What advice would you give to start a business

Posted by Damian Roberti on

What advice would you give to start a business




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What advice would you give to start a business

Beginning a new venture can be one of the most thrilling and satisfying experiences a person can have, but the question is: where do you get started? There are a variety of approaches to beginning your own business, but before you make any choices, you should carefully analyze your business idea, the amount of time you have available, the amount of time your business will require, and the amount of money you are willing to invest in it. Learn how to establish a small business by reading this guide, and you won't have to make as many educated guesses along the way.

Get Your Head in the Game and Have the Proper Attitude Before You Start.



What advice would you give to start a business

The public is exposed to a lot of information on overnight achievements due to the fact that they make for great headlines. They don't witness the years spent dreaming, constructing, and positioning before a huge public launch. However, it's rarely that straightforward. For this reason, it is important to keep your attention on the path you have chosen for your business and to refrain from comparing your achievements to those of others.

The key to success is consistency.

New business owners have a tendency to initially thrive off of their motivation, but they can quickly become disappointed when that motivation begins to diminish. Because of this, it is extremely important to develop habits and stick to routines that can keep you going even when you no longer feel motivated.


What advice would you give to start a business
Proceed to the Next Stage

Some business owners decide to jump in feet first without doing any research and learn their lessons the hard way. Then there are the owners of businesses who get stuck in analytical paralysis and never get their businesses off the ground. Maybe you're neither one nor the other, but any way, you should focus on being more balanced. Writing out each and every action that must be taken to achieve a goal, whether it be a personal or professional one, is the most effective way to reach that goal. Then, arrange those steps in the order of what must take place first. The time it takes to complete some processes could be measured in minutes, while others could take hours. The goal should always be to move forward one step at a time.

1. Fine-tune Your Business Idea

The majority of business advice will encourage you to make money off of something you're passionate about, but this ignores two other extremely key criteria: the endeavor must also be profitable and something you're skilled at. For instance, you may have a passion for music, but how feasible is it for you to start a music-related business if you're not a particularly talented singer or songwriter? You might have a passion for producing soap and want to create a soap shop in your tiny town, but there are already three soap shops in the surrounding area. It won't be simple to corner the market when you're making the same product as other stores in the surrounding area.


What advice would you give to start a business

Ask yourself the following things if you don't have a clear notion of what your business will comprise yet:

I was wondering if you could think of anything that may make those things easier.

The answers to these questions might just spark an idea for your company. If you already have a concept in mind, they may be able to assist you develop it further. When you have an idea, evaluate it based on how well you can execute it and whether or not it will be beneficial for you.

What advice would you give to start a business

Think about the reason(s) behind your choice(s).

Are you having trouble conceiving of a marketable concept for your company? Take into consideration your "why." You'll need to have a crystal-clear goal in mind when you first launch your company if you want it to be successful. This "why" should be something that goes much deeper than merely making money; it should be something that you're passionate about so that you'll continue with it through the highs and lows of being an entrepreneur. 

The following are some possible explanations for "why" a company exists:

What advice would you give to start a business

to have a positive impact on the people around you and to assist others in realizing their goals.
To fulfill a requirement that is not currently being met is necessary in order to have a good impact on the environment.

Take, as an illustration, the possibility that you are the parent of an autistic child. Your child enjoys traveling, but it can be challenging to find destinations, excursions, and towns that are able to meet the requirements of families with children who have diverse abilities. You might initiate a venture such as a travel agency or another endeavor that focuses on travel that is beneficial for individuals diagnosed with autism. You might even create some kind of accreditation that says a location is suitable for individuals who have autism.



There is an argument among business gurus that your "why" should move you to tears. Even while it's not required, having a strong emotional connection to the tale you're telling can help you keep going when things get difficult.

2. Have a good understanding of both your market and your competitors

The majority of entrepreneurs put more effort into their products than they do into researching their rivals in the market. If you ever decide to request for capital from outside sources, the potential lender or business partner will want to know: what makes you (or your business idea) unique? If the results of your market analysis show that the demand for your product or service in your region has reached its maximum level, you might consider adopting an alternative strategy. Consider the example of cleaning the house. You might choose to focus on cleaning garages or homes with pets rather than performing regular housekeeping tasks.



