According to Small Business Administration, ‘’There are more than 28 million small businesses in the US making up 99.7% of all US revenues. Why do you want to start a small business? Is it a personal investment? Do you have a unique business idea or need financial freedom? Whatever your reasons are, note that it is not always easy.
A lot of businesses have failed. Only about 2/3 of businesses with employees survive for at least 2 years and about half survive 5 years. This can be very hard at the beginning. You may even feel like quitting. The essence of this article is to help you start your business and manage it successfully. You can consider them.
Am sure you have a business idea already. Check the ability of this ideal to become a reality. Run a validation process to see if it will succeed. For your business to be successful, it has to be problem-solving. Do research, ask questions, and find out how your business can solve a problem. Answers to the questions below can help you:
- Firstly, what value do I want to add?
- Secondly, are there competitors?
- Also, how can my product stand out?
Make a Plan
A business plan is necessary. This will guide your business from the start-up phase to establishment and growth. To get financial help, get a traditional business plan. This is usually long and thorough as investors and banks must review this before lending you money. If you don’t need financial help, you can make your business plan to be one page.
Plan your Finances
Plan and write down how much you want to spend at each stage. Write a spreadsheet of start-up costs, the money on how to run the business daily. Plan how much you will spend on licenses, permits, equipment, legal fees, insurance, branding, market research, inventory, salary, etc. You can fund your business through the followings:
- Firstly, crowdfunding
- Secondly, angel investors
- Thirdly, small business grants
- Small business loans
- You can as well bootstrap with the little capital you have.
Choose a Business Structure
What I mean here is do you want your business to be:
- A partnership
- Limited liability company
- Sole proprietorship
Remember that the business entity you pick will affect the business name, liability, and taxes. You can choose one from the beginning and advance to another later. If your business is big, you may need the services of an attorney.
Pick and Register your business name
Choose your business name, it should be simple, easy to remember. Register your business in the right place. After selecting your business name, choose a domain name and register it too.
Obtain License and Permits
Go to the right authority to get the necessary permits and licenses for your small business Do research to know all the details and obtain the permits you need.
Choose your Accounting System
Get an accounting system for your business. Create a budget set prices for your business, file taxes, and hire an accountant.
Set your businesses location
These include deciding the location. It could be an office, a rented space, or a private property. Ensure that your location is close to where you can get the customers you need.
Get your team ready
In case you choose to have employees, build a team. Hire them and tell them their responsibilities and obligations. The small business Administration has an ideal guide for hiring your first employees. But if you want to outsource work for independent contractors, get an attorney.
However, if you are starting this alone, do well to get a mentor, a business coach, or a family to help you out.
Do a lot of Promotion
When your businesses is already running, you will need a lot of promotions to attract customers. Tell your friends to tell their friends. Also, use social media to your advantage. Advertise your business and the product you offer on FaceBook, Instagram, Twitter, LinkeIn, and any other place you can. Write unique selling propositions and create marketing plans.
If you are able to do all of the above, you can easily start your business and gradually succeed.