Do you believe that your business idea is going to do wonder when launched in the market? Great! You have actually achieved the first step to start a business. But an idea alone is not going to help you in starting a business or making it a huge success.
So, what should you do
now? There is nothing to worry about. How to start a business is not a very
difficult question if you exactly know what you are up to. And definitely, we
are here to give you a helping hand in creating the complete start-up plan.
We are going to share
the top 10 things that you should be doing for starting a business. Just make
sure to keep your own business idea in view while reading these tips. It will
help you in creating an implementation strategy as you read this article. So,
let’s get started with the things that you should do for starting your own business.
1. Start with a business plan:
Even if you think a
business plan as a theoretical document, which might not help much in executing
the business idea, still start your business by creating a business plan.
When you’ll start your
work on your business plan, you’ll find a number of questions that are still
unanswered even after making a lot of plans. It is important that you should
find detailed answers to all such questions because these questions are going
to set the base for you.
Sometimes, you do have
the answers in mind, but phrasing them for the customers or the other parties
involved is not possible, so with the help of the business plan, you’ll
actually find answers to how to start your business.
Some of the prominent
aspects that your business plan should address include the details about the
legal structure, the potential revenue, the basic need, or the gap that your
product or service is going to fill in. Additionally, who is going to buy your
product, how are you going to deliver the product or service to the customers
and who else is in the market with the similar product or services are some of
the other questions that you would be addressing in your business plan.
The answers to all of
these questions are going to add to the value that your business is going to
provide to your customers. Starting a business with a higher value is going to
improve the chances of the success of your start-up.
It is better if you create the business plan on your own; however, there is professional help available out there that you can utilize and create the final version of the document.
2. Know your audience:
You can’t serve your
product or service to the masses. This is simply impossible. Why? Because every
individual out there is different. He/she is going to demand something
different, depending on his or her own requirements. So, how would it be
possible for you to customize the product to such a micro level? Even the
conglomerates and the industry giants can’t manage to adopt such a technique.
Even if it was
financially possible, it wouldn’t work when it comes to the establishment of
the brand image. With a highly customized brand, establish a unique brand image
won’t even be relevant. So, to address all such issues and to maintain
profitability from your business, it is important that you must know your
audience or the customers.
Now, when we have clarified that why is it important to know your customers, let’s shed some light on some of the important factors that you should include in this analysis along with the ways through which you can analyze your customer. Ready for that?
Firstly, demographic
variables are important when considering the habits and buying behavior of the
customers. Usually, people within the same age bracket, social status, economic
backgrounds like similar goods and services. So, you need to find out which
segment or group of people would like to buy your product or services. Apart
from demographic variables, the geographic, psychographic, and behavioral
attitudes of the individuals could provide you a base to find the audience for
your own business.
Before starting a
business, you must go for surveys and market research. These tactics will help
you in gathering the data and find what should be your desired target audience.
3. Analyze your competitors:
Competitors are often
looked down upon when starting a new business, but if you’ll see them from a
different perspective, they can actually be a blessing in disguise for you. If
you are not introducing something new, then your competitors would have already
established the demand for that product or services in the market. You only
need to attract customers for the business.
Moreover, your
competitors would have already faced all the challenges that are
industry-specific. In most cases, the solutions for these problems would also
have been identified in detail, and you can simply enter the market and reap
the profits. We understand it is not that simple; you need your own strategy.
But competitors can be a great learning source if you’ll make them one.
Similarly, the general
techniques adopted by the business would have to be adopted and fully analyzed
before you can expect your business to get recognition in the industry. For
example, if the existing competitors in the market are using traditional
marketing techniques, the best technique to grab the attention of the users
would be to spend some money on the traditional media before you dive into any
other form of advertising.
One more thing that we
would like to share here is that you’ll have to face two different types of
competitors in the industry i.e., direct competitors and indirect competitors.
Your first priority should be to cater to the strategies formed by the direct
competition and then move on to the secondary competition analysis if you have
enough resources.
4. Think about your business funding:
Funding for your
business is the most prominent question that comes as soon as you think of
starting a business. Isn’t it? We know this because that is actually a genuine
question and must be completely addressed even before making any implementing
strategy.
You can’t lay off your
new employees after two weeks of work just because you don’t have enough money
to pay for the full month. Similarly, the production of the product cannot stop
in between. The same goes for the purchase of the raw material. You’ll have to
make sure that from where would the finance for all these operations come.
There are multiple
sources that you can adopt. It would be appropriate if you’ll find all the
possible options, analyze the pros and cons of each, and then make the final
decision. Here we can share some of the
prominent funding sources, but you’ll have to carry on the remaining search
about the funding sources on your own.
You can use your own
funds to support your new start-up. But make sure that you have analyzed your
needs and the available investment with you. Similarly, you can apply for a
bank loan. Angel investing is another available technique that might work for
you if you are willing to share a certain percentage of your business with a
professional investor. Each of these methods of funding can be helpful,
depending upon how you actually utilize them for your benefit. So, look for the
right one and use it in the best possible way.
5. Find a relevant location:
Location is one of the
most important things to consider for a start-up when talking about a business
with a physical location. Why is location important? Because it can actually
help you in creating your brand image and drive the first few customers into
your business. (Remember, the first few customers are always difficult to
attract).
If you are going to
locate your business too far away from the target market, then how would your
potential customers know about your existence? So, there is no chance that they
would come to your business. Similarly, if the location in which you have
opened your business is not appropriate according to the social class you are
targeting, even then, you can’t expect your potential customers to visit you.
