A Professional Guide on How to Start Your Own Business
Entrepreneurship is taking over the world globally. Many employees feel the need to start their own business. How to start a small business has nothing to do with your qualification, ethnicity, age, or gender. The thing matters are the strategies you follow to flourish your business and keep it growing over time, along with your budget.
According to the Small Business Administration, the percentage of small businesses is a huge total of 99.9 in the US, with 30.7 million openings.
55.8% out of more than 2,600 billionaires in the world are self-made according to Wealth-X Billionaire Census 2019. With technological advancements and millions of startups, the market has become very competitive over the years, which makes it difficult for a lot of businesses not to reach the next year.
Before starting the guide lets first go through the most common reasons why businesses fail:
Most common reasons for business failure:
According to US Bureau of Labor Statistics, in March 2017 out of 733,490:
- 1% made it to 2018
- Out of that 79.1 %, only 68.7% made it to 2019
The most common reasons for startups are:
- The business vision not proper enough to strive in the competitive market
- Budget issues
- The team is not good enough
- Awful marketing services
- Behavior not good with the customers
- Lost by the other competitive rivals
- Product not being user friendly
- Product’s cost problems
To avoid these failures, let’s dive into the most beneficial guide on how to start your own business.
How to start your own business guide:
When starting planning on how to start your own business, the major milestones are naming your business or designing a logo. There are many more steps that are just as equally important. The stress of planning a business strategy and marketing can quickly pile up the workload. Instead of struggling through the process, follow these simple steps on how to start your own business.
- Self-Evaluation is Important
Before you lay the foundation on how to start a business that is solely yours, it is necessary to ask yourself if you can commit to it.
- What is your vision for your business?
- How committed are you to this business, and what are your target skills?
- Why exactly do you want to start a business?
- What will you provide a service or a product?
- Do you have a list of great employees to help you?
- Can you work more than expected?
- How is your service or product different than others, and will it succeed or not?
Asking these questions from you on how to start a small business is very important. These questions are supposed to strengthen your resolve. After getting a positive output from all these questions, you need to question how much money you will need to get started.
A survey from almost 600 successful small businesses conducted by Kabbage showed that nearly 60% of businesses started with less than $25,000.
- Make your business LLC or Corporation
If, somehow, your business falls apart, then make sure you’re protecting your assets. You should use corporate names with proper signature and keep individual stakeholders’ funds separate from your business funds.
- Funding for your business
According to US Bank Study, 82% of businesses fail because of no proper funding system. How to start a business requires an adequate funding system. You should strategize and analyze your funds and cash flow system. Hire an account specialist to keep your cash flowing in and out of your business.
- Investigate your Target Audience
Don’t just barge in the market or industry without thorough research. One of the most common reasons for failures is opening a startup that has no market value. So, find an opening in the market place, which requires your service or product, and then fill the gap without forcing your business in the market. Providing what the clients or customers would need is a success rather than creating one and insisting people spend on it.
- Business Strategy/Plan
A strong business strategy is a basis for a successful small business. Highlight all your business goals, find answers on how you can achieve these goals with the possibility of problems and their solutions. When your business strategies are good to go, then follow through with them, make sure not to change strategies often, or increase your costs because that will lead to direct failure. Research thoroughly and analyze your strategies and funding throughout the way.