How To Start A Business For Beginners
Saturday, August 13, 2022This post is a sponsored advertorial but all opinions are my own
Starting a small business isn't easy. From finding the right concept to getting investors and customers on board, entrepreneurs have their work cut out when they decide to launch their own company. Only 44% of small businesses make it past their fifth year. However, if you are willing to take the risk and put in some hard work, there is also an opportunity to build something great. To help you get started on the right foot with your new venture, here are some helpful tips and tricks for starting a small business.
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Know Your Audience
You may be passionate about your product and eager to take the world by storm, but you should make sure you are targeting the right people with it. If you don't find an audience, it will be harder to bring in any sales, regardless of how good your product is. Before you start any business, you have to know who your ideal customer is. Try to understand:
- What are their demographics and psychographics are
- Where they live
- Their hobbies and interests
- Their current financial situation?
- How much disposable income do they have
- What they would use your product for
- What is your product’s value proposition is
- How you can make sure your product solves their problems
If a customer doesn’t understand the value of your product, they won’t buy it. Understanding your audience is crucial to building a successful business. If you're struggling for an idea, I've written a list of over 25 small business ideas to start up!
Narrow Down Your Idea
Before you start writing a business plan, you need to narrow down the idea you want to create a small business around. I love the idea of starting my own business. I have many passions, and picking one of them is hard. I find it hard to choose between something I want to do, something I know will make money, and something people want. You should answer a few questions to help you decide what idea to run with.
- What do you want to do?
- What do you want to be known for?
- What problems do you want to solve?
- What are you good at?
- How does your idea fit in with the market?
- How will you stand out?
Pick something that works within your strengths and interests, is in demand and easily quantifiable, and can be done within your budget. Some ideas may be better suited to an online business, while others may lend themselves to a physical storefront. For example, you could open a cake shop if you love to bake. Or, if you prefer to sell baked goods online, you could start an online cake delivery service.
Write A Business Plan
This may sound like a no-brainer, but I am surprised how many entrepreneurs avoid writing one. A business plan is your plan for bringing your business to life. It can be essential for securing funding and finding investors. While it won’t tell you everything that will happen in the future, it will give you a general idea of what to expect. A comprehensive business plan should include information about your industry and competitors, background information about yourself, your team, your strengths and weaknesses, a SWOT analysis, a marketing and sales plan, a financial overview, and a breakdown of your strategy for bringing the business to profitability.
Related: How To Grow Your Small Business Online
Find The Right Location
Finding the right location for your small business can be a tricky process. Ideally, you want a space close to customers, accessible, affordable and offers the right amount of space for your needs. Unfortunately, a lot of people overlook the importance of a good location. If you choose a spot that isn’t easily accessible, customers might be unable to find you. If the site isn’t accessible to your employees or customers with disabilities, it can create a barrier to success. An affordable space might sound great, but if the expenses you have to pay are so high that they eat up all your profits, they hardly matter. And while you may want to choose an ample space with plenty of room to grow, or a spot with a ton of foot traffic, it’s essential to consider all the costs associated with these things. For example, what are the lease terms, and will you be able to afford them? How much room you need for your business may also depend on your industry. If you plan to open a bakery, you’ll want to ensure you have enough space for baking and serving customers. You might even want a space for people to eat in.
Know When To Hire
While you might want to hire someone the moment you start your business, you may not be in a position to do so. Your success may come down to how much time and energy you put into it, so hire when you can afford to. Hiring a full-time employee may be out of the question when you first look to onboard someone. You might not even have the money to pay yourself a salary. When you have the money and the space to take on an employee, you’ll need to decide which positions are the most important to fill. Consider hiring a virtual receptionist or another virtual role if you don't have the space but need help. Typically this is a cheaper option than hiring someone full-time. Virtual assistants can help with phone calls, scheduling and admin tasks, so you can be more hands-on with your business.
Related: Social Media Tips To Boost Your Online Sales
Making a living as an entrepreneur is not easy, but it does come with some significant perks. You may have more freedom in your schedule and can be your boss. I also think it's appealing to work on passion projects. Starting your own business is a lot of work and can be risky. Make sure you’re prepared to put in the hard work. Business owners often have to work long hours, and you may not have holiday time to start with. What tips would you give to those starting a small business? I find that every journey is different, but the same principles apply. I'd love to hear about your small business and what things you wish you had known before you started one!
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