If you are wondering how does one start a business, you could ask the over 30 million small business owners in America how they did it. Starting your own business takes time effort and a considerable amount of planning.
Of course, there is more than one path to take when learning how does one start a business. The booming eCommerce industry is allowing more people than ever with a dream of starting their own business to get started with less overhead, fewer start-up costs, and the ability to reach a much wider audience.
Advice for How Does One Start A Business of Any Kind
One of the most important answers you will find about how does one start a business is that planning is the key to success. While there is plenty of good advice about how does one start a business there is no one size fits all about how does one start a business.
Planning is only effective if it is fine-tuned for your specific business. There are three main business models, online (eCommerce), traditional brick and mortar businesses, and hybrids with both e-commerce options and brick and mortar options (most brick and mortar businesses have built an online presence).
Every business requires a unique business plan. For example, a clothing retail outlet would not have the same type of business plan as a commercial roofing company. One sells products, one sells services, one can be completed online, one will perform work in the field, and there are other differences as well.
Planning is the first step in how does one start a business and should include information about where and how your business will function. For example, will your business be completely online or will you have a brick and mortar structures as part of your business?
Will there be a need to hire a staff? For example, if you start a commercial plumbing company, you may need to hire a few extra hands right from the start to keep up with the amount of work.
A machining services business will need more equipment, and space than a consulting firm and those things need to be planned for. What should a business plan contain? Your plan should contain:
- Mission statement. What service will your business provide and how will you provide it.
- Market analysis. How many like businesses are in your area. This part is not important for online-only businesses.
- Growth plan. How will you grow your business? How will you take your business to the next level?
Laying out a solid plan is important not only to help you have a visual of how your business will get started and grow, but it is also important if you are trying to get financing. Most financial institutions will require a business plan for you to secure financing.
A plan is a guide book for your business and can help you to stay focused and build a strong business. How does one start a business? One step at a time.
How Does One Start a Business Online
Before the internet, business culture was very different. To start a legitimate business you would have to secure real property to house your business, hang a sign on the door, advertise in the Yellow Pages (a phone book full of business listings), and have the capital on hand to support things like lease payments while your business took off. Today, things are a bit different.
The internet and eCommerce allows a business to grow out of garages, basements, and the kitchen table. Of course, it is still not completely free to start a business. You do need professional support like a well-rounded product development firm on your side.
You also eventually will need a warehouse or subscribe to warehousing services to manage your inventory if your goal is to start an online business. Most people want to know about the costs when they are inquiring about how does one start a business.
The costs associated with starting an online business will include:
- Equipment like computers, printers, and supplies.
- Inventory costs.
- Website development and online marketing costs.
It is assumed that you already have a phone and internet service. Additional costs down the line would include hiring staff and expanding your product line. You may also incur warehouse costs as your business grows.
Ultimately, starting an online business is a lot cheaper than starting a traditional brick and mortar business, but of course, it is not the right venue for every type of business. For example, consulting engineers can do a strictly online business, but other types of businesses will have to make arrangements to be out in the field.
How Does One Start a Business In the Traditional Sense
A traditional brick and mortar business is going to have to contend with far more start-up costs. For example, if you are opening an elevator company that installs and repairs elevators, your inventory costs are going to be higher, your warehousing costs are going to be higher, and of course, there will be other costs associated that you would not incur with an eCommerce type business.
Let’s say you are a commercial electrician, that has worked for another company for years and you are ready to get out there on your own. Will you need to secure a lease for an office? Not right away. Will you need to invest in inventory? Yes absolutely. Other things you will need to invest in will include tools of the trade and equipment.
Financing becomes far more important when you are opening a business that requires that you provide in-person services. Of course, in most cases how does one start a business one of the most important pieces of advice is to consider funding sources.
How Does One Start a Business When Funding Is Needed
There are ways to get the funding that you need, you may have to get creative, but it can be done. Most people head to their bank to find funding to open their business, but that may be the last place you will get the funding that you need.
Banks can be difficult to work with when you are trying to get your business started. Getting a small business loan may not be the best route to getting the cash you want but there are other loan products that you can use to raise funds. For example, a home equity loan can raise cash for your business, a small personal loan can also raise some cash.
Tapping into the equity in your home can be a great way to get the money that you need to start your business, but of course, it comes with risk. If you do tap into the equity of your home you are using your home as collateral for the cash, and if you do not pay you are putting your home at risk of foreclosure. This makes a lot of people uncomfortable so they will opt for other ways to raise capital.
Credit cards, loans from family and friends, and tapping into crowd sharing are not traditional ways to raise money, but they can help you get your business off the ground. When you are considering financing you should also consider:
- The cost of financing. How much interest is attached to the financing? Of course, go for the financing that is offered at the lowest rate.
- What are you risking with the financing? For example, we talked about tapping into home equity, what will you risk by making that choice? You have to consider what you are risking to get the money that you need, and then consider if it was worth the risk.
- How will you continue to generate the revenue that you need? Of course, it is important to have start-up money, but it is equally important that you can continue to sustain your business.
Don’t tap out when it comes to your funding early on. In other words, only take what you need to get started and leave the rest of the credit available to you for later down the road when you may need it. If may need it again.
Making smart financing choices is one of the most important things you can do. Anyone that has sat where you are sitting right now can tell you one of the most important things to learn about how does one start a business is to make smart financing choices.
How Does One Start A Business And Secure The Vendors That they Need?
To get your poured flooring business off the ground, you will need to connect with vendors that can provide you with the products and supplies that you need. You may be wondering how does one start a business when they need things like equipment, parts, and inventory.
You will have to do the leg work through researching vendors and comparing costs to ensure that you are getting the best deal on the products that you need. Gathering the information that you need is the best way to make decisions about which vendor is right for you.
A quick search on the internet will reveal a wide range of vendors that can help you to get the parts, supplies, and equipment that you need. While you are comparing options, you should also take the opportunity to check out reviews.
Reading reviews is a great way to gauge the vendor’s capability to meet your demand. Other consumers are always willing to speak their minds when it comes to things like performance. Reading reviews is an easy way to get the information that you need to make an informed decision.
How Does One Start a Business And Keep It Successful
Once you get your business off the ground, you must keep your business moving forward and moving forward in the right direction. The goal is to build a successful business and keep it successful. So how does one start a business and ensure that the business will be able to sustain the financial storms that may come your way? Once you get your business on your feet, you must set up your business to protect the revenue that you are generating.
Once your business is on solid ground it is time to contact a financial planner that specializes in helping businesses to grow their profits. A good financial planner will offer income tax planning services, filing, and more.
Knowing when to get professional support to protect your finances is crucial to the success of your business. Most small business owners are experts in their industry but are not necessarily experts in financial management. Getting the support that you need from a team of professionals will ensure that you are making the right financial moves for your business and you will be able to stay afloat through any financial storm.
New business owners often struggle with keeping their business finances and their personal finances separate but it is very important that you do. A good financial advisor can help you to keep things separate, ensure your tax obligations are being met, and help you to build a financially strong business.
Know Your Limitations
There are other times that you will need to hire on a professional. You have to be able to recognize when you are out of your league and when you should hand the torch to a pro to help you manage things.
No business is built on its own. Every business is built by a team. It takes a team of experts, to make any business grow. You have to know when it is best to hire someone to provide you with the support that you need.
There is no shame in seeking the help that you need. Some business owners are hesitant to turn any of the work over to the pros because they feel that the business is their baby. Sharing responsibility for your business, is vital, to find the success that you expect.
How does one start a business? They depend on others for support, and they take the help that they need.