Have you been keeping a business dream in your head for months or maybe even for years? Maybe it’s time to start your own business? A great small business always starts out as an idea, but you have to transform that idea into action.
What do you need to do before you start your own business?
Step 1: Concentrate on details
Think it over and over and pour your thoughts, desires, and vision on a piece of paper. The key to a successful small business, especially in the startup phase, is to keep things simple and costs low. Costs don’t just mean your monetary costs, but also your time.
Don’t get into a trap of creating a super planned list of things. It will take you a lot of time and efforts and it may turn quite a bit different direction.
So to get start your own business, create your own simple, one-page business plan that is a high-level overview of the small business you’re about to start.
- Define your vision. What are you expecting as an outcome of your business?
- Set your mission. Different to a vision, your mission should explain the reason your company exists and what makes it unique and outstanding?
- Specify your objectives. What are you going to do – what are your goals – that will lead to the accomplishment of your mission and your vision?
- Outline your basic strategies. How are you going to achieve the objectives you just set?
Write a simple action plan. Bullet out the smaller task-oriented actions required to achieve the stated objectives.
This is it. Don’t take too many words. Make it short but logical and thoughtfully detailed.
Step 2: Decide on a legal entity.
Filing paperwork to start your own business costs money. Often, depending on your state, it can be a lot of money. You’ll need to account for city or municipality licensing, state incorporation or business entity fees and more. Do a thorough search ahead of time to determine what the filing fees are for your city, county, and state before starting any business.
Often in the initial “test” phase for your small business, it can be wise to start as a sole proprietor, as it means less paperwork and up-front expenses. That can save you some big-time cash while you determine the viability of your business. Do be aware though that acting as a sole proprietor can put you at personal risk, so you’ll want to weigh the benefits vs. risks and then speak with a local attorney or tax professional to decide which is smarter for your short-term vs. long-term goals.
You can always file for a business entity once you’ve proven in the first three to six months of business that you’ve got a viable, sustainable model.
Step 3: Take care of the money and decide on a budget.
Whatever entity you choose, make sure you will keep the funds separate from your personal accounts. This is a big mistake that makes tax time and financials so confusing. Get a holding place you can keep your money separated from your personal accounts.
You also need to determine a budget to get started and how much you’ll be able to spend. If you’re self-funding, be realistic about numbers and whatever you anticipate your budget to be.Your burn rate is how much cash you’re spending a month over month. It’s an important number for you to figure out to determine how long you can stay in business before you need to turn a profit.
You should set up a business goal with profitability in mind the first 30 to 90 days. It’s possible. But have a budget reserve so you can survive if things go leaner than expected.
Step 4: Get your website, use it to brand yourself and advertise
No need to say that today the majority of relationships is built on information. No matter what sphere of work we are talking about, it is all about possessing some information, sharing it, selling it, discussing it, offering it as a product or service.
So no matter what niche you occupy in business, it won’t cause any trouble to tell about your business. Make it global. Use the internet for that. That’s why you need to create a website which will perfectly represent you as an owner, and your company, its goals, perspectives, benefits.With the help of the site you can start your own business.
A website means securing an URL. Popular domain sites today offer lots of possibilities to search for the website domain address of your choice and purchase it for a small amount of money. If you’re starting an online business, you can tie your domain to an online shopping cart and storefront for a low monthly fee, or you can build a basic website yourself on top of your URL with do-it-yourself drag-and-drop site builders for a low fee.
A company website and social media profiles are practically essential for any small business in today’s world. Create a logo that can help people easily identify your brand, and be consistent in using it across all of your platforms. Use social media to spread the word about your new company. You can even use social media as a promotional tool to offer coupons and discounts to followers once you launch. Be sure to also keep these digital assets up to date with relevant, interesting content about your business and industry.
Step 5: Build up team and connections
Running a business can be overwhelming, and you’re probably not going to be able to do it all on your own. Unless you’re planning to be your only employee, you’re going to need to hire a great team to get your company off the ground.
Your product is built by people. Identifying your founding team, understanding what gaps exist, and determining how and when you will address them should be the top priority. Figuring out how the team will work together is equally important. Defining roles and responsibility, a division of labor, how to give feedback, or how to work together when not everyone is in the same room will save you a lot of headaches down the line.A good team will help you start your own business successfully.
Except for creating a loyal team, collaborating with more established brands in your industry is a great way to achieve growth. Reach out to other companies or even influential bloggers and ask for some promotion in exchange for a free product sample or service. Partner with a charity organization and volunteer some of your time or products to get your name out there.
Your launch and first sales are only the beginning of your task as an entrepreneur. In order to make a profit and stay afloat, you always need to be growing your business. It’s going to take time and effort, but you’ll get out of your business what you put into it.