When It comes to starting a business, It can be started by anyone today, from school pass outs to postgraduates from MBA colleges; businesses can be of any shape and form. You do not need a lot of money or business experience for your business to be successful. All you need is a plan and knowledge to execute it efficiently.
Steps For Starting A Business
The first thing to do is ask yourself why you want to start a business. This question will help you to decide what kind of business you want to start. Then you need to figure out the capital, for which a side job may be necessary.
The next step is to come up with a business idea. If you already have a business then you can skip this step. If you do not have an idea, there was a lot of ways to brainstorm and come up with ideas. Here are a few tips that will help you:
- Predict what’s next: Try to predict and think about future trends or technological advancements that will have an impact on the business environment. Figure out a way to get first mover advantage on these advancements.
- Find solutions: Try finding solutions to existing problems faced by a large group of people.
- Try a different field: You may be accustomed to thinking in a particular way because of the field you work in. Try to apply your skills in another field. You may find that you have a different perspective and a new approach.
- More efficient approach: If you have an idea which already exists, try to think of ways in which you can make a more efficient model of the existing idea.
Another crucial step is competitor analysis. You should start researching about your rivals or partners. You should check if someone else is already doing what you want to do. If not, is there a good reason behind it? Market research will also help a business in deciding what new products or services will bring the maximum profit. You can conduct face to face or telephonic interviews. You can also make questionnaires and surveys which ask the right questions and collect the relevant data.
Let people use your product or service and ask them what they think about it. Collecting feedback is very important as it gives you certain insights that you might have missed. One of the most popular to collect feedback is to follow the “Lean Startup” approach. It involves three basic pillars: prototyping, experimenting, and pivoting. You should offer a product, collect feedback, then make changes according to the feedback before offering the next product.
The next step is to make sure all the legal procedures are taken care of. Once you have made sure everything is in accordance with the law, you do not have to worry about anyone suing you or someone using your idea. A few things you need to take care of are:
- Structure of your business
- Name of your business
- Registration of your business
- State Tax ID
- Federal Tax ID
- Licenses and Permits
- Bank account
- Intellectual Property Rights
You can do some tasks on your own, but it is advised to consult a lawyer when you are starting out to make sure you have not missed anything.
There are many ways to get the resources required to start your business. Listed below are some of the most popular ways to finance your business:
- You can fund your business yourself. This might take time, but you can have complete control over your equity.
- You can alternatively pitch your business idea to your friends and family to get an investment.
- You can also request for a government grant. You can search online for these grants, but you will have to do your research before choosing a grant. It is a long process, but you do not lose any equity.
For your business idea to come to life, you will need a team. You will need to delegate tasks to them. Here are some tips to help you in team building:
- Make sure your team understands your goals and the vision you have for the business.
- You need to follow certain hiring protocols. In a start-up, a lot of factors need to be considered and the right questions need to be asked while hiring.
You need to find a location. This can mean an office or a store depending on your business idea. The things to be considered while finding a location are:
- Operation Style: The location should suit the style and image of the business.
- Demographics: You need to figure out who are your potential customers and where they stay. Find out if it is important to be close to your customers depending on your business model.
- Infrastructure: Depending on your business idea, decide if the building’s condition can support your operational activities. For example, Businesses needing fast internet connectivity might not be able to work in old buildings.
- Rent and other Costs: Rent is the biggest factor in decision-making. Also, make sure to find out other costs which might come up later.
Scaling a Business
You should know how to grow your business once you have started it. You should know if your business requires more Digital Marketing or offline marketing. Social media is one of the effective marketing tools today. Once you have new customers, you should know how to retain them. There should be a relationship between the customer and the business. Having a business is a constant process of learning.