1. Evaluate yourself.<\/b><\/h6>\n
Let’s start with the most basic question: Why do you want to start a business? Use this question to guide what kind of business you want to start.<\/p>\n
Once you have the reason, start asking yourself even more questions to help you figure out the type of business you should start, and if you have what it takes.<\/p>\n
- \n
- What skills do you have?<\/li>\n
- Where does your passion lie?<\/li>\n
- Where is your area of expertise?<\/li>\n
- How much can you afford to spend, knowing that most businesses fail?<\/li>\n
- How much capital do you need?<\/li>\n
- What sort of lifestyle do you want to live?<\/li>\n
- Are you even\u00a0ready to be an entrepreneur?<\/li>\n<\/ul>\n
Be brutally honest with your answers. This will create a foundation for everything you do moving forward, so it’s better to know the truth now than later.<\/p>\n
2. Think of a business idea.<\/b><\/h6>\n
Do you already have a killer\u00a0business idea? If so, congratulations! You can proceed to the next section. If not, there are a ton of ways to start brainstorming for a good idea.<\/p>\n
- \n
- Ask yourself what’s next.\u00a0<\/b>What technology or advancement is coming soon, and how will that change the business landscape as we know it? Can you get ahead of the curve?<\/li>\n
- Fix something that bugs you.\u00a0<\/b>People would rather have less of a bad thing than more of a good thing. If your business can fix a problem for your customers, they’ll thank you for it.<\/li>\n
- Apply your skills to an entirely new field.<\/b>\u00a0Many businesses and industries do things one way because that’s the way they’ve always been done. In those cases, a fresh set of eyes from a new perspective can make all the difference.<\/li>\n
- Use the better, cheaper, faster approach.\u00a0<\/b>Do you have a business idea that isn\u2019t completely new? If so, think about the current offerings and focus on how you can create something better, cheaper or faster.<\/li>\n<\/ul>\n
Also, go out and meet people and ask them questions, seek advice from other entrepreneurs, research ideas online or use whatever method makes the most sense to you.<\/p>\n
3. Do market research.<\/b><\/h6>\n
Is anyone else already doing what you want to start doing? If not, is there a good reason why?<\/p>\n
Start researching your potential rivals or partners within the market.\u00a0It breaks down the objectives you need to complete with your research and the methods you can use to do just that. For example, you can conduct interviews by telephone or face to face. You can also offer surveys or questionnaires that ask questions like \u201cWhat factors do you consider when purchasing this product or service?\u201d and \u201cWhat areas would you suggest for improvement?\u201d<\/p>\n
Just as importantly, it explains three of the most common mistakes people make when starting their market research, which are:<\/p>\n
- \n
- Using only secondary research.<\/li>\n
- Using only online resources.<\/li>\n
- Surveying only the people you know.<\/li>\n<\/ol>\n
4. Get feedback.<\/b><\/h6>\n<\/div>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n
Let people interact with your product or service and see what their take is on it. A fresh set of eyes can help point out a problem you might have missed. Plus, these people will become your first brand advocates, especially if you listen to their input and they like the product.<\/p>\n
One of the easiest ways to utilize feedback is to focus on \u201cThe Lean Startup\u201d approach, but it involves three basic pillars: prototyping, experimenting and pivoting. By pushing out a product, getting feedback and then adapting before you push out the next product, you can constantly improve and make sure you stay relevant.<\/p>\n
Just realize that some of that advice, solicited or not, will be good. Some of it won’t be. That’s why you should have a plan on how to receive feedback.<\/p>\n
Here are\u00a0six steps for handling feedback:<\/p>\n
- \n
- Stop!<\/b>\u00a0Your brain will probably be in an excited state when receiving feedback, and it might start racing to bad conclusions. Slow down and take the time to consider carefully what you’ve just heard.<\/li>\n
- Start by saying \u2018thank you.\u2019<\/b>\u00a0People who give you negative feedback won’t expect you to thank them for it, but doing so will probably make them respect you and encourage them to continue be honest in the future.<\/li>\n
- Look for the grain of truth.\u00a0<\/b>If someone doesn’t like one idea, it doesn’t mean they hate everything you’ve just said. Remember that these people are trying to help, and they might just be pointing out a smaller problem or solution that you should look into further.<\/li>\n
- Seek out the patterns.<\/b>\u00a0If you keep hearing the same comments, then it’s time to start sitting up and taking notice.<\/li>\n
- Listen with curiosity.<\/b>\u00a0Be willing to enter a conversation where the customer is in control.<\/li>\n
