So you’re ready to take new direction in your life. You want to earn more money than what you have now and wish to enjoy a beautiful life of success. It is a dream all entrepreneurs have in common. When you have that dream, you are definitely sure to take the entrepreneurship path of life. Don’t step back. It is better to start it up than to regret in future for not chasing your dream.
Those dream are usually beautiful. You have pretty much imagine how successful your life could be in years to come. Don’t forget the risk though. It can turn out to be quite difficult to start, not to mention the difficulties in the process. But if you follow these steps, you could avoid a lot of hassle and save you from future headache.
So here they are, a step by step guide on how to start a business.
1. Brainstorm ideas
Every new business starts with ideas. You might have found an idea to solve people’s problems or you have something that you’re really passionate and knowledgeable about. You need to take some times to brainstorm and come out with an applicable concept.
List down your ideas, do a fast research for an existing businesses in the industry, learn how they do it and figure out your uniqueness compared to them. If you can deliver features that other companies can’t, you are increasing the percentage of your business success. Otherwise, you can offer similar products or services, but in faster way and in more affordable price.
You need to be sure that your business can solve market’s problems and you are really passionate about it because it is going to be a long run.
2. Develop a business plan
After you’ve brainstorm, research and came out with a good concept, you need to build the business plan. A business plan assists in figuring out the direction of your business and how it operates.
There are a lot of questions you need to define the answers. Here are some basic questions you need to ask and answer in your business plan:
- In what industry is your business?
- What products or services are you going to offer?
- How is the management structure of your company?
- Which market are you going to sell to?
- What is your marketing strategies and sales tactics?
- What is your short term and long term goals?
- How are you going to reach the goals?
- Where will your source of fund comes from?
3. Capital and finances
Starting a business requires capital. You can opt to use your savings or raise it from banks, investors or venture capital.
Though many entrepreneurs put their own savings into the startup they build, but you need to be really careful of the limitation of your own money. You need to have financial security while building your business. Based on this consideration, some entrepreneurs prefer commercial loan from the bank, some prefer partnering with investor and some prefer looking for venture capital, especially for startups requiring bigger funding.
Whatever your decision, it is advisable for you to have knowledge in capital shares and be sure of the administration of the legal documents.
4. Prepare your business’s legal documents
Before registering your company, you need to consider what is your business entity as this will affect everything regarding your business liability, personal liability and how your company handle taxes.
A sole proprietorship means that you own the business yourself and you are responsible for everything from operation, profits, debts and obligations.
A partnership means there are two or more people are involved in the business. They hold liability as business owners. You need to work on defining each responsibilities, liabilities, shares and profit sharing.
A corporation means there are two or more people has liabilities within the business apart from their personal liabilities. One of this type is limited liability corporation or LLC. As a separate entity, a business can have its own property, have its own bank accounts and pay its own taxes.
It is up to you to use which type of entity works best for your business needs. However, each country has their own business registering conditions. Be sure to consult with an eligible professional before deciding.
5. Build your business teams
Unless you’re the single owner who want to run the business yourself, you will need to hire and form one or more team with different responsibilities.
It starts from choosing the right individual for the right job. You might want to focus on personal behaviour and emotional value. Some people have great talents with great skills, but they lack positive attitude or they have good behaviour but don’t possess enough skills to fill in the requirements.
It is not easy, but putting a deep focus in choosing the right guy for the right place will save you from many future headaches.
6. Grow your business to reach the goals
After you launch the business, it is the time to think of getting your first sales and grow it. Growing a successful business takes time and effort. You need to run the strategies that you’ve defined in the business plan. You can stick to it but always stay alert. You are suggested to modify your strategies to suit current market conditions and needs. Something that runs well 2 to 3 years ago might not suitable anymore now.
Always put your eyes on the market and competitors. Try to learn from them, analyze their strategies and create something more engaging.
You can also collaborate and work together with established brands in relevant industry to achieve your marketing goals. Spare some budgets for advertising and promotions. You can keep it low budget at first to try which channels bring good feedbacks. Get into online advertising and social media to introduce your business. If you are not familiar with these channels, you can get someone or a company to help. Contact us at hello[at]aurosign.com if you need to discuss about digital marketing. We are more than happy to help.
Starting a business can be quite challenging and risky. But if you are getting prepared from day one, you are already ahead in the path of the entrepreneurship journey.
Wahidin Wong is a digital marketer. He is also a jazz and bossa lover.