If you’ve gotten this far, it’s because you would like to know how to start a business, but you have no idea what your first step should be.
Many people are encouraged to start a business, even if it is a small one. And even more so nowadays with the crisis that exists in which having a job – whatever the type – is no longer a safe option and wages are getting worse.
The big problem is that there you are, determined or determined to open your own business , with all the enthusiasm in the world and willing to work 12 hours a day if necessary.
But you don’t know anything about business.
You don’t know whether to start an online or a physical business, 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: next I am going to show you the 8 steps you must take to start a business , from what type 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.
How to start your business in 8 steps
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 will be. However, many people although they are clear that they want to start an activity of this type, do not know what to do.
I cannot tell you what is the ideal business for you even if you tell me what things you are passionate about or what you have good knowledge about. 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 3 important factors: something you like, something you know or already have skills about, and something that is interesting to others.
You can decide to create a craft business because you like that activity and it is a sector that is in fashion; but if you don’t know how to make crafts, your project will fail.
Or you can think about selling templates for blogs and web designs because you know how to do it and it is a business that now leaves a lot of money. But if you don’t like it enough, or have little interest in it, it will show and you will end up having to close your business.
So think carefully about these 3 factors and make a list to decide on one venture or another.
2. Make your business plan
Do you already know what business you are going to start? If so, before you start going crazy looking for how to attract clients or where to get the money you need, it is essential that you make your business plan.
A business plan is a kind of “guide” where you will see the most important ideas of your project captured to guide you throughout the process.
Although the name may seem somewhat complicated to elaborate, do not worry, it is not as difficult as you think, and it will be very useful both to take the first step to start your business, and to solve future problems once you have opened your doors to your customers.
Your business plan does not need to be long (between 10 and 15 pages is enough), and in it you must answer the following basic questions:
- What will your business be?
- What are you going to sell in your business (products, services, etc.)
- Who will be your clients (men, women, how old are they, what interests, how much do they earn?)
- How are you going to reach them (social media, magazine advertising, flyers in their mailboxes)
- Who are your competitors and how can you differentiate yourself from them
- Where are you going to put your business (Internet, a physical location …)
- What equipment, materials, and expenses will you have (to create a budget of the necessary capital)
- How will you get to finance your project if you need capital (investors, your savings, your family)
- What risks are there
3. Seek financing if you need it
The next step is to find the money you need 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 consulting services, you may only need very little savings for a website that will cost you very little every month, and just under $ 50 for materials.
On the other hand, if your dream is to open a restaurant, a gym, or even a virtual clothing store, the investment will be greater and you probably don’t have enough money.
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 once; But when we talk about the ideal customer profile, we are referring to the people who are going to buy what you offer.
If you are going to sell women’s dresses that cost $ 150, chances are a man is not your ideal customer , and a woman with a very low salary is also not because she will not be able to afford it.
As if you offer online guitar courses not all men, women and children will be interested in it, only those who like it and want to learn to play these instruments.
That is why it is very important to identify your ideal client by making their profile.
Ask yourself if it is a man, a woman or are they children, how old are they, what are their tastes, what things do they buy and where do they buy them (online or in physical stores), what are their needs and what problems do they have and how is your product or service you can fix it.
5. Choose the location of your business
Once you know who your client is, where they buy, and you have obtained the necessary financing, you must choose the location of your business.
If you have verified that your clients tend to buy more through the Internet, this step will be very easy for you because you only have to buy a domain and a hosting to make your website and open your online business.
But if your buyers are more traditional – they like to go to a physical store to buy your products or services – or your company needs a physical place such as a warehouse or building, you will have to choose a location and premises.
In case you are going to open a store, make sure that it is located in a good place where people interested in what you sell pass, that it is accessible (public transport arrives, there is parking for cars) and that it has a good size for what you need.
6. Look for suppliers if you offer products
If you provide services in your business or you create your products yourself, you can skip this step and go to the next point.
But if you are going to sell products not manufactured by you, it is important that you look for good suppliers that serve you the goods.
The first thing is to think about what you need from your supplier: do you want your items to be good, but somewhat more expensive? Or do you prefer a lower quality but with less cost?
After thinking about this aspect, look for several distributors with the characteristics you have. You can start your search on the Internet, talking to other entrepreneurs in the same sector, going to merchant associations to see if they have supplier lists …
When you have found some providers, 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 you a better service with a cheaper price.
Remember that it is important that you test their services by making a small first order and, if you like the way they work with you, stick with it.
7. Register your business
At this point, before you start exercising your business, you will need to register it and request the necessary licenses and permits.
I cannot tell you exactly what procedures you will have to 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, while if you want to set up a cell phone store this will not be necessary, but you may have to process other documentation.
So the best thing will be to go to your town hall or the corresponding body, and request all the necessary information there.
8. Create your marketing plan to attract customers
This is the last step to start your business: create a marketing plan to know what message to transmit and through which channel to attract customers to your company.
For this, the customer profile you created in point 4 will also be very useful to you , because with it you will know where your customers move and what interests them most.
Your marketing plan should include:
- What objectives do you want to achieve (attract customers, retain them, get X more percentage of sales, etc.)
- What strategies are you going to use (advertising, social media posts, discounts, organization of events, contests …)
- What means will you use to put your plan into action (traditional advertising, digital marketing)
With these data, you must put your marketing plan into action to start publicizing your business and thus build your customer portfolio.
For example: if you sell sportswear and your clients 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 for you to promote yourself on this social network by publishing ads about sports, with images related to this sector, etc.
Starting a business can seem complicated; but if you go little by little, and step by step, thinking carefully about what you should do, it is easier than you think.
And best of all: once your project starts working, if you have done everything right, the benefits it will bring you will be a great reward for all your efforts.
And you, what type of business would you like to start this year? Leave me a comment below and tell me what you think.
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