- Ask questions.\u00a0<\/b>Figure out why\u00a0<\/i>someone liked or didn’t like something. How could you make it better? What would be a better solution?<\/li>\n<\/ol>\n
Also, one way to help you get through negative feedback is to create a\u00a0“wall of love,”\u00a0where you can post all of the positive messages you’ve\u00a0received.Not<\/span>\u00a0only will this wall of love inspire you, but you can use these messages later when you begin selling your product or service. Positive reviews online and word-of-mouth testimonials can help make a big difference.<\/p>\n
5. Make it official.<\/b><\/h6>\n
Get all of the legal aspects out of the way early. That way, you don’t have to worry about someone taking your big idea, screwing you over in a partnership or suing you for something you never saw coming. A quick checklist of things to shore up might include:<\/p>\n
- \n
- Business structure (LLC, corporation or a partnership, to name a few.)<\/li>\n
- Business name<\/li>\n
- Register your business<\/a><\/li>\n
- State tax ID<\/a><\/li>\n
- Permits\u00a0<\/a><\/li>\n
- License<\/a><\/li>\n
- Necessary bank account<\/a><\/li>\n
- Trademarks,\u00a0copyrights\u00a0or\u00a0patents<\/li>\n<\/ol>\n
While some things you can do on your own, it’s best to consult with a lawyer<\/a> when starting out, so you can make sure you’ve covered everything that you need.<\/p>\n
6. Write your business plan.<\/b><\/h6>\n
A\u00a0business plan<\/a>\u00a0is a written description of how your business will evolve from when it starts to the finish product.<\/p>\n
Here’s what\u00a0we suggest\u00a0should be in your business plan:<\/p>\n
- \n
- Title page.<\/b> Start with name the name of your business, which is harder than it sounds.<\/li>\n
- Executive summary.<\/b> This is a high-level summary of what the plan includes, often touching on the company description, the problem the business is solving, the solution and why now.<\/li>\n
- Business description.<\/b>\u00a0What kind of business do you want to start? What does your industry look like? What will it look like in the future?<\/li>\n
- Market strategies.<\/b>\u00a0What is your target market, and how can you best sell to that market?<\/li>\n
- Competitive analysis.<\/b>\u00a0What are the strengths and weakness of your competitors? How will you beat them?<\/li>\n
- Design and development plan.<\/b>\u00a0What is your product or service and how will it develop? Then, create a budget for that product or service.<\/li>\n
- Operations and management plan.<\/b>\u00a0How does the business function on a daily basis?<\/li>\n
- Finance factors.<\/b>\u00a0Where is the money coming from? When? How? What sort of projections should you create and what should you take into consideration?<\/li>\n<\/ol>\n
For each question, you can spend between one to three pages. Keep in mind, the business plan is a living, breathing document and as time goes on and your business matures, you will be updating it.<\/p>\n
7. Finance your business.<\/b><\/h6>\n
There are a ton of different ways to get the resources you need to start your business.\u00a0Angel investor Martin Zwilling, whose business Startup Professionals provides services and products for startups and small businesses, recommends\u00a010 of the most reliable ways to fund your business. Take a look and consider your own resources, circumstances and life state to figure out which one works best for you.<\/p>\n
- \n
- Fund your startup yourself.<\/b>\u00a0Bootstrapping your business might take longer, but the good part is that you control your own destiny (and equity).<\/li>\n
- Pitch your needs to friends and family.<\/b><\/li>\n
- Request a small-business grant.<\/b><\/li>\n
- Start a crowdfunding campaign online.<\/b> Sometimes power is in numbers, and a bunch of small investments can add up to something major. If you think your business might be a fit for something like Kickstarter or Indiegogo, you should \u00a0check out the\u00a0most popular crowdfunding websites.<\/li>\n
- Apply to local angel investor groups.<\/b>\u00a0Online platforms such as\u00a0Gust<\/a>\u00a0and\u00a0AngelList\u00a0<\/a>and local networking can help you find potential investors who relate to your industry and passion.<\/li>\n
- Solicit venture capital investors.<\/b>\u00a0VCs typically look for big opportunities from proven teams that need a million dollars or more, so you should have some traction before approaching them.<\/li>\n
- Join a startup incubator or accelerator.<\/b>\u00a0These companies are designed to help new or startup businesses get to the next level. Most provide free resources, including office facilities and consulting, along with networking opportunities and pitch events. Some, also provide seed funding as well.<\/li>\n
- Negotiate an advance from a strategic partner or customer.<\/b> If someone wants your product or service bad enough to pay for it, there’s a chance they’ll want it bad enough to fund it, too.<\/li>\n
