although starting a Business has become easier now, as you can create your own business in a short time, and with a small budget, the fear of failure may slow you down from this decision.
In light of the statistics that indicate that a quarter of projects fail after only one year of their launch, a third of them after two years, and about half fail before the expiration of five years, good planning and management becomes a primary necessity before establishing a project. In this guide, you’ll learn how to build a business on a small budget, and we’ll cover these topics:
What are your goals for creating your own business?
If you intend to start a new business, you probably already have an idea of the nature of the business, or at least the market you want to target. The first question you should ask yourself is: Why do I want to start a business? The answer to this question will help you plan your project and set short, medium, and long-term goals. Ask yourself more questions to find out what kind of business you should start, and if you’re ready for it.
For example: What skills do you have? Are you ready to learn new things? What is your passion? And your area of expertise? And how much money are you willing to spend and risk? Are you ready to be an entrepreneur? The answers to these questions will be the basis for your future decisions.
So you have to be honest with yourself and define your goals and ambitions from the start. But if you don’t have an idea ready, there are plenty of ways to brainstorm and come up with a good one. Here are some of those ways:
Explore the future
What technology or needs will emerge soon, and how will this change the current market landscape? And how can you take advantage of that? In order to be able to explore future developments in a field, you should have broad knowledge and deep knowledge of that field.
Find a solution to a problem that is bothering you. There is no doubt that you faced a problem and searched for a solution to it and did not find any solution that satisfies you, despite the inconvenience of this matter, but at the same time, it may be a golden opportunity to become the idea of your next project, because you are probably not the only one who suffers from that problem, and others must They are also looking for a solution.
Apply your skills in a new field
Companies usually do their business and produce their products the same way, because that’s the only way they know and know how to do it. But sometimes the best solutions come from other areas entirely. If you have a talent or skill such as design, writing, or programming, try to apply it in a new and innovative way. For example, if you are a digital marketer with a scientific background, you can apply your scientific knowledge, whether in the field of mathematics or artificial intelligence, to devise new marketing methods and techniques.
Develop old ideas
Your idea does not have to be revolutionary and unprecedented in order to succeed, sometimes you can build your project on an old idea, but re-brand it with a different perspective, with additional advantages in terms of price, method of presentation, customer service, or even speed. for example; Facebook was not the first social network, it was myspace before it, but the founder of Facebook Mark Zuckerberg re-introduced the concept of social networks in an innovative way and succeeded in that.
The same thing happened with Google, as there were other engines before Google such as AltaVista, but Google adopted new approaches. Unlike competing search engines, the founders of Google refused to display ads directly so as not to negatively affect the user experience and Google’s credibility as a neutral search engine. This made it outperform its older and larger competitors in a short period of time.
Some people have ideas but don’t have the initiative. A good way to grab ideas is by getting to know people with experience, asking them questions, and asking them for advice. You can also search the internet, forums, and blogs, and you may come across an untapped idea.
Do a quick search in your target market for companies and projects working in your chosen field. Find out what they do, what services and products they offer, and find a way to do it better, or offer something other companies overlook.
What is the point of creating your own project?
Too many people think they have a good idea and jump right into it uncritically, checking if it can work and if the market needs it. And also without knowing the identity of the target customers, or the reason why people might buy their services and products.
The first thing you need to do before starting to work on your idea is to verify the possibility of its success and realism, and the market needs for it by conducting a feasibility study because no matter how convinced you are with your idea, it will fail if people do not buy from you. In order to convince them of this, you must fill a need in the market, or solve an existing problem that a group of people suffers from, which will be your target group.
Search the web, see research and articles in the field you want to work in, ask people and explore your target market. Ask yourself questions like: Is there a need for the products or services I want to sell? And who needs it?
Are there other companies offering similar products or services now? How intense is the competition? If you find that there is not much need for the products and services that you want to provide, or there are a lot of other projects and companies that you offer, it may be better to look for another idea.
Write a business plan for creating a business.
A business plan is a living document that outlines the details of a project. It gives a clear picture of the products or services that you will sell. A business plan will help you prove to yourself first, and others second, that your idea is promising and is worth pursuing and investing in. It is a written description of the details of your project, whether there is a need for it in the market,
how you plan to sell your products or services, an estimate of the financing you will need, what your financial expectations are, and how you will organize and manage your project and its operations. Without it, you will begin to improvise and falter, and you will surely be doomed to failure.
You can probably write all the business plan details in 20-30 pages, plus another 10 pages of appendices for monthly forecasts, resumes, and other details. As much as possible, try to keep your business plan no longer than 40 pages so that the reader, whether it is an investor, partner, or someone else interested in your idea, does not get bored. A business plan doubles your chance of getting loans or investment capital, and speeds up your business growth by about 50%, so how do you develop a business plan?
- Decide what distinguishes your idea and why you want to start a business.
Before you start detailing a business plan, you should think deeply about what makes your business or project unique and different from what is currently in the market. For example, if you are planning to start an online clothing store, you should explain what distinguishes you currently from many existing online stores.
What makes you different from others? For example, are you planning to sell clothes that fit the area you live in? Or sportswear? Or clothes for children? Do you use environmentally friendly materials? Do you allocate a certain percentage of your proceeds to charities?
Writing a general description of your project will help clarify your vision and will focus your ideas into a reference summary, providing a clear idea for everyone who reads about your project. It should clarify the idea of the project, its goal, the target groups, and a general description of the products or services it provides.
