Starting a business is one of the most exciting and rewarding experiences you can have, but it can also be incredibly stressful and leave you with no idea where to begin? There are so many different ways you can approach starting a business, but you have to consider your business idea, the time you have to invest, the time it will actually require, and the amount of money you want to put into it before making any decisions. In this blog, we will give you our tips to help keep you on track and to help take the guesswork out of the process. Keep reading to learn a few tips we have in regards to starting a small business.
As with anything you should not compare yourself with others, each of our journeys are different, we all have different strengths and weaknesses. Your route on this journey is not going to be linear, so prepare for all the ups and downs and the bumps in the road, all of which will teach you valuable lessons to take with you on your journey.
Know exactly what it is that you want to push Of course, you want to do something you love, as they say, “you never work a day in your life if you’re doing something you love.” While this is a good place to start, you also want to make sure it is something you are good at, something that is profitable. You may love food but put you in a kitchen and you burn toast, think logically.
If you don’t have a solid idea of what you want as your business focus, ask yourself this: What is something that you absolutely love doing? What is something you would hate doing? Can you think of anything that could make either or both of them easier for you?
Asking yourself these questions, or similar questions can help to lead you to an idea for your business. If you already have a brief or possible idea these questions may help you expand on it. Once you have your idea set in stone, put your business head on, are you good at this and do you think it is a money-making idea? You might even take something that somebody else has already made but improve on their business model, think of all the different cleaning products that are on the market. There is room for improvement on many different products or services currently out in the market, it’s just identifying them and actually being able to improve upon them.
Then look at your why, what is your purpose? Your “why” should be much deeper than just making money. You should want to do something you’re passionate about so that you’ll stick with it through the highs and lows. Is it to make a difference in your community? To support other people in achieving their dreams? Or do you notice a hole in the market that you are ready to fill? Your why should be the thing that is pushing you, it should be the thing that stops you from giving up when things get tough.
Market Research Knowing your competition as well as the market you are trying to get into is a pivotal part in regards to getting your business off the ground. Say you go into the Dragons Den looking for someone to invest in your business, think of the kind of questions they would ask. What sets you apart from everyone else? How will your business stand out in a saturated market? What’s your specialty, if you have one?
You want to make sure you complete both your primary and secondary research. They both give you slightly different data. Your primary research usually comes from potential customers/clients. You want to reach out to prospective consumers so you can gain more insight into what they feel is missing and what they are getting bored of. This research is usually compiled from questionnaires or surveys. This gives you the most up-to-date data to look at rather than that compiled from someone else years ago.
Plan how you would want to conduct this stage, we recommend steering clear from using family and friends. There is a difference between saying they would back and buy what you have to offer rather than actually doing it. You want to reach out to your target market, not just any random person who gives you the time of day. That would not help your data at all.
Secondary research looks into existing research available. Look into census information and so on, the way it has already been analysed may save you some time. As we said above, don't rely on this solely, as it will never really be as detailed as your primary research because your primary research is for you.
During your research time, complete a SWOT analysis. It is an invaluable tool that allows you to look at the facts about how your product or idea might perform if taken to market. It can also help you make decisions about the direction of your idea. It looks at your product objectively, giving you unbiased feedback.
Have your Business Plan Your business plan is like a roadmap for your new business. This document makes it easier for potential investors, financial institutions, and company management to understand and absorb what you and your business are all about. Even if you intend to fund your business yourself, a business plan can help you flesh out your idea and spot potential problems. A well-rounded business plan should contain the following sections:
Executive summary: An executive summary should be the first thing you include in your business plan, but it is best to actually write it out last. It should describe what your business goals are and how you are looking to achieve them.
Company description: Your company description should cover what problems your product or service solves and why your business or idea is better than your competitors.
Market analysis: This section of the business plan looks at and analyses how well you are positioned against your competitors. The market analysis should include things like your target market, segmentation analysis, market size, growth rate, trends, and a competitive environment assessment.
Organisation and structure: Write about the type of business organisation you expect, what risk management strategies you plan to implement and who will staff the management team. What are their qualifications? What is their experience?
Mission and goals: This section should contain your mission statement as well as the detail of what you wish to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic, and time-bound).
Products or services: This section describes your business operation. It includes what products you plan to offer and how they compare to your competitors. How much your product/service will cost and who will be responsible for creating the product. As well as how you’ll plan to source materials and how much your product will cost to make if you are providing a product that is.
Background summary: This will most likely be the most time-consuming part of your business plan. This is the part where you compile and summarise any data, articles, and research on trends that could have an effect on your business, either positively or negatively.
Marketing plan: Your marketing plan identifies the characteristics of what you have to offer, summarises the SWOT analysis you've previously completed, and analyses competitors. It should also discuss how you’ll promote your business. Show how much money will be spent on marketing and the lengths of your campaign.
Financial plan: The financial plan really is the core of your business plan because, without money, the business will not move forward. Include your proposed budget in your financial plan, be sure to add any business income by adding documents such as an income statement, a balance sheet, and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.
There are many more tips but these 3 are quite important to start off with. Starting your own business can be overwhelming so we don't want to throw too much information at you. Ensuring you have thought about and completed these 3 steps/tips will certainly put you on the right track on your business journey.