- Trade equity or services for startup help.<\/b>\u00a0For example, you could support a computer system for office tenants in exchange for free office space. You might not get paid for this, but you won\u2019t have to pay for an office, either, and a penny saved is a penny earned.<\/li>\n
- Seek a bank loan or line of credit.<\/b><\/li>\n<\/ol>\n
\n\n \n\n \n8. Develop your product or service.<\/b><\/h6>\n
After all the work you’ve put into starting your business, it’s going to feel awesome to actually see your idea come to life. But keep in mind, it takes a village to create a product. If you want to make an app and you’re not an engineer, you will need to reach out to a technical person. Or if you need to mass-produce an item, you will have to team up with a manufacturer.\u00a0A major point the article highlights is that when you\u2019re actually crafting the product, you should focus on two things: simplicity and quality. Your best option isn\u2019t necessarily to make the cheapest product, even if it lowers manufacturing cost. Also, you need to make sure the product can grab someone\u2019s attention quickly.<\/p>\n
When you are ready to do product development and outsource some of the tasks make sure you:<\/p>\n
- \n
- Retain control of your product and learn constantly.<\/b>\u00a0If you leave the development up to someone else or another firm without supervising, you might not get the thing you envisioned.<\/li>\n
- Implement checks and balances to reduce your risk.<\/b>\u00a0If you only hire one freelance engineer, there\u2019s a chance that no one will be able to check their work. If you go the freelance route, use multiple engineers so you don\u2019t have to just take someone at their word.<\/li>\n
- Hire specialists, not generalists.<\/b>\u00a0Get people who are awesome at the exact thing you want, not a jack-of-all-trades type.<\/li>\n
- Don’t put all your eggs in one basket.<\/b>\u00a0Make sure you don\u2019t lose all of your progress if one freelancer leaves or if a contract falls through.<\/li>\n
- Manage product development to save money.<\/b>\u00a0Rates can vary for engineers depending on their specialties, so make sure you\u2019re not paying an overqualified engineer when you could get the same end result for a much lower price.<\/li>\n<\/ol>\n
To help you have peace of mind, start learning as much as you can about the production, so you can improve the process and your hiring decisions as time goes along.<\/p>\n
This process will be very different for\u00a0service-focused entrepreneurs, but no less important. You have several skills that people are willing to pay you for right now, but those skills can be hard to quantify. How can you establish yourself and your abilities? You might consider creating a portfolio of your work — create a website to show your artwork if you\u2019re an artist, writing if you\u2019re a writer or design if you\u2019re a designer.<\/p>\n
Also, make sure you have the necessary certificates or educational requirements, so that when someone inquires about your service, you\u2019re ready to jump at a good opportunity.<\/p>\n
9. Start building your team.<\/b><\/h6>\n
To scale your business, you are going to need to hand off responsibilities to other people. You need a team.<\/p>\n
Whether you need a partner, employee or freelancer, these three tips can help you find a good fit:<\/p>\n
- \n
- State your goals clearly.<\/b>\u00a0Make sure everyone understands the vision and their role within that mission at the very start.<\/li>\n
- Follow hiring protocols.<\/b> When starting the hiring process you need to take a lot of things into consideration, from screening people to asking the right questions and having the proper forms.<\/li>\n
- Establish a strong company culture.<\/b> \u00a0What makes a great culture? \u00a0What are some of the building blocks? That\u2019s because a great culture is more about respecting and empowering employees through multiple channels, including training and mentorship, than it is about decor or ping-pong tables. In fact, office perks can turn out to be\u00a0more like traps than real benefits.<\/li>\n<\/ol>\n
10. Find a location.<\/b><\/a><\/h6>\n
This could mean an office or a store. Your priorities will differ depending on need, but here are\u00a010 basic things to consider:<\/p>\n
- \n
- Style of operation.<\/b>\u00a0Make sure your location is consistent with your particular style and image.<\/li>\n
- Demographics.<\/b>\u00a0Start by considering who your customers are. How important is their proximity to your location? If you’re a retail store that relies on the local community, this is vital. For other business models, it might not be.<\/li>\n
- Foot traffic.<\/b>\u00a0If you need people to come into your store, make sure that store is easy to find. Remember: even the best retail areas have dead spots.<\/li>\n
