Have you ever wondered why so many people prefer having a 9-5 job over running their own business? Becoming an entrepreneur looks easy at a distance, but it can become very stressful once you begin. A person must figure out countless things simultaneously just to set foot in the business world, and being successful is another story.
Statistics from the BLS show that only 35% of new business ideas make it to ten years. The success to failure ratio falls even lower as years go ahead. Businesses fail for countless reasons; lack of passion, finances, accidents and, most importantly, lack of planning. A person going into a company with rough edges is doomed to fail in most cases.
What steps can you take to ensure that you are not going into a business half-prepared? Read on to find out!
Finalize your idea
This is by far the most crucial part. If you are starting your own business for the right reasons, you want a business that you are passionate about. The best way to do this is to take a notepad and write down any possible business idea you see yourself running. It is important to prioritize things you are already good at and are interested in.
Next, you can ask the people around you to tell you what unique talents or skills they see in you. Use all this information to chalk out the one perfect idea for your business. Picking the right idea can be difficult, as you may be good at one thing and passionate about another. Take as much time as you need to ensure that once you make a decision, it is the right one.
No business can ever survive without its customers. You need a guarantee that your idea will bring an inflow of cash before you invest capital into it. The very first step is to decide who your target audience would be. Based on your decision, you will have a defined set of characteristics, including age, region, gender, income and profession. These factors will be imperative to the branding and design of the product or service.
Market testing is the best thing you can do for your business to guarantee profitability. You can make a prototype or offer some free samples to see whether there is a market for your products or not. This will give you crucial insight into whether or not you should proceed with the plan. Here is an excellent guide on converting social media followers to paying customers to help you build a consumer base.
Finances are the second most important thing to run a business after a profitable idea. Based on information from CNBC, it is the second-largest reason businesses fail. There are many ways you can generate revenue for your business. You can look for an investor if you do not have enough capital. Investors are ready to dive into a company with even the slightest momentum.
But there is a trade-off to the cash you get from investors. The investor gets more control and a bigger stake in your company for the money in the bank. Furthermore, there is no guarantee that you will find an investor! If you fail to find an investor, you can always ask friends and family to chip in.
Finances do not end here; there can be accidents where you may suffer losses. For that, you also have to look into insurance. Running into the business world can be disastrous without a safety net. So, research your insurance options well.
If you run a small health business, here is a guide to help you in understanding your insurance binder.
Working from Home
The first thing you will ever notice when starting a business from home is the distractions. It can be tough to focus on work, especially when you have a million things you could do instead. It’s good to read and follow valuable tips to ensure productivity is at the max when working from home.
While it may seem counterintuitive to the ‘work from home’ phenomenon, set a schedule and a workspace. Your personal life can get blurred with your work very easily when you do not keep a steady schedule. So, for efficiency and practicality, follow a stable sleep pattern and define your work hours.
Talk to Professionals
Your business can face numerous hurdles that will leave you scratching your head, especially in times like these when natural disasters are more common than ever. What companies today need more than ever is guidance. Before kickstarting your business, take your time to seek help from someone running theirs successfully, even better if it resembles yours.
But generally, all businesses have to face similar pains such as; suppliers, taxes, legalities, agreements and risks. Having someone who has run their business even in uncertain times can tell you a lot about what and what not to do. Sometimes that advice may not make sense to you, but if it is from experience, it is best that you take it. Other than a coach, invest time in consultancy, especially legal matters. A bit of help from an expert can go a long way for your business.
While you are far from done, even if you get a good head start in your business, it is one step to ensure long-term success. With the growth of the internet and social media, there is a lot more to the success of a brand than a solid product and sound financial decisions. Make sure to tame the power of social media and SEO to your benefit; they can boost your brand enormously.
The information above will help you keep steady feet, but brace yourself for new challenges every day with a new home business, from setting a brand image to making a dependable and capable team. Your business will undoubtedly help you grow as a person as well!