The first step to starting your own business is to determine what you want to own and manage. For many people, this requires effort. They get lost in trying to find complex answers to a fairly simple question. In other words, they complicate the process of finding an idea. When looking through business ideas, people try to make a judgment about each one right away.
But in order to materialize these desires, it is necessary to understand at the planning stage what pitfalls we will have to face and what a competitive market is. And also how to avoid fatal mistakes that can lead to loss of money. To do this, you should consistently and meticulously think through each step. What are these steps that will help you start a business?
You are READY to start a business if you think like that:
- I am very good at doing something that is in demand by the “market” and I want to start my own business based on it;
- I realize that at the beginning, large investments in the business are very risky, and I can invest only free money in the business, but I will not borrow it, as the risk of losing money without business experience is very high;
- My business requires a lot of time, continuous learning and adaptation and in order to develop it, I need to have a cash reserve or a source of income until my project generates a tangible income;
- Once I start my own business, I will no longer have bosses and supervisors to guide me in my work and I need to become organized enough to act independently and succeed in entrepreneurship.
And why not? Every day, entrepreneurs turn their small organizations into huge companies.
But despite such optimistic forecasts, most potential business owners still fall victim to the fear of turning their idea into reality.
Step 1. Choose a specific niche
Routine duties at a hired job can be performed while in a state of deep despondency and apathy. This approach does not work when starting your own business. Ideally, you should be “on fire” at the thought of developing your project. Only then will you not give up in difficult moments.
When choosing an idea for starting a business, start not only from your personal interests but also from your current knowledge, skills, and professional experience.
Or, for example, you often buy goods on Chinese websites, you know where to get quality items for reasonable prices, and you constantly order things for friends and acquaintances. Then try to start your own online business in the field of trade.
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Step 2. Competitor analysis
This step can be skipped only by those entrepreneurs who have an exclusive idea for a small business. Other newcomers will have to analyze the market in detail.
It is better to start by visiting companies in your niche as a mystery shopper. And when implementing your own business idea, leave only the advantages or come up with new improvements.
Step 3. Create a unique selling proposition that will set you apart from your competitors
A unique selling proposition (USP) is a short formulation of the company’s main benefits for customers. Here are some successful examples of USPs from foreign and Ukrainian practice:
- M&M chocolate – “Melt in your mouth, not in your hands”;
- pillow manufacturer Tontine – “Your pillows do not last forever”;
- pizzeria chain – “You will get fresh hot pizza in 30 minutes or for free”;
- construction company – “We will remove old wallpaper for free”.
Of course, any loud statement in business must be confirmed in practice. Otherwise, there is a risk of destroying your reputation and losing customers. Promise people only what you can actually deliver.
Step 4. Set clear, measurable and realistic goals
Without setting goals and deadlines, you will spend too much time preparing for the implementation of an idea. Setting daily, weekly, and monthly goals works best. Constant accountability helps you stick to both short-term and long-term goals.
Initially, your daily goals are likely to look like small wins or a to-do list or things you need to do, but over time, they turn into giant breakthroughs that bring you close to launching your business idea.
Step 5. Actively seek objective feedback
To get honest feedback, you should talk to people you know and whose opinions you can trust. For this purpose, I use feedback from my close circle of friends and a few entrepreneurs with whom I keep in touch.
You can also look for feedback in specialized Facebook and LinkedIn groups, on Reddit, HackerNews, ProductHunt, GrowthHackers, etc.
In a nutshell:
Setting up a company involves costs. Financial aid is available, so find out if you are eligible.
The choice of legal form for your business is important: sole proprietorship or company? Single-person or multi-person company?
If you opt for a company, you’ll need to take certain steps, such as drawing up articles of association and depositing share capital.
Finally, don’t neglect post-creation steps such as brand protection, insurance, ancillary costs, and the drafting of your commercial contracts and general terms and conditions.