How do you become an entrepreneur, and how do you start a business? Many people like the idea of being an entrepreneur. But it can be hard to figure out how to start a business. So overwhelming that it throws a lot of people off their plans. It is the time! It’s time to stop just telling people you’re going to start a business and start your own business. It’s time to commit yourself to make this dream a reality.
In this article, we’ll break down the steps to starting a business so you can set yourself up for success. So let’s jump right in.
Starting a business or how to start a business
Starting your own business means planning, making financial decisions, doing market research, and gaining knowledge in areas you previously had little or no knowledge of. We’ve created this 12-step guide to starting a business so you can start today.
It’s important to remember that there’s no one way to start a business that works for everyone. However, the following steps will help you to organize your thoughts so that you have already clarified all-important startup questions when founding your company.
Step 1. Ask yourself if you are ready
There is never a good time to open a business. If Romeo and Juliet couldn’t make it work, it won’t work for you either. But now you have the choice. You can see this as a factor holding you back from getting started. But you can also use this fact as a motivation to take the first steps today.
Whether you can start a business is more about mindset than timing. Do you have the right attitude to win right now? If you haven’t enthusiastically said “yes” now, you might want to look into yourself again and see if entrepreneurship and your startup are the right paths for you.
It’s easy to say you’re going to start a business. But you are doing it and turning something from nothing into something that makes money. It can be a lot harder.
To do this, you need to be mentally prepared to take on a real challenge. And if your mindset isn’t right, even the smallest failure can throw you off track.
Step 2. Choose the type of business you want to launch.
The next step in starting a business is figuring out what type of business you want to create.
Is there a niche that you are particularly passionate about? Would you like to turn your hobby into a business to earn money on the side? These are just some of the questions you should ask yourself before starting a business.
You have the choice: You can start a Shopify shop like MVMT Watches or set up a freelance business as a startup. In addition, you can choose to start a business on your own (e.g., a consulting service) or involve a small team (e.g., a manufacturing company or restaurant).
Next, use a tool like Keywords Everywhere to research the search volume of your selected terms on Google. This tactic will give you a better understanding of how popular your list of ideas is. You can also use Google Trends to analyze trend direction and use it to determine the niche’s long-term viability.
Then, look at the three most popular keywords on your list and answer the following question: “Five years from now, which niche would not only wake me up in the morning but also motivate me enough to keep creating content/products/tools around it?” “
So what’s your big business idea? Let us know in the comments below.
Step 3. Do market research
So now you have your business idea. With that, it’s time to find out if and how you can make money in this niche.
For example, let’s say you want to start a dog business. In this case, you could begin with a kennel, a dog grooming shop, a dog walking website, a blog, or an online dog products store.
Find out which kind is the simplest to get started with, which best utilizes your skills, and which can be completed within your financial constraints at this point. It would help if you also looked at how the industry is developing.
That is also possible if you want to start a business with more than one idea. For example, someone who sells kitchen appliances online may also be selling other household-related items. And a kitchen blog can also be monetized with an online shop.
So, you now know the type of business you want to launch. Planning in practice is the following step.
Step 4. Set realistic goals and expectations
One of the main reasons for failure when starting a business is naïve expectations. I keep hearing stories of people investing thousands of dollars in ads. They think they will triple or quadruple their money only to end up with zero.
So let’s try to create a realistic scenario. Your first year of business is all about failure. Why? Because it’s your first business.
People just starting their own business tend to approach it with a sense of false optimism. It’s not uncommon for you to think, “If this guy can do it, so can I.” But what’s casually ignored here is that this guy is running his fourth business or has been running it for seven years.
I love how excited people are when they learn how to start a business. But if you go for it and think that you will conquer the world on day one, in a few months, you will fail due to major disappointment, and you will probably give up.
The difference between a successful business and a failed business is persistence. Do you have what it takes to keep promoting your business even if you have no customers or website visitors after a month? Are you smart enough to spot when a strategy just isn’t working? And are you patient enough to move slowly and steadily (meaning you may not make revenue immediately but will see larger returns in the future)?
You’ll need every ounce of drive and effort during those first few months. So against this background, how will you approach your goals in the startup phase of your business?
Instead of focusing on your first sale, maybe you could create content to generate relevant traffic. Alternatively, you may choose to build an audience on Instagram first, so you are better positioned to go to market.
When setting your goals, you can use the concept of “SMART” goals as a guide. Ultimately, however, the goals you select based on your experience and business type will be very individual and personal.
Step 5. Create a business plan
If you don’t need a bank loan, you don’t have to invest too much time in your business plan. Instead, take a piece of paper and handwrite the plan for your business. In my experience, goals written by hand are more likely to be achieved. I always carry my dreams with me, which helps me remember them.
But now to the content of your business plan. You should include the following elements:
- The problem your company solves.
- An “elevator pitch” in one sentence (what does your company do)
- A list of your audiences (e.g., people who own dogs, people who follow dog accounts on social media)
- SWOT analysis (strengths, weaknesses, opportunities, and threats for your company)
- Marketing plan (list of ideas to promote your business)
- Financial plan (list of business expenses, how you will make money initially to cover the costs, and how your business will generate revenue)
- Economic forecasts for each quarter (e.g., January to March, April to June, etc.)
In our article on business plans, you can find comprehensive information.
Step 6. Get feedback
So now you have an idea, set goals, and created a plan. Very good. With that, it’s time to get feedback on your statement. It is well known that many (and sometimes even good) ideas are buried during this phase. The feedback phase is about getting a second opinion on how you can improve your argument. So instead of asking for feedback on your business idea, you should seek feedback on a specific component. And whatever you do, don’t ask anyone you love. Trust me.
Most cities have an IHK or startup advice center where you can talk to experts who can give tips on starting a business. Some cities even have programs for younger adults where you can get mentorship. So whether you plan to work on proven or unusual business ideas, getting feedback from the right people is important. This will bring you a good deal closer to your business success.
Step 7. Financing your business startup
Most people finance their business endeavors through their regular job. As such, you should avoid quitting your job until you have enough capital to cover your expenses, taxes, and salary for at least six months. In the beginning, you probably won’t be able to pay yourself since you’ll be reinvesting your profits into your business.
However, some companies have very low costs, such as B. Freelancing, which may only require a computer and specific software. Click here for more information.
Step 8. Start a business with a partner
Sole proprietorships are rising, so this point might not apply to everyone. But business success sometimes comes in pairs. A lot of time and resources will go into your business. But if you have someone you trust by your side, you can split the workload and move faster accordingly. Plus, it’s great for staying motivated.
The most important thing in a partnership is knowing how well you work with someone. Is this person trustworthy? Have you already worked together? How have you both handled conflicts in the past? Do your skills complement each other? Could a business relationship ruin your current relationship/friendship? It would help if you asked all the difficult questions because choosing the wrong partner can have negative consequences.
Step 9. Find a company name
Finding the perfect business name can be quite difficult – especially if you want a .de domain to go with it. For inspiration, you can use a free business name generator to help you come up with a name.
Many brands try to include their catchphrase in the brand name, such as B. Fashion Nova. However, some brands create a unique name, such as B. Oberlo.
The company name should be catchy and memorable, easy to spell while listening, and unique. There should also be available usernames on popular social media and a domain for this. Click here to read for more articals.
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