If you are like most Americans, the thought of starting your own business can be extremely exciting if not overwhelming. Given the freedom that comes with being your own boss and the possibility of building a commercial empire, many people would consider leaving their day jobs to become small business entrepreneurs. However, it isn’t always as easy as it may sound!
Starting a successful business takes a lot of careful consideration, research, planning, and preparation. The latter is by far one of the most crucial factors in the process. Assuming you already have a business idea that you want to actualize, what preparation steps should you take before getting started?
Here are some crucial steps you shouldn’t skip when preparing to start a business.
Have a Business Plan
One of the best ways to plan anything is to put it down on paper. In this regard, a business plan is basically a drafted document that contains crucial details about your business idea, the business model, goals, objectives, and how your operations will be run. It also includes a summary of the products and services and how you intend to get them out there to your target customers.
A good business plan will also include market analysis as well as your marketing strategy. It should also contain the budget as well as the financial planning bit. Before you draw up a business plan, it is crucial to first conduct research, assess the target market, and know your competitors. Here’s a formal summary of things a business plan should contain.
- Executive Summary
- Company Overview
- Target Market
- Products & Services
- Marketing Plan
- Financial Plan
- Administration Team
- Metrics & Milestones
Plan to Take It Online
In today’s overly-competitive business environment, a commanding online presence is a must if you want to claim a bigger share of the market and grow towards success. All in all, the internet is among the most effective marketing tools of this era, so you don’t want to be left behind.
If you’re planning to start an online business, Steve West’s article on the Entrepreneur Nut explains how you can start making money in slightly over a fortnight. He reviews David Sharpe’s legendary marketer challenge, which covers the basics of how to build an income-ready online business in 15 days. Whether you’re an experienced marketer or a digital marketing beginner, you may find the resources helpful.
Here are a few things to consider when planning to take your business online:
- Get a unique domain name
- Find a reliable website designer
- Create a stunning website
- Produce lots of valuable content
- Invest in SEO so your website can easily be found online
- Find ways to generate traffic to your site
Assess Your Funding Options
Starting a business is rarely a cheap undertaking. Funding can come from your savings, for instance, or you could take out a business loan and pay with interest. Grants, ghost investors, and crowdfunding are also potential options for funding a new business in case you don’t have enough savings or access to credit. When planning funds to start a business, you should also think about funds to keep it running. Your business is more likely to succeed if you choose the best funding option.
Ask Yourself Some Questions (And Realistically Answer Them)
Despite the many perks of entrepreneurship, it also comes with certain drawbacks and challenges. Answering the following questions can help you determine if becoming an entrepreneur is what you really want or need. They can also help prepare your mindset and even give you insights into things you can do to maximize the chances of success for your business.
- Why do I want to start this business?
- Do I have everything I need to get started?
- Are my skills relevant to this business?
- I’m I experienced in this industry?
- Will this be a part-time or full-time venture?
Get the Required Permits and Licenses
These are the documents needed by the government and regulatory authorities for a business to be considered legitimate. Now, the permits or licenses you need to start a business may vary depending on various things, including your industry, the type of business, the size of the business, and so forth.
You may not always know which documents you need, which is all the more reason research is paramount. You can also pay a visit to the courthouse or city hall in your local area for more info on the business licenses and permits you might need. The latter is especially helpful since different jurisdictions may have different regulatory requirements for starting and operating certain businesses.
Lastly, don’t forget to consider whether or not you need insurance for your business. For branding and marketing purposes, you may also need a trademark and logo for your business. Your business name should also be unique, so you’ll want to conduct research beforehand to confirm that the name you have in mind is not yet taken.