So, you
have a brilliant business concept that will change the world – now what? This
is a question that people ask themselves daily, but seldom have an answer. The
truth is, turning a concept into a practical business is much more difficult
than people would assume. However, with planning, organization, and a few
proven strategies, starting and maintaining that new business idea is
plausible. If you’d like to learn the best practices for how to start a business,
here is a step-by-step guide to follow.
Step 1 – Think of Your Business Idea
Most business ideas begin with a flash of
inspiration. Whether it’s something you saw online, a passion you have, or an
industry you believe needs better leaders, most businesses are created by some
sort of inspiration. The main problem several people encounter is not thinking
about whether that concept is best suited as a practical business or should be
allocated as a hobby.
That’s why the first step in starting a
business is to think about whether your idea can be turned into a profitable
business opportunity. A business should provide a good or service for a
consumer group for a fair market price. Start by writing down your business
idea and ask yourself whether you can turn the concept into a profitable
business before investing time, money, and sweat equity. And, don’t be afraid
to seek out the advice of friends, family, or other business owners.
Step 2 – Write a Business Plan
Once you’ve determined that your concept can be
turned into a profitable business, the next step is to determine how you’re
going to accomplish this task. This is where a detailed business plan comes
into play. A good business plan outlines several important business operational
steps such as defining your product, your targeted customer, operational needs,
investigating your competition, creating a marketing and start-up plan,
assessing your financial needs and current financial situation, and
establishing a plan on how you intend on reaching your customers and
stimulating business.
We’ll explain a few of these items in more
detail below.
Step 3 - Complete Market Research
It’s quite possible that others have come up
with your business idea prior, and perhaps they are currently in business in
your area. Before you start a business, you should investigate whether there
are others in your area providing similar services. Competitive market research
goes much further than simply seeking out others. You should find out how they
operate their business, what do they charge for goods or services, how do they
connect with customers, and what are their strengths and weaknesses?
This is a part of your business plan, and
you’ll quickly learn that a good business plan is always evolving the more
research you complete.
Step 4 - Outline Your Financial Needs
Every business requires some capital to start
and maintain operations. Some businesses can be started progressively, with
limited financial resources. However, several start-ups fail due to the
part-time concept. Regardless of your plan of action, you need to determine how
much capital you’ll need to operate and maintain your business before it
becomes profitable. Most new businesses require a few years in order to become
a profitable entity.
When you determine your financial needs, you’ll
also use this data in your business plan, as you’ll need to outline whether
you’ll need investment or loan capital to start the business correctly.
Step 5 – Set Up a Registered Business
The steps above will help you determine if
starting a business is practical based on your experience, finances,
competition, and legality. The next step is to start the action by registering
your business with local government. Each city, county, or providence has
unique regulations and requirements, so inquire with your municipality for
specifics.
Step 6 – Purchase an Insurance Policy
Once your business has been legally
established, it’s important to take steps to protect it. The first item should
be to retain an insurance policy that helps provide financial support for legal
defence against claims of impropriety by clients. A good start is business insurance,
which will help cover legal expenses if a civil claim is made against you or
your new business. This peace of mind protection allows you to focus on
building and developing your new business.
Step 7 – Develop Your Products and Services
When your business has been established and
you’re protected with insurance, it’s time to spend time developing your
products and services. If you’re offering services (such as online marketing,
consulting, or other skill-based advice) outline different levels of service
offerings, such as your hourly rate, any retainers required, and terms of service.
For products, begin the process of searching for suppliers of raw materials,
equipment, and locations to open your business.
Step 8 – Build the Team
Some start-up businesses are self-operated, but
that doesn’t need you can do everything yourself. A good business owner
understands the importance of allocating tasks to other team members – as to
not spread themselves too thin. In your business plan, you hopefully determined
how many employees or contractors you’ll need to start. This is the time to find
them and hire them.
Step 9 – Brand your Business and Start
Advertising
Any good business has a solid brand identity.
Whether it’s a catchy name, logo, tagline, or their identity, you need to
develop a good brand package before officially opening. This is an area where
you should seek professional guidance, especially since developing a strong
brand takes a large-scale approach. Consider searching online, such as
Upwork.com, where you can find experts in brand creation, such as building
logos, websites, and professional-written content.
When your brand identity has been finished,
which should include your logo, company colours, fonts, and of course, your
complete website, then begin your marketing and advertising program – again
established in your business plan.
Step 10 – Grow the Business
It usually takes a start-up business a few
years to become self-sustainable and profitable. However, the quicker you begin
to grow the business by connecting, networking, and reaching out to new
customers, the sooner you can become profitable. Consider setting up a
Linked-In page, Facebook, and other social media platforms to connect with
future customers and educate them about your industry and the services or goods
you offer. Connect locally with the chamber of commerce, or other business
owners like yourself, where you can perhaps trade services to help each other
grow. Your plan for business growth is another item that will be documented in
your business plan. The key is to follow it initially and fine-tune it as you
progress.
Developing a concept into a practical business
is going to take time, hard work, and likely cost you some money. However, if
you start with a proven plan on how to start a business, follow through with
each step, review your results, and adjust the plan overtime, you’ll find the
process to be much easier and effective.
