5 Things People Starting Their Own Business Should Know
What’s not to like about starting your own business? You get to create and run something that you are passionate about. If you are one of those people who are always dreaming about starting a business of their own, but never gets around to doing it, then I am here to let you know that there is nothing mysterious or impossible about starting a business. Here are a few tips to help you make that first step.
1. Your Business Starts with a Great Idea.
Figure out what you want to do. Successful businesses stem from tiny ideas which grow forth from seeds to become huge fruit bearing orchards. You must put a lot of thought into coming up with an idea that you are passionate about because you will be spending a lot of your time and money on your business.
Once you have an idea, talk to people about it. What do they think? Would they buy your product? How much would they pay? You must understand that your idea not only needs to be something that you are passionate about, but also something that is in demand.
Get Inspired! Make sure your idea is unique and don’t be discouraged. Let’s be honest: there isn’t any product or service that hasn’t be invented yet, so don’t abort your idea if you find out your product isn’t 100 percent unique. Instead use your existing competition to your advantage, find out where they need to improve and integrate those elements into your idea.
2. Planning and Development Can be Daunting.
So you have your business ideas, no what? If you’re anything like me, your ideas rarely come in a structured fashion. Your idea needs to be organized and the best way to do that is with a business plan. This will serve as your outline, mapping everything from your expected costs to your strategies for execution. Don’t worry, I am not advising you to write a 50 page business plan, though you will need one if you plan on enticing investors. What I do suggest is that you have a simple and concise summary of your business concept; one that captures every key aspect and makes you consider each important element of your future idea.
One of the easiest methods of summarizing your concept is with a business model canvas. Check out Business Model Fiddle, it is a playground for creating and sharing business models with templates for various types of business models.
3. Form Your Business
Once you are sure that you have a good and well-researched idea and business plan that makes sense, you should be in a position to launch your business. This includes determining what business entity you want to form and in what state you want to form your business.
There are two main reasons why you may want to consider forming either an LLC or a corporation: First, an LLC or corporation can protect your personal assets from the liabilities of the business. Second, a business entity will allow you to raise capital and share ownership and governance rights.
In addition to forming an entity, you may/will also need other basics, such as an Employee Identification Number, a business license, standard contracts and a bank account.
4. Build Your Brand and Choose the Right Marketing Tools for Your Business
You have to be creative when building your business’s customer base. Marketing is what brings a customer to you and your product/service is what will make a customer stay. Building a great brand is a must, but you also need a well put together strategy to attract customers. In today’s world, there are a ton of ways to get your brand name out there, social media being one of the most popular avenues. You may love social media or hate it, but you can’t ignore it. It occupies an important part in the lives of most people. We use it as a main source of communication and there is no denying its benefits, especially if you don’t have a large marketing budget.
5. Set Goals. Work Towards Those Goals. Evaluate the Results.
It is all about trial and error. There is no easy or perfect road to building a business. There is no simple recipe to follow that will guarantee your success. You will make mistakes and may stumble along the way, but that is how we learn.
One of the most common things that you will hear when starting your own business is that you are taking a risk. Sure, its risky, but what in life isn’t? If you have carefully considered the business you are starting and get assistance when you need it, then risks shouldn’t stop you from wanting to continue forward. With the right idea and great work ethics, your business has a higher rate of success.
Don’t sit out another year saying “Next year will be the year I start my own business.” Make this the year you really follow your dreams!