Thinking of starting a business? There is actually no better time than now to strike out on your own. Here are 4 easy steps to help you get there safely.
The Business Problem
Step 1. Look around and find a problem that needs fixing and it is best if this is in an area where you have expertise. See if you can come up with a unique solution which is totally new or which is better than anything else out there.
The Solution
Step 2. Try to understand who has this problem and what their exact pain is. This gives you a good idea for the size of your target market, those favorite customers you’ll be going after. If this market is sizable enough, try to figure out what it will cost you to get your solution to market and how long it will take.
The Start-up Capital
Step 3. With this ball park idea of how much investment capital you will need, try to calculate how much start up capital you’ll need, (use this startup calculator) and this will when added to the above give you a better feel for the total investment you’ll be looking for.
The Business Plan
Step 4. Write a business plan based on all of the above. You’ll need it to talk to investors or the bank. What you should do is to look around and find a problem that needs a fix and it is best if this is in an area where you have expertise. See if you can come up with a unique solution which is totally new or which is better than anything else out there.
Remember that without good planning, your chances of success are much reduced. You need to have a business plan before you spend any money, be it yours or OPM (other people’s money).