If you are set on starting your own business, there are some basic steps you should follow such as market research, business planning, financing, and choosing the right business mode model for you.
Many people want the freedom and financial independence of starting a business of their own.
They view it as having to work less, get paid more, and hope that it will give them the flexibility to run their lives as they want.
But be careful! While these are all possibilities, there are also drawbacks to running your own business, such as the increased responsibilities, the financial worries and risk, and possibly working longer hours and harder than ever before. Here is where to start when you want to build your own business with some extra help.
But in the meantime here are few valuable tips that you need to keep in mind when starting a new business for the first time.
1- Start with an Idea
What is your great idea? What secret do you know that nobody else’s knows? How could you help people in such a way that nobody else’s can?
Think about what you would like to do.
Put yourself in the shoes of your potential market.
Do you think they will buy your product? Yes? Then we proceed to the next step.
2- Market Research
Do your market research.
Make sure you have an audience for your product or service, whatever it is before you invest any money or waste to much time in a business that could fail from the get-go for failing to do proper market research.
You may have a wonderful product, but you haven’t studied who specifically needs and wants this product. If this is the case, there is very little chance that your product will be found by the right people.
Also, look into your competition. Where are they hand what are they doing to attract clients?
Your Chamber of Commerce can also give you advice on how to do market research, as well as other contacts you could use. You could also consult with an expert, or even search the web for articles on market research. I’m sure you’ll find many.
3 – Licensing and Regulations
Check with your local regulating agency as to what is required for your business.
Some businesses are regulated, particularly if there are any imports or if you are professionally regulated.
Government websites should be able to tell you anything you need to know about the required licensing, including business license requirements.
You should also be able to find out information on any import programs or government grants available for new businesses.
4- Financing
Every business requires some upfront financing, regardless of its size.
You should make sure that you’ve done a full business plan so that you understand what financing you will require.
Most people will start their first business with some of their own savings and possibly some “love money” from friends or relatives. However, you can obtain loans and grants to start your new business. Energy Innovation Capital is available for start-ups looking to change things up in the energy sector. It’s always worth checking what grants or funding are available to help you get off the ground.
Make sure that you have the required funding before you go out and start. And stick to the plan! Don’t move too fast or too hard, or you may find yourself unable to meet the financial demands of the business.
Having calculated the financial requirement before you start will be very beneficial and put you on the right track from the beginning of your business venture.
You also need to spend time managing the finances successfully and also finding ways to be transparent. Using cloud management services can help you to understand where you are at with incoming and outgoing money. Within them, you can use things like aws cost allocation tags so that you can pinpoint what money is what. For a new business, this is essential to highlight areas that are working and also areas that are not serving their purpose.
5- Business Model
Don’t try to reinvent the wheel. Try to follow a reliable business model instead.
Whether it’s a retail store, a marketing program, an e-commerce shop, mail order, or even a professional office, use a model that has proven to work, and you will be ahead of the game from the start.
Ask questions to people in the industry, they may be willing to give you advice. In order to do this, it’s a good idea to network with other successful entrepreneurs and pick their brains.
The rule of thumb to start a successful business is to be prepared, be aware, investigate, and gather as much information as you can. When you have all your data in place, moving forward will be easier, and you’ll be able to avoid many hurdles.
Hi Sylviane, such a practical post for those wanting to start their own business.
It’s sad how the vast majority of people overlook the fundamentals of market research and planning and dive head first into establishing the business.
I like the part you mentioned on not trying to reinvent the wheel as there are plenty profitable businesses to use as a guide to success.
If we focus more on the initial market research and find a smaller sub niche that is yet to be tapped into, we can surely find a sweeter spot than competing with already established businesses.
So instead of following the crowd and mining for gold we could rather supply all the tools required for the mining wich inevitably puts us in a position of higher demand.
That’s just my 2 cents:) Thanks again for a great post