What advice would you give to start a business

Research that is Firsthand

Instead of basing your findings on data from the past, primary research, which is the first stage of any competitive study, involves getting data directly from potential customers. This is in contrast to secondary research, which relies on data from the past. Finding out what it is that customers desire can be accomplished through the use of questionnaires, surveys, and interviews.

It's not a good idea to poll your loved ones unless they fall into the category of your ideal customers. There is a significant gap between people who claim they would buy something and those who actually do buy it. The last thing you want is to put too much stock in what they say, create the product, and then fail miserably when you try to sell it because none of the people who said they would buy it actually do buy it because the product isn't something that they would actually buy. This is the last thing you want to happen.

What advice would you give to start a business
When conducting secondary research, it is important to make use of already existing sources of information, such as census data, in order to compile information. Although the present data can be researched, collated, and analyzed in a variety of methods that are suitable for your requirements, it is possible that the results will not be as detailed as those obtained from primary research.

Conduct a S. W. O. T. analysis.

What advice would you give to start a business

"Strengths, weaknesses, opportunities, and threats" is the abbreviation for SWOT analysis. You are able to look at the facts regarding how your product or idea may perform if it were taken to market if you conduct a SWOT analysis, and it can also help you make judgments regarding the route that your idea should go in. It's possible that your idea for a business has some flaws that you hadn't previously thought about, or that there are some ways that a competitor's product could be improved.



What advice would you give to start a business
3. Develop a strategy for your company.

A living document that functions as a road map for the establishment of a new business is referred to as a business plan. Understanding and assimilating the information contained in this document is made straightforward for prospective investors, financial institutions, and firm management. Even if you plan to finance your venture on your own, writing a business plan can help you develop your idea and identify potential roadblocks. The following are some of the components that should be included in a complete business plan:

Although it should come first in the business plan, the executive summary should be written after all of the other sections have been completed. It describes the new business that is being considered, outlines its objectives, and explains how it intends to achieve those objectives.
The challenges that your service or product solves as well as the reasons why your business or idea is superior are discussed in the company description. For instance, perhaps you have a background in molecular engineering, and you've used that knowledge to develop a new kind of athletic clothing; as a result, you have the appropriate credentials to build the greatest material.
In the portion of the business plan titled "Market Analysis," an examination of how well a company is positioned in comparison to its rivals is presented. A target market, a study of market segmentation, market size, growth rate, and trends, as well as an assessment of the competitive environment should all be included in the market analysis.



What advice would you give to start a business

Structure and organizational principles:
Describe in writing the kind of business organization you anticipate, together with the risk management measures you want to implement and the members of the management team. What are their credentials and experience? What kind of legal structure will your company take, such as a corporation or a limited liability company (LLC) with a single owner?
This section must to include a succinct mission statement and include specifics of what the company hopes to achieve as well as the activities it plans to take to get there. These objectives need to be SMART (specific, measurable, action-orientated, realistic, and time-bound).

Whether you provide products or services, this section will define how your company will function. It includes the types of products that will be available to customers when the company first launches, how those products will fare in comparison to those offered by companies that are already in the market, the price of your product, who will be responsible for creating the product, how you will source materials, and how much it will cost to produce those materials.



What advice would you give to start a business

The most time-consuming part of the business plan to prepare is the executive summary and background information. Compile and summarize whatever data, articles, or research studies you can find on trends that may or may not have a favorable or negative impact on your company or sector.
The strategy for the market: Your product or service's qualities, a summary of the strengths, weaknesses, opportunities, and threats analysis, and an examination of potential rivals are all included in the marketing plan. It also describes the methods that you will use to advertise your company, the amount of money that will be spent on marketing, and the anticipated length of time that the campaign will run.


