Secret Steps on How to start a new business? (Medium)
A short guide to get you through the process. Plus a bonus tip at the end
Inclination towards setting up a new business could be inculcated by three main reasons: a person has leadership qualities and does not prefer to be lead, a person who has a creative disposition and has a creative idea, and a person that prefers to save money and generate revenue by shrewd investment. There could be other reasons as well but these are the major driving forces.
However, all of these reasons lead to one simple factor, what is the “IDEA”? Even if it’s a large business idea or a small business idea. Based on your unique idea you can start a small business, you can start an online business, etc. In this question lies the answer to the success of the business. There could be two options for an entrepreneur i.e. either initiate with a new idea or innovate existing ideas. However, no one can pinpoint which one of these is more effective. Because there is a great tendency for a new idea to become popular but there are also chances for a fallback.
There are so many examples that have seen such incidents in the past. Relative to that, innovating an already existing business idea can have a little advantage, if not more, on the business with new ideas because the entrepreneur can learn from the mistakes of the entrepreneur who has originally initiated that idea. However, a guru is a guru and there are very rare chances that you could surpass the existing business that has been set up on that idea. Summing up all this, establishing a new business could be a very hectic task if the person doesn’t have complete erudite knowledge of this field.
A business idea could be good or it could even be great and much needed for society, but such ideas are two a penny. There are billions of people on this earth and most of them come up with brand-new ideas every day, the patent offices are stuffed with great inventions that have never returned even two pence to their inventors who spent much energy, time, and money completing them. Along with the idea, the success of a startup is based on planning, consolidating, recruitment, leading, and directing.
It is based on how an entrepreneur prepares and implements a business plan that has the apt to make a difference in the labyrinth of world markets. If not properly planned then failure is inevitable and to be realistic, failure has become a norm for business start-ups. Therefore, people are mostly asking how to build a successful startup? Business folklore claims that for every hundred people who aspire to start their own business only one out of them finally does so. It trails that there are a gargantuan number of visionaries out there who, whilst having the idea of starting their business, never get rich towards taking action. Hundreds of thousands of small firms collapse disastrously, every year because of a lack of organization and planning. Therefore, everything should be kept in mind before investing tons of money.
There are various strings to be held in proper control when it comes to initiating a new enterprise. From idea to the feasibility of the idea, Planning and honing, employee selection, financing, accounting and taxations, budgeting and utilization of resources, supplier handling, customer care, marketing and management, security, legalization procedures, and gaining competitive advantage, etc. and the list goes on. However, each of these should be done in proper order with great consideration because these all are the bricklayers of a business. Each of these factors is discussed as follows:
1. How to get started with your new business?
a. What is the “IDEA”?
Whichever reason has driven you towards working on a new startup, it is necessary that proper consideration should be provided to the idea. Sometimes, an idea seems to be very reliable and profitable but delving deeper into the depths of those ideas opens new questions that are unanswerable and it is (highly) not suggested to initiate a business about which things are unclear and uncertain. A rudimentary point is to look around and observe with great depth and see which customers are dissatisfied with which kind of services because unhappy and dissatisfied customers are fertile ground for budding businesses to grow exponentially.
b. Checking Feasibility:
An idea, however ingenious, exceptional, avant-garde, and necessary cannot guarantee the growth of a business. Even you do have an idea but you still want to know how to start a new company? Then, you should know that having an idea is a great initial point, and a crucial one, but there is a lot of background research, brainstorming, and skills that are required before you can be sidling up from no zero to hero. Proper qualitative and quantitative research should be done using various tools and technology to construe the hedges that could be faced during the implementation.
c. Market Research:
After evaluating the feasibility of an idea and no matter how much that returns positive answers, it is unlikely that a starter already has the answers to all the key questions concerning the market where giant crocodiles are ready to devour small business startups. Therefore, for the development of a successful business strategy, it is to be understood that undergo thorough research about the market and the contenders that are likely to be faced. Following are the different dimensions based on which research should be done:
i. How much does a customer matter when you are starting a new business?
The first important thing to do is to find the possible potential customers; several questions should be kept in mind, such as who will purchase more goods and services? How large is the number of potential customers? What specific customer needs would be met for dissatisfied customers?
ii. How to find Investors for your new business?
