If you are thinking of ways how to start a business, then this guide will help you with the basics. It will help you research and develop ideas, acquire basic business skills and expand your potential with fundamental marketing and financial planning advice.
Table of Contents
- 1. Assess if being entrepreneurship is right for you
- 2. Assess your know how about the business
- 3. Assess your skills
- 4. Consider your capital
- 5. Consider your passions
- 6. Consider the competition
- 7. Try to fulfill unmet demands
- 8. Study market trends
- 9. Avoid areas where consumers make decisions based on price alone
- 10. Do not hesitate to try out things
1. Assess if being entrepreneurship is right for you
Take this little quiz:
- I am able to convince people to believe what I believe
- I have a huge network of friends and acquaintances who have their own business and am always in touch with them
- I lose my temper easily if people do not follow my agenda
- I’m a people person
- I have a way of managing people
- If I really believe in something, then I am able to achieve it
- I am able to learn from mistakes and laugh at myself
- I like to look at the bigger picture
- I hate routine
- I was fired from my job because I was a difficult employee
- As a kid, I already had entrepreneurial skills- I was doing something on my own and making money then
- I do have a little money put by-so I can look after my family and my needs for a year or so.
This basic quiz will help you assess if being an entrepreneur is right for you.
2. Assess your know how about the business
How knowledgeable are you about the service/products you plan on selling?
3. Assess your skills
Do you have the skills needed to start and run a business? The skills should include everything and not just manufacturing the product you want to sell. You also need to consider delivery, marketing and logistics.
4. Consider your capital
How much money can you set aside for the business? Certain businesses like graphic designing or designing websites or content marketing need very low capital investment. Others like establishing a franchise can require considerable initial costs which you must check if you are comfortable paying. To state the truth: there are no easy ways to start a business without money. You will need to borrow some capital either from a bank or financial institute or tam up with a rich business partner. Here is a list of expenses you should not overlook:
- All fees, legal, registration etc
- Water, gas, electricity, Internet, phone
- Staff payroll
- Marketing costs
- Travel, delivery, warehousing etc
5. Consider your passions
Is what you plan on doing your hobby? Are you passionate about it? You’d be more likely to succeed at starting a new business and sticking to the path if you are passionate about what you do.
6. Consider the competition
Perhaps, the easiest way to start a business is to select one that has very little competition. You must analyze the market and see how saturated it already is in your area. You must then try to come up with one-of-a-kind idea in order to get a huge share of the market.
7. Try to fulfill unmet demands
The best ways to start a business and be successful at it is to check which area of the market is untapped and find out if you can leverage on the demand. Is there a product that people have to travel far and wide for? Can you source it and make it available?
8. Study market trends
For example, current trends are pointing towards developing Smartphone applications. Read blogs and publications on such trends to learn more. Keep yourself up-to-date on this. Here are some areas that are also trending:
- Senior and child care
- Health and wellness, Yoga
- Shipping and logistics
- Outsourcing and staffing
- Niche consulting
- Home improvement
- Green constructions
- Accounts and bookkeeping
9. Avoid areas where consumers make decisions based on price alone
This is especially important if you are selling a product. Your competition could be having more money than you as a result of which they might sell at a lower price and undercut you. On the other hand, service sector does not belong in this category since people do not always choose who they work with based on price alone. As stated above, a detailed study of market is necessary here.
10. Do not hesitate to try out things
For example, if you plan on opening a restaurant, you must first learn to work in one while writing your business plan. Only when you have first hand learning experience can you enjoy the environment and succeed at the new business.
We hope these 10 ideas and tips help you start your own business easily. Remember: even big businesses like Starbucks were actually under-capitalized startups started by 3 guys who only invested 1350 USD each! So, you can do it too! All it will take is hard work, planning, and yes, a bit of good luck!