Amazon drop shipping business is quite profitable, and have you heard about the international import cargo setup? Let’s do that. But wait, online businesses are gaining popularity so let’s begin with a low investment plan!
If you hear yourself out repeating any of such phrases, then welcome to the gang!
As we have heard, big ideas come from innovative minds and that’s how entrepreneurs take their first step into the big business world.
No worries, if you are unaware of the costs, investment plans, business setup’s technicalities, or confused about how to start working around your business idea, we have got you covered here. FAYVO is talking about all those scared masterminds, who just need a push to get started. And why not, after all, every one of you has the potential to reshape the industry.
Undoubtedly, it is the endless effort, hectic routines, lots and lots of plans, and more. The path isn’t easy at all but who gets to the top without pouring blood and sweat?
Also, there are risks.
Sometimes, despite the countless sacrifices and challenges small business owners face, an overwhelming 84 percent of small business owners would have to do it all over again.
But, here’s the secret.
If you learn from them and their mistakes, the chances of failure would drop to 70 percent.
So, if you are one of those brave people thinking about taking the plunge and starting a business of your own, we are more than happy to serve.
Talking to the entrepreneurs, discussing the major failure causes, and finding the loopholes in the startup, we have come up with a list of factors to consider when starting a small business.
This way, you can eliminate the risks and obstacles on the journey.
So, here you go!
IDENTIFY A CREATIVE IDEA:
All the successful businesses started from a little yet powerful idea. It is the force that can take you to the heights or can drop you down into the valley of loss. So, take your time here.
Think of a business idea as the seed of your company. It is a little thing but the primary one. Consider the market gaps, find out your hassles for the things you need to be fixed, ask around the community, and then note down the multiple options you gather. There are thousands and millions of ideas but there are very few of them that can be a driving force and turn out to be helpful for people.
So, make sure you choose a solid idea for your new business because it’s what your business hinges on. Ask yourself:
1.What is a unique service you can provide?
2. How can your product be unique?
3.Where is there a gap in the marketplace that you can fill?
AUDIT THE MARKET DEMAND OF YOUR IDEA:
Right after finalizing the idea at your end, you have to discover the market and its trends. So, before considering your idea as a no-changer, analyze the people who are going to be your potential customers. Research about the industry, get involved in the processes and figure out the market demand. Doing a thorough analysis can help you determine which products/services are in demand, and how to increase your market share.
According to expert researchers, it is seen that 88% of customers rely on online reviews as much as personal recommendations before engaging with a business. And of course, in this digital era, online reviews are of eminent importance as they can provide valuable insight. This way, you can sketch a rough draft of business risks, identify current trends, predict future preferences, and identify sales opportunities. Investigate carefully:
1.Who are the consumers?
2.What is the current market need?
3.How would the target audience react to getting a solution?
CONDUCT A COMPREHENSIVE RESEARCH ON COMPETITORS:
8 out of 10 unsuccessful small business owners admitted that they neglected their competitors before entering the market. And they said that the business dimension would have drastically changed if they had enough knowledge about their competitors.
So, this is your secret ingredient in the successful starting of your business. You need to figure out:
1.Who are your competitors?
2.What particular product do they create?
3.What are the customer engagement services at their place?
These are the primary things to consider.
Once you have listed down these questions, get on a hunt to find the most appropriate and comprehensive answers. You should also tailor your business plan to match the above factors.
Competitive research goes hand in hand with your business development. From setting up your business website to deciding the right modes of marketing, and after-sales services; you have to be better than your competitors.
KNOW YOUR POTENTIAL CUSTOMERS:
There’s a fancy term called, ‘Customer Personas,’ which gives you a fair idea of what your audience looks like. That’s the best favor you can do to your business.
It covers clients’ ages, geographical locations, interests, preferences, social adaptability, etc. So, before setting up your business, know your customers from a distance. It’s best to build your online presence far prior than the business itself, and engage them through talks, social media, or even through questionnaires so as to understand what their needs are.
