“Never start a business just to ‘make money’. Start a business to make a difference.” – Marie Forleo
When you consider some of the most popular reasons to start a business, reasons like a unique business idea, it’s no wonder that small business are everywhere.
Even with such big numbers, a lot of small businesses will struggle surviving their first 2 years, and a lot of them will quit after only 5 years of activity. In this case, the beginning will dictate how much further the business will run, so be ready to make little compromises in order to develop your business strategy.
Before starting a business, research what business type suits you the most
Here are 5 steps that will help you may the foundation for a flourishing business.
1. Start planning
You will need a plan to make your business a reality. Think of it like a cookie recipe, you need to follow the steps in order to get something delicious. Start you plan as early as the start-up phase , and expand the plan accordingly , as you go through phases like establishment and much later, business growth.
Also, as you are expanding you plan and strategy, keep and eye out for investors and establish connections in the business world.
2. Pick a business structure.
Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. You may change your structure as your business grows.
3. Pick and Register Your Business Name
Your business name will always play a key role when it comes to marketing.Think thoroughly of all the implications before picking a name.
After you made your pick, you will need to check if the corresponding name is used or not, after this, you will need to register it
4. Do Some Research
Most likely, you already thought of the perfect business idea that is not going to fail any time soon, but you will need to keep looking for new ways of improving it.
For small business to be useful, they need to fulfill a need, offer something that the local market wants and, lastly, resolve a problem.
Some common questions that you can ask yourself in order to come with a better business idea are :
Will people need it? Why?
Do you have competition? If so, what are they like?
Do you offer something better than the others?
5. Plan Your Finances
A small business will not require huge amounts of money to start, but you will need to invest in it , and have it flourish, until you find a financial sponsor. To get an idea of how much money you need for the initial investment, write on a piece of paper the costs of licenses, equipment, branding, market research,inventory,utilities,rent etc., keep in mind that all the things noted will be used and consumed in the first 12 months . The total will be the minimal investment sum.