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5 Ways To Begin Your Start-Up

Everybody comes with some great ideas.

Some of these ideas can be really useful, while others may not help much.

But there is a huge difference between having an idea and implementing that idea tolaunch a successful start-up.

Begin Your Start-Up

If you want to fulfill your ambition, it’s time to dive into the world of entrepreneurship. Have you ever thought about owning a business where you can be your own boss?

Top 5 Ways To Launch Your Startup

Often, people dream about starting a venture of their own. But the only hindrance is, more often than not, the idea remains in their dreams due to the lack of proper effort and direction.

According to Ron Conway, a noted start-up investor and SV Angel, “Any time is a good time to start a company.” and rightly so!

While there could be a hundred different ways to launch a start-up, here is a guide that you may use as a blueprint to begin your start-up.

First things first…

1.  Create a business plan

Create a business plan

If you do not have proper planning before starting a business, you can be certain that some of the things will go awry. The best way to deal with the situation is to adapt to the changes that it brings along. Always remember, building a Good business idea requires some critical decisions that can impact your startup to a significant extent. Always remember, building a Good business idea requires some critical decisions that can impact your startup to a significant extent.

To start with the plan, ask yourself the following questions:

     What is the main concept of the business?

     What is the purpose of the business and why?

     Who are your target customers?

     What is your business objective?

     What is the source of your capital and how will you finance your business in the long run?

     Do you have an exit strategy? What is it?

It’s a good idea to have an exit strategy ready for a startup while compiling the business plan. When you have precise answers to all the above questions, you can go ahead with a well- drafted business plan. Having a well-designed business plan will ensure you have a clear cut idea about where your company is heading and how you are prepared to overcome any difficulties that you might face.

2.  Do your market research

You must start your planning with in-depth market research on the business that you wish to start. It’s also equally important to have a database of the demographics of your potential customers to design the business plan. The market research will involve a lot of on-the-field running around like conducting surveys, researching public data, arranging SEO services and also holding business focus groups.

Think of a nice name for your business that will show relevancy to the products or services you wish to offer.

There are several nuances that you must keep an eye on when starting a business.

a)    Choose your niche

You need to come up with an excellent idea about what you want to offer to your customers. Choose your niche carefully since you will have to deal with a lot of competition in the crowded niches. Once you’re sure about your business industry, conduct a thorough research of the companies already existing there. Check out what these companies are up to and think about how you can do it in a better way. You will learn as you go along in the path to a successful business startup.

b)    Create a fierce Unique Selling Proposition (USP)

Make a list of all possible differentiators that makes you stand apart from your competitors. For instance, if you can offer your product at a cheaper price with a quicker delivery, it will be easier to attract customers. It is important to have a focus for your business. For some businesses, it will be relatively easier to create an USP compared to other businesses. For example, if you’re the only dedicated supplier of printed paper mementos in your area, this can be your USP.

c)    Explore the franchise option

Explore the franchise option

If you have the requisite capital to fund a business and a good business location, you can also consider exploring the franchise opportunities. The business plan, concept, business model and even the brand loyalty will be taken care of by the mother company. For instance, you can opt for a good travel agency and use an integrated tool like Airbnb Channel Manager to take care of the travel bookings. The brand will fetch customers and give you profits with minimum effort.

3. Identify your target customers

Don’t jump into a business without spending a significant time in finding your target audience. You must reach out to a vast number of people by any means possible. You need to make your potential customers be aware of your business product and how that can make their lives easier. Convince them how you have the perfect solution for their problem so that they are willing to try your products for a price. This is where you need to invest your time and money in implementing a marketing and sales strategy.

Just like a business plan, you also need to have a marketing plan in place. Marketing is a complex task and it might not always work for your business. There is no specific winning formula.

4. Sort out your finance

Sort out your finance

You need to have a basic corpus to start a business. You need to determine how you can cover the basic cost of business. If you do not have enough money to fund your business, you need to borrow. Talk to financial organizations and banks that can offer business loans. You must have enough flow of money so that you can sustain the business until it starts generating revenues. It is a good idea to overestimate the capital amount for your startup so that there is enough flow of money until the business is able to bring a profit.

If you are unable to determine how much capital you need for your business, consider performing a break even analysis. It will help you in determining whether your business will bring profit in the future.

The formula for break-even analysis is simple:

Fixed Business Costs / (Average Price - Variable Costs) = Break - Even Point

Conducting the break even analysis will ensure you are able to:

     Determine the profits from your business,

     Determine a competitive price for your business product, and

     Analyze the volume of product that you need to sell in order to earn profits.

5. Register your business with the Government and IRS

Determine the legal business structure for your company before you register it for the government. A legal business structure can affect how you file the business taxes. Choose your business type entity. It can be either a sole proprietorship, partnership firm, corporation, or a limited liability company.

● Sole proprietorship: if you are the heart and soul of your business, you are responsible for all the obligations and the debts of the business too. In such instances, you can apply for a sole proprietorship as the legal business structure.

● Partnership: if you are planning the business with two or more people, you need to opt for the partnership business structure. In this case, all the members of the business will be held equally liable for all the business obligations.

 Corporation: you can also choose a corporation format as your business structure. This structure makes your business a separate entity. It can act as an individual and own property and assume liability.

 Limited Liability Company: this is indeed the most common structure for any startup company. It is a hybrid legal structure that offers all legal protections like that of a corporation and allows you to receive the tax benefits of a partnership firm.

Once you have chosen the business structure, acquire all the necessary business licenses before you start. Next get your business registered with the government and IRS. For registering with the government, you also need to have an “articles of incorporation” document. This document includes all the details about your business like the name, purpose, structure, stock details etc.

Conclusion

There is no perfect way to learn how to set up a business. But the above mentioned tips will help you in launching your startup and get you going with your business.

There are several nitty-gritties of starting a business. A lot of legal and paperwork are involved too. You will need help in all quarters. But just don’t give up. If you are able to handle all the hassles with a smile on your face, you are sure to get the desired results.

Success of a business depends on the effort, time, and money that you put in. At the same time, you have to ensure that you are making the right decisions regarding your business from the beginning.

Don’t spend your life thinking about what you could have done. Just do it now, there is nothing better than being your own boss.

Let us know in the Comments section below if you have any plans to launch a start-up and how are you preparing yourself for it.

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