Entrepreneurship is a tough skill that appeals to many since the world’s richest billionaires are people who run their businesses by themselves.
Photo by Pedro Lastra on Unsplash
The likes of Elon Musk, who is the richest man on Earth, has over 5 businesses, including the Tesla company that started as a small entity and climbed its way through to the top.
Other billionaires like Jeff Bezos, Warren Buffet, and Bill Gates started by solving delicate problems people are encountering in their lives and creating employment in the process. Starting a business is a tough decision; you will be burdened with questions like; what product should I sell? How do I get my target market? Who should I sell to?
If you are keen on establishing your business, then you need to stop worrying about these questions but work towards the essential steps.
Steps On How To Establish A Business
1. Start Now
If you keep waiting for the right time to start your business, then you might have to wait forever, remember you only see results if you take action. You need to ask yourself if you’re ready for the challenges you will face.
Yes! You will face a lot of challenges; it is inevitable. What matters is how prepared you are to overcome the challenges, which is due to your mindset. With the right mindset, you are 50 percent ready to establish your business because you already know there are ups and downs in entrepreneurship and the solution to that is never to give up.
2. Determine The Type Of Business You Want To Establish
Having a strong mindset shows you are 50 percent ready for business establishment, but without a survey, you might find your business hopes crashing right in front of you. When you do a business survey, you will be able to develop a perfect business that solves humans’ problems, thereby generating massive income for yourself.
If you have more than one business idea, then you can use a keyword search to know what the majority are searching for to know which niche to invest in. Although a survey isn’t enough, your passion will also determine how well your business will thrive if you start the business.
3. Create Business Plan
You don’t necessarily need a two-page business plan, except you are hoping to fund your business with loans. A one-page business plan should suffice since it just serves as a guide. Your business plan should contain your SWOT analysis, the problem you want to solve, your target audience, marketing plans, and your financial plans.
Also, your business plan should contain your short-term and long-term goals; this will serve as a milestone for you to keep moving forward.
4. Search For Funds
Starting a business is expensive; if you have a business plan that shows you need $100,000 to establish a business, then know that you need x4 of the capital to run the business smoothly. This means if your market research shows you need $100,000 as capital, then prepare $400,000 for miscellaneous to keep the business running in case you incur a loss.
Most times, as an entrepreneur, you have the idea but lack funds, and in order not to give up on your dreams, you can either choose to apply for a loan or seek the help of investors, whichever works for you.
5. Company Registration
In some parts of the world, you don’t need to register your company until you have attained some milestone like earning a certain sum of money. Although, it is important to register your company in due time to see what law applies to you and your business.
From a legal perspective, the importance of registering your business on the very first day cannot be overemphasized; for instance, if you get sued in the early stages, then your business takes the hit. So, the sooner you register a company, the better for your company.
Establishing a business appeals to everyone, but few are willing to stay dedicated to the course. Being realistic helps you achieve your long-term aim of having a business to yourself.
Also, when willing to establish your business, you should try to narrow down your choices to the most sought-after solution to make your business stay relevant for long.