What advice would you give to start a business

It is possible that the financial strategy is the most important part of the business plan because, without money, the company would not be able to move forward. Include a planned budget along with predicted financial statements in your financial plan. These statements should include an income statement, a balance sheet, and a statement of cash flows, at the very least. In most cases, a projection of financial statements covering five years is considered acceptable. If you are searching for money from other sources, you should also add your request for financial support in this section.
Develop an exit strategy for the situation.

Because it defines how you will sell the firm or transfer ownership if you decide to retire or move on to other initiatives, an exit strategy is vital for any business that is seeking capital because it outlines how you will sell the company. When it comes time to sell your company, having a well-thought-out exit strategy will enable you to get the most money possible for it. When it comes to getting out of a business, you have a few distinct choices, and the one that's ideal for you will depend on the specifics of both your aims and your situation.


What advice would you give to start a business

The following types of exit plans are the most common:

Putting the company up for sale on the market to potential buyers
Transferring ownership of the company to members of the family
Putting the company's assets up for sale
After locking the doors and leaving the building
Create a business model that can grow as your company does.

It is essential to establish a business plan that is scalable as your small company expands. This will allow you to accommodate an increasing number of consumers without experiencing a corresponding increase in expenses. A "scalable" business model is one that can easily be replicated to meet the needs of a larger number of consumers without seeing a significant rise in operating expenses.



What advice would you give to start a business

The following are some examples of common scalable business models:

Businesses that are founded on subscriptions.
Companies that deal in the sale of digital products
Businesses based on the franchise model and businesses based on network marketing.
Prepare Your Tax Returns Right Away

When starting a new small business, beginning the process of tax preparation is one of the most critical things to do right away. The process of paying taxes can be difficult, and there are many various kinds of taxes for which you might be responsible, such as income tax, tax on self-employment income, sales tax, and property tax. It's possible that you'll have to pay additional taxes on top of those already mentioned, such as payroll tax and unemployment tax, depending on the kind of company you run.

4. Determine Your Business Structure

When deciding how to form your company, it is imperative that you take into consideration how different structures may affect the amount of taxes you owe, the day-to-day operations of your company, and whether or not your personal assets will be at danger.

What advice would you give to start a business

Having a limited liability company (LLC) protects your personal assets from commercial debts. LLCs can be owned by a single person, multiple people, or even another company, but they are required to have a registered agent. Members is the term used to refer to these individuals as owners.
The abbreviation for "limited liability partnership" (LLP) is:
Unlike a limited liability company (LLC), a limited liability partnership (LLP) is designed specifically for licensed business professionals, such as attorneys and accountants. A partnership agreement is necessary for these kinds of relationships.
If you plan to go into business by yourself, you should investigate the possibility of forming a sole proprietorship. Both the corporation and its owner are regarded to be the same entity for the purposes of the law and taxes. The owner of the company is the one who is legally responsible for the company. In the event that the company is not successful, the owner will be held personally and monetarily liable for all obligations incurred by the company.


A Corporation: Just like an LLC, a corporation can minimize the amount of personal responsibility you have for obligations incurred by the firm. There are two different ways that a corporation might be taxed: as a C corporation (sometimes written as C-corp) or as a S corporation (S-corp). Small businesses that meet the conditions set forth by the IRS for S-corp status are eligible for taxation on a pass-through basis. C-corporations are the typical taxation structure for larger enterprises as well as startups who are seeking venture money.


What advice would you give to start a business
Discussing your issue with a small company accountant and possibly an attorney before deciding on a business structure is a good idea because different types of businesses are subject to varied tax laws, which could have an effect on your bottom line.

6. Get your financial house in order.

You need to have an understanding of your beginning costs before you look for funding for your firm. Make a list of all of the physical supplies you require, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate, and calculate the cost of office space or other real estate. These are the steps you need to take to determine what these are. If applicable, add the cost of payroll and benefits to the total amount.


It can take years for a business to earn a profit, thus it is preferable to overestimate the initial costs and have more money available than to underestimate them and have insufficient funds. Numerous industry professionals advocate maintaining a cash reserve that is adequate to cover six months' worth of running costs.

