Entrepreneurship is a term which is very fascinating to think about. Everyone at some point of their life thought of starting a business but most of the people get scared when they get to know about the amount of work, efforts and dedication they need to put in to start a business.
Starting a business does not necessarily require a degree but involves planning, understanding finance, legal paperwork, etc.
There is not a particular answer to how to start a business? Or how to make a business successful? But there are some steps which you can follow as a beginner.
1) Find a product niche
Want to start a business, selecting a product niche is important.
Before you start a business you need to figure out what product or services you want to sell.
To choose a perfect product for your business you need to ask yourself 3 questions.
What is your passion?
What is your expertise?
What things do you personally use?
You may find more than one or multiple ideas as answer to these questions. Make a list of these ideas.
If this ideas are related or belong to a same niche then this can be the perfect niche for your business.
If not related then the second step may help you to get your ideas more refined.
2) Do market research
You might already have some ideas going through your mind when you are thinking of starting a business.
In order progress further with your business ideas and make money out of it you need do a market research.
Market research is very important to understand your potential customer’s need, your competitors, etc.
While doing a market research there are some points which you should keep in your mind-
- Is there any demand for your products.
- Who can be your potential customer.
- Is the size of the market large enough.
- Analyse your competitors strategy regarding pricing, quality, marketing, and delivering their products to their customers.
- Are you solving a problem.
It is very important to understand the opportunities in the market to grow your business on the right direction.
Market research will help you to know the consumer demand and your completions so that you fill up the gap with competitive pricing and better quality products.
Marketing research allows you to pick an idea from your list of ideas, your hobbies or your passion which can be turned into a profitable business.
3) Create a business plan
Everything and everyone need a plan to succeed and when it comes to converting your passion into a business a plan is much more needed.
Whether your business require funds or you want to start something with very limited money for example a website having a business plan is important.
You can consider it as a roadmap or summary of your business.
Your business plan should cover points like-
- types of product or service your business will offer
- who are your target audience
- what problems will you solve with your products
- companies legal structure
- product pricing
- Marketing strategy
- growth strategy
- future projection
4) Find a way to fund your business
Starting a business requires money for which you can use your own saving or obtain a loan. Most of the people start their business as a side hustle for which they pay from their salaries which they get from their regular 9 to 5 jobs and continue this process until they make a profit.
Most startups don’t survive because they run out of money before turning a profit.
Every business has different financial needs depending on their scale, size and types of products or services it will be selling.
These are the ways you can finance your business-
Bootstrapping is a way of financing your business with your existing resources. This process is also known a self-funding. This is the best way to finance your small business in the beginning stage when the capital requirement is less.
Crowdfunding is another option for raising funds for your business or start up and gained popularity with past few years.
Crowdfunding is raising funds in smaller amounts from large number of people and they don’t get any share in the company but expect some gifts or perks from the business and the owner retains the full control over the business.
These people are basically the fans and supporters of an idea.
Taking Small business loans is best suitable for people who don’t have enough funds to start their business and at the same time want to have full control over the business.
If your startup is well planned and growth oriented and require a significant funding then you should look for an investor who can invest in your business and in return get an active role and ownership in the company.
5) Choose a Business structure
Choosing a business structure for your startup is the most vital part and which influences your legal requirements and paperworks.
The business structure is directly related to the companie’s registration process, business name, liabilities and how you file your taxes.
The most common types of business structure are-
- Sole Proprietorship
- Limited Liability Company
Lastly choosing a business structure depends on you and your business need.
You may initially choose a different business structure and change the structure as your business grows.
If you are facing difficulty regarding the business structure in that case consulting a business counsellor or a legal advisor is not a bad idea.
6) Choose and register your business name
The business name represents your business so it needs to be simple and attractive at the same time.
In case of small businesses, after carefully selecting a business name you need to register it with your state government.
Corporations or LLC’s generally get their business name registered during formation paper work
Registering your business name is important prevent liability and the process again depends depend on the business structure and location.
7) Apply for required licences and permits
The requirement of different licence and permits depends on business activity, location and government rules.
You need to find out which licence or permits are required for your business as each allows your business to do something.
Some of the most commonly needed licences and permits are seller’s permit, business license, employment tax, etc.
8) Build a website
Having a professional website is very important for your business as it gives an online presence to your business which helps is attracting more clients.
Your website helps people to know about your business, what products and services it offers and how it can help them.
Basically website is a place where you can showcase your work and generate sales.
9) Open a business account
A business account make it make much easier for a business to keep a track on its income and expenditure.
By opening a business account for your business you are separating your business funds from your personal fund which results in limited personal liability.
10) Promote your business
When your business is ready to function and in order to reach more people and generate sales your business should have a proper marketing strategy.
Creating a unique logo for your business would help people to identify your brand from others.
Creating a professional website is also a part of your business marketing strategy.
Moreover you can use social media sites like facebook, instagram, linkedln, youtube and run ads on them to reach more people worldwide.
It takes a lot of efforts, motivation, patience and passion to start and grow a business. You have to take a lot of difficult decision.
You need to understand the market and connect with the right peoples but if done right nothing feels better than to be your own boss.
Can I start a Business with no money?
Yes, you can start a business without money. There are a lot of businesses which you can start with very low or no investment.
The success of any business does not depends on money or experience.
Rather it depends more on the business idea you choose and how you use the resources you already have, for example your skills, your expertise, your connections and also your intelligence.
Moreover any business can be finances if you find the correct investor. Also you can ask for some help from your family or friends.