9 Easy Steps in Starting Your Own Small Business
Starting your own business is one of the most exciting ventures if you want to get out of working for somebody. But of course, it entails hard work, determination, and money to start your own business. In the United Kingdom, people engage in businesses – small, medium or large-scale. According to the statistics from the Department for Business, Energy, and Industrial Strategy, there were 5.5 million private sectors businesses in the United Kingdom at the start of 2016. It is expected to increase more in the years to come.
On the other hand, not all businesses are geared towards success. In fact, experts suggest that two-thirds of the businesses with employees succeed for only two years. According to analysis, these businesses have not undergone thorough research and planning leading them to rushed business venture. Thus, if you want to make sure that you are doing alright in the procedures before running your own business, follow these 9 easy steps in starting your own small business:
Do a research
Research is very important in all aspects. In business, you need to perform a thorough research about the businesses that are going to survive and succeed in the market. Know about the products, the competitions, the trends, etc. In conducting a business research, the key is to identify the problem. Does this community lack grocery marts? Does this community lack event planners, plumbers, handyman, etc.? These are the questions that you are going to ask in order to determine if your business is going to be a “need” in the community.
Read your market
This phase is basically included in the research process. However, this should be given more importance. Your business’ success is dependent on your customers, audience, and target market. Without them, your business would be a flop. Thus, make sure that you spend time in reading and analyzing the “market demands” and “trends”. Identify who you are going to target – children, adults, millennials, music lovers, sports enthusiasts, etc. There is a wide range of market categories. As part of your business research, collect data from the people in the community you are planning to start your business to.
Find your niche
Basically, you have a business in mind. But it is important that the business meets the results of your research. If you love cooking and you found out in your research that there are many “cooking mothers” and food shops and restaurants in the community, these are indications that you can start your food grocery store. But if the results tell otherwise, go deeper into your “self” and find your niche. If the community is filled with millennials, ask yourself if you love gadgets and other trendy stuff so you can start a gadget accessory shop.
Always ask yourself first. Remember, you are going to run your own business. What’s the use if you don’t like it in the first place? Choose the business that matches your niche and the market.
Plan your finances
Money is very vital in starting a business. The startup phase will really be expensive. But it will be worth it in the long run if you plan your business well. This includes planning your finances. There are different things that you should consider in financial management – equipment, location, building the establishment, legal fees – in short, the overall startup costs. Moreover, anticipate the expenses in marketing, travel expenses, employees’ salary, etc.
If you have adequate capital, great! However, if you think your money on hand is insufficient, go for loans, credits, small business grants, and crowdfunding, among others to fund your small business.
Decide on a business structure
Choose a business structure that will benefit you and your business. It can a sole proprietorship, a partnership with other businesses, an LLC, or a corporation. A business structure is very important in a lot of ways. We recommend you asking an attorney or CPA to provide you a legal advice on what business structure to choose.
After choosing a business structure, you need to name and register your business. You need to make sure that the business name is not currently used by other enterprises. Then, proceed with the licenses and permits. We do not want you to work underground or illegally. Make sure you secure business licenses and permits. It is part of your research process to know what licenses and permits may be applied to your business during the start-up phase.
Set up your location
Now if you’ve met all the demands of the law, start setting up your location. Location is vital as well in the research process. Make sure it is in the area that is accessible to your target audience. Your business location can be a home office, a private office space, or you can rent in a building or commercial establishment. After settling the location, complete all the equipment, the utilities and all the finishing touches that are needed in your business.
Hire and train people
Your business wouldn’t operate without people. Hire workers that will maintain your business productivity. It may include accountant, sales manager, marketing officer, customer service representative, general manager, etc. By hiring people, you can be able to delegate tasks and jobs which make your service more efficient to your customers. Make sure you let them undergo proper training so that they can be ready during your business operations.
Promote your business
Lastly, choose the best marketing strategy that will help build and establish your business in the market. There are different ways on how to promote your business. You can explore offline and online ways. But in the digital era, we recommend you taking advantage of social media marketing and even website content marketing. These are new and “more effective” ways of promoting your business to the people.
Always remember that starting your own business is a risk. It may be a boom or a flop. Just always remember that you performed everything that should be done in order to achieve your business goals and objectives.