Many people are continuously searching for a checklist, that they can utilize when it comes to starting their own business. However, the problem with this is that, from your business type and your ideal market to your physical location, there are so many variables involved, that the task that’s associated with creating a standard list that can apply to everyone would be prove to be difficult to say the least. Nonetheless, the key components that you should be aware of when it comes to the business that you want to establish, is that you need to be flexible. In this article we’ll take a brief look at the 5 fundamentals that everyone needs to follow when it comes to establishing a business.
1) Personal Evaluation
Personal evaluation is the most important fundamental that you should focus on when it comes to starting your own business. You need to be very self aware of yourself in the sense that you should know what your weaknesses are, as well as your strengths. Once you have determined what your strengths and weaknesses are, you need to ask yourself how they will affect the daily operations of your business. Additionally, as far as knowing yourself goes, you should strive to enter into a market that you enjoy and have great knowledge in, due to the fact that as your business expands, it will consume a larger portion of your life and as such, you want to strive to ensure that you are happy within the market that you choose to enter.
2) Evaluate The Market
The next thing you need to do is to evaluate the market. This is because the more you know about your market, the better protection you will have and you will be able to capitalize on your advantages once you gain some valuable insight into the market. For example, you should aim to evaluate your competitor’s strengths and weaknesses. Once you have a general understanding of their strengths and weaknesses you can gain the advantage by exploiting their weaknesses. For example, if your competitors offer poor customer service, this should be one of the things that you place a high emphasis on when you establish you business.
3) Evaluate The Various Business Formations And Acquire A Business License
The first step to making your business a reality is legal registering of it, via business license. When it comes to registering a business, you have 4 different business formations to choose from, which are :
* Limited Liability Company
* Sole proprietorship
Ensure that you check the pros and cons that are associated with each business formation before you make a decision.
4) Formulate A Business Plan
When it comes to the structure of your business, you need to formulate a business plan. Not only will your business plan, operate as a road map for your business, you will need an official business plan when it comes to securing financing. When it comes to formulating a business plan, the standard plan should consist of nine different sections at a minimum, which are:
* Executive summary
* Company overview
* Products and services
* Target market
* Marketing and sales plan
* Milestones and metrics
* Management team
* Financial plan
4) Secure Financing
Most small businesses initially secure financing, via personal loans, help from family members and friends, credits and a variety of other private financing options. However, you need to ensure that the financing option that you utilize, match the needs of your company. When it comes to securing major investments, some of the lending options that you have available include:
* Angel investment
* Accounts receivable specialist
* Venture capital
5) Set up Your Business
Once you have a great understanding of you strength and weakness as well as your competition’s strengths and weaknesses, knowledge about the market as a whole such as ideal demographics and feasible marketing solutions, the necessary licenses and certifications, a business plan and financing, you are ready to establish your business.