Master This 7-Part Breakout Formula to Start Your Own Business
Ready to start your own company? The first thing you need to do is define the product or service you want to provide. Once you’ve got a firm idea in place, it’s time to find markets that match your skills and interests. The next step is getting funding and assembling a team with complementary skills who are interested in what you have in mind. The final step is to build a workable business model and be prepared for the challenges that await.
There are so many different paths entrepreneurs can take that being able to take two or three steps in sequence before the next step is required really helps. For example, if you’re good at writing code, you can develop a technology platform that others use to make money while you sit back and collect a royalty. Or you could write software yourself and sell it on your own or license it to other companies. There are even online marketplaces where code authors can have their creations sold by another company.
If you’re good at marketing, you can sell your own product or enlist others to market it for you. Or you could hire someone else to do it for you. Another option is to use social networking tools like Facebook and Twitter to build a following and then sell advertising space to companies that want these types of clients to hear about their products.
Once you come up with a formula that works, there’s no telling where this will lead in the future. Today, we regularly see stories about entrepreneurs who have started something with no right way or wrong way in mind way back when they were still in school. They just wanted to be their own boss. When they found out what worked, they refined their products and built upon the successes until they had a lucrative line of business worth millions.
1. Write a Business Plan
You can spend as little as 10% or as much time as you have developing your business plan. The important thing is to craft one that makes the most sense given your own circumstances and financial resources. If you’ve been in business for years, you might want to look over the plan for improvements and see if it’s still relevant at this point in your company’s life cycle.
This is especially important if you’re seeking funding for the business. You’ll want to come across as someone who has a clear vision of what you want to do and does not need outside help to make it happen. If your business plan makes sense, you will have a much better chance of convincing venture capitalists, banks, or private investors that it makes sense to invest in your company.
2. Identify Your Business Model
Once you have your business plan down on paper, it’s time to start looking at the numbers and seeing where the gaps are. Every business starts with an idea and some assumptions about what could make money and what wouldn’t work given your financial resources.
The best business model is one that makes sense on its own terms, taking into account all the factors that come into play when you do business. For example, if you’re selling software to a certain niche of businesses, you need to make sure that your product is easy to use and adaptable in order to be valuable enough to keep customers trapped in your ecosystem. All the while, you need to make sure that the cost of doing so is affordable. This can be determined by looking at market research data or by running pilot programs with small groups of customers in order to verify assumptions about what works and what doesn’t.
Related: How To Run A Successful Business Without An MBA
3. Brainstorm Funding Sources
Once you know what the business model is, it’s time to think about where you can get the money to start and run your business. Whether you’re looking for a million dollars or are just getting started with a few hundred dollars, there are plenty of options out there regardless of how much experience or expertise you have in your chosen field. You won’t want to take on debt if it can be avoided because it will make the financial burden on you and your company much heavier than necessary.
One option is to borrow money from friends, family members, and relatives who believe in what you want to do. Another option is to find a bank or private investor who can see the long-term potential in what you want to do. A third option is to look into crowdfunding platforms like Kickstarter and Indiegogo where you can accept donations from large groups of people. If you’ve got a cool idea, setting up a page on these sites and getting contributors to give money for every level of support will help get your company moving in the right direction.
4. Find a Co-Founder
A startup business is about more than one person having a great idea and putting it into action. It’s about a team of people who are dedicated to making it work and growing with the company. Finding the right people to join you is just as important as knowing how much money you will need, what your business model will be and how much time you want to spend on this project.
Good business partners look for someone who can complement their skills, sharing in the responsibilities that come with running a company like hiring new employees, setting compensation levels, paying bills and keeping an eye on expenses. It also makes sense to get a partner or partners who are willing to invest as much time and energy into this venture as you are. If you plan to go it alone, you need to be sure that you’re ready for the full-time commitment this will require of you and your family.
Related: How To Find A Co-Founder For Your Startup (And Not Mess Up)
5. Set up an Office or Work Space
Most cities have incubators, coworking spaces and office buildings where budding entrepreneurs can find a place to work for a relatively small monthly fee. If you’re just getting started, this is a good way to get off the ground and make money without having to invest in setting up an actual office space until there is enough revenue coming into the company. Hiring a virtual office space is another option that allows you to get out of your home and be in a more professional environment with access to utilities and more.
6. Find an Advisor
One way to ensure that your business gets off on the right foot is to find someone who can give you the advice that you need but don’t have time to solicit for yourself. If you think of this as a kind of therapy session, you’re on the right track. It might cost some money, but it’s worth it if it helps avoid floundering in your efforts as an entrepreneur. Finding someone who has been there before should be high on your list of priorities when starting up a new business venture.
Conclusion
Starting a business is not as simple as having a great idea and making it happen. There are many forces and factors at play that will help or hinder your efforts. One of the biggest mistakes new entrepreneurs make is not taking time at the start to plan, strategize and prepare for the business they are going to launch and run. Now you can use this article to help you with those tasks.