Do you have a great idea for a small business? Is it something you’re passionate about? Are you willing to work hard to make it a success?
If you answered yes to all those questions, it’s time to put theory into practice and take positive steps toward building your legacy. As you may know, nearly 50% of small businesses fail within the first five years.
While we can’t control your success, we can help you get started off on the right foot. Keep reading for everything you need to know about how to start a small business.
1Establish Your Niche
First, you need to identify your specialty within the industry. For example, if you’re a personal trainer who specializes in working with older adults within the fitness industry, this is your niche.
Your niche is what will separate you from your competition and help you stand out in a possibly saturated market. What makes you different from other businesses in your industry? What unique feature can you offer consumers?
2Conduct Market Research
Once you’ve established your niche, you need to do some research into your specific market. This is one of the most important steps to start a small business. You need to know everything there is about your competition, price points, longevity, potential growth, hurdles, and more.
- What companies are your biggest competition?
- What are they doing right?
- What can you do better or differently?
- Who is your target audience?
- What problems can you solve for people?
- What can you reasonably charge for your products and services?
- What can you expect for company growth in the upcoming years?
- What are your expenses?
The more you know going in, the less you’ll be sidelined by surprises.
3Create a Business Plan
Learning how to start a small business at home or at a commercial location requires a business plan. Your business plan is essentially the outline of how your business will operate. Investors and lenders rely on business plans to determine whether or not they want to invest in a future business owner.
Your business plan will include everything from your business overview to MVP cost, products and services. It will also cover things like management, business structure, finances, and employee issues.
Once you’ve developed a business plan, you can start looking into financing opportunities. You have a lot of options here:
- Business loans
- Private investors
- Angel investors
- Crowdfunding agencies
- And more
Your credit history will likely come into play, as well as your employment history. Banks will likely ask for paystubs from your previous/current job. If you work remotely or independently, you may need a paycheck stub generator for proper documentation of your income.
After you get the funds you need, there’s only one thing left to do – get started. Look into the legal requirements for starting a business, such as licensing, insurance, and any certifications specific to your industry.
Now, you can start searching for the right space (assuming you haven’t already). This is also the time to start investing in the necessary equipment, supplies, etc. We recommend starting small and growing bigger, rather than starting too big and burying your business in overhead costs.
Want More Tips on How to Start a Small Business?
If you’re learning how to start a small business, you have a lot on your plate. However, take comfort in knowing that you’re not alone. There are plenty of sources of information out there to help you on your way.
Our business blog is dedicated to helping new business owners like you carve their way through the business world to find success. Be sure to check out some of our other articles before you go!