When you have an idea of how much money you need to get your firm off the ground, the next step is to calculate the point at which it begins to generate revenue. This number represents the moment at which you will be profitable.


What advice would you give to start a business

Fixed cost Break-even point is equal to contribution margin.

Whereas the contribution margin is calculated by subtracting the total product manufacturing costs from the total sales income.

For illustration's sake, let's imagine that you are beginning a small business that will sell toy birdhouses for use in fairy gardens. You have calculated that the initial investment will be $500; this was your estimate. Each birdhouse that you create has variable costs of forty cents, and you sell them for one dollar and fifty cents each.

Let's put these in writing so that everyone may easily follow along:


What advice would you give to start a business

The first month's fixed costs will be $600.
40 cents or $1.50 each birdhouse, depending on the size.
The calculation is as follows: $500 divided by ($1.50 minus $0.40) equals 456 units.

This indicates that you require a minimum of 456 units to be sold in order to recoup your investment. You will be in the black for the first month of business if you are successful in selling more than 300 units.

7. Find a Way to Fund Your Business

Your company can be financed in a variety of methods; some of these will involve significant effort on your part, while others will be much simpler to get. There are two types of funding: one that is internal and one that is external.

What advice would you give to start a business

Internal funding encompasses the following:

Credit cards for individual financial savings
Donations from close associates and relatives

If you finance the firm with your own finances or with credit cards, not only will you be required to pay off the debt on the credit cards if the business is unsuccessful, but you will also have lost a portion of your wealth. If your firm fails, inviting members of your family or close circle of friends to become investors exposes you to the possibility of hurt sentiments and strained relationships with those people. Owners of businesses that wish to reduce their exposure to these dangers may wish to investigate other funding options.

Funding from outside sources includes

Loans for smaller businesses
Grants for smaller businesses
Angel investors
Venture capital

It's possible that in order to raise financing, a small firm will need to tap into more than one source. Think about how much cash is required, how long it will be before the business can pay you back, and the level of risk you are willing to face. Plan on making a profit no matter what kind of source you use. It is more preferable to make six figures and keep all of that money as opposed to making seven figures and only keeping $50,000 of it.

Some potential sources of funding are:


What advice would you give to start a business

Invoice factoring enables you to sell your outstanding invoices to a third party at a discount and get immediate cash in return.
Credit lines available to businesses:
Submit an application for a company line of credit, which functions in a manner analogous to that of a personal line of credit. Your company's annual revenue, credit score, and financial history will all be considered when determining the credit limit and interest rate.
Equipment financing: If you need to make an expensive purchase for your company, you have the option of obtaining financing in the form of a loan or leasing the equipment instead.
Microloans offered by the Small Business Administration (SBA) Microloans are short-term loans of up to $50,000 that can be utilized for working capital, inventory or supplies, machinery or equipment, or any combination of these three.

Grants are financial assistance provided by the federal government to enterprises that either foster innovation, increase their exports, or are located in areas that have historically been underserved. You can also search for grants through organizations that are local or regional in scope.
Crowdfunding allows you to raise funds from a large number of individuals by asking for donations or selling ownership stakes in your business.


What advice would you give to start a business
Consider the amount of money you need, the length of time you have to repay the loan, and the level of risk you are willing to take when selecting the appropriate source of funding for your company.

8. Obtain Commercial Insurance Coverage

Even if you run a one-person operation out of your home and don't pay anyone else to work for you, you still need to get insurance for your company. The kind of insurance coverage you require will be determined by the nature of your business and the dangers you face. It's possible that you'll require more than one kind of policy, and as your company expands, you might also require additional coverage. If you have employees, obtaining workers' compensation insurance is a legal requirement in the majority of states.

Obtaining Insurance Through the Assistance of a Broker

An insurance agent can assist you in determining the type of coverage that is appropriate for your company and in locating insurers that provide policies at the most competitive rates. An independent insurance agent works with a number of different insurance companies, allowing them the ability to compare different policies, premiums, and coverage alternatives.



