Thinking of Starting a Business in 2020?
Date : Jul 01, 2019
Author : DR Armed Zayed
Categories : Business Tips
Are you thinking of how to start a new business in 2020?_Now, starting a business, ensuring its success, and then sustaining it does not happen overnight. It takes planning, learning, and effort.
How To Start A New Business
–If you have plans to start a business in 2020, consider the following:
1. Developing a Business Plan and Conducting Research
A business plan provides you with a direction on where you want to take your business. To develop a business plan, you need to perform research on the product, service and marketing objective.
As the person behind the idea, you need to know everything about your business, competition and the industry you have chosen to enter beforehand.
Key things to consider include:
- Purpose of the business plan
- Company profile
- Developing a strategic marketing plan
- Create a content marketing strategy
- Adapt the product/service to the target audience
2. Find Mentors
You will need to find a mentor who will have a positive influence on your personal and professional life. The right mentor will help you boost the performance of your business. On your search for a mentor, you need to find someone who is trustworthy, respectable and a good listener. They will guide you and ask questions to help you see things from another perspective and allow you to come to a resolution yourself instead of giving you all the answers. They are not a cheat sheet, but someone with vast experience, possessing the knowledge you need to make your business a success. Good places to meet these types of people include networking events, such as conferences to listen to industry experts, LinkedIn and Twitter and small business development centres (that provide resources and advice).
If you are unable to do all of these suggestions, you can share your business plan with fellow entrepreneurs in your family and circle of friends as well as attend free webinars on successfully starting a business in 2020.
3. Get Online Reviews
With 88% of consumers trusting online reviews just as much as they trust personal recommendations by friends and family, you need to focus on getting positive online reviews from your target audience once your business is up and running. Positive online reviews will build trust and create long-lasting relationships between you and your customers.
If you want to start a business in 2020, develop a business plan, talk to mentors, and get online reviews.
What Is The First Thing To Do When Starting A New Business?
Having your own business is the best way to build wealth. It can be worrying at first. But with the right guidance, it can be made easy. Luckily, everything needed to start your business has been documented and done a million times before. Even when you’re starting from scratch, you don’t have to reinvent the wheel.
Here’s a list of things you need to do when starting a new business. We’ll walk you through each one.
Since you already have a business idea, these practical steps will help you get up your business and make it operational.
Create a Business Plan
To create a business plan, you need to answer these two questions:
- What do you need to make profits from your business?
- How will you finance your business to get to profitability?
Be real with yourself and know exactly what’s it going to take. Do your research and figure out your numbers.
Without a business plan, you can’t make your business idea a reality. It’s a blues print or true north that will guide your business from the start-up stage throughout its establishment and finally business growth.
In simple terms, a business plan is a written description of your business future which you can improve over time. It outlines your 3 to 5 years’ business strategy.
Figure Out Your Finances
If you want to start a small business you don’t need a vast sum of money. However, you’ll need some capital to get yourself off the ground and cover ongoing expenses before turning profits.
Unfortunately, there’s no magic number that applies to all the businesses. Startup cost varies from industry, so your business might require less or more funding depending on its situation.
Create a spreadsheet to estimate your business onetime startup costs (legal fees, licenses, permits, inventory trademarking, property lease, etc.). Also, it will help you anticipate what your business will need to run for 12 months (supplies, utilities, production, travel expenses, employee salaries, etc.).
Once you have the numbers figured out, you need to fund your business. There so many ways you can fund your business. Here’s is just a few:
Small business grants
Select a Business Structure
Your business formation can be a partnership, corporation, Sole proprietorship, or limited liability company (LLC). The business structure you select will affect your business in many ways. From your business name to liability as well as how you file taxes.
You need to take the time to understand the advantage and disadvantages of each business formation. You can select a partnership and then reevaluate and change to sole proprietorship as your business grows and requires change.
Based on the complexity of your business, it might be wise to work with an attorney to iron out the details or CPA to makes sure you’ve selected the right business structure.
Choose And Register Your Business Name
Create a unique name that represents your business. Your business name is an essential aspect of your business, so you have to make sure it’s perfect.
Don’t make it hard to be known and found. Think through all the potential consequences and come up with your business name.
Once you’ve created your business name, check if it’s in use or trademarked. If it’s not, register it. If your business is an LLC or partnership, you can only register its name when you’ve completed the formation paperwork. You can register a sole proprietor business with the county or state clerk.
Also, register your domain name, once you have created your business name.
How Much Money Does It Take To Start A New Business?
There’s no simple answer to this question. Even though all startups need monetary investment, the actual cost for each new business can significantly vary.
The type of business you choose and the service your business will provide determines the cost of your business.
The average cost of starting a business can range from $3,500 for a home-based small-business to millions for large-scale companies.
Understanding Common Business Startup Costs
The cost of the business’s legal structure varies depending on the structure you’ve chosen. Although you might not incur any cost when forming a legal partnership or sole proprietorship, you may incur costs to establish a corporation or LLC. The cost also varies depending on the states.
License, Permit Fees And Insurance
Most businesses are required to submit health authorizations and inspections to get certain business permits and licenses. Other business might need industry-specific licenses and other need basic-permits.
Some businesses may not require licenses or permits, but when you cannot meet certain requirements, you can incur fines and penalties. Sometimes your business operations get interrupted.
An insurance cover protects your business from interruption, damaged property, injury claims, and many more. Not all business requires insurance, but it’s essential.
Supplies And Equipment
Every business requires basic supplies and equipment. Operating equipment and inventory are usually expensive, especially for new businesses. You can’t avoid this cost, whether you’re leasing or buying the equipment. Since they’re essential for any business operation.
If you’re planning to hire employees, you need to factor in their salaries and benefits. Failure to compensate your employees adequately can lead to low morale and bad publicity, which can crush any company.
Advertising and Promotion
A startup business will fail if it doesn’t promote itself. Advertising and promoting a business is not about placing ads in newspapers anymore, it more about marketing. Hence, you might need the help of a good marketing company if you want to capture your audience.
There are many unexpected expenses that a business may incur throughout the establishment process. Most businesses fail because they often lack the money to deal with unexpected issues during the business season.
As an owner, it’s important to set aside some extra cash to cover any unexpected or overlooked expenses. Also, remain realistic about your new business cost and expenditures. Start small and permit your business to dictate any changes and upgrades.
How Can I Do Business At Home?
If you believe in your business idea and your motivation is firm. Then the ideal place to conduct your business may be your home, just like many small business owners. To ensure you succeed, consider the following tricks and tips for operating a business at home.
Create a Positive Work Environment
Invest your time to find furniture and equipment that you’re satisfied with. Create an ergonomic work station and ensure the lighting of your office is perfect (to prevent eye strain).
Keep Your Expenses Low
Don’t run to purchase expensive equipment and marketing materials right away. Don’t overspend on your business. Only invest in those things you need to keep going. Also, keep overhead costs low (wages, utilities, insurance, and rent).
Check your small business idea thoroughly. You don’t want to waste your time, money, and energy on something that will never go through.
Create Your Business Identity
If you want a powerful brand, you need to design a brand strategy. Have a logo, website, unique packaging materials, and other marketing materials.
Find the Right Insurance Cover
Regardless of where your business is located, you need the perfect home-based business insurance protection. Most home business usually requires professional liability insurance and general liability.
Get A General Business License
You need a license so your revenue can be tracked for taxation. This is especially important if you plan to sell goods and services to customers.
You can easily make your business idea successful, even when working from home. You only need to ensure your work environment is right and you understand your targeted audience.