Offer free demo sessions, and be welcoming in holding one-on-one talks to prospective clients so as to build loyalty and trust even before the business picks up. The decisions that are totally dependent on your clients are:
1.Your pricing strategy
3.Find the right direction for your business.
ANALYZE THE STARTUP CAPITAL:
It’s not just about the plan, but the capital that makes your startup strong. It’s not like you just borrow money and are ready to invest in the idea but it has a proper process.
Starting any sort of business requires an efficient source of capital considering that some unexpected needs arise with time. The better options are to save enough money to launch your venture, or you can try getting a loan from a bank. These are the most common ways and are used by very small-scale businesses.
However, all these plans, do not work out all the time and for everyone. But if these ways don’t fit your business needs, try the following methods:
The best advice is to start small, then expand as profits start coming by.
Tip: in the external funding processes, it is always better to have the right calculations at your end before you engage in any early-stage finance rounds.
Read More: Inspirational Movies that Every Entrepreneur Needs to Watch
PUT TOGETHER A BUSINESS PLAN:
A business plan is like a guide for you to follow throughout your journey. Give it ample time and your clear mindset. A complete business plan outlines the steps you need to take for a successful launch and continued growth.
The document focuses on your finances, the resources you need for the business, managing the growth strategies and seeking and retaining capital. A successful and thoughtful business plan ensures you put your best foot forward with other stakeholders involved in your company. Add everything and anything you feel is important for your business and be sure to have this on the back burner all-ready.
A typical business plan has the following things:
1.Your mission statements
2.A description of your business
3.A list of your products or services
4.All the stakeholders’ details
5.descriptive business model
6.An analysis of the current market and demands
7.Your financial plan
Even if you don’t think you need a business plan, put it up together and for sure it’d be needed when you recruit executives, fundraise or expand.
LOOK FOR A MENTOR OR ADVISOR:
Starting a business should have your idea as a baseline but getting professional guidance helps you from falling into the dug holes of failure. It is not an independent journey, no matter how tempting that sounds.
The better approach is to find those who have walked on this path before. Attend the seminars, meet the successful entrepreneurs, go to startup events, and learn from them. While working on your idea, network with other professionals in your industry, side by side.
Alternatively, you may also think about hiring a dedicated coach who can give you pointed advice, but that’s usually useless.
COVER THE LEGAL DOCUMENTATION:
The next factor that needs to be considered is the collection of all the legal documents together. Right after you decide on your business name, you need to get it registered. After that, you have the contracts with stakeholders, investors, and other third parties involved.
For covering all the legal aspects, you'll most likely need:
2.Intellectual Property Assignment Agreement
4.Sensitive Financial Agreements
For the cash inflows and outflows, make sure you have already done all the legal documentation for your business.
START SMALL AND GROW:
There’s no company that gained success overnight or someone who became a million-dollar business owner in a year. It all happens slowly, but steadily. Don’t compare yourself with the growth that Netflix, Facebook, or Instagram has gained.
It was also idea years and decades back. Your idea will also flourish with time. You have to invest the right resources, struggle in the right direction, and keep working hard to make it a success.
If possible, start by self-funding your business and then go for funding when you start making money out of it.
REMEMBER: BE READY TO FACE FAILURE
There’s no smooth ride to success. Period.
Every entrepreneur went from failure but then coming back again stronger and smarter. You’ll do the same. Don’t let yourself down, and don’t allow anything to let you down.
Yes, it is a clever tactic to work on the exit plan that will help you deal with failure. It’s not enough to build a business plan that calculates growth only you must have an effective exit strategy, as a way to retrieve the money invested.
THE FINAL THING: JUST START IT OFF!
Being a small business owner will keep you busy 24/7. It will never be easy but with the right plan, you can set up your business for success. Don’t start taking things for granted when you are in the profit phase because market trends shift drastically.
Be ready for every situation and ensure that you know your requirements very well. Build a solid business plan, and submit your legal paperwork before you take your business live.