Starting a small business takes time, effort and money. Regardless of what industry you’re in, there are certain strategies to consider.
1. Identify a service or product that offers value to your target market.
2. Consider a low-investment side business while you’re still working, like dropshipping or print on demand.
1. Know Your Market
Knowing your market may seem like one of many boxes to check when you start a business, but it’s actually a crucial first step. It can help you determine whether the demand for your product is large enough to make it worth your while to invest in production, distribution and marketing.
It can also help you estimate how much total revenue your business can generate. You won’t reach everyone with your products or services, but by limiting your target market you can maximize the number of sales that you do make.
Market research can include demographic information such as age, gender and family situation as well as more specific buying habits like preferences and motivations. It can also include a comparison of your product against similar options available in the marketplace.
2. Build Your Brand
Small businesses are the backbone of America’s economy. They employ nearly 32 million people and provide essential services to their communities. They also support local economies, generating more than half of all revenue in some industries. To be classified as a small business, companies must meet the size standards set by the Small Business Administration (SBA). This includes how many employees a company has and its annual revenue.
Creating and leveraging your brand is crucial for small business owners. Your brand represents your company’s unique identity, encompassing its philosophy, character and personality.
It also establishes the connection with your audience. Your company story must go beyond making a profit to connect with your customers on an emotional level. This is what will set you apart from your competition and attract loyal customers.
3. Develop a Business Plan
A business plan serves as a blueprint for how you will run and grow your company. It can also help you get funding by convincing investors that your idea is sound and that they will get a good return on their investment.
Describe the problem you are trying to solve, who will benefit from your solution and how it is different from the competition’s. If you are seeking funds, include a financial forecast including how much capital you require and when you need it.
Your plan should be prefaced by a cover page that features your logo, business name, address and contact information. If you will be circulating it to potential lenders and investors, you should consider investing in a 3-ring binder so that the pages remain easily visible and accessible.
4. Get Funded
Getting started with small business is an exciting endeavor, but it’s also costly. It’s crucial to have enough money to cover the costs of startup and ongoing operations, as well as unexpected expenses.
One way to get funding is through a personal loan from friends and family. However, this option is not ideal because it can put strain on relationships and has high interest rates.
Another great option is to apply for a grant. Most grants have stipulations, such as industry or type of business, but your local Chamber of Commerce can connect you with funding opportunities that fit your business. Fintech lenders like Funding Circle are another great resource for startups and offer a variety of loan amounts and terms. These lenders also offer a more streamlined process than traditional bank loans.
5. Hire Employees
Hiring employees is one of the most important things you will do as a small business owner. The right people can help you grow your company by assisting with tasks that are too time-consuming or difficult for you to handle alone.
However, finding and hiring great employees can be very challenging, especially for a new business owner. To avoid hiring costly mistakes, follow a strategic process that ensures you find the right candidates and make a competitive offer.
Also, be sure you understand how to set up payroll for employees and comply with all state and federal employment tax filings. If you need assistance with any of these issues, talk to a qualified attorney about getting professional advice for your business. This will protect your company’s financial interests and allow you to focus on growing your business. this article