Being an entrepreneur is not an easy job. Running a business, even though you start a small business, is not just about offering and selling a product. But, you will do a comprehensive job. You have to do some research, develop a good marketing strategy, conduct a good promotion, do many innovative products, etc.
Yet, don’t let these things discourage you. Yezza will help you to start a business by doing 10 steps to start a small business easily. Check out the following article!
1. Find a good business idea
The first thing you have to do is find out what kind of business idea you are going to build. To get an idea and turn it into a business, several things can be taken into consideration.
First, identify your own abilities. This is very important because it relates to how capable you can build this business. You need to know whether the business idea you already get is suitable for your abilities, such as expertise, time management, capital, etc.
For example, if you want to open a business in the fashion industry, you must determine, do you have enough knowledge of that industry? Also, is your capital able to buy any equipment and tools that will be needed for your business?
Those thoughts must be considered because they will be related to the long-term sustainability of the business.
These options are much wiser and more scalable than you immediately starting a large-scale business. Starting a small-scale business can be a good step for you to learn in doing business.
2. Do market research
If you already define a business idea, then the next step you can do is to do market research. This is an important step because it will relate to the frequency of consumer interest and purchasing potency for the products you offer them.
First, identify your target customer. You need to identify your target customers so that later the products you offer can effectively attract their interest.
You can start by researching what kind of items they want and need. In addition, you need to know how solutive the product is.
Would your product help solve their problem? If so, then that’s a great start! Customers will prefer products that can solve their problems.
Second, engage them. You can engage customers by involving them in your business survey. Don’t forget to overlook social media. Social media is a place where you can find your potential customers easily.
Third, learn from competitors. It is impossible if a business does not have competitors. Yet, it’s not always a bad thing. By having competitors, you can learn from them by observing and modifying the products they offer.
Besides, you can also learn and modify their usual business strategies. This is very effective to make your business greater than theirs. You can harness this opportunity.
3. Write your business plan
After knowing what products you are going to sell and to whom you are selling them, then the next step is to make a business plan. Why do you need a business plan?
Many entrepreneurs think that a business plan is intended for large companies that are looking for investment funds. In fact, small-scale businesses also need a business plan.
You can use a business plan to present your business to potential investors who will later fund your business. In other words, this business plan can help you collect funds.
If you want to start compiling a business plan, then you need to include several important components in your business plan, such as the followings:
a. Title Page & Content
This section will contain your name and business concept, and also include what kind of products you will sell. You can also include the structure of your business team members if you are starting to build a business as a team.
b. Statement & Purpose
This section summarizes the product, market, and business operations that you will run. You also have to explain to investors that you are looking for funds.
c. Product description
Describe the product in detail and explain how many customers need the product you offer. You can also explain how solutive your product is, so investors trust that your product will definitely be sought and needed by customers.
d. Market analysis
You can explain your product’s target customers in this section. Or you can explain the potential products in the market, challenges in related sectors, ways to motivate potential customers, etc. The more complete you fill it in, the better your business plan will be.
e. Competitor analysis
You can fill this section by listing the competitors’ strengths and weaknesses. So, investors can see how proficient you are in analyzing competitors, and easier for them to know what sets you apart from the competitors.
4. Determine how much funding you’ll need
Starting a small business seems easy, but many businesses have failed due to a lack of funds in a short time. Therefore, you need to determine where you would get your funds from.
For example, you have to consider whether you are looking for investors or borrowing from a bank.
You must know how much revenue you will get to survive the business. To find it out, you can do the 3 following things:
- Perform BEP – BEP helps you to find out how much revenue you should get to cover your capital. You can find BEP through this formula: Break Even Point (BEP) = Fixed Costs ÷ (Average Price – Variable Costs)
- Watch Your Expenses – this is the importance of having a business budget. With this business budget, you can predict by setting how many expenses you have to spend. If the expenditure exceeds the budget, you have to avoid it and choose another alternative that does not exceed the budget amount.
- Funding Strategy – Where will you get your funds from? You can choose a funding strategy that is the most likely you can get. You can get funds through bank loans, investors, crowdfunding, etc.
