The idea of having your own business crosses the mind of more than one. Start a Business, However, not everyone feels qualified to undertake something independently due to the challenges and commitments it represents.
Starting a business requires not only financial planning but also structural calculations. This is because the needs of the spaces will not be the same for each employer.
For example, if it is a clothing store, it will require large spaces and at least one warehouse. On the contrary, if what is intended is to set up a restaurant, not only the size of the establishment may change, but also needs such as the kitchen, storage rooms, bathrooms, and parking, among many other areas.
Next, we will talk about the stages you must follow to start a business and the basics you must take into account to make it successful.
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Steps to Starting your own Business
To start a business, you must carry out a series of steps, which we will divide into two main stages:
- planning stage
- Execution stage
Setting up a business can be easy if you organize yourself and are constant. However, it will take a lot of time and extra effort to make it profitable.
Below we leave you a complete guide of the steps you must follow to earn money with your own business.
Planning Stage
As its name indicates, we will talk in detail about the planning and organization necessary to start a business at this stage.
It is vital since the business’s success will depend on this stage. Why? Thanks to metrics that can be calculated, such as the Return on Investment (ROI), you can know the probability that your project will be profitable and if it is worth investing in it.
Now you may be wondering how to plan effectively? First, you need to define these points, which will help you establish where to start and what you need.
Define your Business idea
Is there something you like to do or want to specialize in? In general, most people who want to start a business already have some idea in mind and need to shape it.
If this is the case, define what category the type of business you want to start belongs to, for example, the food sector such as restaurants or cafeterias, the service sector, and the commercial sector. With this clear, you can take the next step.
If, on the other hand, you want to undertake, but you do not have an ideas in mind, you can look around you; there are several types of small businesses from which you can take pictures for your project.
The benefit of minor businesses is that they have the flexibility to use pre-designed premises or establishments and adapt them to the operation’s needs. These are some examples:
- Clothing or accessories store
- Laundries and dry cleaners
- Grocery stores
- Hairdressers and aesthetics
- Coffee shops
- Fonda’s (cheap kitchens)
- patisseries
- Bakeries
- Pharmacy
- shoe stores
- tailor shops
- Greengrocers
- Butchers
There are many small and profitable business options; the important thing is to pay attention to the needs you require to carry it out and look for a site that meets the characteristics.
Analyze the Environment to define the type of Business
Now, it is essential that when determining the turn of your project, you consider the environment. Have you come across that there is more than one place with the same product or service in the same shopping mall?
For this point to be carried out, define the location where you would like your project to be and analyze the type of businesses in the area. Is it feasible to install your business in that area?
It is also suitable to analyze the needs of the area in which you want to start a business; for example, maybe there are no laundries nearby, or if you want to create a restaurant, you find that there are several, but they do not serve the same type of food, and your project can add variety.
If you already have a place or are going to start your business from home, you must also confirm that it meets a need of the inhabitants of the area.
Market Studies
Perhaps you do not have the necessary resources to carry out a market study that guarantees that your business will be profitable; however, based on what we mentioned in the previous point, you can carry out surveys among the inhabitants of the area, even in surrounding businesses.
Your product or service may also be helpful to the owners or employees of nearby businesses.
Many entrepreneurs do not have to worry about this step since real estate companies —such as BMF Inversions— have investment lots and macro lots with market studies and suggestions for developing projects.
Choose the Location of your Business
Once you are clear about the project’s direction and the area you are interested in is viable cont., Start a Business.
In each city, there are better areas than others, and to find the best one for you. You must physically visit the ones that interest you. For example, in Mérida, the best locations to set up a business area are in the north and east of the city.
If you plan to rental or buy a place to open a physical store, it must meet specific characteristics:
- Be located on avenues or main streets.
- The high influx of people and vehicular traffic.
- Preferably in a commercial area.
- Be accessible.
Have the appropriate measures for the service you will offer or the product you will market.
Make a Budget
When starting a business, the budget often does not fit our plans, so our advice is not to get into debt with loans from the beginning.
First, you must define: Buy a place or better rent it? If you have the capital to invest in land in a commercial area, the benefits are many; for example, the type of land use is already defined.
Although the land is not as cheap today as it was in our grandparents’ time, there are opportunities for this generation to acquire properties in installments and with affordable down payments.
If you decide to rent, you will be able to find many well-located premises or land, since this is one of the business ideas carried out by investors to generate income.
Once the above has been defined, write down in your budget the cost of the rent or, where appropriate, the monthly payment of the land or premises. Point out expenses on services such as electricity, drinking water, internet, and advertising.
Knowing your fixed expenses will help you calculate the return on investment and ensure that your business is viable.
Establish the name and objectives of the Business
Who are you going to sell your product or service to? Establishing the target audience you will address will be a necessary step to defining the name of your business; why? Because it is not the same to sell to young people as to older people.
Although many want to sell to everyone, it would not be wise. Instead, you must clearly define your potential customers and direct your sales and marketing efforts only to them.
The buyer person or ideal client has defined interests, and knowing them will be a crucial piece. In addition, your brand’s name must be consistent with the buyer’s persona; a name that is too fresh or youthful may not be to the liking of older people and vice versa.
As for the objectives, determine in advance what you want to achieve with the project financially and in terms of business growth.
Analyze the Competition
In digital marketing, there is something called benchmarking; this refers to observing the competition and analyzing what works for them; it is not about copying but about being inspired to do something better.
Analyzing the sales strategies implemented by businesses like yours will be the starting point to create your own and improve what already exists in the market.
Make a Business Plan
Start a Business: The business plan must include all the above points, it does not have to be extremely extensive, but it must be complete.
Having all the project information in a single document will allow you to control the progress of the process better. Detect possible failures or errors, and correct or change some details.
This must include a complete marketing plan and consider in the budget. If the services of third parties will be contacted for the management of social networks and advertising campaigns. On the contrary, if you wish to carry them out yourself, you will find various online courses. To learn how to do it.
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