Starting your own business takes several steps, and you’ll need to commit to completing them if you want your start-up to be a success.
First, it’s important to educate yourself on the best business practices, including, for instance, business ethics. Next, a pro forma document outlining and projecting your business outcomes will need to be created and signed off on by the relevant parties. You’ll also need to do your market research – and lots of it – especially concerning consumer audiences, as well as how your product will fit in the marketplace. Lastly – once you’ve registered your business and made it all official – you’ll need to generate interest in your product, as well as promote customer awareness of your brand.
Sound like a lot? Stay with us as we talk you through how to complete these six basic steps to starting your own business.
Step 1. Get Educated: Inform Yourself on Best Business Practices
Okay, so you have the ambitious dream of starting your own business. But do you even know what best business practices entail?
Of course, there are a multitude of online business courses that can help educate you on this. As part of these courses, you’ll likely touch on business ethics, which are an integral aspect of operating a business, especially if you have integrity. Where are you going to source your products, for example? What kind of labour will you use to manufacture them? Will your wares be mass-produced, or will you produce them sustainably?
Naturally, you still need to keep your bottom line in mind. It’s one thing to run a business ethically. But of course, it also needs to be profitable.
Step 2. Document Your Plans: Be Sure to Create a Business Pro forma
So, what’s a pro forma, exactly?
Essentially, it’s a document that outlines the financial plan for your business’s success. It’s especially important to formulate a pro forma if you’re seeking a loan from a financial lender – such as the bank – to fund the launch of your business. In most cases, the bank will ask to see a copy of your pro forma to ascertain if your business plans are viable.
Some of the questions most often taken into account by a bank when assessing your claim for a business loan can include:
- Can you afford to start a business, and also, meet the ongoing repayments for the loan you have requested?
- Will your business make money, and will your revenue cover the costs of your business expenses?
- Does your business have the potential to grow, and is it even a worthwhile financial venture?
Step 3. Do Your Market Research: Make Sure You Understand Your Consumer Audiences
Having a fresh business idea is one thing. But will people even be interested in it? That is to say, will customers want to buy what you’re trying to sell?
One way to ascertain this is to identify your business offering’s product market fit. To do this, you’ll need to have some understanding of key marketing principles such as supply and demand, as well as a solid grasp of what’s trending in the marketplace. What products are going viral, for example? Also, what gaps have you noticed in terms of the products consumers need, but don’t currently have access to?
In addition to this, you should also conduct audience research into consumer demographics. This will help you understand who it is that makes up your ideal customer, as well as who you will be marketing, promoting, and ultimately, selling your products to.
Step 4. Make it Official: Register Your New Business
You’ve made your business plan, and you’ve done your research.
Now, it’s time to make it official. You’ll need to register your business name with the relevant authorities, and also, familiarise yourself with the legal regulations associated with operating a business of your own.
Step 5. Set up Your Socials: Build Your Brand’s Visibility Online
Having a social media presence for your business is not just a trend, it’s essential.
For customers to find you, you need to be visible across all of the online channels available to you – such as Facebook and Instagram, for example.
To maximise your visibility across these channels, you’ll need to engage in digital marketing – including promoting your products via your social media platforms.
Step 6. Promote for Growth: Get Your Business Name Out There
Once you’ve established your online presence, you need to promote it. A large part of this is remaining consistent with your brand voice, especially as you grow.
Remember why you started, and stay true to your authenticity. Customers appreciate genuine, honest businesses, and are also more likely to buy from you if your brand appears true blue.
