Starting a new business is scary, exhilarating, challenging and
at times downright confusing. It's easy to get overwhelmed by
the huge number of tasks in front of you. When you get in that
state, step back and think, "What can I do today that will get
my message in front of my customers?" If you're thinking about
this all the time, the other details will fall into place.
The first thing you need to do is decide on the goals for your
business. What do you personally want to get out of it? How many
hours do you want to work? How many employees do you want to
have? How much money do you want to make? The idea here is to
get as clear a vision as possible of what your business will
look like when it is established so you'll know what needs to be
done to get there. For a very clear step-by-step method to do
this, I highly recommend a program called E-Myth.
Next, do the math. So many people—including me—have learned the
hard way that the business they created is not capable of
meeting the goals they set for themselves. To help avoid this
problem, do some market research to determine how much you'll be
able to charge for your product or service and what volume
you'll be able to sell. Think about how many hours you'll be
able to work in a day and get a rough idea of the maximum amount
you could make. Once you have rough estimates for those figures,
you can decide if the money you could make or the time you need
to put in will be worth the effort. You'd be surprised at how
many people spend years working in a business that is just not
capable of becoming what they hoped it would, even if everything
went perfectly.
Many new entrepreneurs think success is all about developing a
great product or service, but actually it's all about selling
it. Before you spend tons of time and money developing your
product, make a prototype or develop a clear and concise
description of what it will be, and do some market research.
Figure out who your prospective customers will be, and go talk
to them! Ask questions. Find out what they'll pay. Consider
their feedback and modify your design accordingly. Look at other
companies that are selling similar products or services. Find
out what they charge, how they market and what their competitive
advantage is. Go into their stores and watch their customers.
Find out what they are doing and why, and how customers respond.
Once you think you have a clear understanding of what the market
wants, then move ahead with your product or develop your
service.
You'll also need to decide what kind of company structure will
best fit your plans (S Corp., LLC, sole proprietorship and so
on).
If possible, work out of your home for awhile or rent the
minimum space and equipment necessary to run your business. It's
important to keep your overhead as low as possible, at least
until things start to take off. Resist the temptation to rent a
nice office and fill it with furniture and equipment. I used to
think that was impressive, but I came to realize it was just
expensive.
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