5. Choose a legal business structure
Choosing a legal business structure is no less important than the other steps. This is important because a legal business structure affects tax calculations and to whom you are liable.
Basically, this legal business structure is divided into several forms, namely:
- Sole Proprietorship – You can register your business in this form if you are alone running a business.
- Partnership – If your business is operationally run together with two or more people, you can register the business as a partnership.
- Corporation – If you want to separate personal and company liability, you can choose this legal structure.
In addition to the form of the legal business structure itself, several other factors might be a factor in paying business taxes. The legal factors of the structure include:
- How many people are involved
- Where is your business located
- What kind of business are you running, etc.
6. Make your business official
The next step is to make your business official. Not only related to tax and licensing issues, making a business official can make it easier for you to determine which party you will be liable for.
In order to make your business official, you have to do these things:
- Register Your Business – Register your business with the state, this will be a legal grounds business that you are running.
- Pick-up Permits and Licenses – this relates to what industry you are in.
- Get a Tax ID Number – If you make a loan, you will need a tax ID as a bank loan registration.
7. Get business insurance
Have you ever thought about what would happen if one day you suffered a loss or had to pay compensation because of an event that you did not expect? If so, then you’ve realized the importance of business insurance indirectly.
Business insurance is an important component for all business scales, both small and large businesses. For instance, if you build a business that has members or employees, then you need to have insurance such as workers’ compensation or unemployment insurance.
Or, if you run a business that carries a risk of physical loss, such as damage, fire, etc., then you will need damage insurance. All insurance that you register can be tailored to your business needs.
Basically, many types of insurance are offered to business people. It depends on the insurance provider or the country that provides the insurance.
However, most people use General Liability (GL) for their business insurance. GL insurance is responsible for property damage, bodily injury, and personal injury to yourself or a third party.
8. Recruit your great team
Doing business alone or doing business as a team is not a big problem. Both are good things when they could be tailored to your type of business and personal needs.
If you are not an art person, but on the other hand you need someone who is art-oriented for content and poster design purposes, then you need to hire a graphic designer.
Hence, you must realize that you may be can’t do it by yourself. Besides, recognizing personal abilities and needs is crucial thing because it will affect team recruitment.
For instance, you need someone to handle your social media brand. Then, you have to hire a social media specialist instead of an accountant. This is the importance of knowing and understanding your own needs.
9. Create a marketing plan
A marketing plan is not the same as a business plan. Yet, you still need a marketing plan to maximize your product and service promotion. A marketing plan can also act as business guidance on appropriate promotional techniques to brand your product.
The marketing plan must at least consist of the following:
- Summary – Includes a summary of your overall plan.
- Vision & Mission – Contains goals, also a detailed and philosophical description of the business.
- Objectives – Details about what kind of achievements you want to achieve through this business.
- SWOT (Strength, Weakness, Opportunity, Threat) – A detailed description of your business’s strengths, weaknesses, opportunities, and threats. With this section, you can find out what things you can fix and improve.
- Market Research – Consists of matters related to the market, such as an explanation of your business industry, potential customers, and competitors.
- Budget – A marketing budget that must be adhered to control expenses.
10. Promote your business
When the 9 steps are ready, now is the time to launch your business. As a new brand that will enter the market, your initial goal is not to sell as many products as possible, but to get as many customers as possible. You can achieve this by increasing brand awareness.
You can increase brand awareness in various ways that can attract the attention of potential customers. For example, you can create interesting content.
However, the things that most customers like are discounts and free gifts. If you are new to the market, try giving them a discount or free gift, so that they voluntarily buy your product as well.
Those are the 10 steps that Yezza can present to you to start a small business. These steps may change depending on the type of business you run.
Also, it depends on each country’s regulatory system. Hence, you need to do research on these things.
If you already have a small business, either at home or a cooperation business with others. You should consider making it online to sell it widely. If this thing matters for you, Yezza is ready to help you realize your dream online store!
Yezza makes it easy and fastly to help you go online right away. Just 9 minutes to set up your own online store! Consider joining Yezza? Go check the offers below!