What advice would you give to start a business

The Primary Categories of Coverage Available for Businesses
Your company is safeguarded against third-party claims of bodily injury, property damage, and personal injury caused by acts such as defamation or false advertising when it possesses liability insurance.
Your commercial property, including your office space, your equipment, and your inventory, are all protected by your property insurance policy.
If you are forced to temporarily close your firm due to a covered occurrence, such as a natural disaster, then business interruption insurance will compensate you for the lost income.
Your business is protected against claims that your products have caused injury to a person or damage to their property when you have product liability insurance.
Claims made by workers against their employers for discrimination, sexual harassment, or other forms of wrongful termination are covered by employee practices liability insurance.
People who are wounded on the job are eligible to get reimbursement for their medical expenses and lost income through workers' compensation insurance.
9. Make Sure You Have the Appropriate Business Tools.

Business tools have the potential to simplify your life and improve the efficiency of your company's operations. Saving time, automating tedious procedures, and improving decision-making are all possible with the assistance of the appropriate tools.

Take into consideration the following tools that are available to you:

Using accounting software, you will be able to keep track of the profits and spending of your business, as well as generate financial statements and file tax returns.

QuickBooks and FreshBooks are two examples of such software.
CRM software: This can help you manage your customer interactions, track data related to sales and marketing, and automate operations such as providing customer support and following up with customers.
Zoho CRM and Monday.com are two examples of similar platforms.
Utilizing project management software, one may effectively plan, carry out, and monitor their projects. It is also possible to utilize it to manage the tasks of employees and to distribute resources. Airtable and ClickUp are two companies that fit this description.



Credit-card processor: This piece of equipment will enable you to take payments via credit card from your clients. Stripe and PayPal are two examples of such services.
A system that enables you to take payments from customers and is referred to as a point of sale (POS).
There are varieties of accounting software and CRM software that come along with POS functions. There's also Clover and Lightspeed as an example.
A virtual private network, sometimes known as a VPN, creates an encrypted connection that is both private and safe between your computer and the internet. This is a crucial consideration for companies that deal with sensitive data. Examples are NordVPN and ExpressVPN.
With merchant services, the money from a customer's transaction is automatically transferred into the account of the business being served. You can also set up regular billing or subscription payments by using the merchant services that are available to you. The patterns "square" and "striped" are two examples.
Hosting your email gives you the ability to create a credible email address using your own domain name. G Suite and Microsoft Office 365 are two examples of such services.
10. Advertise Your Own Business

There are a lot of business owners that put so much money into designing their products that by the time they launch, they don't have any money left over for marketing. On the other hand, they may have been so preoccupied with developing the product that they haven't given marketing much thought.

Putting together a website

It is crucial to have an online presence, even if your company operates just out of physical locations.

You may get a website up and running in as little as a single weekend if you put some effort into it. Creating a website does not take very long. You have the option of creating a simple educational website or an e-commerce site where customers may buy things from you online. Include on your website a page with information about your locations and hours if you sell your goods or provide your services directly to customers in person. You should also add a "About Us" page, sites for your products or services, a frequently asked questions (FAQ) page, a blog, and information about how to get in touch with you.

Your Website Should Be SEO-Optimized.

After you have a website or an online storefront, you should concentrate on making it search engine friendly (SEO). In this way, the search engine will be able to direct potential customers to your website when they conduct a search using particular keywords relating to your products. Because SEO is a long-term plan, you shouldn't expect a significant increase in traffic from search engines straight away, even if you are making sure to include the appropriate keywords.

Create Content That Is Useful

Make sure that your website has high-quality digital information that clients can easily navigate to in order to get the answers to any inquiries they may have. Demonstrations, blog articles, videos, and client testimonials are some examples of content marketing ideas. You should put content marketing at the top of your daily to-do list as one of the most important duties. When posting on social media, you can utilize this in combination with the post.

Put Your Business in the Online Directories.

