how to start a new business
7 steps to success
Ready to start your own business? Be your own boss, set your own schedule. But where does one begin?
While being your own boss could be something that you want to do, it is a big life changing decision. And without proper planning, the outcome might not be so desirable. But if you're reading this, then congratulations! You've already taken that first big step towards being your own boss.
That's right, you are effectively doing what any successful entrepreneur would do first; and that is researching.
As any successful entrepreneur can tell you the three most important steps in starting a business are Research, Planning, and Execution.
Now with that being said, let's dive right in to our 7 steps of starting your own business.
1
Research
So you've got an idea, but now what? How are you going to turn that idea into a business? And more importantly, once you set your idea into reality can it be monetized?
Regardless of whether or not you want to monetize your new business, your first step should always be to conduct a market research. Putting effort into gathering data about potential customers and other businesses already operating on your idea will tell you if there's an opportunity for your new business. This is the initial legwork when you want to start a new business and should not be skipped or overlooked.
2
Planning
For those who likes to jump into action immediately, this perhaps could be one of the most boring step when starting your own business. However boring as it might be, drawing up a business plan is one of the most important step.
When you write out your business plan you will be able to see how certain aspects of your business idea play out in reality. From there you can then determine if your business idea will work or not.
For example, suppose you want to open a mobile pet wash service to wash cute fluffy animals. Writing out a business plan such as costs of operation and demand for this service can give you an idea of whether your business could work or not.
When writing your business plan, it's also often helpful to come up with a plan on how you will be allocating your time on your new business. Setting realistic time management goals is important for your business success. You don't want to "think" you can work twenty hours/seven days a week. You should always try to find a healthy balance between life and work no matter if you're starting a new business or not.
Remember, your business plan is the roadmap for your business. It is often better to have one than not.
3
Money
Ok, this one's important. It's often said that money is the biggest obstacle people faces when they want to start their own business. After all, it takes money to make money right? Well at least that's how the saying goes anyway.
But don't let money discourage you from starting your new business even if you have limited or no funding at the moment. The good news is that these days there are more ways than ever to find the capital you need to fund your new business.
And if you've done steps 1 and 2 above and written a solid business plan, you can try to pitch your idea to family and friends first to see if any of them are willing to become an investor. With a good business plan, you can even approach your local banks, angel investors, or venture capital.
Other funding ideas include:
4
Execution
Once you've done your research (step 1), written a good business plan (step 2), and raised enough capital for your new business venture (step 3), it is time to get into action.
Believe it or not, a lot of people actually stop at this point even after having done steps 1, 2, and 3. That's because this step can be extremely exhausting. Executing your business plan and turning an idea on a piece of paper into reality isn't easy. There will be many bumps along the way that can be physically, mentally, and emotionally draining. But as an entrepreneur, you have to find a way to overcome these challenges you face.
That is why it is so important to set realistic goals when you are writing your business plan so you can minimize the risks of getting caught off guard by something that's totally avoidable.
Remember when we said earlier in step 3 that money isn't the prime factor in preventing people from starting their own business. We weren't kidding. Only we can stop ourselves from doing anything.
But with positive thinking, the right attitude, and a focus mindset, you will be able to tackle this step almost stress-freely.
5
Marketing
Unless your new business is only providing products or services for a few people in closely knitted circle, you're going to want to do some marketing.
It's important to understand your target audience and the best way to reach them and how your products and services meet their needs or solve their problems.
For example, if you are starting your mobile pet washing service you might be tempted to offer your service to just about anyone you come into contact with. But if a majority of the people you market your service to don't have pets, then you you're not going to have many customers.
It will be more beneficial to your business if you narrow your target market. Remember, always include the 4 P's in your marketing strategy: Product, Price, Promotion, and Placement.
6
Hiring Help
When you're starting a new business on a limited and small budget, you often need to wear multiple hats to keep your business running.
But sometimes tackling on every aspect of your new business on your own is counter productive. Not only can it be physically draining, it can even have a negative impact on your new business. Decide on whether or not it is better to hire someone to help.
If you spend a lot of time working on one area of your business means that you are taking time away from another. How you best use your time on your new business determines it's success. That is why it's important that you plan it out the use of your time in step 2 when you create your business plan.
Hiring someone to help doesn't necessary means you need to add that person to the payroll. It could be a one-time cost. If it makes more sense to spend five hundred dollars now to potentially earn back one thousand later, then it should be worth it.
When you work on everything on your own, the stress and physical exhaustion could be detrimental. If that causes you to give up on your new business, then who's left to run it?
Rome surely wasn't built in a day; nor was it built by one person. The same goes for a successful business.
7
ReInvest
Your
Money
When you first start making money on your new business, it is a happy and an out-of-this-world experience. It is an acknowledgement of all the hard work you put into your new business finally paying off.
You might even be tempted to spend the money you've made on your new business. But don't. Any successful entrepreneur will tell you to invest the money back into your business.
Reinvesting in your business is not only smart but can lead to huge growth opportunities which then can in turn lead to bigger profits. Always reinvest the money you made back into your business. Keep that in mind.
Now equipped with these 7 steps, you should feel confident to start your own business. Just remember, nothing will happen if you take no action. So get on out there and start making your dream come true!
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