing your commercial space if it is the best option
Do Not Ignore Yourself
This is probably one of the major “Don’ts” of starting a business. Do not hesitate to invest in yourself. You might consider leaving your permanent job and investing all the time in business if it is the better option. As your business progresses, your goals are also going to change. You can never go wrong by investing in yourself. Try overcoming the mental barriers that might arise as the pressure keeps on mounting, but that should not let you stop achieving your motives.
Build A Support Team
It can be very beneficial to surround yourself with reliable and trusted advisors that can guide you through thick and thin and give you valuable advice as your business develops. You should always have a lawyer, accountant or some industry associate. Hiring the services of a financial forecaster to assist you is not a bad idea either.
Promote Your Business
After setting up your business, you will need to start marketing and promoting it. For this, you will be requiring a good marketing plan and choose the best possible way to promote your business effectively. Just remember that success is not just an overnight thing; it will take some time and a lot of dedication on your part. But if you follow your marketing plan and stick to the basics, the chances of succeeding will grow exponentially.
To Sum It All Up
Setting up a business is by no means an easy task and as many studies suggest only a few of them make through the five years mark. But if you are dedicated enough and follow the major do’s as well as avoid the Do not you can well be on your way to running a successful business. Improvise and adapt if necessary, else stick to basics, and you would not have any trouble.