You see the term start-up everywhere, but how do you start the start-up? Not everyone has lots of experience starting a business or even exploring different models for their business.
It’s not uncommon to meet people who want to own a business but aren’t sure about doing what. If that sounds like you, check out our Business Ideas archive.
When you go into it, you should have the consideration that not all businesses survive. That doesn’t mean yours won’t, or that it won’t be an incredible experience even if it folds.
There is a lot to be learned from the start to the finish of starting a business.
So let’s take a look at how you start a start-up!
Big Ideas
Most of the best business ideas come from solving a problem for people. If you have a problem, then there is a high chance others also have the same issue.
Keep in mind that your idea doesn’t need to be new; sometimes, it just needs to be better than what is already available.
Look at the products that you use the most. Would you make any changes to improve them?
The changes could be as simple as adding a new feature, finding a further use for the item, or changing how it looks.
A great example is computers and mobile phones. They all do a similar thing, but the difference is how they look.
Business Planning
Although it is often suggested that a business plan is outdated, it is one of the most critical planning materials a new business owner has.
Once you have finalized your business idea, then you should begin to build that idea out.
Writing a business plan might feel overwhelming, but really, it can help you highlight issues and opportunities within your idea.
Here are some of the sections that you should have within your business plan:
- A summary of what the company does and how it does it.
- In the formation of your business, will you be setting up a limited company? Or is a partnership more beneficial?
- Listing how you will handle the marketing and where your most robust channels will be (this could be traditional media, or you may wish to leverage social media – a mix of both is usually the best option). Look into marketing strategies; rather than just saying you will use Facebook, think about how you intend to use it.
- Who are your competitors? A list of names is great, but looking into what they do, where they market and look for information about their turnover.
- Thinking specifically about your products and services, how do you intend to develop them further? What does the design process require, and how will you do it?
- How do the processes with the business look? If you have a team, how will you manage them – and what makes you ideal for the role?
- Your business finances – what cash do you have available now? Where do you intend to get more funding? What will you do with the financing?
Ensure that you have a clear cash flow forecast; if you are applying for finance, this can help influence the decisions. But more importantly, a 5-year forecast can be your benchmark to how the business is doing.
If you have already written a business plan, that is great, but it is always worth going back through it and updating information.
Funding
If your business idea hinges on getting finance from an outside source, you need to do as much research as possible.
Banks are usually the first option; discuss what a finance package might look like and what other benefits are available with a bank manager.
There are grants and funding for many different business types; look at what you have on your side in terms of differentiators.
Small business mentors and support hubs can direct you to all finance that can help your business launch.
It is no secret that most businesses fail because they run out of money or don’t correctly estimate the running costs.
A vital thing to have on paper is what you can do if you don’t get funding. Is there a way to bootstrap your business to become more agile and require less cash upfront?
Remove the Nay-sayers
The right people around you will offer a support network that can help you reach your goals. But what does that look like?
The first step is when talking about your business idea with friends and family, don’t continue the conversations with people who tell you that you can’t do it.
Creeping doubts and feeling like it is impossible is one of the quickest ways not to try and launch your business.
There are also professionals that you need on your team.
- Accountants
- Lawyers
- Bank managers or a business bank advisor (or both)
Outside of those professional bodies, you should carefully select those working with you in the business. Ensure that you all have the same goals.
When hiring team members, be sure that they hold the same work ethic and values as you. Since getting a start-up off the ground isn’t an easy feat – they need to have skills and determination in their role.
Location
Fortunately, we can launch an entire business online, which immediately cuts a lot of the physical office or location costs.
But if you need warehouse storage, or a physical store or office, you will need to choose wisely.
Take into consideration if you will be welcoming people face to face, or you only need the office so people can work. This makes things like the car park and logistics dramatically different.
You will need an online presence anyway because more people search online for businesses and products than ever before.
MVP
The focus should be on creating a great product, but the launch process shouldn’t take too long. The product put out there should be great – but it might not need to be perfect.
The feedback you get from the first product to hit the market will shape how the product looks in the future. And, it is that early feedback that cannot be replaced with any amount of guesses or refinement before it hits the market.
An MVP is your minimum viable product, and that can be considered your beta test product.
What does your marketing look like?
Your marketing is more than “we will put adverts on Facebook”; it’s a more profound process.
You’ll need a strong brand identity and a specific tone of voice associated with your company. This is the foundation of people recognizing your business and becoming loyal to it.
Using your competitor research, you know how you can stand out against the competition, this is even more important if you are choosing to head into a saturated and competitive market.
While marketing focuses on getting a conversion, you can get those sales without connecting with your customers, building brand loyalty, and creating long-lasting relationships. Building buyer personas will tell you who you are talking to, how to talk to them, and where they are.
Will you be offering promotional offers? Free items? Samples? What is it that you will do differently – and how much is it going to cost?
Remain agile
Before you have even started your business, you will need to get comfortable with the idea that your business will change.
What it looks like in your mind and on paper right now is just the starting point.
Businesses go through many metamorphoses, and to remain competitive and unique, it is essential to be comfortable with change.
As your business evolves, you might notice that you need to hire new team members, and those team members might need to out-skill the ones you already have.
So keep the old team members; they’ll need regular training and support to reach their full potential.
Societal and ecological challenges may present themselves, and you will need to pivot your business accordingly.
It is impossible to plan for everything, but you can plan that change will be needed.
Highlight your weaknesses
As you are the business owner, you need to be self-aware. Where do you have apparent weaknesses, and more importantly, what will you do about it?
Some weaknesses are as simple as a gap in knowledge, which can be rectified by training, courses, and hands-on experience.
Other times it is a more profound weakness and a personality trait that might be standing in your way. If you are known to be a risk-taker, ask yourself if you should take those risks with your business? Having someone around to bounce ideas off and work out if the risk is worth it or not is essential.
Knowing where you need help or where you can prove is one of the essential parts of the pre-start-up foundations.
It is easy to get carried away with exciting ideas and the vision of what it looks like to be at the helm of a thriving company. But the foundations of the company are just the most crucial aspect. What you do at the start can determine the trajectory for the next few years.
