Having your own business where you have control of everything that goes on is decidedly better than working for someone that you don’t even know when the person will terminate your services in the company, leaving you jobless or worse broken. Having known this, consider learning how to start your own business which will surely give you the freedom you deserve.
- Before starting your own business, you want to make sure you are prepared for what you will go through in the process, not only sleepless nights but making sure everything is in place before the need even starts coming, all those little things you are going to put in place may turn around to be the breakthrough you would have in the process of perfecting the business you are going to Start. This is why we have made this comprehensive post on how to start your own business to guide you on your process to a successful business
- Conduct in-depth business research on every expect and how the economy may be affecting the business, then set goals by making plans on how to overcome any kind of situation you may face from economic setbacks or policy changes due to the fact you are under a government. You can’t do anything against the rules that guide your residential zone.
- You need people to make your business stand; those people are referred to as client or customers, they need to patronize your goods and services for you to make returns, so making plans on building your customer base before you even start the business sound like an excellent idea to me and to anyone that is making plans on starting a business someday.
From experience, starting your own business is not as easy as motivational speakers may have you believe, think of it as an 8 months baby trying to make his first step all by himself, he has to put more effort into making that step.
It is like his whole world depends on it, if he fails he doesn’t just fall, but he has to start again which may be more difficult for him based on the fact that he has to put more afford into holding up to something (maybe a chair) then lifting himself to his feet with all the muscle and strength he has in him, then make another move to make a step to accomplish his goals or desires.
Then we are all sure that even if he successfully made his first step, he needs to put even more energy into making the second, third, fourth, and fifth, which goes on like that till he is used to walking, even after walking, he needs to understand the logic all walking in other to be perfect in it that’s why you see some baby that just started walking, he has choosing to be running already.
You think he is just being funny, no he is trying to understand the logic still and perfect his steps as in his own business, when a new business owner starts his business, he seems to be doing everything faster because he is new to it and has not yet understood the logic in it, still trying to figure out how to do it.
How To Start Your Own Business
Many new entrepreneurs understand how to build a business may be due to the experience they have gotten in reading one or two business introduction books. Still, the very steps that lead to his own business success are like mysteries unto them; in that case, making them appear as if they have no idea on how to go about it which is the consideration we made before writing this post on how to start your own business.
Our aim is to help your start your own business that will surely be successful all-round, you should be optimistic in the steps you follow while starting your own business.
But in this article, we are going to do our very best to explain how to start a profitable business to you in the same logical approach we use while breaking down the process of baby walking so you would understand it very well.
But before you start making any plans on starting a business, there are default things you need to settle first, these things are like the base of everything in business. They are choosing a business name, getting a business logo, choosing a business location, and choosing your audience.
1. Get The Perfect Business Ideas
For your information, before you start making your plans for starting your own business, you must have at least three business ideas, I mean unique business ideas then chose one out of the 3. In the words of Simon Sinek, ‘always start with why,'” Glenn Gutek, CEO of Awake Consulting and Coaching, told Business News Daily. ”
Now the best way to get the business idea is first considering the situation of things in the locations you want to start your own business in (you see while those basic things I mentioned above are essential) with the audience you find out what the want or what the need most that they don’t already neither can they get in that environment the are.
This is just to avoid much competition in starting your own business because I don’t think you want to go through that stress.
After finding out, you make a plan on how to get them what they want and present it to them in such a way they will understand that they want it because people are funny sometimes in the sense that they don’t even know what they want until someone makes it clear to them.
Take, for example; many do not realize they need something like a smartphone in their lives during the time of Symbian phones not until Android built its first operating system.
If you are struggling to make decisions on the perfect business ideas that will suit you well, we have found a perfect video that will help you decide on the business you want to start.
2. Prepare a Business Plan
The second thing is writing a business plan, just as you write your project, you write a business plan base on how to handle things both the unknown, as the story of the baby trying to walk goes, he first goes close to a wall, with the help of the wall, he stands up to his feet then prepare to make a move.
You cant succeed in business without a business plan of any kind, and you can’t go far without making solid plans on how to fight the obstacle on your way, even the ones you may not face during your process of making it to the top.
3. Business and market research
Make out time to see that you conduct a perfect market research plan to make your ideas reliable. This includes gathering data on your focus clients and customers, how they react, how they interact, how and when they will need the services the most, and also how they will want the services to be given to them.
The U.S. Small Business Administration (SBA) recommends gathering demographic information to understand opportunities and limitations within your market better.
For a starter, it is always good to have a better plan to have the upper hand against your competitors; remember you are just starting, and your targeted audience has no single trust in you. This has a significant impact on your competitive landscape and allows you to convey unique value to potential customers. A guide to conducting market research can be found on our sister site, businessgenic.com.
