The question on the mind of every entrepreneur who wants to start a business is how do I go about it, what does it really mean or take to start a business?
Starting a business takes a lot of research and effort so that such a business can be a success, to start a business, you must eliminate the spirit of fear but have it at the back of your mind that you are taking a risk and to overcome every risk is to challenge it and still stand on your feet.
Launching a business really comes down to seven things, if your business meets these criteria, then the remaining will fall into place.
1. Be Passionate
You don’t have to love whatever your business is about (and probably shouldn’t), but you do have to be fired up about it. You’re going to devote a lot of time and energy to starting a business and building it into a successful enterprise, so it’s really important that you truly deeply enjoy what you do, whether it be running fishing charters, creating pottery, or providing financial advice.
2. Start While You Are Still Employed
How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you’re starting a business means money in your pocket while you’re going through the start-up process.
3. Partnership Agreement
Starting and running a new business is a challenge, especially for one person. These days, most standard companies are been established by two or more founders.
Before you start running a business, it is important that all partners and founders of the business have a clear understanding and agreement of ownership and responsibilities. A business that is built with cooperation, communication and understanding is born to progress.
4) Write a Business Plan
The main reason for doing a business plan first when you’re thinking of starting a business is that it can help you avoid sinking your time and money into starting a business that will not succeed.
The business plan is the proverbial roadmap that companies follow. It generally plans a few years ahead and summarizes the direction the company expects to take moving forward.
Some key components of the business plan include:
- Executive summary –This is the most important section of a business plan and is usually written last. It includes the mission statement, company and financial information and future growth expectations. An executive summary briefly answers general questions about the company and highlights assets.
- Company description – Details the products or services the company provides, who the target audience is and how the company plans to meet the needs of its potential customers.
- Market analysis – Includes market research findings, such as market trends, customer supply and demand patterns and competitor analysis.
- Market & Sales – Explain the marketing and sales strategies for the business, how growth is expected to be achieved and how to reach new customers.
- Financial Projections – Be sure to present historical financial data, such as company income statements and balance sheets, as well as projected financial statistics, i.e. future income statements, balance sheets and cash flow statements.
A strong business plan is an essential part of a company’s success because it breaks down every layer of business strategy and in turn, helps expand the company into something more.
Don’t waste your big idea. Plan ahead, research and get on the path toward future success.
5. Do Your Research
You will do a lot of research writing a business plan, but that’s just a start. When you’re starting a business, you need to become an expert on your industry, products, and services. It is good to join related industry or professional associations before you start your business is a great idea.
6. Minimal Viable Product
This is a development technique in which a new product is introduced in the market with basic features, but enough to get the attentions of the customers, the final product is released only after getting sufficient feedback from the product’s initial users.
Many entrepreneurs have grand ideas for their business, with short and long terms, so it is important to understand the true value delivered and how your base product or service will deliver on this.
Once you understand this, you can research and determine whether market demand exists for your offering. This is important to do before you go about adding features and additional services.
7. Customer Number One
While an entrepreneur may develop a spectacular business plan and be able to effectively communicate the value of the business, all of it means nothing if nobody buys your offering.
Many entrepreneurs mistakenly think that lack of capital (money) is the main reason companies fail. Yes, lack of resources and cash flow planning can sink a company, but in reality, capital is a small problem if you have market demand.
Think about these two scenarios:
- I have a great idea but not enough capital to make it and get it to market.
- I have customers that want my product but not enough capital to deliver.
One of these two scenarios will have a much easier time finding the capital needed to successful move to the next stage.
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