Customers can find local businesses through the use of online directories such as Yelp, Google My Business, and Facebook. There are also business directories available at several city halls and chambers of commerce. Include your company in the maximum number of directories that are applicable to it. You can also build listings for your company in particular directories that are geared specifically toward your sector of the economy.

Putting together a plan for using social media

Your prospective clients are active on social media on a daily basis; therefore, you must also be present there. Publish material that is both engaging and pertinent to the needs of your audience. Make use of social media to direct visitors back to your website, where clients can acquire more information about what you provide and make purchases of your goods or services.

You do not absolutely need to be active on each and every social media network that is now available. You should, however, maintain a presence on Facebook and Instagram due to the fact that these social media platforms also offer e-commerce tools that enable you to sell directly from your social media profiles. Free advertising training is available on each of these platforms, which can assist you in marketing your company.

11. Develop Your Company Further

In order to scale your business, you need to increase both your revenue and your number of customers. This can be accomplished by increasing the scope of your marketing efforts, enhancing the quality of your product or service, forming partnerships with other creators, or introducing more goods or services that are complementary to those that you already provide.

Consider methods in which certain chores can be automated or outsourced so that you can devote your attention to growing the business. For instance, if you find that social media marketing is eating up too much of your time, you might want to think about utilizing a platform such as Hootsuite, which will assist you in managing your accounts in a more effective manner. You may also think about contracting the time-consuming activity out to a third party.

You can also employ technology to automate specific company activities, such as bookkeeping, email marketing, and lead creation. These are just some examples. If you do this, you will have more time to devote to concentrating on other parts of your company's operations.

When growing your company, it is essential to maintain a close eye on your finances and check that your operations are still generating a profit. If you are not making enough money to cover your costs, you will need to either find ways to increase your revenue or reduce your expenses. Either way, you will need to make some changes.

Put Together a Team

As your company expands, you will need to find ways to delegate work and assemble a group of employees who can assist you in running the day-to-day operations of the company. The hire of additional workers, independent contractors, or freelancers could fall under this category.

The following are some resources that can be used to build a team:

Platforms for hiring: Hiring platforms, such as Indeed and Glassdoor, can assist you in posting job descriptions, screening resumes, and conducting video interviews, all of which are necessary steps in the process of finding qualified candidates.
Job boards: Job boards such as Craigslist and Indeed enable you to post open positions at no cost to potential candidates.
The utilization of social media platforms such as LinkedIn and Facebook are also viable options when it comes to the recruitment process.
The use of freelance platforms such as Upwork, Freelancer, and Fiverr can assist you in locating qualified freelancers for one-time assignments or projects with a shorter duration. You can also hire third parties to handle particular responsibilities for you, such as customer support, marketing on social media platforms, or bookkeeping duties.

You might also think about forming partnerships with other companies operating in the same market as you. If you are a wedding planner, for instance, you might consider forming a business relationship with a florist, photographer, food company, or venue. In this way, you will be able to provide your clients with a one-stop shop for all of their wedding requirements.

One other illustration of this would be an e-commerce store that works in conjunction with a fulfillment facility. This kind of arrangement can help you save money on the costs of shipping and storage, and it can also help you get your products to your clients more quickly. Both of these benefits are great for your business.

Look for other companies in your field that offer services or products that are complementary to your own in order to discover prospective business partners. For instance, if you are a site designer, you might consider forming a strategic alliance with a digital marketing firm.

You might also look for companies that cater to the same segment of the population as you do but offer products or services that are distinct from your own. If you sell women's clothing, for instance, you might consider forming a business alliance with a jewelry shop or a beauty salon.

Bottom Line

It takes a lot of time, energy, and determination to launch a new small business. However, if you are prepared to put in the effort, it can be an excellent approach to accomplish your objectives and realize your ambitions. Be sure you carry out adequate research, formulate a sound business strategy, and remain open to making adjustments as necessary along the route. Once you've gotten your business up and running, it's important to remember to maintain your concentration and keep things organized so you can continue to expand it.