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.
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
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 template. 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
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
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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