It feels like everyone is starting their own business these days. You may have thought of it a few times over the years, and now, you’re seriously considering it. Having your own business could mean flexibility, freedom, and fulfilling your purpose. It could also mean a huge life change, unexpected debt, and working long hours. There are a few things you should keep in mind to ensure you get off on the right foot when starting your own business Here is our practical guide on how to start a business:
- Get real with yourself
If you’ve been contemplating how to start a business, consider this: you need to be completely honest with yourself on how you truly want to spend your days at the office. Do you have enough passion to stick with your business even when times get tough? Are you an expert in the industry you are planning on entering? Will you be the manager? If so, do you have the communication skills to back it up? Asking yourself these questions before diving headfirst into your business will save you from making any hasty decisions. - Perform a SWOT analysis
Many CEOs start off their journey with a SWOT analysis. SWOT stands for: “strengths, weaknesses, opportunities and threats”. Strengths and weaknesses relate to the internal factors of the company (finances, human resources, equipment), whereas opportunities and threats relate to external factors (market trends, natural environment and changes in the economy). To create your first SWOT analysis, divide a piece of paper or online document into four sections and label them accordingly. When considering your strengths, think of everything your company has that gives it an edge over other businesses in your niche. For weaknesses, write down all of your shortcomings or elements that could be improved. When brainstorming opportunities and threats, you might need to do some outside research and see how outside factors could potentially affect your business either now or down the road. - Start drafting your business plan
Before you make any phone calls, buy any supplies, or hire any people, you are going to want to make a business plan. A business plan will cover 5 main areas:- Finances: How much money will you need to launch and when can you expect to start making a profit?
- Legal: What kind of legal challenges might you run into?
- Marketing: Who are you trying to target and how will you do that?
- Operations: What is your budget and what kind of supplies will you need to start running?
- Mission: The concept behind the business, why it’s needed and what makes it unique.
This plan will be your guide on how to start and run your business. As well as be presented to potential investors when you begin to seek funding.
4. Take care of any legalities
Do you need any permits or licenses? What about copyright? Before launching your business make sure any legal documents are written up and taken care of. Sometimes the processing times for these documents can be longer than expected, so it’s important to have everything in order before announcing your official launch date.
5. Reach out to other business owners in your area
If you’re opening up a local business, start building your network! Add businesses in your area as friends on social media, go to networking events and look into collaborating with other businesses in your niche. It will only help those first few months of operation go smoother.
Starting a business is not for the faint of heart. If you consider yourself a go-getter with a ton of passion for your field, you just might be the perfect candidate to open a business of your very own (and possibly take over the world in the process). We hope you enjoyed our guide on how to start a business!
