So you want to start your business-congratulations. Well, the idea can be so exciting and after the excitement, it’s time to break down the process into a manageable procedure to ensure the desired result can be achieved.
Every new startup business idea has the potential to grow when the homework prior to the start is done properly. These step might seem like a waste of time, but it’s what prevent the cracks in the wall that eventually lead to the collapse of the business.
According to reports about business startups.
- Nearly all businesses are small (99.7 percent in the U.S.; even more outside the U.S.).
- Roughly half the world’s workforce work for small businesses.
- Nearly two-thirds of new jobs in our economy come from small businesses.
- Nearly half the GDP and almost ALL of U.S. exports come from small business.
According to a recent Gallup poll, more than 400,000 new businesses will launch in the U.S. in 2015.However, as positive as all of this sounds, many new small businesses fail before they reach five years.
To give you the best chance of surviving the teething period we’ve compiled the top 15 things from researching before you take the plunge.
What do you need to do now?
- Business idea is in line with your passion
Make sure your business concept is something that will keep your interest in the long run. This is vital and keeps your dream intact. According to Thomas Shinick, professor at Adelphi University in Garden City, N.Y. and president and CEO of Corporate Development Partners, a management consulting firm, “You have to have a degree of passion if you are going to start a business,”
You’ll spend a lot of time in developing your business trying hard to take it off the ground, make sure it’s something you’ll invest your time in pursuing.
- Determine the viability of your idea
Your business startup business idea should make you profit and delivering. Just sit down and ask yourself will I buy this product if I will be the customer? Will the customer pay enough that will cover your cost of production and makes you profit?
- Make your product unique
You may not be Bill Gates or Steve Jobs who their inventions change the world, in other words, you must not reinvent the wheel to have a product or service, but you just have to change something small that makes your product stand out.
For instance, amazon.com makes 100 billion profits yearly but what did amazon.com, a small website that was created initially to sell eBooks, did differently? They took the idea of Wal-Mart-a grocery store meant to sell a thing at a cheaper rate and created the online version of it.
You too can do the same. What idea of the business product do you have? Is there a similar product in the market? What can you do to create a new unique product from it? Answering all these questions gives you a unique product or service. But remember your main concern is to come up with a product everyone will appreciate in the marketplace.
- Educate yourself
Take a course either online or offline to know the basic and important things about starting a business. You can equally work for a firm to know how to business is run. For instance, an entrepreneur who wants to start a school can work part time to know how the school works.
” Shinick said. “If you can, work part time in the industry so that you get a feel for the business.”
- Define your target audience
You cannot appeal to anyone. Because appealing to everyone appeals to no one. When you determine your audience, it enables you to focus your product/service, the marketing campaign to the right audience that will buy and makes you profit.
To know your target audience, you’ll have to test, test and test using several means like the social media, blogs, and videos. Put your target market into the product/service development process by asking them about their opinion.
These makes your prospective customers happy for making them important and will increase the likelihood of recommending you to others.
- Do a feasibility study
Further carry on an assessment of the practicality of your business before the startup. A feasibility study can product Optimal Timing Identification, Cash Flow Projections and Labor Analysis.
- Write a business plan
Many may argue about these is not important but when you fail to plan, that means you’re planning to fail. This business plan will help you find investors, obtain the capital you need and ensure that the business will work according to plan. A well thought business will have a business plan.
- Paying yourself
How will you pay yourself? This is a crucial question that needs to be addressed. With the business in mind and the growth which will be required, you’ll equally need a roof over your head, eat and drink. You’ll have to delay gratification and live on the things you need. most investors tag you a serious entrepreneur when you begin to pay yourself, at least, six months from the startup date.
- Name your business
Take time and think of a name that will be appealing and represent your business. Your business name must not be difficult to remember, too long and unique that people will find attractive.
- Your USP
Why must customer buy from you? Well, they when you offer them something better or something different from what they’re used to. Your Unique selling Proposition (USP) defines your product and tells the customer what is special about the product.
Your USP can be customer experience, after sales support, product uniqueness, product price or product quality and quantity.
- Find an accountant
These are valuable and professional financial advisors. Sarah Burningham, owner of Little Bird, a New York-based public relations, marketing, and branding firm said, “I had a full-time job as I considered starting my own business in 2009, but I did a lot of groundwork before I started, and bringing on an accountant was an important step,”.
An accountant helps you to make sure you profit by helping you with balancing your financial plan and to know the ins and out of taxes from state and federal. They also tend to advice where to save your money and to interpret financial results.
- Licensing and legal issues
You may need to know what licensing you’ll need before you can sell your product. These are very important if your product falls under food/beverages, health and cosmetic products. There is a host of legal obligation which you’ll need to meet, from sales to distribution agreement are binding and contracted.
- Get a bank account
You’ll need to ensure the business to avoid loss. Insurance makes it possible to transfer equitable of the risk of a loss, from one entity to another in exchange for money. Check around and see which insurance is good with lots of benefits
- Find a mentor
It’s not bad for you to find someone who you can run to for advice. The mentor should have an experience in business for guidance. That person can be your friend, family member and someone you can seek even online.