Next question is to find out how many existing businesses are there which are closely related to the same business idea because in order to make a business strong and fruitful, surpassing competitive businesses is inevitable. Therefore, questions such as who will be competing within the same market areas? What are the rivals’ strengths and flaws? These should be answered to gain a wider idea of market rivalries.
iii. How much is there a demand for new Products or services Demand?
Extensive research based on statistics and reviews from the data of various public platforms should be performed in order to focus on how much is the exceeding and transcending features of the product/service that a customer looks for? How should you tailor and adapt a product/service to give a competitive edge in the market?
iv. How much pricing matter for a new business startup?
This factor should be looked at in order to see the pricing trends and thus maintain quality of work according to that. Some of the questions to be considered while searching are what would be seen as per budget value for money that would embolden customers’ loyalty & referral?
v. Effective advertising and promotional techniques (Marketing):
Trending marketing tools shall be looked for that could reach more customers. In these times, e-marketing is touching the skies, but before you dive in just know that you have all the research done so that you don’t face any difficulties.
d. Calculate your resources before you start a new business…
After checking the viability of the startup idea, the next step is to evaluate the resources according to the following factors:
i. Day to day operating and effective working costs
ii. How much time it will take to reach neutrality of profit/loss
iii. How much initial start-up capital is required
iv. Estimation of likely sales bulk
v. Percentage of profit required for the business for progression
vi. Effective retail rate of product or service
After evaluating all the resources, it is better to consider all the available options when it comes to costs i.e. personal finances, debts, equity, etc.
e. How to design a perfect business plan?
The next step is to use all the aforementioned base work and design an effective business plan to send it to the expected stakeholders; it is suggested to knock doors of experts as well to avoid any punctures. A Business plan is a selling manuscript that conveys the potentials of business to external and internal stakeholders or investors. Following are the essentials while writing a business plan:
i. Benefits of the purported business
ii. Feasibility and viability
iii. The enormousness of the target market
iv. Introduction of company staff
v. Sales predictions
vi. Demonstration of product/service
vii. Benefits for the company or business for whom this business plan is
written
f. How to find your Competitive Advantage?
A new business startup can steal the shine from competitors by providing something vital and unique to its products/ services that the existing business and rivals cannot imitate. This trick, no matter how old it is, can work upon the success of growth strategy, if entwined with apt stratagems could lead towards the improvement in customer retention that would ultimately lead to higher profits. Because consumers can be a fickle horde. If through the proper method, something attractive, catchy, brighter is dangled before customers then it is easy to usually grab their consideration. The key is to introduce something unique with innovative marketing to seize a slice of the market.
After all the evaluations, calculations, documentation, and preparations, the next step is how to start the business?
2. How to start a new business?
a. Deciding location and name for a business startup…
The proper location should be selected by keeping all the aspects in mind. The other factor in selecting the right and captivating name for the startup because it can have a significant impact on the expansion of business success. While it is not mandatory, but somehow your name should reflect the workings being offered by the enterprise, the wrong name could result in insurmountable lawful and business hurdles.
b. Hire both experienced and fresh employees for your new start-up…
This step should be dealt with great consideration because it is the basic block of your whole setup, incompetent managers and employees could lead to hassles and disorganization in the business. It is noted that many recruiters conduct a limited and inadequate reference check while interviewing job candidates, or it is also seen that people hire their employees based on references that could again lead to incompetency because such people are unable to perform their assigned duties or they do not work well with others.
Following are the points that should be kept in mind while hiring
i. Verification of job titles and dates of employment
ii. Verification of academic credentials
iii. Experience verification (if any)
iv. Reason for last job resignation
v. Evaluation of applicant’s communication skills
vi. Evaluation of Employee performance on probation
vii. Selection of the employees
This list could be elongated as per need. It is also a good practice to sign contracts and do proper documentation before hiring a prospective employee.
c. How to manage your finances for new business?
