8 CRITICAL STEPS TO STARTING A NEW BUSINESS
The first-year survival rate among new small businesses is only about 20%. Startup time is not an exact science, but that doesn’t mean you shouldn’t test the waters, because there really isn’t a good or bad time. However, it does give cause to stop and consider if you have the critical pieces in place when you begin.
1. IDENTIFY THE OPPORTUNITY
You have the ability to choose different business opportunities. However, selecting the right one for you is not always easy. You can design clothes, do online trading, create landscape designs or be an accountant. But you must first recognize your entrepreneurial skill, understand your interests and decide if you have a passion for that field. (Timing)
2. YOU DON’T HAVE TO REINVENT THE WHEEL
Sometimes the best ideas are tried and true that are already successful. Cupcakes are a great example. People love cupcakes so why try to invent a new dessert type? Or how about jewelry? Everyone wears some type of jewelry, so why not start designing? You don’t have to be the next Google. It’s OK to pursue your version of what’s already being done as long as you do it well. Every street or mall is full of competitive banks, coffee shops, clothing stores and more. Don’t assume you have to find something new. You may only need a new slant on an old idea.
3. CREATE A BUSINESS PLAN
This is critical to any new venture. More businesses fail due to a lack of planning than any other reason. A comprehensive business plan examines the financial aspects of your desired business as well as he mechanics of moving it forward, start up costs, market research, inventory control, marketing, advertising and more. If you know someone who started a similar business, pick their brain on costs, strategy and other issues. Be clear on what must happen in the first few months to generate immediate revenue. Focus on what’s real right now and don’t get tunnel vision on what’s hypothetical down the road...
4. NARROW YOUR NICHE
Answer the question, “Who exactly is my customer?” Instead of saying our product or service is ideal for “all women” or all whoever, pinpoint exactly who you are really targeting. Identify the demographics such as age, gender, geography, and theirpsychology such as personalities, values, attitudes, and interests. When you know precisely who you want to reach with your product or service, it will be easier to execute your plan.
5. GENERATE FUNDS
Proper funding of a business startup or a young business is another critical issue that is often pursued improperly. Most of the time you need to depend on your own personal savings for a while, or funds raised from friends or family. Most small startups are not funded by venture capitalists, banks or grants from larger companies. you must enter your venture with your eyes wide open and not starry eyed. This may need to be looked atas “casino” or “Las Vegas” money. But, most importantly, pursue clients or customers and not just the capital. Ultimately, they are your source of revenue and financial growth. You must sell!
6. THINK CREATIVELY & CONSERVATIVELY
Sure, it would be convenient to own you own commercial kitchen for baking your cookies, but the cost of signing a long term lease and purchasing the equipment may be prohibitive early on. Find smart solutions to getting what you need for little or no cash. For example, using another’s kitchen during their off hours. Forget about hiring at the outset. Use interns and develop a network of advisors in person and online. Invest in social media training so you can build a following of likely customers and influencers. You don’t always need expensive advertising.
7. PRICE FOR PROFIT
Pricing shouldn’t just cover your costs. It must also generate a PROFIT for your business. Don’t undervalue your time, talent and length of experience. This is a classic mistake in most new businesses, and especially for women. Work the numbers! Go from the top down. Ask yourself, “How much do I want to makeannually?” Then determine how that breaks down weekly and monthly. How many products or service hours must you sell or how many clients must you see to meet those numbers? What are all the costs associated with delivering those results? You don’t need fancy accounting skills for this.
8. STOP STALLING & START DOING
When is the right time to begin? Who really knows! Many people believe they must have the exact right education. But ultimately success is not always determined by where (or if) you went to school. I’m not saying you shouldn’t obtain an education or that education is bad (I went to college and got a degree), but that is not the final determining factor in your success. A lot of what has made me successful was not a carryover from my schooling. It was hard work and gaining experience through that work! It’s not always how much money you have either. Your success will be determined by the decisions you make and the specific actions you take every day. It comes down to your “want to.” How much do you want something? You’ve got to hustle, and you’ve got to get started.
