There are risks in starting a small business. It requires a lot of hard work, planning, execution, and uncertainties.
Many young professionals want to start their own business because they can control their schedule and achieve financial independence. But what they don’t realize is the amount of work before the business comes to fruition.
The exciting thing about starting your own business is that you don’t need to have experience, or you don’t have to be a graduate of a business course. Anyone can start a small business, and it is up to you to turn your business ideas into reality.
You have to ask yourself the following questions before starting your small business:
- What do I want to sell?
- Who is my target market?
- How can I market my business?
- Is this something I am passionate about?
- What are the documents I need to start a business?
- Where will I get the funds to start a business?
If you have the answers to those questions, then you are ready to embark on the journey of starting your own business.
What is your niche? What are you passionate about? When starting your business, always make sure that it is something you are passionate about. Something that you have good knowledge of.
An example of this is the Honest Company, which was co-founded by the actress Jessica Alba.She searched for eco-friendly baby products that are safe for her kids, but she had difficulty finding them. She was passionate about finding the right products for her kids that she decided to co-found Honest Company.
Find your niche; there are an endless amount of businesses that you can start. If your niche is makeup, look for a laboratory to develop the formula you want.If you’re passionate about shoes, look for factories that make them.
It is essential to have a business plan because this will be your detailed guide in every phase of your business, from strategies to production, to your target market, to how you will gain back your investments.
Your business plan is the core of your business. Always study your business plan if it is feasible or not. Business plans can help you look for possible investors if you don’t have the necessary means.
If you have enough money saved to start a business, your pace on the road to having your own business will come quickly.But what if you don’t have the necessary funds to create your own business? If you are passionate about your business and know that it is feasible, try applying for a loan or look for potential investors.
Applying for a loan to start a business is one way to get funds. Lenders often assess you based on your credit score. It is important for them to know this because it is their basis whether or not you are credible enough to lend money to or not.
An example of a business that started a company with a loan is Starbucks. Jerry Baldwin, Zev Siegel, and Gordon Bowker each funded the business. Eventually, they had to take a loan from the bank of $5000. They were selling coffee beans at first, but once they had a physical store, their business eventually blew up. They opened more and more branches of Starbucks till they finally went international.
Aside from having the funds, you cannot start your business without having the proper documentation. Here are the essential documents you will need to start your business legally:
- Register your Business Name
- Acquire a Business Permit
- Acquire Tax Permit
- Sanitary Permit
- Fire Permit
- Apply for Insurance
- If you are selling food or pharmaceuticals, make sure you register to the Food and Drug Administration.
Make sure you have the necessary documents to start your business and keep them safe.
Know who you are selling your products to so you can focus on their wants and needs.
If you are selling hair care products for women with dry and frizzy hair, the people buying your products are the people who have dry and frizzy hair.
Know what your consumers want and listen to their suggestions. If you do these and come up with products for them, they will continue coming back to your business.
There are a lot of ways to market your products. Since you are still starting your business, there are ways you can sell your products without paying a lot.
- Free Samples
- Social Media Marketing
- Influencer Marketing
These are the strategies you can start with. If you are a starting business, do not invest in commercials because it is a waste of money. Start with simple ways to reach your target market.