Everybody wants to start a business or startup. But they don’t know how to start new business?
People want to start a business and many of them start a business but out of all some of them get success and others have to close down their business soon because they start a business without a proper business plan.
If you want to start a business, first of all, you have to learn about how to start new business?.
Generating or finding a good business idea is a great thing, but without executing or doing work on that you can not start a business.
Starting a business is not an easy task it required hard work, effort, proper plan and time.
Many new businesses closed down because they are not started with a proper plan. Did you know that 30% of new business failed within 1-2 starting years and 50% within 5 years and 66% within 10 years.
In this article, you will learn about the steps to starting a successful business.
In this article:
- Good business idea
- Market research
- Business plan
- Business structure
- All legal formalities
- Funding
- Marketing and sales
- Grow your business
- Conclusion
1. Good business idea
Business without an idea is not a business in my thinking because if you don't know what will you sale or in which market you will enter then how can you start a business. If you don’t have a business idea there is nothing for you in business.
If you want to start a business then first you have to find a business idea. Now you have a question about how to find a business idea?
Ideas are everywhere you have to just find it. So when you are finding a business idea consider these 3 key points:
(a) Innovative: Innovative means finding something new or creating better existing products or services with modification and provide a better one.
(b) Problem Solving: Your idea should be a problem solving or need fulfilling of peoples. Because people will not buy what you want to sale them, they will buy what they want.
(c) Profitable: Your idea should be a profit-generating idea for your business for a long time. Without a profitable idea, your business does not survive for a long time.
After finding a good idea is also not everything if you are not passionate or there is no market for your idea then your idea will never work.
2. Market Research
Market research is the next thing you have to do after finding a good idea. When you find a good business idea. Then you have to do market research for your idea.Market research is the main and important phase after finding a good idea. You have to do deep research on your idea.
Market research will help you to understand:
(a) Target Customers: Everyone is not your customer. It’s not necessary that the product or services you will provide will buy every one. So in market research, you have to find or identify your potential customers. The customers who want your products to buy. Identifying your target customers is an important thing in market research.
(b) Competition: If you are introducing a totally different product or service then you have not much competition in starting. But if you are launching a product or service which are already available in the market then you have many competitor and competition. You have to identify your competitor and competition in the market. You have to find many things like quality, quantity, price, etc about your competitor's product and services. And an idea about how can you beat them?
(c) Best location: The Best location is very important for every business. The best location also creates a good brand image. The location of a business affects the sales of products and services. The location where your target customers can reach you.
Example: If you are opening a medical store near a school then your target customers cannot reach you and your sales will also not increase and your business will not survive for a long time. But if you are opening a medical store near the hospital then your target customers can easily reach you and your sales will also increase and you can survive for a long time in the market.
After doing market research if you find that there is demand or need for your idea in the market then your idea is great but if you find that there is no demand and need of your idea then you have to go back to step 1.
3. Business Plan
A Business plan is the most important thing for every new or old business. The Business plan is an overview, base structure or a strategy to run a business for long term or visions and goals of a business.
A Business plan is all about the purpose of your business, what will you sale, whom will you sale, how will you finance your business? visions and goals of your business, how you will run your business? these all come under a business plan.
If you want to fund your business then it is must necessary to have a good and well-written business plan.
When you write a business plan must consider these points:
(a) Executive summary of your business: You have to write all key points and executive summary of your business plan including the idea, products, etc and all about your business.
(b) Vision and Goals: Write your long term and short term goals of your business and how you will achieve them and write all about your vision and goals.
Example: Like where your business will stand in the next 3 or 4 years, what will be the market value of your business etc.
Then brake the long term goals into short term goals and write how will you achieve them.
(c) Your Identified Market: Write your identified market which you have to identify in market research. Where your sales or your target customers will come and buy your products and services.
(d) Marketing Plan: In a marketing plan, you have to write a detailed explanation of your sales strategy, pricing plan, advertising and promotion plan and benefits of your products and services to your customers.
(e) Financial Plan: Write your financial plan for yearly and on monthly bases include your detailed financial statements. A financial analysis, a description of your funding requirements.
(f) Competitive Plan: In a competitive analysis, you have to analysis and write about direct and indirect competition. And how will you overcome the competition?
If you want a business plan template then you can download from bplans.com.
4. Business Structure
Before starting a business you have to select your legal business structure. There are many business structures you have to select business structure according to your business and needs.Some of them are:
(a) Sole Proprietorship: If you want to run your business entirely by yourself and plan to be responsible for all debt and other things than you can select sole proprietorship.
(b) Partnership: If you want to start a business with two or more people and want to share all debt, responsibilities and other things with them then you can register for partnership.
(c) Limited Liability Corporation: If you want to separate yourself entirely from your business and want to start a corporation then you can register for a limited liability corporation.
And there are many more business structures.
Ultimately, it all depends on you that which business structure is good for you and your business in the future.
5. All Legal Formalities
When you are starting a new business you to complete all legal formalities of your business according to your business type. You to complete the legal process according to government rules.
Example :
1. You have to register your business name.
2. Federal tax requirements.
3. State and local tax requirements.
4. Obtain business permits and licenses.
5. Follow business laws and regulations.
6. Funding
Funding is the most important part of every new and already running business. It might not be possible in many cases that you have already that much money for fulfilling all financial requirements for your business.Funding means the act of providing financial resources, money or other values to the business.
If you want to start a business and don’t have money then you need funding in terms of money.
If you want to fund then first you have to make a good business plan and you have to find investors who will invest in your business.
WHY YOU NEED FUNDING FOR YOUR BUSINESS :
- To purchase inventory, equipment, furniture, etc.
- To pay employees or hire more employees.
- For marketing your business.
And there are many more reasons for the need for funding in your business.
7. Marketing and Sales
Marketing and sales are the main pillars of every business.
Marketing: In simple meaning, marketing means to promote the buying and selling of a product or services. Advertising, selling, and delivering products to consumers all comes under marketing.
Marketing helps to build a good relationship between business and consumers.
Marketing helps the business to build trust and relation with the consumers.
Some Points Which comes under Marketing :
- Marketing Research
- Consumer Behavior
- Consumer Market
- Business Market
- Brand Management
- Product Management
- New Product Development
- Product Life Cycle
- Pricing Strategies
- Advertising and Promotions
Sales: Growth and profit of every business are also depending on the sales of products and services of your business. Without sales, your business will not survive for a long time.
You have to do more work on how you can increase sales of your products and services with the help of marketing.
8. Grow your Business
Starting a business is not a tough task but growing a business is a tough task.
To be successful and remain in business. both profitability and growth are important and necessary for a business.
In starting we have to put many effort and hard work to grow a business-facing many problems. You have to put much time and efforts to grow a business and apply different-2 methods.
Some methods to grow your business :
- Build a sales funnel.
- Simplify your business.
- Streamline your marketing message.
- Increase your business visibility.
- Work faster.
- Give something away.
- Promote your business.
Conclusion
About 90% of new businesses or startup’s because they start a business without a proper plan or proper business strategy and they have to shut down there startup’s.Starting a business is not a big task but without a proper business plan, it will fail defiantly and not survive for a long time.
When you are starting a business always start a business with proper plan and research and with a good idea to survive and to run a successful business in the future.
3 Comments
nice article man you break it
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