Starting up a small business can be one of the most pleasurable and lucrative things in life and if you’re not doing it right, it’s just provides a good opportunity to throw away your hard earned investment. Building a small business should be slow at first, turning into a more aggressive process as you get more experienced.
photo credit: Violette79
One big mistake that people make is to pay too much attention to passion. No one wants to have your passion about some product or service shoved down their throat. Instead, you need to learn to work hard and be prepared to spend 12 hour days totally immersed in getting your business off the ground. Here are five easy steps to help you do just that:
1. Begin by searching for an existing problem that needs a solution. Remember that your future customers whether individuals or businesses will be buying your product or service as a solution to the problem they have and the associated pain they are experiencing. By focusing on the problem at the start, this forces you to understand what kind of customers you’ll be targeting and what their needs are.
2. Find a product or service which is a solution to the problem you identified above and be able to communicate how it solves the problem in words that the customer is comfortable with. Remember you are in business first and foremost to provide satisfaction to those customers with the identified problem. Test your idea with a group of these potential customers to get a feel for whether you’re on the right track.
3. Figure out how much it will cost you to start up the business calculating both one-time start-up costs and ongoing costs. Most of this can be done with a pencil and paper or you can get business planning software and write an entire business plan, which is not a bad thing. This also helps you understand how to price your product or service to make a profit and if the market will bear that price. Once you know how much you’ll need, either get friends and family to put up the investment or start talking to your banking representative.
4. Get in touch with your State and local government offices and do the required registration and get the necessary licenses if needed. If you need help with this call your local SBDC or SCORE office or check in with the Small Business Administration web site. Also register a domain name for your future presence on the web.
5. Find a suitable location with the right features for your business and the ability to scale quickly. Try to minimize your upfront investment.
For more detailed small business tips, be sure to visit us at Jump Start Your Business.