How to Start a New Business That is Successful
In this blog post we explore How to Start a New Business and offer you the chance to get 2 free chapters straight to your inbox from the brand new book entitled ‘Sack Your Boss: The Ultimate Guide To Escape Your 9-5’.
There are only 24 hours in a day and for many people almost half of that is taken up by their job. Add in 8 hours for sleep and that doesn’t leave much time for you to do much else. Roll on the weekend. So, what’s the secret? How can you ever escape this never-ending cycle of trading your time in return for money? The answer is assets. Income generating assets. When you own assets, and in particular a business, you have the ability to generate income 24/7.
Become an Entrepreneur
As an employee, you are paid your monthly salary and before it even reaches your bank account, the tax man has taken his cut and handed you the leftovers. As a business owner, you earn money based upon the value you provide to the marketplace through products and services, spend what you need to in order to help your business grow [marketing, staff, training, product development etc] and then pay tax on what is left over. Whilst the advantages of being a business owner might sound appealing to you already, starting a business and choosing entrepreneurship as your vocation is definitely not suitable for everyone. Why? It’s tough.
Starting a Business
Based upon my experience of working with hundreds of people wishing to break free of the rat race, most people simply don’t have the resilience, drive and correct support mechanisms around them in order to stick with it long enough to see the fruits of their hard graft pay off. Therein lies the difference between an employee mindset and an entrepreneur mindset.
But, we are not here to talk about whether you have an entrepreneurial mindset or not. That can be found in my new book: ‘Sack Your Boss: The Ultimate Guide To Escape Your 9-5’ which is available now and includes other interesting ideas about how you can escape the rat race and join the business world. We are here to discuss the secrets to starting a new business.
There are many tips about ‘how to start a new business’, but most of them are complicated. This is why it is difficult for most people to follow them.
The truth is, there is no secret formula for starting a successful business. In order for a business to be successful, hard work, commitment, and passion are required. Without these three traits, no entrepreneur can ever become successful. However, in addition to these three elements, you also need sound advice that is easy to grasp and free from all complexities. Therefore, in this post, we’ll provide solid advice about how to start a new business in layman’s terms.
How to Start a New Business
Refine Your Business Idea
Most of the people who think about starting a new business have an idea about what they wish to sell or the market they want to enter. However, the idea alone isn’t enough to start a successful business. If you have an idea, you must determine its profitability. You can determine the profitability of your business idea by seeing existing companies that are in a similar business.
If your idea is similar to that of other profitable companies, it is a sign that there’s a market for your business and you can profit from it provided you take the right approach. If you have a new business idea that is different from other companies, then you must determine its profitability by other means. You can ask people like your friends or family members what they think about the idea. You can also ask random people to give their views about your idea through an online survey.
Write a Business Plan
This advice can be found in almost all how-to-start-a-new-business guides. That’s because you can’t start a new business without a business plan. If you determine your business idea to be successful, you can move on to writing a business plan. Why are you starting a business? Who are your potential customers? These and several other questions must be answered in a business plan. You can get more detailed information about how to write a business plan by searching on Google.
Market research is essential for creating a strong business plan that you can actually follow. A business plan will provide a direction for your startup and help you overcome any roadblocks along the way.
Focus on Finances
You can’t expect to start a business without any money, right? So you must determine how you will fund your venture. Will, you borrow money or do you have enough cash stashed up to start your business? If you have a job and you’ll have to quit it to start your business, do you have enough money to support yourself and/or your family until you start to make a profit from your business?
Everyone who wants to know how to start a new business must answer these questions before they jump into the world of entrepreneurship. Many startups fail because they run out of their cash reserves before they can make a profit. Therefore, you should first estimate the amount of capital you’ll need to start your business.
Build a Strong Network
Strong connections are important for a successful business. If you aren’t familiar with many people in the industry you are deciding to target, you’ll have a hard time managing your everyday business tasks. Strong connections with other people in the industry can help you get advice and instructions about your business. You can also get better prices and favourable terms from business suppliers.
A Strong Strategy
In addition to business planning, a solid strategy is also important for starting a new business. Many entrepreneurs don’t have a solid strategy which is why they struggle to achieve success in the business realm. A strategy can help you answer questions like, “Which market will I target?” and “What will I do to compete with other strong competitors?”
Learn from the Experience of Others
People who ask the question, “how to start a new business?” should focus on learning from the experience of others. There are many entrepreneurs out there who share their stories, the mistakes they have made and the strategies they use to become successful in the business world. You can learn a lot by reading stories of these entrepreneurs and avoid the mistakes that they made with their ventures.
If you are going to need investors for your business to help it grow or even to get off the ground, you must search for investors who may be interested in investing in your business. Venture capital groups and local angel investors are often a good option for startups.
Market Your Business
Customers can’t buy from you if they don’t know you exist. To make your business visible to your target audience, you’ll have to market your business. Before you can market your business, create a unique logo that helps people differentiate your brand and identify with it. Then, start marketing your business through different channels. In the earlier stages of your venture, you should start with free marketing tools or advertise your business through social media or try to get featured on podcasts. Once you have established your business, you can move to other forms of paid advertisement like pay-per-clicks, newspaper ads, and social media ads etc.
But, if you persevere and follow the advice highlighted above, you can become successful with your venture. Remember, you’ll have to put your time and effort into the new business if you want it to be successful. Otherwise, it won’t take long before you are forced to close the doors to your business.
To help you follow your dreams and become your own boss, I have created the 5 Step Formula which I talk about in detail in my new book entitled ‘Sack Your Boss: The Ultimate Guide To Escape Your 9-5’