4. Business Exit Strategy
It is better to consider having an exit strategy in your business, what do I mean? just as Josh Tolley CEO of both Tribal Holdings and Kavana said “Too often, new entrepreneurs are so excited about their business and so sure everyone everywhere will be a customer that they give very little.
If any, time to show the plan on leaving the business,” In an aeroplane the will first show you the exit door in case of emergency not that they have plans of killing you but in case something goes wrong in which there are 70% chances that it may go wrong.
Exit strategy helps you make a better plan on what next to do if the business never goes as planned due to some circumstances you may not be able to handle on your own.
5. Business Finance Evaluation
You have to pay the price for starting your own business; those prices are the money you need in making things work out in the industry, just like the first richest man in the work Jeff Bezos the CEO of Amazon when he started, he invested In the business by first renting an office, employing people and paying them even when the company has not started yielding profits. Those things are an investment that requires finance to be taken care of.
Many business startups fail because they run out of money before turning a profit. It’s never a bad idea to overestimate the amount of startup capital you need, as it can be a while before the business begins to bring in sustainable revenue.
You need to know the exact amount you will be spending on your own business and how to cut some uneasy expenditures that you can avoid, avoid some expenses at all costs then use the money to invest in lacking essential places in your business.
If you want a great insight of what it will cost you to start up your business, I have included a wonderful resource where you can get a full analysis of the cost.
6. Do Business Analysis
To be your best business finance manager is to know how to manage your finance, this even takes away the 20% chance of your business falling, take for an example that every 6 months old company have an 80% chance of falling, then leaving you with a 60% of crashing chances which is easier to manage than having all the 80% on your head. So how do you do this? it’s just a simple formula
Fixed Costs / (Average Price – Variable Costs) = Break-Even Point: You should use this formula as a tool because it informs you about the minimum performance your business must achieve to avoid losing money. Furthermore, it helps you understand exactly where your profits come from, so you can set production goals accordingly.
- Determine profitability
- Price a product or service.
- Analyze the data
7. Business Expenses Watch
You don’t want to be in a situation where you are spending more than you can afford, I mean how will you succeed when you are making $500 per month, and your expenses are $550 per month, the difference is small but trust me it will affect you in every way.
The best way to handle this is to look for cheaper services, not employ a high-ranking employee that puts himself in a high place, and, in turn, needs lots of money to maintain instead, get those that are qualified and are willing to work.
Jean Paldan, founder and CEO of Rare Form New Media, said, “A lot of startups tend to spend money on unnecessary things.” “We worked with a startup that had two employees but spent a huge amount on office space that would fit 20 people. They also leased a professional high-end printer that was more suited for a team of 100 (it had keycards to track who was printing what and when).
Spend as little as possible when you start and only on the things that are essential for the business to grow and be a success. Luxuries can come when you’re established.”
A financial loan may be the best idea, but this is hard to get, but if you can avoid it by lessening your expenditure, good!! but it’s always better to get your plans well set.
8. Get The Perfect Business Bank
“They’re unlike big banks that look at your credit score and will be more selective to loan money to small businesses,” said Awar. “Not only that, but small banks want to build a personal relationship with you and ultimately help you if you run into problems and miss a payment.
Another good thing about smaller banks is that decisions are made at the branch level, which can be much quicker than big banks where decisions are made at a higher level.”
Chose a bank that will be willing to loan you money at any point no matter the level of your business, consider this very well because it may save you someday in your own business journey.
9. Register Your Business With The Government
It’s best for your business to be legal, registering your business with the government is the best legalization you will need to make it a perfect business people will trust, it gets the government out of your back.
Corporations will need an “articles of incorporation” document, which includes your business name, business purpose, corporate structure, stock details, and other information about your company.
Otherwise, you will need to register your business name, which can be your legal name, a fictitious “doing business as” (DBA) name (if you are the sole proprietor), or the name you’ve come up with for your company. You may also want to take steps to trademark your business name for extra legal protection.
10. Business Team and Adverts
Build your team unless you are planning to be your company’s only employee; you are going to need to hire a great team to get your company off the ground. Joe Zawadzki, CEO, and founder of MediaMath said entrepreneurs need to give the “people” element of their businesses the same attention they give their products.
Zawadski said, and I quote, “Your product is built by people,” “Identifying your founding team, understanding what gaps exist, and [determining] how and when you will address them should be a top priority. Figuring out how the team will work together … is equally important.
Make out money for your adverts and how to get the audience too because you need to build up your brand and get a following of people ready to jump when you open your literal or figurative doors for business before you even start getting an audience.
This article is all you need to succeed in your own business and grow in all expectations available. Do share and drop your comments.