How start your startup business from beginning?
You may have many business ideas in your mind, but what do you have to do to turn them into a startup company? Of course, it may sound like an intimidating task, especially for those who had never had a business before. It is true that establishing a business, even a small business, needs hard work, money, energy, dedication, and perseverance. Many businesses fail within the first years of their operation. However, it must also be noted that many startups thrive well even into multi-billion companies.
3 Basic Steps to Establish a Small Business
When you read business books, you may find tens or even hundreds of step to kick start your startup business. Fortunately, they are narrowed into the following steps:
Preparing a business plan
This is the very first thing you need to do before launching your small business. A proper business plan helps you pave the way from the scratches. In addition, a business plan is important if you are seeking for investment capital, in case that you do not have enough money in your account to establish a business. Studies show that people who prepare a business plan properly are more likely to get financial support in terms of business loan or investment capital.
A business plan contains description of your company’s future. Therefore, it is a very helpful tool in growing your business, particularly in the first 3 to 5 years of your business operation. Make sure to learn how to prepare a business plan. If possible, work with an adviser to ensure that it is well prepared.
Getting Appropriate Funding
As mentioned above, a business plan is extremely important if you want to secure funding for the business. The document includes at least balance sheet, profit and loss statement, sales forecast, cash flow statement and other essential things related to business strategies.
If your money is not enough to establish a small business as a standalone owner, you need to find other alternatives. Before considering sending a loan application to a bank lender, you had better negotiated for personal loans with friends, family members, angle investors, or venture capitalists. Try to avoid significant equity in the very beginning phase of your company. Therefore, banks, payday loans, and credit cards might not included in the list of your candidate investors.
Finding Location and Building a Website
Combining a brick-and-mortar and online business is a great strategy for startup. If you have enough money, then you need to lease a property for the business, whether it is an office, manufacturing location, or retail space. Talk to your adviser when choosing from a list of potential business locations. Make sure to choose one that offers great potential for growth. In addition, business location is an important consideration for investors.
Then, building a business website is another important strategy for starting a small business. A website is an effective marketing and branding tool in a long term. Therefore, make sure to build a professional website to represent your business digitally. Then, find a Search Engine Optimization (SEO) specialist to optimize it.
At the first phase of your startup business, you may need to take care of everything, from building a solid team, marketing the business, and building a customer base. Your jobs will be much easier if all of these aspects have been addressed in your business plan.
Ready to get started your own startup? Read more about what to know to grow up your small business faster.