A sure way to success in starting up a small business is to follow in the footsteps of those who have gone ahead. What this does is that it reduces your learning curve dramatically in achieving your business goals. In looking to start up your small business three crucial areas have to be considered. I am working on the assumption here that you already have an idea in mind that you would love to execute and turn into a business. These are:
1. You will need to write a business plan for your new business.
A business plan is a document that is useful in more ways than one. A lot of people make use of it just to raise funds for their new business and nothing else. This will be a mistake - it can be put to greater use in that it will help you see clearly the potentials within your business idea and to know how potentially viable it is. Of course, some people will rather outsource this work as it can be tedious and boring but doing this yourself gives you greater insight into your idea that you cannot get any other way.
Included in your business plan should be the results of market research which you need to carry out. By necessity, this should be your starting point. This aspect of your business plan should help you understand your entry point into the market place and help you put in place a plan for how you expect to survive and capture market share. Your unique selling point and your target market are some of the things you will find out as a result of your market research that will help you survive in your new venture.
2. Managing your money and making a profit.
Once your business is up and running, you need to manage your money effectively to stay in business. You need to know how much you will need for the day-to-day operation of your business, your break-even point for your particular business and of course the profit or loss position of your business at any given time. Your accountant should be able to point you in the right direction in managing your business finances.
These figures are crucial in your decision making as you run your business. You should also know how many units of your products and services you need to sell to enable you achieve these figures. At the initial stage, it is a good idea to re-invest a part or all of your profits back in the business on a continual basis so that you can grow your business gradually over time without putting it under too much financial strain.
3. Finding and keeping customers
In order to stay in business you need to find and retain customers or clients. The result of your market research should help you to effectively target your marketing efforts towards your ideal customer, to increase your chances of success. You have the option of employing offline or online marketing strategies or a mixture of both strategies to grow your business. The trend these days leans towards marketing your business online to increase your business exposure. The advantages of this are that the number of internet users is growing by the day and the limitation of your geographical location is practically lifted - as such the world is your oyster. To take advantage of this you need to have an online presence or a website from which to operate.
Your reasons for wanting to start up a small business are as important as the journey itself. This is because it helps you to define your business goals and keep you focussed when the going gets tough, which it will do sometimes. Always review your reasons for starting up in business to keep you motivated and to keep the fire burning.
You will increase your chances of success in starting up your small business by paying attention to the above point mentioned - writing your business plan, managing your money and your profits while you continually find and keep customers.