A 6-Step Process to Starting Your Own Small Business
April 18, 2012The phrase “start your own business” is typically met with fear, trepidation, and intimidation. However, you’d be surprised by how easily it can be done. If you possess creativity and ambition, starting your own business is literally just a few steps away.
True as this may be, there are important things to consider before jumping in. While statistics vary, the failure rate of startup businesses is quite high. These ventures often fail because their owners do not fully consider the following:
1. Identify Your Talent
Go with what you know. For example, if you’re thinking of starting a reselling business in laptop computers, but you don’t know a hard drive from a memory stick, your chances of success are minimal. Instead of making such a mistake, effectively assess what you are truly good at and what you possess knowledge of. This will usually involve partnering your educational background with something you’re passionate about. If you find yourself struggling to answer this question, consult friends and family. They can provide you with objective insights as to what your best skills are.
2. Figure Out How to Make Money With Your Talent
If your talent is landscaping, you’re more likely to make money by offering your services than by just starting a blog. On the other hand, if you like to write, you could start a blog on a topic you’re well-versed in and generate revenue by selling advertising space. Or you could combine a blog with a service or product-based business and drive sales. Knowing how to best monetize your talents also involves knowing where not to spend money. For example, if you’re handy at web design, renting office space may not be necessary or cost-effective.
3. Research
Yes, research can be dull, but it will be a key to your success. Search online for average startup costs in your industry. Also, check out the website Meetup.com, where you can find and attend local meetings in your particular niche. And if there is no Meetup group in your area, you can start your own. Though research will prevent or mollify many problems, it won’t avert them all. Continue to research and stay up on industry and business trends, but don’t let too much research keep you from launching your venture.
4. Market Effectively
You’ll want at least a basic website for potential customers and you can build one for free at Weebly. Don’t neglect social media marketing either; it’s crucial in today’s marketplace. Setting up accounts on Facebook, Twitter, and LinkedIn is a breeze, and will allow you to reach a wider audience. Just be sure to regularly maintain accounts by posting business happenings and specials, and never let a customer question or comment go unanswered.
5. Create a Business Plan
You’re in business to profit and to do that, you need a plan. Even if it’s crude and basic, a business plan can help you pay off startup costs faster, provide a time frame until you become profitable, and serve as a benchmark by which to judge your progress. As your business expands – and especially if it doesn’t – review your plan on a regular basis and adjust as necessary.
6. Work Hard
If you don’t have a strong work ethic, running your own business may not be for you. In many cases, you’ll be juggling this business with a full-time job until your “side-venture” develops enough positive cash-flow to allow you to quit your day job. In the meantime, expect long days and nights. However, if you can stick to it, the end results can be well worth your efforts. To survive, make effective time management a priority. If you don’t already have these skills, learn how others do it. The Seven Habits of Highly Effective People by Stephen R. Covey is one place to start.
Final Thoughts
The biggest hurdle to overcome in starting a business can be the fear factor. If that’s the case, begin by taking one small baby step: allow yourself a few minutes to think about what you’re good at or might be. Then, talk with a few successful entrepreneurs. This will help you know that running your own successful business is entirely possible.
Being your own boss has many benefits, the very least of which is a hedge against unemployment or job loss. And if you play your cards right, chances are you’ll one day be able to say goodbye to your day job and work on your own full-time.
What’s stopping you from starting your own business?