Everybody wants to be their own boss. The sheer desire to finally be free from being chained to a routine job.
Mostly everyone thinks that starting a business is hard. It is simple when you have the will and desire to start. It will also require due diligence when it comes to learning your business.
Here are the five simple steps you need to follow while starting a business from scratch;
1. Carry out an informal feasibility study
The first and significant step in starting a business is the feasibility study. The research will aid in determining whether services or items in the market are profitable. Secondly, it will eliminate all other uncertain ideas you currently have for starting a business.
How should you conduct a feasibility study? Do you need to pay people to help you out with it?
There are many ways you can carry out an informal feasibility study. But doing it yourself saves money.
Here are some of the suggestions:
- Observe your community. Knowing the needs of the community is one way of knowing a profitable product or service.
- Conduct surveys physically or online. There are social media platforms you can sign up to conduct the survey. If you have a business idea, you can ask them if they are willing to buy your product or service.
Never be discouraged with a few negative opinions. A lot of multi-billion businesses that are existing now are thought to be bad ideas. Be the one to continually innovate and improvise any challenges that might come against your business ideas.
After finishing the study, you should have the business idea you want to start with. Focus on that idea and proceed to the next step to start your business.
Also read: How to Prepare a Financial Feasibility Study
2. Establish a business plan
A business will not operate by itself with just your idea. Be sure to have a business plan. Business plans are written, or agreed-on plans that you want your company to operate by. These plans will include the vision you want to have for the company in the future. It will include the way you operate in rendering services or delivering products to your customers.
Here are essential elements to include in your business plan:
Your financial capability is the critical element to put your ideas into reality. You can use your own money to be the capital for the business. Or have it funded by a bank or an investor.
You need to know that whichever option you choose has its pros and cons. Investing with your own money can mean that you have to use a chunk of money to start your business. Investing your own money will give you 100% of the profit. But we all know that not everyone is capable of having enough money to start. So, you can pitch your ideas to investors or apply for a bank loan. Then, share your profit with the investors or pay your monthly mortgages.
Master the concept of cash flow. You will be meticulous about every spending and earning for your business.
- Business Structure and operation
The heart and soul of running the business is the structure. Business structure is where you need to identify your key persons and resources to run the whole business.
You can start building your business structure with the use of simple management tools. These tools will help you simplify your operation by incorporating flowcharts and diagrams to an ever-growing visual learner of our time. The understandable flow of the operation will significantly affect the performance and output of all elements involved.
You have to make sure that starting a business means you have to be hands-on in every step. Being hands-on does not need to be difficult when you have established a systematic business flow.
3. Choose the Business Name
Next, establish a catchy business name. It does not need to be a long and extravagant name. The name should be able to point out the services or products you are offering. There is no limit to the uniqueness you can formulate. But one simple thing you can do is make the Name + Services. Making it catchy is the tricky part. Use the data you acquired in your feasibility study.
Remember that the business name will be at the forefront of all that you are offering. The name will also mark in the minds of the customers for a good or bad service so make it a good one.
4. Decide the Business location
Next, you need to decide on the business location. Business location is where you expect your customers to interact with you. The location will also be your establishment where customers accept your services.
There are two feasible places to establish your location in our post-pandemic time: physically building your store or online. Both are great markets depending on how you establish your business.
The conventional way of building a store is costly. But these will still be the most marketable place to establish your business. Many people are still into buying their items physically.
The internet is the rising profitable market. Digital marketing has done a big part to expanding businesses. Marketing and operating your business online is the way to go for conservative spending.
5. Register your business
Lastly, register your business. Registering your business is an imperative move that will help your target market have confidence in your business. A registered business makes it easy for potential customers to establish you as a legitimate operator. It helps attract other business and funding opportunities.
There is a need for an official business registration when you want to apply for a business loan.
The ultimate protection for your business is registering it to your local government. Local governing authorities can ensure a legal business. You can have claims and rights to damages and frauds.
In summary, you have to know that starting a business is simple. Yet, you can see a fairly complex matrix of issues. You need to work out your priorities. Be flexible about your options. Work with due diligence in your research to make decisions in starting your business from scratch.