4 steps to starting a business for budding entrepreneurs
So, you’ve birthed a revolutionary idea and you’re sure it’s bound to be a hit. But, you’re unsure how to morph that idea into a well-oiled business that fulfils a need and generates a profit.
In a world saturated with big ideas, maintaining confidence in your idea can be hard, even if you know it’s a good one. Budding entrepreneurs can find it difficult to move from an idea to a business.
No one can blame you for that crippling uncertainty. In fact, it’s what prevents many budding entrepreneurs from turning ideas into full-fledged businesses.
To make sure your idea doesn’t deflate like a discarded balloon, consider these steps to help you kick-start your business:
1) Turn your sketch into a drawing
Your initial idea is like a fork with a single tine: it won’t do much. Your idea should have many facets, just how a fork should have several tines. Once you’ve decided on an idea, you have to consider your target market, existing companies in your industry, what your niche in that industry will be, and what will separate you from other brands.
Most importantly, you have to know why you’re launching your businesses. Sadly, consumers are so used to dealing with unfair business practices that they’re numb to it. But when they come across a business with personality and passion, they’re eager to engage with that business.
Don’t skimp on the research phase of building a business. You must have a comprehensive knowledge of what key players in your chosen industry are doing to succeed. Know how you can mimic those practices but still offer a unique product of service.
2) Create a business plan
Once your idea has been mulled over, it’s time to write out a detailed business plan. This business plan should include:
- Target market
- Demographics
- Estimated costs
- Financing
- Company and management
- Marketing and sales plan
- Competition
- TAM (Total Available Market), SAM (Served Available Market), SOM (Share of the Market)
- Positioning statement
- Product list
These are a few of the key points you want to address. In order for a business plan to do its job effectively, you and your team must deliberate on all facets of the business. Take your time here because the more prepared you are, the less room you leave for error.
3) Check that the law is on your side
Businesses are legal structures and company owners should ensure they are abiding by laws and regulations. You must deal with customer relations, suppliers and manufacturers, share distributions, disputes, contracts, partnerships and more. Navigating commercial law can be tricky, which is why being backed by a law professional is helpful.
Hibberts Commercial Solicitors has a team of commercial law specialists who can help you protect your business, its work outputs, and privacy. Having a dedicated legal specialist on your side will give you the confidence you need to run your business without fear of legal issues arising.
4) Deepen your pockets
It’s no secret that running a business requires constant cash flow. You have to consider how you’ll fund the start-up, how much you’ll personally invest, and how you’ll stay afloat before you start turning a profit.
One of the main reasons why businesses fail is because the cash flow runs dry, and businesses are left with no capital to sustain themselves. While you should invest enough to ensure smooth sailing, don’t overspend on luxuries that don’t help you meet your goals.
Consider taking out a commercial loan through a bank or obtain a small business loan. You could also reach out to independent lenders.
If budding entrepreneurs can find investors, they can provide large amounts of money in a small timeframe.
