Aug 10, 2020 11:33 AM EDT

4 Tips for Starting a Small Business

4 Tips for Starting a Small Business

(Photo : 4 Tips for Starting a Small Business)

1.Hands-on Approach

If you were to tell someone: "hey, I want to start my own business!". Most of the people would be sceptical and say something discouraging. The only reason why people react that way is because they are scared, and their fear comes from a lack of knowledge, experience and enthusiasm. Those three things are exactly what you need to start a successful business. Since you are thinking about starting your company you don't lack the enthusiasm, but do you have the knowledge and experience?

The best way to gain knowledge and experience is to work in other companies in the same field as your future company. In the ideal world every business owner should be a proficient worker first. You will learn every aspect of the business, from the groundwork to top-level decision making. That insider look into the inner workings of the business world is a stepping stone to successfully owning a company. You will learn from the mistakes that companies make and prepare yourself to be a competent leader

Alternatively, you can hire (or partner with) someone who has experience in that field and shares the same enthusiasm as you. In that case you must be a great leader from the start and know how to manage your team and your relationship with your partner. 

If you overlook this step you will be easily lost, and you will have to spend a lot of money for outside help and counsults. Or in the worst case scenario you will lose a lot of money and your company as well. In the United States of America fifty percent of all started small businesses fail after five years.

2.The Five Ws

Now, if you have enthusiasm, knowledge and experience, what is the next step? You will have to make some kind of business plan. It doesn't need to be an elaborate 10 year plan, but just enough to orientate your thoughts and actions in the right direction. The best way to start is with a piece of paper and the five Ws. So, what does the five Ws mean for your company? The questions are Who? What? Where? When? Why?

Each of these questions should be answered from three angles: your, your competitors', and your customers'.

Who? - Who are you (your company, the company structure and employees), and the same for the competitors? Who are your future customers (target audience research)

What? - What product or service does your company or competitor offer? What do your customers need/want?

Where? - Where is your company/competitor, where do you sell? Where are your customers located? How do you bridge that physical or digital distance?

When? - What are the steps you'll need to take to go where you want. For example if you produce a physical product: when will you produce it? Shipp it? Sell it?

Why? - Why are you building your business in this way, or at all? Why are your competitors' businesses as they are? What are similarities and differences, and how to exploit them to your benefit. Finally and most importantly why do people need your product or service?

As soon as you answer these questions a clear picture begins to form in your mind. This way you are already moving (your idea has evolved) and you know the exact next steps needed to build a lasting company. 

3. Registration

Now that you have (1) enthusiasm, knowledge and experience and (2) a good business plan, it is time for action.

Register your name and location:

The company name is very important and you should consider it carefully. Three main things to consider when choosing a name: (1) The name must be evergreen and long-lasting. Imagine what your company is going to become in 10 years. Does the chosen name still work? (2) Does your name reflect what your company does? (3) Check that the name is not taken. As soon as you have the right name, register it and trademark it. 

Find and register the location of your business. Usually businesses start in small and cheap locations, which is fine, just don't compromise too much. You'll still need to run a company and have to consider the specific needs for your company type. Here are some questions you could ask yourself. Do you need to be close to your customers? Do you need storage? How much would employee transport cost? Do you need to host clients in that location? etc. 

Choose the right legal entity type for your business. The most common options are: limited liability company (LLC) or a corporation. For the first small company that you are opening it is recommended to go as a limited liability company. You can choose between sole proprietorship (LLC) if you are the only owner or multiple-member (LLC) if there are more owners. The process of registration is slightly different in every country, but in order to illustrate the procedure here are some tips for registering your LLC or corporation in Florida

4. Ideas for most approachable careers 

In the first part of this text we talked about the importance of learning your craft before you start a company. But it won't work if you are still deciding what you want to do. We want to present you with some good ideas. The most convenient way for most people to start a new career is online, working from their home. It is the most affordable way that carries very little or no financial risk. If you like to write, the first choices would be: content writer or blogger. Choose your topics and niches keeping in mind the needs of your future company. Look at this step as autodidactic, as well as a networking step. Few other careers you should consider are more marketing oriented: social media specialist or affiliate marketer. That way you will learn marketing fundamentals that will help you in ANY field of business.

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