Everything You Need To Build Your Business
Today, we want to talk about how to build your business in 2019 and give you a step-by-step plan for launching any startup.
How to start a business from scratch – 10 steps
Step 1. Business idea
Of course, to launch a startup, you need to know WHAT business you want to start. An entrepreneur should have an idea. If you can’t even come up with an idea, then what kind of business are we talking about? It is not necessary to be an innovator and invent something unimaginable. You can take an already existing idea, look around, find shortcomings in it, or simply improve it as you can see and it will be a different business. It is easier to enter the formed market than to form it yourself. And the idea should not be global, you can start a micro business or a business with minimal investment. Read some of the articles about the best business ideas posted on our website. AOnce you’ve found the suitable idea, you can proceed to the next step.
Step 2. Market analysis
After choosing a business idea, you need to analyze the market, find out if people need your product at all. Evaluate the competition, identify the positive and negative aspects of competitors, find what differs your business from competitors. Compare prices, quality of service, assortment (if it is a commodity business) and look to the maximum for what you can be better at. After you have estimated the supply and demand, realized that you can compete with existing companies, you can move on.
Step 3. Planning a business
You can make a business plan with all the expenses, promotion options, everything you need to launch a startup, determine the prices of your goods and services, the break-even point planned incomes, etc. You write it for yourself, not for a bank or an investor, so you can write in any form which is more convenient for you. This should be done to keep all the information in one place. So you can check the completed tasks and goals using the plan. Do not look for ready-made business plans!!! They write complete nonsense and greatly differ from reality! We will not dwell on this in detail, because after you have found a business idea, you will quickly complete the Step 3, believe us!
Step 4. Search for money needed for business
You need to invest money in any business. You can do business without money, but it is very rare and you will have to wait for the results for a long time. In the last step in business planning, you had to calculate how much money you would need for your business at the initial stages. Take the amount and add at least another 20% to it. Just in case. You’s better have some extra money, otherwise, you may need to look for them in emergency mode. When you know how much you need, you need to look for this money. It is good if you have these funds because we do not recommend starting with a loan. You can take a loan to develop a tested working business model but we do not advise you to start with it.
Step 5. Register your business
This step cannot be missed because the business must be registered. You can use LLC or SP. It all depends on your activity. Once your business is established, you can proceed to the next step.
Step 6. Taxes and reporting
We indicated this step immediately because you initially have to decide on which taxation system you will work on. This must be done immediately because the amount of taxes and the methods of their payment depend on it. You will easily find up-to-date and complete information on tax and accounting records on the web.
Step 7. Test your idea quickly
Initially, you just need a quick test. Use your own money to test the idea, give minimal advertising, make the lowest possible product and try to sell it. Examine the demand in practice. You need to look into your plan, evaluate what you need at a minimum in order to start. No need to bring the startup to perfection, you need to start up as soon as possible to test the idea in action, get the first sales and be encouraged to continue development. If the start does not give the first sales, then you need to revise the plan, idea and look for mistakes. In case of failure, you will spend less time, effort and money. Agree, it would be more annoying to prepare your business a year, and then fail? It is less insulting to understand your mistakes right away. So you can make corrections in the course of actions and everything will work!
Step 8. Business development
After the tests have been carried out, the plan has been adjusted and sales have begun slowly, you can develop your business and refine everything that you have written in the plan to perfection. Now it is possible to improve your startup, increase warehouses or office, expand staff, etc. When your idea and business model showed its performance, it is easier for you to set more global goals. Moreover, you have already received the first money from the first orders or sales and can reinvest them in development. If you have not enough money, you can already resort to loans and borrowings, because business makes money and you can borrow it with a clear conscience. If you do not need a lot of money, you can use a credit card.
Step 9. Active promotion
When you get wider warehouses, more powerful equipment and a website, more employees, etc., you need active promotion. This requires aggressive advertising to the maximum. You have to use a lot of advertising opportunities. Search for customers on the Internet, do offline advertising, engage in direct sales, etc. The more promotional tools you use, the better the result. But be sure to record the results and sift out ineffective advertising tools, so as not to drain budgets into empty.
Step 10. Scaling
Your business works well, brings money, you are constantly evolving, everything is great! But there are also adjacent directions or neighboring cities. If your business model successfully works in your city, then you can make representative offices in other cities. If there is no desire or opportunity to go to the neighboring cities, you can simply capture the adjacent direction. For example, if you sell household appliances, you can simultaneously open a repair service and provide paid repair services. If your client’s equipment is not repairable, you can always offer him to buy in exchange for something from your store. In general, look at your business and we are sure that you will find what to cling to.
Tags: Business, Startup