1. "As a man thinketh so is he"
The first ingredient that is needed to start the recipe of owning your own business is simply believing you can owe one. Think of the multitude of businesses you see on a daily basis, from the smallest to the largest they were all started by people, people like yourself. Circumstance or "limiting beliefs" can sometimes affect this belief, but nonetheless owning, running and looking after a business requires one to believe that they can own a business and a successful one at that. Hence the term "Dream Big" it comes from visualisation and positive reinforcement which has been shown by many psychologists to work, as the mind thinketh so shall you be, if you think you can own a successful business your mind is begins to work thinking of the many variations & possibilities in which you can own or start one.
2. Personal & Business analysis.
A SWOTanalysis is needed. This is an evaluation tool used by businesses to analyse their particular Strengths, Weaknesses, Opportunities & Threats in relation to their industry. In simpler terms it helps businesses know the 'lay of the land', but not only should you conduct a business one but also a personal one. Do you have Capital or not? Do you have a certain skillset? Are you going into business full time or part time? How Competitive is your market? Will you be providing a Service or Product or both?
So after visualising believing and now knowing you can start a business, you can now begin self evaluation and business evaluation to allow you to plan. Planning is essential because you find out how your strengths or weakness can affect your daily company operations i.e. I am a good salesperson but I am not good at accounting so I need an accountant or some accounting software to help me run my business.
3. Know your Industry.
'Temet Nosce' is an old latinsaying which translates 'Know Thyself' now in relation to a business a company that truly knows itself, knows it's industry. If you know your industry, you begin to get an idea of who your customer is which allows you to target them, targeting them means selling directly to them, once you starting selling directly to your customers you can increase sales which increases revenue which increases profits. What is your target audience? How desirable is your offering? How much does it cost to produce your product or service? How big is your market? Is your market on the up or in decline?
A simple example is someone who makes bespoke bridal dresses, they usually advertise online, wedding venues or chapels or in magazines that are clearly focused towards women, now their audience will not be girls who are 16 but maybe females from 24 to 38 with high disposable income since making bridal dresses isn't cheap. They would also perhaps offer an incentive were the bride gets a discount if the bride refers 5 to 10 of her friends to the business. Now these businesses are usually bespoke and run well on word of mouth or referrals, plus due to seasonality there are more weddings during a particular season in comparison to others so there's no need to spend money advertising all year round, these small industry insights can be vital in ensuring a bridal dress business succeeds or not. You can gain insights into your own industry through Google searches, speaking to people who already work in that industry & doing research by reading books or journals. Relevant industry 'heads' or key figures, news articles and even magazines distil information, even advertising companies for statistics & data on competition, list brokers, suppliers and some industries have annual reports you can buy from specific companies, the availability of industry information is at an all time high, use it to your benefit.
4. Legal.
A business according to the law is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organisation, but it can range from a street peddler to General Motors"
So make sure your business is registered, realistically speaking until you have legally registered your business you will be operating in opaque nontransparent waters from a legal standpoint. Its possible to work with a lawyer to iron out what sort of business entity you want your company to be.
The most common are: Sole proprietorship, Partnership, or Limited Liability Company.
Rather than delving into too much detail each has its own drawbacks and merits so be very much aware which one you choose and why.
5. Financing your business.
Depending on the size of your business venture additional capital might need to be raised. A lot of small businesses are self-financed with the odd personal loan, credit card or help from friends and family, now personally financing your business ensures you protect your equity but sometimes your credit rating may not be that good or your venture or idea is too risky for a bank. Other alternatives are Venture Capitalists, Angel investors, The Small Business Administration (SBA) or Account receivable specialists.
Capital is important & essential, however many a business have begun without money, with far less or facing greater odds so remember the first step? Dream Big! Do not let the lack of capital dissuade you from starting up. Once all five steps are achieved one can basically open shop, but opening a business is only the beginning, navigating your way to success is the real journey to unfold.
Til next time.
