How to start a business? In this article you will learn how to start your own business!
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What to do business in – business ideas
All aspiring entrepreneurs have to figure out for themselves how to choose a field, find a client and promote a product. In this article, we will advise you how not to repeat the typical mistakes of beginning entrepreneurs, how to prepare for entering the market and how to lay the right foundations for your business.
A business idea is not always born from the desire to start one’s own business. If you want to become an entrepreneur but have no idea what to sell, answer these questions: What do you enjoy doing? What do you want to learn and what do you already know? What can you do for your client today? Finally, does the client even need this product?
There’s no point in running a business if your product doesn’t meet a customer’s need – running a business starts with solving a customer’s problem. Before entering the market, check whether there will be interest in your offer: try to sell the product to the first customers. Analyze which products and services are popular with your competitors and why and compare them to your own.
If you already have a business idea, ask yourself the same questions and make sure you don’t get caught off guard by any of them.
How to choose a field and a key segment
Trying to run your own business is, regardless of the outcome, a new experience and learning. The success of a business largely depends on what kind of business start a person chooses at the beginning of a challenging but interesting journey. Only 1 out of 10 startups survive and thrive in a highly competitive market. Therefore, in order not to be disappointed and not to lose a lot of money, we recommend choosing an industry that does not require large financial investments at the beginning.
One of the most popular business ideas is running an online store.
Consumer interest in online shopping is growing at a great pace, as are the number of retailers. A big advantage of online shopping is that there is no need to rent offices and warehouses. It is possible to work on the road – to send goods from the manufacturer’s warehouse to the online aggregator’s warehouse or to the buyer’s address.
If online trading doesn’t appeal to you, look at people’s everyday needs when looking for the answer to the question of what kind of business to start as a startup entrepreneur. For example, in the area of food and beverages. People refresh themselves in all conceivable situations, while walking, on the way to work on the street. And that’s why fast food has always been and always will be in demand.
An entrepreneur can offer a traditional assortment of products or prepare exclusive dishes according to author’s recipes. The peculiarity of this business is that, unlike cafes and restaurants, it remains less vulnerable during quarantine restrictions. In crowded places, fast food outlets are still in demand.
You can use the tips described below, no matter what business sector you choose. We have selected them so that they are relevant and applicable to you in any case. But anyway, it doesn’t matter what field you choose, the tips described below will be relevant and applicable in any case.
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1. Count the number of potential customers
In the beginning, it is important not to focus on the entire specialized area, but only on a certain segment. Who exactly will use your services and how often will they use them? For example, if you are opening a make-up studio, your clients can be professional artists, models or ordinary people – decide who you will focus on. Look into the public domain and use statistical data to refine your predictions.
2. Assess the solvency of the audience
The market may be huge, but the profits from it are modest. When creating a business plan, consider not only the potential reach, but also the ability to pay of potential clients, as this also determines how much the product will cost.
3. Find out how many competitors you have
Analyze how many offers are on the market and how they are presented – can you stand out? If you have many competitors, focus on a narrower segment.
4. Identify your advantages over the competition
Put yourself in the shoes of your customers and think about what makes your brand better than others. The lower price of goods should not be the only advantage – do not forget the value of the product for the customer.
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Business plan and financial model: The basis of a successful business
In order not to encounter difficulties during the implementation of your own project, it is necessary to draw up an effective business plan in advance. It should include estimated costs, opportunities to promote your company’s products, and costs for individual types of products and services. It is desirable to prescribe the approximate amount of future income. The plan is made for your convenience only and is not reviewed by the bank or investors, so you can write it in any form that suits you. During the implementation of the project, this plan will help you not to miss important phases of the work.
In addition, it is advisable to specify the planned costs for the initial phase of the business so as not to exceed the budget for unforeseen events. Try not to use a ready-made business plan downloaded from the Internet, as these are more like averaged values that may not actually correspond to real numbers at all.
Start a Business: How to get money for your idea
If you are just starting a business, it is advisable to avoid loans or credits, but rather to use your own capital, even if it is small. Do not forget that business often carries certain risks, and if something goes wrong, you will close the business and must pay off your credit obligations for a long time. Every loan is a big responsibility!
If you are still determined to start a business, consider government programs to support small businesses (grants, competitions, incentives and government subsidies for start-up entrepreneurs), potential investors or crowdfunding. For the last two options, you should determine the investor/crowdfunding share now to avoid future misunderstandings.
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How to Start a Business – Legal and tax aspects of business
Many people who are thinking about starting their own business are inevitably faced with the choice of the form in which this business will subsequently be operated. Legislation offers us two options for doing business – either as a legal entity or as a sole trader. What are the advantages and disadvantages of these forms?
Self-employed
Tax burden – self-employed people have at first glance a more favorable 15% income tax rate, but you have to remember that you have to pay social security and health insurance on top of that. The difference between income and expenses is then taxed, but if your expenses are low, you can use the so-called flat rate depending on the type of business. In addition, self-employed people can take advantage of various tax deductions (for example, for children) that can significantly reduce tax.
Self-employment usually pays off at the beginning of the business, when you don’t know how big your income will be. For the self-employed, lower start-up costs and lower bookkeeping (or tax accounting) certainly play a role when starting a business.
Company (Ltd.)
Tax liability – the income tax rate is 19%, but unlike self-employed persons, Ltd. is not subject to health and social insurance levies. The tax is paid from the profit, which is the difference between the income and expenses achieved by the company in a given year. Compared to self-employment, it’s not important how much money came into your account, but how much you actually invoiced during the year.
An Ltd. it usually arises when the company generates higher income, which is associated with greater responsibility for the business, or in a situation where it is necessary to separate a business, to have another partner or investor in the company, for which an Ltd. offers simpler legal procedures.
Marketing and promotion: How to reach the target group
Your idea worked, you made your first profit, you signed a lucrative contract for goods or services, and now it’s time to actively develop your business. To attract as many customers as possible, you need the right promotion.
Use the right marketing channels to let consumers know about your product. Find answers to these questions: What sites do potential customers visit, how and where do they go after work, which bloggers and brands do they follow, what videos do they watch?
Start by launching online sales through popular websites, visual advertising and then promote your brand on your website and social media. Marketing campaigns are essential for acquiring new customers and building a customer base.
Google Ads will be a useful tool: the service provides monthly keyword search statistics.
How to Start a Business: Keys to success
Remember that mistakes are useful.
Learn from your and others’ negative experiences and don’t give up after a series of defeats. Problems and crises are normal and force you to look for new solutions.
Plan
Running your own business requires no less discipline than a job. Without purposefulness and concreteness, you cannot move forward – set tasks for the day, month, year, etc.
Take action
Ditch the perfectionism: It’s better to launch an imperfect product and tweak the process quickly than to give in to the competition and sacrifice your earning power.
Analysis
Analyze the work done at each stage. If you find that the next step doesn’t get you closer to your goal, change your plan.
Starting your own business is not easy, but if you take it seriously and responsibly, you will definitely succeed in the project. It is important to love what you do because only then can you achieve high performance in your future business.
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