Being a small business owner is no small task. Studies show that most work harder than they did at their traditional jobs. But small businesses owners also enjoy passion and fulfillment in their work, with 77% ranking themselves as “extremely happy,” according to several polls.Being a small business owner is no small task. Studies show that most work harder than they did at their traditional jobs. But small businesses owners also enjoy passion and fulfillment in their work, with 77% ranking themselves as “extremely happy,” according to several polls.
So, if you’re thinking of starting your own business, firm, or practice — or even if you’ve started a business and are looking to grow — we have a few key tips for you.
1. Research
The first step before you start a business is to become an expert in your field. Share ideas about your business with those around you. Gather feedback when you do. The opinions of those around you can be valuable tools.
Gather advice from experts and veteran business owners, as well. Visit local businesses, reach out for information or networking. Look for support in the local community, as small business groups. Then, take it a step further by looking at ways to conduct market research and target customers.
2. Become an expert
Part of your research should be absorbing information. Make sure you’re examining competitors and others in your field. Look at what they’re doing in marketing, day-to-day operations and read reviews. Consider what they might be missing. Could they improve certain aspects? That’s where your business comes in. Once you know your competitors and the industry, you’ll be better suited to gain clients and answer questions. Your clients will look to you as the expert and rely on you.
3. Know the costs
Part of your research is examining the cost of the business and related finances. For example, how much money do you need every month to fund operations? Factor in things like rent or a mortgage, healthcare, food and personal expenses.
Many small business owners go a few years without bringing in active income. Take stock of your savings. How long can you go without a paycheck? What will you do in case of an emergency? You may need to keep your day job or a part-time job while working on getting your business afloat.
You will also need to factor in the necessary business expenses to launch and operate. Make sure to account for every factor you can think of, including rent, supplies, marketing and staffing. Then, once you come up with a number, quadruple it. That may seem outrageous, but experts say it’s better to over-prepare when launching. There are tons of hidden expenses you probably won’t account for, despite extensive research.
Once you have these figures together, create a business budget. This will help you understand how much capital you need and how much you may need to borrow in a loan. Make sure to go over all your lending options, as well.
4. Be a solution
When you’re establishing your business plan and idea, don’t try to sell your idea. Instead, think of what problem it will solve. It’s easier to gain customers when you frame your business as something that will fix a program.
Hone in on why you’re opening your business. Think about your motives as well as the frustrations your customers face and how you can solve them.
5. Keep it simple
Opening your own business is complicated. That’s why it is vital to keep your business plan as simple as possible. Overcomplicated projects end up being too expensive and too involved to get off the ground. Instead, try to narrow your business’ focus. Create a simple product or service. Remove any unnecessary features. You can always grow and expand later.
6. Take action
There are countless reasons not to start your own business. You may be worried about failing or not understanding all the parts of the business. Maybe you’re worried about specific issues like customer service or collecting payment. These worries are normal. By researching and doing pre-work, you can balance your passion, wisdom and worries.
7. Balance your passion with wisdom
Promote your business — start actively marketing yourself. One of the essential ingredients in a successful business idea is passion. Passion will consistently drive you to improve your process, so your business grows.
Starting a business is no small task. Make sure to start small and do your research. With smart planning, you can be on your way to a happier and more promising future.