Setting up a business? Here is what you need to do first
Fri 21 December 2018 - 11:37 amStartup | Tips | Advice
You may have thought up a business idea that you are sure is going to make you a great deal of money. However, there are a few aspects you need to consider before you canmake your dream a reality. Starting a business may seem an incredibly daunting prospect upon first starting out, but you need to break the process down into smaller steps to make sure your business idea gets off the ground successfully.
With that in mind, below is a step-by-step guide to follow to set up your small business with guaranteed success.
1. Market research
Before you truly know whether there is any longevity to your business plan, you need to conduct some market research to make sure the money spent in setting up your business isn’t wasted. You need to establish whether there is a market for your business as many of the best ideas fail in the first few stages due to the research aspect being completely overlooked.
You also need to comprehend whether there is a current demand for your product or service, as well as understanding which forms of marketing will work and the correct pricing strategies for your target market.
There are many research strategies you can consider. These include:
- Primary: To be carried out yourself
- Secondary: Has already been carried out by other people
- Quantitive: Based on numbers and statistics
- Qualitative: Based on opinions
The more research you collect, the better position you will find yourself in regardingthe overall success of your business.
2. Create a business plan
Once your market research has successfully been carried out, you will need to come up with a business plan to dictate how you will spend your finances and the direction you intend your business to go in. The business plan is a vital requirement for any new entrepreneur to work out the difficulties that may be faced and how these can be amended before any money is invested.
Your business plan should include the likes of (but not limited to):
- An overview of your idea
- Information on the product or service
- Market research
- Management team
- How you plan on managing your finances
Many people choose to fund their business through crowdfunding schemes, for example, which should be noted down in your plan.
3. Choose a business name
Your business name is what essentially makes you stand out from the tough crowd, so coming up with something completely uniqueshould allow you to become a real competitor in your field to new customers. One of the mistakes to avoid is opting for a name that is extremelysimilar to a competitor. Your businesses may get confused, andshould they have a bad reputation, it could rub off on your company.
4. Design a logo
The logo is often the very first aspect customers see of your brand, so it needs to catch the eye and look appealing. Before you can come up with a logo, you will need to consideryour overall branding and what your company represents. If people can connect with your brand, they are far more likely to browse through what the company has to offer and then, ofcourse, make a purchase.
5. Purchase the necessary equipment
No matter what business you intend to own, there are always a few essential tools you are going to need to ensure the day-to-dayrunning of your company is a smooth as possible.
Certain types of machinery may be the difference between stress-freeworking life and total chaos. As an example, everysingle business should own a diesel generator to kick into action in the event of a loss of electricity. Would your company be able to manage without power? The chances are very slim. You may have to close down the office for the day and send employees home with no work to do.
Although purchasing a generator may not be at the top of your agenda right now, it is certainlyan investment that shouldbe madeif you are hoping to hire a team of employees in the near future. Diesel generators are far more fuel-efficient than petrol-fueled machines, which should save you a great deal of cash in the long term. Generators run for a vast number of hours before needing to be refueled. Luckily, there are many expert companies, such as Able Sales, who can help you choose the right generator for your office.
Additionally, every business should also have the likes of a computer or laptop, external hardware so your files are backedup accordingly and a wireless router with high-speed activity for all devices.
There are many aspects you need to consider when choosing a suitable location for your business. Of course, this will all depend on the nature of your business; whether it be in industry, office work or retail.
If your business relies on frequent deliveries, you will need to be accessible to motorways, local transport links, andmain roads. In more commercialisedareas, you will find that rent prices will be higher, so consider whether a city location is a necessity. You will also need to bear in mind that employees need to get to work with ease, or you may find that you won’t be able to source the best local talent if you choose an extremely remote location.
Your location will also determine how secure your business is, which could havesignificantimpacts on your insurance as wellas extra costs to keep your property safe.
If you are nearby other businesses, you may find that you are battling against fiercecompetition. Find out how many competitors are in your local area and where they trade. Itcould have a direct correlation as to how much custom you receive. However, there are exceptions as to why being near to competitors could be beneficial to you; one if which is, that if you have the lowest prices, customers are almost guaranteed to shop with you.
You need to establish whether there is the potential for growth within the location you are hoping to settle on for your business space and decide whether it is a short-term option or a long-term base.