A business is making a living by selling a product or service to people. The person who is owning a business is called proprietor or an entrepreneur. Even Though there is a lot of risk associated with business, people choose this. Because if the business picks up there will be huge profits. Some people start business out of their passion or by manufacturing the products or services that helped them to live a better life. There is a lot of work that is needed to start business. In this article we have listed the basic things that you need to have in mind in the process to start a business.
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Table of Contents
Basic Procedure to Start a Business:
Choose a Field
This is the first step to start business. You need to choose a field. Examples of fields are, food, clothes, beauty etc., It can also be your passion. If you like painting, you can conduct classes related to it. You can host workshops or sell products like paints, canvas. If you are someone who is benefitted by a home remedy like a herbal tea or drink, you can make it a product and sell it. The field you select should be your passion or hobby.
Market Research
Once a concept is found, an ample amount of research needs to be done. Research about the need that is there in the market. For example if you choose a cosmetic field, there can be a need for improvement in a lipstick formulation. The customers may need more color variety in lipsticks. These can be known only through market research. You will also be able to know the price that the customers are ready to pay.
This may help you to price the product or service better. Do research to know the customer base that are ready to buy the products. Also know the competitors, their products and pricing. This can help you to develop products that are advanced and at a better price than your competitor. So Hence make sure to take time and do a complete research on all aspects before you start business.
Create a Product or Service
This is a crucial step to start business. This step can make or break your business. Once the field is chosen and the research is done, create a product or service idea. For example, ready to eat vegan sandwiches. The ideas should be specific. Use the data from the research and create a unique and interesting product or service.
Hire Mentors or Team
This is a crucial step to start business. There are mentors and advisors available to guide the aspiring entrepreneurs. They are mostly freelancing, so they can also be found online. Once you hire a mentor, they will guide you through the steps based on the idea of the business. From sourcing to launching they will be available to help. On the other hand, if you have a group of friends or your family members who are equally interested in business. Get on board with them for the journey. But make sure to choose wisely.
Make a Detailed Plan
Now we have an idea and a team, now it’s time to make a plan. There is a famous saying that “A goal without a plan is just a wish”. Gather the team and make the plan along with them. Discuss each and every thing and make a flowchart of the process and carry out the tasks. From finances to packaging, discuss and plan everything. Write the vision and mission of the organization.
Set the goals for 5 years and for the 1st year and make sure to follow them. Assign a set of tasks to be completed for each member. Make sure to set a deadline for each task and follow up. In this way there will be great progress in the process of start business.
Name The Business
From this place you can feel that “it is getting real!”. The name of the business should be catchy and crisp. It should be easy to pronounce by everyone. It should be relatable to the products or the services that are provided. Make sure to research enough, do not repeat a name which is already there in the market. Select a new name. Combine two to three words to make a catchy and different name. This is important to start business.
Create Logo
The logo must also be catchy. Make sure to make a logo that is relevant to the business. The logo can also be designed in a way that it has the entire name or the first letter of the business name. The colour of the logo must also be taken care of. If it is a food business, add red to the logo, it is a colour that will induce the appetite. If it is a natural, organic brand, add green. Because it signifies nature. This is a very important step to start business that is related to branding. There are numerous free softwares available to create logos.
Decide on Funding
This is a crucial step to start business. Do not use the personal bank account for the business. Open a separate bank account for business. If it is a partnership, make legal documents on the amount of shares on each partner. Before start business, list the complete costing, from packaging to marketing and make a document of it. Discuss on how the margins will be splitted. Make sure to clear out every aspect to avoid confusion in the future.
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Choose the Vendors to Source and Sell
Vendors to source
To start business one may need a listful of raw materials. These raw materials need to be sourced from the vendors. Make sure the raw materials are of great quality because the final product’s quality will always be based on the quality of raw material. Collect samples from at least five to six vendors and fix one who gives you quality materials at profitable cost.
Vendors to sell
Once after the product is developed. One way to sell is via stores. They can be displayed in the supermarkets or through some wholesalers or retailers. Make sure to visit the place and see whether the environment will be suitable or not. If your preference is not in stores. You can tie up with e-commerce websites like Amazon to sell the products.
Set up the Space
To start business you should need a separate space. It can be a small room as well. But if it is services like spa, the location matters a lot. It must be aesthetically designed and should be in a place where there is high traffic in general. If it is manufacturing, a small warehouse is needed and this can be anywhere. Some business can also be done from home, allot a room or a small space for the business.
Run Trials and Improve
No products or services are successfully built in the first go. First a prototype of the actual product or service has to be made. It should be put in use. You can give it to people to try it out and ask for feedback. If there are any improvements told, that need to be done in the next trial and put it into test again. Likewise the process goals until the product or service reaches a desired quality. This step is a must follow step to start business.
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Register and Get Licensed
Once all the above mentioned are set right, the business has to be registered. This process will prevent your business from getting into legal issues. Sometimes the brand name and the logo can be copied by another person, in case if your business is registered you can file a case against them. Also if your product has any unique formulation or ingredients, get a patent. If the business is food or medical related there are numerous safety and hygiene related certifications that need to be obtained. Make sure to do this to start business.
Develop the Product or Service
Once all the above steps are done, now manufacture the products. In the initial stages, do not manufacture in higher amounts. Manufacture in hundreds or thousands and see how the movement of the product is. If the movement is good, when the stock is minimum, start manufacturing again. Make this a cycle. Make sure to get feedback about the products from the customers.
Choose Marketing Strategy
A marketing strategy is the way of promoting the products or the services. In today’s world there are numerous ways available to promote a product. The traditional methods include the billboard and TV commercials. The new age marketing strategies are email marketing, social media marketing, affiliate marketing and paid ads. Interactive Social media posts are the current trend that is followed by numerous brands to increase their customer base. There are numerous social media post ideas for business. Pick one idea that is relevant to the business. To make your business digitally big, you should know how to promote business on social media for free.
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Launch the Business
This is the last and final step to start business. This is very subjective to the business. If the business is a store like a spa or beauty parlour, post it to social media. Make a creative social media posts example, for spa, add quotes like “Zen it out”. Call some well known beauty influencers to the stores and ask them to call their fans, this will create some traffic. Also call any celebrity for a grand opening. If the business is like a cloud kitchen a small launch party with your friends and family will be better.
Conclusion
A business is making a living by selling a product or service to people. The person who owns a business is called proprietor or an entrepreneur. An entrepreneur should always have a “never give up” attitude. Because the path of growing the business will never be a bed of roses. It will include ups and downs. There will be huge profits and losses. One should have the mindset of facing these issues confidently. Nonetheless if a business picks up, it will be life changing. The steps that are involved to start business are huge. Those steps are mentioned in this article. Take this as a guide to start the journey.
FAQs
- What is a business?
A business is selling products or services to make a living.
- What is the most important step to start a business?
Market research is the most important step. This is where a lot of information is gathered which can make a business very successful.
- What is the best way to market business?
The best way to market a business is social media marketing.
- What is a business partnership?
It is sharing the investment, profit and losses in a business among two or three people.
- What is the best business?
Start a business which you are passionate about. If not, choose a reselling business as this has high ROI.
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