There are many factors to consider if you are looking to start a build a business from scratch. Sometimes it’s possible to skip the planning stage and start later working on the details; it’s however not a very smart move. Starting a business without a well laid-out plan can be a catalyst for failure. Not every venture is positioned for success and statistics show that 66.66% of business with employees only survive in the industry for about two years and about half survive for five years. It might, therefore, be a tough decision to make when you decide to quit your fulltime day job and begin the journey of becoming a owner. Below is a guide for all entrepreneurial folks who might be curious about how to start a small business.
1. Do your research
It’s most likely that you have a idea and it’s crucial to balance your idea with a little reality. Market research enables you to understand reasons as to why a customer will buy your product or services and not competitor’s. Market research is split into two main parts: Primary and secondary. Primary research studies the customers directly whereas secondary research gathers information about the behavior of potential customers and can be reports written on blog posts or websites about the industry. For your business to succeed, you will be required to fill a gap by offering what the industry wants.
2. Make a plan
You need a detailed plan to make a reality. A business plan is a blueprint that is used for planning out specific details about your business. It’s used to define what exactly the business is or what it intends to be overtime. Clarifying the main purpose and the direction allows to see what needs to be done for forward movement of your business.
3. Plan the costs
A small business to start requires only the initial investments and the ability to cover small expenses before you can turn into a profit. It’s important to have a well-laid plan on how you are going to manage your finances and keep spreadsheets that will estimate the one-time costs as well as you anticipate running for at least a year without making any profit.
4. Pick and register a business name
It’s important to know that name plays a crucial role in every aspect. So you should choose a good one. Explore your options and come up with the best that will suit. If your business is sole proprietorship, a state or county clerk will help you register your name.
5. Set up business location
Immediately after getting permit choose a strategic location to lay down your business. Make sure that location will work and will be easily accessible to your customers.
6. Promote your small business
You will need to create a marketing plan once is up and running to create awareness about your presence and also to attract more customers.