The Small Business Guide for New Entrepreneurs
Small businesses are economy drivers and the greatest sources of employment for most people in the world. Entrepreneurship is open to everyone regardless of age, gender, or race. The success of a person in business depends on the knowledge and spirit of the owner. Launching a new startup may be a bit problematic for young and inexperienced entrepreneurs, but it gets easier once you are in business. Below is a guide for the new entrepreneurs who want to venture into small businesses.
Have an Entrepreneurial Spirit
Starting and running a business is not a walk in the park, but the rewards are worth it. Therefore, you should rethink about your interests in business and evaluate your capability to handle all the pros and cons that come with running one. A young entrepreneur must be passionate, resilient, disciplined, and flexible for a successful entrepreneurship career.
Development of a Business Idea
Looking at what you enjoy doing is one of the considerations you should make while developing a business idea. Other factors that you should have in mind while developing your idea include the target market, the capital that you have, and your knowledge in the venture.
Conduct a Market Search
Identifying a gap in the market is the key to success in business. Investigate on the number of competing companies if you are planning to start a general business. Understand the needs of a customer so that you provide what they want. You should also have accurate knowledge of the prices. Getting the demographic information about your target population will help determine the kind of businesses or services to provide too. For example, you can consider putting up a fast food restaurant in an area with college students and young adults.
Determine your Business Structure
The kind of a structure that you have for your business affects both the taxes and your personal liability. Different structures that you can adopt include sole proprietorship, partnerships, and corporations. A corporation is ideal when you want to separate your personal liability from the company’s. Limited Liability Corporation (LLC) is one of the commonly used business structures for corporate purposes.
Business Plan Development
A business plan helps keep you on the check while running a business to avoid directing your interests somewhere else. Develop a plan that you will always revisit to determine your level of progress in business. Some of the things that you should include in your plan include your long-term goals, financing your business, target markets, and the growth strategy of the business. Most corporate training companies will give the lessons on developing a good business plan freely in their seminars and workshops.
Financing a Business
Now you have all the tools of the trade but the only thing lacking is a source of funding. Different ways of financing a business include crowd-funding, loans, bootstrapping. All these methods come with their pros and cons which you need to understand before going for any of them. Some businesses, for example, freelancing require zero capital to start and run, while others need you to have a certain amount of initial capital. The secret behind financing a business is starting with little revenue and growing your business with time.
Develop a Marketing Strategy
Marketing and advertising are the backbones of business. There are various ways to market a business especially with the growth in technology. Make use of the available online platforms for marketing but do not over rely on them.
Registration of a Business
Register your business with the right authorities and the government to ensure that the enterprise is officially recognized as a business entity. Obtaining a trademark for your business gives you extra legal protection. Some of the necessary registrations that you need to make include:
- Register as “Doing Business As” name
- IRS certification to acquire a Tax Identification Number
- State and local taxes registration- the state taxes include sales tax, unemployment insurance tax, and income tax.
- Permits and licenses registration
Get a Mentor
New entrepreneurs require the help of a person who has been in business for several years. An instructor gives you critical advice and support to help you navigate well in the business market and help you make sound decisions. There are no rules on the mentoring relationship, but respect and good communication yield great results.