It is suggested to not start a corporation as a “sole proprietorship,” because it can result in putting personal assets at risk because of the debts and liabilities of new businesses. For every business, it is important to keep a hawk-eye on expenses and learn how to handle financing and budgeting of available resources, revenue, and profit/loss. At this point using the help of a finance manager could be handy. Many newbie businesses fail because the businessperson does not have the apt to adjust their spending to circumvent running out of cash. Therefore, documenting a detailed, monthly, and annual budget is critical, and this budget must be reviewed regularly. In addition, tools and expertise must be integrated to keep an eye on forecasting sales for long terms so that financing could be done as per predictions. It is imperative that financial viability is established before the money is invested in it. The need is to carry out an exhaustive appraisal of the financial requirements of the business. However, if the calculations come out as unfeasible, then rethinking of the idea and making financial upper-fixers should be made in the budget of the proposed business. And after several iterations (if need be), if the figures look workable, then entrepreneurs should follow up and prepare cash flow forecasts, a profit and loss accountability, and a balancing sheet, and as the last step put together the all-important items of the business plan.
d. Protection of intellectual property before starting your business..
When it comes to business assets, the first and foremost thing that clicks is tools or machines that are being used, company documentation, and so on. It is imperative to make sure that all these chattels are taken care of and insured by insurance companies, as well as protected by security cameras, burglar alarms, RFID and retina locks, etc., to cut down the menace of damage or loss. However, if the business is of creating things and works on coming up with newfangled ideas; if businesses have specific logos or banners that are an essential part of a business brand; these intangibles are also substantial and valuable assets that need to be protected. For tangible items or material assets, such as properties and computers could be protected with insurance, however, the intangible assets that fall under the umbrella of intellectual property are tougher to protect but even more detrimental to lose. Although, for newbies, this seems a little unnecessary step it is also a critical one. Most people do not know these things but later on when their business flourishes and others start imitating them, at that point, minus legal documents the real creator of the idea can’t do anything. Following are the legal documentation that should be completed before proper launching:
i. Patents
ii. Copyrights
iii. Trademarks
iv. Service Marks
v. Trade Secrets
vi. Confidentiality Agreements
vii. Terms of Service and Privacy Policy
e. Insurance for your new startup
At the time of starting a business there are several items that are needed for proper working but these are to be protected by purchasing appropriate insurance policies and coverages. Its dire importance requires that the first step of business initiation should be to regulate specific insurance essentials based on the fauna and flora of business. Then a congenial policy should be found out by evaluating different offers by insurance providers or insurance brokers to govern which companies lever the types of coverage that garb needs.
Following are the types of insurance policies that are available in the market.
i. General liability insurance
ii. Professional liability insurance
iii. Property insurance
iv. Worker’s compensation insurance
v. Product liability insurance
vi. Health insurance for employees
vii. Commercial auto insurance
viii. Data breach/cybersecurity insurance
ix. D&O (directors & officers) insurance
x. Business interruption insurance
xi. Key man life insurance
3. How to properly launch the Business Startup?
After the completion of all the initials, the next step is to get the business registered by the government and then work way up to launching. This step is also crucial because virgin entrepreneurs make mistakes in the new businesses. This step may be given a little attention but it can prove to be very costly later on. At this point, entrepreneurs should relax a bit and Congratulate themselves for making their dreams come true. This monumental moment should be made memorable for all stakeholders, contacts, suppliers, backers, and family. However, blowing up all the funding is on it is not advisable. However, it is to make sure to invite media persons, influencers, and press to acquire coverage as well as supplementary exposure. Following are the steps that should be considered while launching a business.
i. Hire graphic designers for effective poster making and logo making, which would help people easily understand the brand, its products/services, and benefits, and these should be purveyed everywhere with consistency. It is also suggested to hire creative writers to make catchy and shrewd advertisements. These steps may seem menial but they have a lot of impact on catching the attention of customers, which is the main goal for every business.
ii. Hire network marketers for spreading the news
iii. Advertise and market it on all marketing sources available such as company websites, mobile applications, billboards and panaflex, social media sources like Facebook, insta, Twitter, etc.
iv. Spend money on the launching even
v. provide early-bird benefits
vi. Provide bundles or packages
There are a number of ways that could be deployed in order to launch a business effectively. It should be kept in mind that if a business is to survive then the key is in advertisements and marketing. Once a project is launched at a massive level then the chances of being noticed by a large crowd are greater. The greater the number of customers who know about the business, the greater are the chances of more sales. The need of the hour is to deploy modern tools and technology, acquire proper skill sets based on technical and non-technical knowledge along with well-versed interpersonal skills, in order to thrive in the “survival of the fittest” world of business.
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