Once a dream is now real life. That’s the story for many people who decide they want to start and run a business. Owning a small business can be both thrilling and challenging. Many people, and you may know some of them, are brilliant “idea” people. However, those same individuals struggle with the process of turning those ideas into reality.
Many steps are needed before a small business actually is open serving customers. Once a dream is now real life does not happen overnight. In fact, here are a few recommendations to think about before starting the journey of small business ownership:
Verify The Idea
There’s a couple of steps that need to be taken before an entrepreneur invests its first dollar into a new business venture. To confirm the idea’s validity market research is agenda item #1. Market research is certainly not glitzy or flashy, but it is a necessary task. People don’t usually buy a big-ticket item, like a car or home, without doing some background homework. The same philosophy holds true when starting a business. Before diving into the deep end, a prospective business owner needs to comprehend what customers want, what’s happening in this particular industry, and who might be the possible competition. Questionnaires, focus groups, and market analysis reports are some of the tools needed for this research.
Seeking the input of others is crucial to ensure that you’re on the right track with this new business venture. Receiving feedback requires an individual to have “thick skin.” The prospective business owner must have an open mind when asking for and receiving comments and ideas from confidants, mentors, and likely customers.
Develop a Business Strategy
Every business needs its own GPS system. Therefore, a business must have a vision as to what the business will look like and the objectives required to achieve this vision. Objectives which follow the SMART formula for being specific, measurable, achievable, relevant, and time-bound are the landmarks which help a new business measure its effectiveness and success.
A final product featuring a complete business plan will be the end result of business strategy. Detailed planning is a must for the would-be business owner. A thorough study of the potential market, including an operational plan with financial forecasts, comprise the business plan. If a prospective business owner is looking for financial support, investors, along with potential lending institutions, will require this business comprehensive business plan.
Obtain Financial Backing
No new business venture succeeds only because it’s a great idea. Once a dream is now real life doesn’t become reality with one crucial ingredient. Money is needed to get any business off the ground and flourishing. This new business could be funded by the owner or outside money may be needed. Depending upon the business, especially in its early stages, the owner’s own money be the best route to follow rather than seek financial backing from outside investors or lenders like banks and credit unions. Self-funding gives the owner full control over the business.
Select Your Business Structure
Young children seem to be asked this question on a daily basis. “What do you want to be when you grow up?” Prospective small business owners who believe in the goal of once a dream is now real life are posed a similar question. “What type of business do you want to operate?” After seeking the assistance of an attorney and accountant, the entrepreneur should select the suitable business structure. There are many options including sole proprietorship, partnership, LLC, or corporation.
Once you’ve selected your appropriate business structure the next step is to register the business. These regulatory requirements are based upon your particular locality and/or state. The obligations may include various licenses and permits which not only validates the business, but also creates credibility with both investors and possible customers.
Shape Your Brand
From day one of its existence, a new business must begin developing a name for itself that will attract customers from its identified target audience. This brand identity features a business name which customers will recall and understand what the business offers. Brand identity also includes some type of symbol or logo.
Meanwhile, in this new media age we now live in, every business needs to present a professional and useful website. At the same time, the business must welcome and not reject, social media platforms with its marketing and promotional efforts.
Location Strategy
Before assisting its first customer, the new business needs to have its essential equipment and technology in place at the best building location in order. For an online business, the owner must ensure that its website and e-commerce competencies are capable to handle any volume of business. Website crashes on the first day is not the message a new business wants to send to its customers.
Any business selling physical products MUST HAVE a dependable and competent supply chain management (SCM) system. A supply chain management system can “make or break” a new business. Here’s what a business owner needs to consider. Reliable suppliers offering beneficial pricing and terms along with smooth running inventory management operations which sells the right amount of inventory. Too much or too little inventory is not a cost-efficient proposition.
It’s Now “Go Time” for the Business
There’s a two-prong approach when opening a new business. The soft opening includes an invitation only for attendees to “test” your product or service. Potential issues can be identified during a soft opening. Identifying and correcting these issues or problems before the grand opening can be invaluable to a new business venture.
Shortly after the soft opening, it becomes “go time” for the new business. Now, the grand opening is the time to shine for the new business. Full-fledged marketing initiatives should be rolled out at this time. Those activities could range from a local business group sponsored ribbon cutting ceremony to special grand opening specials and events. Every effort should be taken to encourage potential customers to come, see, and ultimately buy your product or service.
Observe and Adjust
Following that initial grand opening splash, a new business must set up a system to observe, receive and process customer feedback. Without customer comments a new business could find itself in an “echo chamber.” There’s no way to improve a product or service if a business doesn’t know what its customers think.
Many people believe that remaining at the status quo puts a business firmly behind the competition. Therefore, flexibility and the ability to adjust in today’s world is vital for new business growth, sustainability, and longevity.
In Summary
Planning, starting, and maintaining a new business is not for the faint of heart. Determination, planning, and flexibility are characteristics required to succeed in today’s business world. Success and longevity occur when a business provides a quality service or product that customers truly want and need. When that happens for a new business owner, what was once a dream is now real life!
