Credit: Bob Al-Greene / Mashable
When it comes to starting your own business, it can be difficult to know where to start. After all, there are so many things to do. From coming up with the idea for the business itself, to creating a plan, to launching and getting things off the ground, the to-do list can seem daunting and never-ending.
According to Google Search Year 2021, last year, more people searched for “how to start a business” than “how to find a job.” And recent US Census data found that, in 2020, business formations rose nearly 42%. So if you’re thinking about starting a side hustle, you’re in good company.
With the seemingly shaky economic situation these days, it’s probably a smart move to diversify your sources of income, and starting a business is one way to do that. If you’re thinking about starting a business, here are five things you should do first.
1. Have an idea
The first step in starting a business is to have an idea. You don’t have to reinvent the wheel here, but it is important to consider how you will put your own stamp on it.
“It is important to ask yourself, why would people come to buy your product or service from you? What do you stand for?” says Tim Simons, Owner, Founder, and CEO of New York-based Build Coaching, which works with Fortune 500 clients including Spotify, Facebook, and Estée Lauder. On the same subject : How to choose a business mission that inspires you every day. “Once you know this, apply it to everything you do – websites, packaging, language, customer service, invoicing, etc.”
Simons, who works with businesses and individuals to plan, develop and grow towards a foundation of success, says entrepreneurs should have a clear understanding of their proposition, and how it fits into their niche.
“It’s really helpful to keep you in that lane and focus on doing it as well as it can be,” he said. “Sometimes too many ideas or opportunities can be a disadvantage, as you go an inch deep and a mile wide, instead of the other way around.”
2. Write out a plan and timeline
The next step to getting your business up and running is writing a business plan and timeline. If you need to secure funding to launch your idea, you’ll need a solid business plan to show a lender how you intend to become profitable. This may interest you : Lunch Business hosted by Stillwater Chamber of Commerce. Giving yourself a timeline helps hold you accountable and gives you goals to work towards.
A good business plan should include:
You may find, like Simons, that what you set out to do isn’t the right path, once you start following it – and that’s okay! Be open to pivoting, trying new things, and seeing where the journey takes you. Plans should not be set in stone. Part of being successful in business is staying flexible.
“When I left the corporate world after 15 years, I launched a business that was half leadership training and half marketing consultancy. It wasn’t clear that the training route was the way to go until about 10 months into the trip,” Simons said. “Not only because there is more demand and money coming my way for my coaching services, but because it has excited and excited me. That annoying saying of “if you love what you are, it doesn’t feel like work” kicked in and from there I narrowed everything down to a coaching business and started from that point in fact. Ten years later it’s still one of the best decisions I’ve ever made.”
3. Have your business admin done and ready
Simons says the next thing people should tackle when starting a business is making sure the administrative side of things is taken care of. On the same subject : Business Travel Show Europe. Some things that should be on your to-do list include:
Apply for federal/state tax ID numbers
Open a business bank account, credit card, and line of credit
Obtain a business license and/or permits
Consider what tools and software you will use
Once these things are in place you can get to work hiring your team (if you’re not taking the solopreneur route) and marketing your business.
4. Know your why
It can be easy to fall into the trap of starting a business only in the hope of becoming a golden goose. And while there’s nothing wrong with wanting your business to make a little (or a lot) of money, the most successful ones are often founded by people who know why they want to start a business .
“Make sure you know why you want to go down this path,” says Simons. “Better not to prove other people wrong, or because you think it all works by the beach.”
Whether you want to solve a problem, get more flexibility in your schedule, or yes – make more money – being clear about your why can help you stay focused, especially when the going gets tough (and probably will at some point).
5. Have a vision
Simons says the last step in starting a business is defining what success looks like. This could be financial targets, customer acquisition goals, or just working a certain number of hours each week.
“Your plan should include all the steps and milestones along the path to get there,” he says.
Defining what success looks like is crucial, as research shows that businesses with a formal plan have a 30% chance of growing sales and the potential to double their business.
“People should keep in mind that success is not a straight line, and this will feel like being on a walk sometimes,” says Simons. “You might go backwards to go forwards. What you thought might take a month, takes you 6 months, etc. You have to be nimble, flexible and ready to adjust your course when the wind changes.”
Other things to look out for when starting a business, according to Simons:
If you are working with a partner(s) be very clear about what you all want from this. Be consistent with how long you want to give it before you decide it’s not working (if it does, unfortunately it does for most new businesses).
Get support (not your family and friends, but a coach, mentor, accountant, or whoever, but someone to hold you accountable and break through the rose colored glasses that show you are the next Uber) .
What is your plan for weight? By starting your own business, you have just invited pressure into your life. It will walk beside you every day on this journey, so do you know how to recognize it and how to embrace it and turn it into high performance?
Can you be your own leader? Can you create a culture and vision to work under, and then be the employee the leader needs? You are in both shoes when you start running your own world.
How will you manage fatigue? This is a marathon, not a sprint. And if you don’t rest and heal along the way, you won’t make it.
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What are the 4 things you need to start a business?
from Mashable which may occasionally contain advertising or sponsored content.
- The first thing you will need is money. Starting a business, even a small one, requires cash or credit up front and, if you decide to buy an existing brick and mortar business, it may require a significant down payment…
- Website.
- Business Cards.
- Credit card processor account.
Furniture.
Why do businesses fail?
What are the 4 main elements of starting a business? A successful small business must have 4 things in their corner – product, market, money and people. Whether you’re a start-up looking for venture capital or you want to become a successful small business on your own, there are a few basic – but important – components that every business must have .
Among the most common reasons small businesses fail are lack of capital or funding, retaining an inadequate management team, faulty infrastructure or business model, and unsuccessful marketing initiatives.
What does a business need most?
What is the #1 reason businesses fail? 82% of small businesses fail due to cash flow problems. And while most small business owners agree that cash flow is the #1 risk for small businesses, cash flow is also an umbrella term—a symptom, if you will—of several underlying causes.
