How to start your business in 8 steps (2020)
If you have come this far, it is because you would like to know how to start your own business, but you have no idea what your first step should be.
Many people are encouraging themselves to create an enterprise even if it is small. And more today with the crisis that exists in which having a job – whatever the type – is no longer a safe option and salaries are getting worse.
The big problem is that there you are, decided or determined to open your own business, with all the illusion of the world and willing to work 12 hours a day if necessary.
But you do not know anything about business.
You do not know whether to start an online business or a physical one, or what to sell or what services to offer; you have no idea if you will need a lot or little capital to start it, or how to attract customers and promote yourself to increase your profits.
You’re in luck: then I’m going to show you the eight steps you must take to start a business, from what kind of entrepreneurship is best for you, how to get financing, how to register your business, and create a marketing plan to have a good customer base.
1. Think about what your business will be
This step is clear to you: if you want to start a business, you must have an idea of what it is going to be. However, there are many people who, although they are clear that they want to start an activity of this type, do not know what to do.
I can not tell you what the ideal business is for you, even if you tell me what things you are passionate about or That is a decision exclusively yours.
But what I can do is give you some tips to clarify your ideas.
To create a successful venture, you must combine three important facts: Something that you like, something you know or what you already have skills, and something interesting for others.
You can decide to create a craft business because you like that activity, and it is a sector that is fashionable; but if you do not know how to do crafts, your project will fail.
Or you can think of selling templates for blogs and web designs because you know how to do it, and it’s a business that now leaves a lot of money. But if you do not like it enough, or you have little interest in that, it will is that noticed, and you will end up having to close your company.
So think well on those three factors and make a list to decide on a venture or another.
With our article 6 steps that will help you to know what business to put, you will be able to discover what your interests and your abilities are.
And with the post, How to know if your business idea will be profitable, you will find out if there is a market that is willing to buy what you sell.
2. Make your business plan
Do you already know what business you are going to put? If so, before starting to go crazy looking for how to attract customers or where to get the money you need, you must do your business plan.
A business plan is a kind of “guide” where you will see the essential ideas of your project reflected to guide you throughout the process.
Your business plan doesn’t need to belong (between 10 and 15 pages is enough), and in it, you will have to answer the following fundamental questions:
- What will your business be?
- What are you going to sell in your business (products, services, etc.)
- Who will your customers be (men, women, how old are they, what interests, how much do they earn?)
- How are you going to get to them (social networks, advertising in magazines, brochures in their mailboxes)
- Who are your competitors, and how can you differentiate yourself from them?
- Where are you going to start your business (Internet, a physical location )
- What equipment, materials, and expenses you will have (to create a budget of the necessary capital)
- How will you finance your project if you need money (investors, your savings, your family)
- What risks are there
3. Look for financing if you need it
The next step is to find the money necessary to start your business if you need it.
For example: if you want to create an online store where you sell your crafts or offer services as advice, you may only need very little savings for a website that will cost you very little each month, and just under $ 50 for the materials.
However, if your dream is to open a restaurant, a gym, or even a virtual clothing store, the investment will be more excellent, and you probably do not have enough money.
Read the following article to know what options you have to raise capital: How to get money to start your own business.
4. Create the profile of your ideal client
Surely for you, your ideal client is anyone who comes to your business and spends $ 500 at a time; but when we talk about the profile of the perfect client, we refer to the people who will buy what you offer.
If you are going to sell dresses for women that cost $ 150, it is most likely that a man is not your ideal customer, and that a woman with a meager salary is not because he will not be able to pay it.
Just as if you offer online guitar courses, not all men, women, and children will be interested in that, only those who like and want to learn to play this instrument.
That is why it is essential to identify your ideal client by making your profile.
Ask yourself if you are a man, a woman or are children, how old are you, what are your tastes, what do you buy and where do you buy them (online or in physical stores), what are your needs and what are your problems and how do your product or service? You can solve it.
5. Choose the location of your business
rehouse or a building, and you will have to choose a place and a location. N case you are going to set up a shop, make sure that it is located in the right place where people interested in what you sell, who is accessible (public transport, car parking), and have the correct size for what you need.
6. Find suppliers if you offer products
If in your business you provide services or you are the one who creates your products, you can skip this step and go to the next point.
But if you are going to sell products that are not manufactured by you, you must look for the right suppliers that serve you the goods.
The first thing is to think about what you need from your supplier: do you want your articles to be useful, but something more expensive? Or do you prefer a lower quality but with a lower cost?
Once you have thought about this aspect, look for several distributors with the features you were. You can start your search on the Internet, talking to other entrepreneurs in the same sector, going to associations of merchants to see if they have a supplier list.
When you have found some suppliers, talk to ALL of them and select the ones that interest you the most and then try to negotiate the prices to see which one provides the best service at the lowest price.
Remember that it is essential that you try their services by making a first small order and, if you like the way you work with you, continue with it.
7. Register your business
At this point, before you start exercising your business activity, you will need to register it and request the necessary licenses and permits.
I can not tell you exactly what procedures you should do because this is different for each type of company and each country.
For example, if you want to open a bar, apart from registering your business, you will also need licenses and permits to sell alcohol. In contrast, if you’re going to set up a cell phone store, this will not be necessary, but you may need to process other documentation.
So the best thing will be to go to your town hall or to the agency that corresponds and request there all the necessary information.
8. Create your marketing plan to attract customers
that is a step to start your business: create a marketing plan to know what message to transmit and why channel to attract customers to your company.
For this, the client profile you developed in point 4 will also be very useful, because, with it, you will know where your clients move and what they are most interested in.
Your marketing plan should include:
- What goals do you want to achieve (attract customers, build loyalty, get X percentage more sales, etc.)
- Which strategies are you going to use (advertising, social network publications, discounts, event organization, contests .)
- That means you will use to put your plan into action (traditional advertising, digital marketing)
With these data, you must put your marketing plan into action to start making your business known and thus build your customer.
For example: if you sell sportswear and your customers are men and women between 18 and 26 years old, who like to exercise and use Facebook and Twitter daily, the logical thing would be to promote yourself in this social network by publishing ads about sports, with images related to this sector, etc.
Starting a business may seem complicated, but if you go little by little, and step by step, thinking well what you should do, it is easier than you think.
And best of all: once your project begins to work, if you have done everything right, the benefits that will bring you will be an excellent reward for all your efforts.
And you, what kind of business would you like to start this year? Leave me a comment below and tell me what you think.