- Accessibility and parking.<\/b>\u00a0Is your building accessible? Don’t give customers a reason to go somewhere else because they don’t know where to park.<\/li>\n
- Competition.<\/b>\u00a0Sometimes having competitors nearby is a good thing. Other times, it’s not. You’ve done the market research, so you know which is best for your business.<\/li>\n
- Proximity to other businesses and services.<\/b>\u00a0This is more than just about foot traffic. Look at how nearby businesses can enrich the quality of your business as a workplace, too.<\/li>\n
- Image and history of the site.<\/b>\u00a0What does this address state about your business? Have other businesses failed there? Does the location reflect the image you want to project?<\/li>\n
- Ordinances.<\/b>\u00a0Depending on your business, these could help or hinder you. For example, if you’re starting a daycare center, ordinances that state no one can build a liquor store nearby might add a level of safety for you. Just make sure you’re not the one trying to build the liquor store.<\/li>\n
- The building\u2019s infrastructure.<\/b>\u00a0Especially if you’re looking at an older building or if you’re starting an online business, make sure the space can support your high-tech needs. If you’re getting serious about a building, you might want to hire an engineer to check out the state of the place to get an objective evaluation.<\/li>\n
- Rent, utilities and other costs.<\/b>\u00a0Rent is the biggest facilities expense, but check out the utilities, as well, and whether they’re included in the lease or not. You don’t want to start out with one price and find out it’s going to be more later.<\/li>\n<\/ol>\n
Once you know what to look for and it’s time to start searching for a place that fits all of your qualifications, these\u00a0four tips\u00a0can help.<\/p>\n
- \n
- Think on your own timeframe.<\/b>\u00a0Landlords are starting to offer shorter-term office rentals. Don’t get stuck in a long-term lease if it doesn’t make sense for your business.<\/li>\n
- Play the whole field.<\/b>\u00a0There are all sorts of places to use — co-working spaces, office business centers, sublets and more. Keep your options open.<\/li>\n
- Click around town.<\/b>\u00a0You might be able to find the perfect place by using online resources.<\/li>\n
- Do the deal on your terms.<\/b>\u00a0Again, you have options. Don’t get roped into something that makes you uncomfortable.<\/li>\n<\/ol>\n
After you have a location, you can focus on the aesthetic.<\/p>\n
11. Start getting some sales.<\/b><\/h6>\n
No matter your product or industry, your business’s future is going to depend on revenue and sales.\u00a0Steve Jobs\u00a0knew this — it’s why, when he was starting Apple, he spent day after day calling investors\u00a0from his garage.<\/p>\n
There are a ton of different sales strategies and techniques you can employ, but here are four tenets to live by:<\/p>\n
- Play the whole field.<\/b>\u00a0There are all sorts of places to use — co-working spaces, office business centers, sublets and more. Keep your options open.<\/li>\n
- Demographics.<\/b>\u00a0Start by considering who your customers are. How important is their proximity to your location? If you’re a retail store that relies on the local community, this is vital. For other business models, it might not be.<\/li>\n
- Follow hiring protocols.<\/b> When starting the hiring process you need to take a lot of things into consideration, from screening people to asking the right questions and having the proper forms.<\/li>\n
- Implement checks and balances to reduce your risk.<\/b>\u00a0If you only hire one freelance engineer, there\u2019s a chance that no one will be able to check their work. If you go the freelance route, use multiple engineers so you don\u2019t have to just take someone at their word.<\/li>\n
- Pitch your needs to friends and family.<\/b><\/li>\n
- Executive summary.<\/b> This is a high-level summary of what the plan includes, often touching on the company description, the problem the business is solving, the solution and why now.<\/li>\n
- State tax ID<\/a><\/li>\n
- Start by saying \u2018thank you.\u2019<\/b>\u00a0People who give you negative feedback won’t expect you to thank them for it, but doing so will probably make them respect you and encourage them to continue be honest in the future.<\/li>\n
- Stop!<\/b>\u00a0Your brain will probably be in an excited state when receiving feedback, and it might start racing to bad conclusions. Slow down and take the time to consider carefully what you’ve just heard.<\/li>\n
- Fix something that bugs you.\u00a0<\/b>People would rather have less of a bad thing than more of a good thing. If your business can fix a problem for your customers, they’ll thank you for it.<\/li>\n
- Ask yourself what’s next.\u00a0<\/b>What technology or advancement is coming soon, and how will that change the business landscape as we know it? Can you get ahead of the curve?<\/li>\n