As in any other field, the ability to run a company or run an online business, to be the boss of something NEW and BIG is simply a skill that comes with time and experience.
So, take courage and inspiration and carefully read this step-by-step guide for aspiring entrepreneurs.
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Steps to Starting Your Business
Step 1: Choose the Right Idea for Your Startup Business
It is almost impossible to start a successful small business without an idea!
It is also important to decide what your measure of success is. This will help you determine whether your plan is appropriate and whether it is possible to achieve your goal.
Brainstorm to come up with a unique business idea or simply search online for suitable options.
When choosing an idea, consider whether you have the money to start a business. Will you be able to take out a loan or find an investor.
If you don’t have money, choose a business idea that doesn’t require investment or an idea with minimal start-up capital.
If you have savings, you can consider various options.
When starting a business on the Internet (and not only), you can move in one of two directions:
create and develop entirely new markets (like Bill Gates, Mark Zuckerberg and Steve Jobs; this is the hard option and there is a high risk of failure);
enter an already developed market and occupy your niche (a more accessible option for most entrepreneurs).
Step 2: Conduct Market Research
Market research will help you understand whether there is a demand for the service or product you are going to offer. This is useful when writing a business plan. You will also find out how many competitors are operating in the niche you want to occupy.
There are several ways to research the market. You can:
conduct a survey or online research;
organize a focus group;
do some research on online stores;
conduct a telephone survey;
create a newsletter;
order a specialized consultation, etc.
To get started, simply look at seasonal and market opportunities using Google AdWords and Google Trends. Pay attention to the size of the niche you want to occupy, and be sure to analyze your existing competitors.
A business plan is a detailed description of the process of implementing a business idea with all the necessary calculations.
By writing a business plan, you will be able to answer the following questions:
Why do I need my own business?
How many potential customers does my product/service have? How will I attract them?
How to calculate business efficiency? What parameters should be taken into account?
What initial investment do I need? How much investment will be required in the first year?
What profit can I get?
A business plan is also useful for finding investors and getting a bank loan.
Where to get a business plan? There are 3 options:
create it yourself (special skills and knowledge required);
find ready-made examples of business plans and edit them according to your business idea;
order a business plan from a specialized company.
Step 3: Register your business
At this stage, you need to choose a company name, a business structure, and then register it (even if you plan to start an online business). It is recommended to consult with a lawyer to make sure you have done all the basic things and taken the right steps.
Step 4: Find a suitable source of funding
Peer-to-peer lending. The platform itself analyzes the luxembourg phone number material borrower's creditworthiness, evaluates projects, and provides additional services (for example, engaging a collection agency). The main disadvantage of P2P lending for an entrepreneur is the high cost of borrowed funds.
Patrons, venture funds, etc. This form of financing is available at all stages of small and medium business development. The main task of the parties to the transaction is to find each other. There are many Internet portals and business accelerators (their advantage is that they improve the quality of management in start-up companies), various meetings, exhibitions and conferences where start-up businessmen can present their projects to investors.
Factoring. A special bank financing tool, well suited for trading companies to obtain a small business loan. The main problem with factoring is the high cost of the funds received.
Bank lending. High competition in the lending market has made the cost of such funds quite acceptable, and the absence of business obligations to the bank reduces many risks for the entrepreneur.
Synergy financing. Using the synergy effect is a good tool to reduce the investment burden on small businesses. The main problem here is the lack of information about existing customer support programs from large enterprises.
Crowdfunding. This is usually the best way to finance unique business ideas with an attractive product or service. Keep in mind that donations start at $1, so it may take some time before the project receives money.
Crypto investments are a good option for those planning to start an online business, as most crypto investments are used to finance software startups. For projects in manufacturing industries, the problem is converting large amounts of cryptocurrency into paper money. Industry participants also warn of a high risk of fraud.
Micro IPOs are carried out by small industrial enterprises, manufacturers of consumer electronics, industrial equipment, etc. This mechanism gives companies the opportunity to quickly grow their business.
Grants. A special tool that is best suited for startups specializing in the development and implementation of new technologies. Grant funds are provided free of charge and without the need to return them to the grantor.
Step 5: Create a unique selling proposition.
After detailed planning and completion of the initial stages, you need to analyze your competitors:
How do they sell their products/services?
What is their image?
What makes these brands unique?