In order to get the best
out of the location aspect, it is important that your audience analysis is
complete and up to date; only then can you make a choice about the location.
Another important thing
that you should cover in the locational aspect is the overall layout of your
shop, business, store, etc. it can have the same impact on the audience as the
location itself. People won’t enter into your business if they think you have a
messy setup or you don’t feel organized. Give some importance to these
elements, as well.
Our suggestion here
would be not to compromise on the location even if you have to spend more than
the usual. Failure in the selection of the right location for your business
would be a disaster.
For the business solely
with an online presence, the website and other points of attraction would
fulfill the locational aspect, so make sure that everything is right.
6. Know the legal requirements:
Legally, you could be
responsible for fulfilling a number of tasks, which you could be totally
unaware of. So, the best thing that you can do here is to seek legal advice
from an attorney.
Registering your
business with the registrant, getting in the database of tax authorities,
applying compliance certificates for some specific standard maintenance are
amongst some of the legal obligations that you have before starting a business.
Your attorney will not
only guide you about these requirements but would also help you in getting
registered and going through all the complicated procedures.
7. Hire your team:
Now when you know most
of the things clearly about your business, it is the time to hire your team.
Keep in mind that your team is going to be the first point of interaction
between your business and your customers, so just don’t risk this first
interaction, in any case. Choose the best.
Here is a brief
procedure to help your recruitment process a bit easier. Firstly, you should
have complete knowledge about the number of positions that you require to fill
in the first stage along with the specific qualifications that you are looking
for. Secondly, you should advertise the job opening on the most relevant
platforms where you expect to generate the right talent, for example, if your
requirement is to hire a recent graduate or college student, it would be better
if you’ll contact the liaison office to find the exact match for your business.
Once you have advertised
for the positions you have, collect the resumes of the employees. Shortlist the
ones that are most relevant when it comes to the education and experience and
call only those candidates for the interviews that you’ll likely be able to
give the job. But that doesn’t mean that you should call only one of the
prospective team members for one opening. Experts say that this ration should
be around 3-5 employees per job opening.
Then is the time for the
interview. Conduct a detailed interview to know that everything fits your needs
properly. Go for a background check and then offer the selected employees the
job. Being a start-up you won’t be expected to provide any training to the
employees; however, if your work involves some technical points, then it would
be better to go for it.
Your job is not over
yet. Even not after hiring the right candidate for the right job. Now what? You
should keep them motivated and rewarded to get the best out of them for your
business.
8. Go for a test run:
For both the
product-oriented and service-oriented business, going for a test run can save
you from a lot of problems that you can find later on. And these problems, when
found in running a business, could create multiple problems for you, including
loss of significant investment, dent in the reputation, problems in the execution,
and establishment of the brand image that you received initially.
For the product-oriented
business, the test run could involve the production of a sample batch. It will
help you in analyzing the time required for the production of goods, quality of
the raw material, and skill of the worker, quality of the end product, and,
most importantly, the acceptance of your product in the target market. If any
of these things do not match up your standard, this is the time to rethink.
You can start from the
beginning and come up with a workable solution for any of the problems that
have been highlighted in the process.
The same is the case
with the service-oriented business, but here the experience of the customers
would be the most important determinant of quality. You can arrange services
free for a group of customers who are willing to volunteer, get their feedback,
and implement those changes so that you can prosper as a start-up business.
9. Be patient:
This is a piece of
advice more than a thing that you should do before starting a business. But you
should have it in mind clearly from the very first day you think of an idea for
your start-up. Your business is not
going to generate profit for you from the first day. You’ll have to spend all
your savings etc. on funding it for a certain period of time.
During this period,
you’ll have to be patient. You’ll have to make sure that everything is going
perfectly and according to the plan, and if everything will keep on working
smoothly, it is definitely going to pay you off.
Being patient doesn’t
mean that you should just keep on waiting for the profit patiently, but you
should also be consistent in showing your courage and motivation when it comes
to your business. You should not let your passion for your business dive down.
Only then can you expect to see a prospering business. It might take some time,
but it would definitely be there.
Another piece of advice
here make sure that your employees and team members are equally passionate
about the success of the business and are patient enough to achieve the
ultimate objectives that you have set to define your success.
10. Create a clear and vibrant message for the customers:
Lastly, when you have
made sure that you have the right team, everything is legally perfect, and you
have chosen the right location, now it is the time to grab the attention of
your customers.
Keep one thing in mind
that your customers won’t come to your business if you won’t communicate with
them. You’ll have to tell them who you are, why are you there, what is there to
offer and why they should leave the existing companies (your competitors) and
come to you.
All this can be done by
creating the right message directed towards the right audience. Apart from
that, the medium being used and the way your message is being communicated
would make the difference.
You can either go for
the marketing on your own or hire professionals for help so that there is no ambiguity
in the message or the way it is communicated.
Conclusion:
These 10 things are a
must before starting a business that you can’t ignore. You can definitely keep
on adding more activities and increase this list to a thousand different
things. But make sure you don’t forget any of these points when you are
answering “how to start a business.”
You can consider these
points as strategic decisions. You have a broad array of choices available in
front of you, and you have to choose which one is going to go with your
start-up plan. Make sure you evaluate the pros and cons of each technique while
making each of these strategies and then wait for the success to knock at your
door.
If you have any specific
questions about starting a business, then use the comments section below and
feel free to raise your voice. We’ll definitely be answering your questions as
our first priority. After all, your success is our success.
