BYOB: Be Your Own Boss
Starting your own business can be more than just a dream. It can be very real—and surprisingly profitable if you take the right steps and precautions. It is good to have confidence and energy going into any new venture, and starting a new business is no different, but every traveler knows that you need a road map to find your way and this guide is intended as exactly that. No matter how humble your beginnings, keep in mind that every entrepreneur had to start somewhere before they became the next Bill Gates or Jeff Bezos. By understanding the basics of starting a business you can put yourself ahead of the pack and realize your full potential. This guide will provide advice for starting your own business, building on your skills and advantages to capture your own market niche and accelerate into business success.
Know The Law
As exciting as it is to start your own business, there are many laws and regulations that you need to know first. Don’t worry, you don’t need to be a lawyer. However, you do need to spend some time researching the basics about finances, incorporation and employment law if you plan to hire workers. Rules and regulations will vary depending on your country and state as well as what kind of business you’re running, but it is more than worth your time to find out the legal basics before you start your business. Entrepreneurship is a world full of exciting opportunities: the more you know the rules around having your own business, the less hassle once you’re in go mode. Getting in touch with a small business accountant or consulting a commercial lawyer for a more complex business is also a good idea.
Make A Plan, Stan
Even if your name isn’t Stan, you’ll still need a business plan. Your business plan should include five key considerations: money, staffing, location, market research and products and services. Your plan should be as simple and straightforward as possible. Make your plan so that a layperson taking a look for half an hour would have a solid grasp of how you’re planning to run your business and turn a profit from the products or services you are offering. There are various helpful ways to test out your new business concept and see how it stacks up. Without a business plan of some kind you can easily find yourself drifting in the wind. Don’t be that guy or gal! Make a plan, Stan—or else hit the road, Jack.
Know The Market
Market research should be an integral part of your business plan and it deserves its own section here because lack of researching the market can absolutely sink you like the Titanic. Check out who your competition is, their prices, their specialties, their good reviews and their bad reviews. If your new business is fulfilling a niche, research the market including demographics and income level of the people and families who you believe will have a strong demand for your product or service. Don’t just take a shot in the dark or you could end up lost—and not interesting or suspenseful like the hit JJ Abrams TV show. Instead think of long days of waiting around and asking why your business is like watching paint dry and less profitable than selling peanuts in Timbuktu (but if that is your business plan, research the peanut market in Timbuktu). Market research means more than just one or two Google searches. It means actually interviewing people, talking to those outside your comfort zone, reading - government and corporate reports and thinking outside the box to find exactly what is needed in your area and how you can capitalize on it.
What Need Does Your Business Fulfill?
Instead of focusing on the product or service that your business provides, focus on the need or demand that it fulfills. What problem are you going to solve with your business. Will you cut down time, cost or complication for people on a currently-available service, site or product? Will you make something much easier which is currently difficult? No matter what the niche your business will fulfill, you should have it squarely in mind as you pursue your entrepreneurial goals. Your business making money is important—obviously—but filling a need that the general public has is exactly what is going to result in that sweet dough. So keep it front and center and be very clear on exactly what niche and role you are fulfilling. If it is a good one it will pay off.
Feedback Fiesta
Feedback is the ingredient that will make your new business a smashing success. Consider yourself like a giant magnet that attracts any and all feedback to your new business from those around you—including negative feedback. Pay particular attention to small business owners and people who know what entrepreneurship is all about. Listen closely to those who have failed. You can learn an enormous amount from failure—and if you’re lucky it can be someone else’s failure, not your own. Resist the urge to think you always know best and to get upset when someone presents a criticism of your new business or business idea. Even when somebody is way off base or presenting asinine advice or critique, see if you can find a small particle of truth or insight in what they’re saying. Ask followup questions as you seek feedback. You never know what brilliant realization could make your business go from “just OK” to “the next Amazon.”
The Power Of Word-Of-Mouth
As your new business gets going, do everything you can to create a word-of-mouth phenomenon. Consider publicly speaking about your product or service, appearing on community television, radio and in the newspaper to talk about the origin story of your business. Media exposure creates one thing: attention. That attention, in turn, can easily transform into people talking about your business. That results in word-of-mouth: the most powerful secret weapon of every business. You can spend millions on advertising, but nothing is ever going to replace the incredible power of spontaneous and genuine word-of-mouth. It’s a power boost that will pay off in big ways at the cash register and in the long term prospects. Get word-of-mouth going and see where it takes you: the sky is the limit.
Prepare For The Worst-Case Scenario
Envision yourself with no money in the bank and no cash in your wallet. It feels bad, right? But this is a good exercise for planning for the worst-case scenario. Although your goals and dreams should be sky-high, your worst fears should not be dismissed out of hand. Things can go poorly and sometimes it isn’t even your fault. The market can change suddenly or a major fallback can occur in your supply chain or business outlook. Having a worst-case-scenario doesn’t make the worst case better but it does make it accounted for if it really does happen. Maybe you will have to go live with your parents or cousin, or maybe you have a plan to tap into some emergency savings. Write it all down and keep it in mind.
Keep The Motor Running
Starting your own business is a process: you begin as an employee, owner and all-in-one in many cases and gradually become more. Getting a steady income flow can be a challenge and take time. Consider keeping other sources of revenue open and running as you implement the beginning of your new business. Cash flow is what helps your business stay afloat and keeps you from the worst-case-scenario of having to take out new loans or scale back your plans. Keep the money coming in—one way or another—and keep the motor running. You’ll be glad you did.
Be Cost-Conscious
As you start up your business pay attention to the dollars and cents. It can be tempting when we are caught up in our dream to forget about the nuts and bolts. Paying attention and keeping costs minimal is indispensable advice. Even if your product or service is eventually going to be in the six or seven figures, you want to start small. The costs of running even a modest business can add up quickly to scary big numbers. Keep in mind that the costs of your personal expenses like mortgage, gas, food, lodging and so forth are in addition to the costs of running your business. Keep that in mind so you don’t get a nasty surprise at the end of the fiscal year.
Be Enthusiastic – But Stay Smart
Enthusiasm is the common ingredient in every entrepreneur. With energy and drive you make your dream become reality. Nonetheless, start modestly on your road to entrepreneurial success. Big results come from small starts and entrepreneurship is no different. Good luck on your new business and may you always be in the black!