The idea of starting a business is fascinating.
Imagine having your own enterprise where you are your own boss? The idea is marvellous, and the best part is that your business plan and idea is ready. There’s only one thing that’s stopping you and that is – finances.
Believe it, or not a lot of businesses have started out with zero capital. So, this should not be a setback why you should not fulfil your dreams. However, in the long run, a business needs money so that it can get through its day to day operations.
Today, we are going to look at two things that go hand in hand for any successful business to run:-
- How to start a business
- How to fund a new business
How to start a business?
Anyone can become an entrepreneur as long as they have the drive and a plan. The following are some tips that can help you start building your plan to an empire.
- Evaluate yourself
There is one key question any budding entrepreneur should ways to ask themselves ‘Why do I want to start my own business?’
For some maybe this is an escape route to leave their jobs and become their own bosses, while others are following their dreams. If you have the ambition, truth and drive, then you are ready to begin the journey.
- Come up with a business idea.
Don’t leave your job if you have no idea what kind of business you are about to start. Brainstorm and try and figure out the best business that can be set up in your society.
While many people are getting “creative” these days, actually focus on a building a traditional plan because it is more thorough and give you a good overview of what you will need to do. It doesn’t need to be super detailed but follow a particular order. You can always add more to the plan in the later stages.
We will talk more about planning your finances in the second half of this article, but this where you should think about it. List down your initial expenses and things that you’ll have to spend on for the rest of the first year.
- Market Research.
It is still not time to start the business first you need to ensure you have adequately done your homework about the business. This means you have to find out about your targeted audience and the type of competition you will get. Is the market big enough? Is there demand for your solution to their problems?
This can be in the form of interviews or questionnaires. Efficient market research will help you build a business structure.
- Get feedback.
After doing your market research and collecting your data the next step is to talk to other business people you know or others in your target market and ask them what they think about the vision you have. In the long run, they will give you feedback which you have to take either positively or negatively but be sure to keep an open mind and be ready to start over even after all this if necessary.
- Pick a name.
This step can be the easiest but also the most consuming if you didn’t do a good market research. Your business name is going to influence your sales. Don’t use a name that’s too difficult to pronounce because people won’t remember it and choose another company. Make sure it is related to your target market in some way.
- Get permits
The list of permits and licenses you’ll have to get depends on the nature of your business. Put in excessive amount of research and mention the documents needed below every license type. You can ask your friends or any family members who recently started their own business about them as well.
- Select a location
The market survey you did earlier will help you select a location. In this step you decide whether you want a work from home, lease a shared office space, or purchase a shop. Leasing out the office space at first is a better option than buying it because doing so reduces initially expenses considerably and gives you high spending power. At the same time, start building your team and start promoting your business.
- Launch your business.
Make it official by finally opening up your business.
How to fund your business?
There are three options which you have as an entrepreneur to fund your business:
- Reduce the needs of the business
Any new business has to start small and have as few needs as possible. Of course, there are some needs which you cannot avoid such as licencing and legal fees.
However, you can reduce your needs by starting small such as employing a few employees.
Bootstrapping is simply starting an internet business with minimal finances. For instance, you can start a blog where you can interact with your target audience easily.
In the long run, the scope will grow, and you will eventually have the revenue to continue big with your business.
- Getting funding from outside sources.
You can look at LoanReviewHQ to get the money you need. A lot of new entrepreneurs also outsource their funds to raise capital for their new businesses. Some few potential sources include:-
- Loan from banks
- Friends and family
- Venture capitalists
- Government loans and grants
- Business insurance
It goes without saying that you need to protect assets of your business wisely. Ask around and read reviews of multiple business insurances before making the decision. You also need to get insurance for your employees, which includes liability and compensation insurance.
- Talk to experienced investors
You will always find experienced investors in your city, with whom you can talk about funding and business loans. Many of them host conferences and provide excellent tips that can help you in the long run.
When you attend these conferences and talks, you will meet several people. Share your ideas with them and get to know about their business. You can use their services and they can use yours to help each other grow.
A simple few tips can help you get the money you need, and start a business that you always wanted to!