Remember that you are not just selling products or services, you are marketing your brand, which in addition to products and services includes value, vision, and mission, as well as the customer experience. Think about these things well before you dive into the details of your business plan.
- Do a market analysis
One of the basic questions you should ask yourself before setting up a new business is to check if your business has a place in the market. The best way to do this is to conduct a market analysis, which includes identifying potential customers and analyzing competitors.
For example, if you want to establish a business to sell equipment needed by people with special needs, such as wheelchairs, canes for the blind, and others. You will first have to analyze the potential customers, starting with an estimate of the number of people with disabilities in the geographic location in which you are active, and then you can take a sample of the potential customers.
Or you contact some of the charities that work with people with special needs and ask them about their needs, and products that they can’t find in the market at the moment. Accordingly, you will have a good idea of the size of the competition and the size of the market, and whether it will grow in the future or shrink.
In your market analysis, use ready-made research by others, as well as research that you have collected yourself, whether through customer surveys or interviews. For example, in the previous example, you will have to know how many other companies are targeting the sale of equipment for people with special needs, and who are the leaders in that. Study the strengths and weaknesses of your competitors, and build a strategy that gives you a competitive advantage over them. Here is an example of market analysis:
“The potential customers we are targeting are the very low vision (legally blind), as we would like to sell them smart glasses based on augmented reality to help them see better.
10% of the population of (the country or region you are targeting) have vision problems, even though they wear glasses or lenses, so the potential market is large and promising. for example.
Our mission is to help hundreds of thousands of legally blind people improve their vision and improve their quality of life. And help them take advantage of modern technology and bring them closer.
We have done an analysis of the competitors and it turns out that there is a lot of room to develop and provide better services than what is currently available. The customer support provided by the current companies is not up to par. Customer support is absolutely essential in an industry like this.
- Specifications of products or services
Also called a design and development plan, it shows detailed information about what you want to sell, and how your customers can benefit from it. If you feel that you can’t explain how your products will help customers, your business idea may not be a good idea in the first place. Start by describing the problem you want to solve, then move on to how you plan to solve that problem, and how your product or service will help.
Finally, you can also analyze the competitive landscape: What products and services are other companies offering that are targeting this problem? What distinguishes your solution from theirs? It should also indicate some other vital information about your products including a general description of each product or service, the pricing structure for those products and services, and how you will obtain those products or services; Will you buy it, buy it, or make it yourself? Here is an example of writing specifications for a business’s products and services:
“A company [sic] is trying to provide smart glasses to help the legally blind see, we mainly focus on glasses that use augmented reality and connect to smartphones. The glasses that we offer have a camera, and they magnify the scenes to 12 times, and also allow the ability to adjust the color and lighting of what you see, and can be controlled via a remote control, or via voice commands.
In terms of competition, we strive to differentiate ourselves from competitors by improving customer support, offering better pricing, and looking for the best technology options on the market today.
We strive to build a trusted brand so that the customer knows that whenever they need support or advice, there will always be someone to answer their questions and help.
The products we offer are complex and require extensive customer service, which is one of the main weaknesses of competitors, as they only sell products, and do not provide distinguished service to customers.
- Marketing and sales plan
It should explain your marketing and sales strategy, in which you will define how you plan to sell your products or services. Before you work on your marketing and sales plan, you should have completed a market analysis and identified potential customers.
On the marketing side, how do you plan to break into the market? How do you plan to develop your project? What distribution channels will you focus on? How will you communicate with your customers?
In terms of sales, you need to explain your sales strategy, the specifications of your sales force, and how you plan to expand it later. What is the average selling price? And how do you plan to keep customers?
- Financial Plan
Should you specify how much money you will need? When and how will you get it? What is your estimate of the project’s profits, and when will you reap them? Usually, people tend to underestimate the cost of a project, and the true cost is often greater than they initially thought. It is important that your estimates are realistic, and that you study them carefully so that your project is not one of the 81% of new projects that fail due to financial problems.
To secure enough funding for your own business, you need to estimate the funds you need to raise. The best place to start is the business plan, where you estimate the cost of each part of the project, for example, if you want to build an educational website, you should consider: the cost of building the website, the cost of monthly hosting of the site, and the cost of building an application for the site.
As well as the cost of the tools that you will use on the site, for example, if your site is running on WordPress, you will have to estimate the cost of the plugins you need. You may need to purchase an add-on for the live chat between learners and the teacher, another for SEO, another for electronic payment gateways on PayPal, and other add-ons.
- Administrative and operational aspects of the project
Clarify the administrative aspects of the project, including positions, the number of employees you will need, and their specializations and qualifications. You can include brief resumes for each team member, and if you haven’t hired employees yet, that’s fine, just make sure you identify the jobs you need and the skills needed to fill them. You should also explain the operational aspects of the project including all the day-to-day operations such as production processes, working hours, etc.
In addition to examining the technical aspects such as software, computers, and digital tools that you will use. Will it work over the internet? Will you work offline, or will you combine them? You should also explain the necessary financial transactions, and the billing system that you will work with, for example: if you want to create an online store, you should specify the payment gateways that you will work with, such as PayPal, Stripe, and Visa cards.
- Executive Summary
The final step in preparing a business plan is writing an executive summary. It is a summary of the work plan that is placed at the beginning of it, and we mentioned it last because it is not written until after the other parts of the work plan are written. The purpose of the executive summary is to give readers an overview of the company or project, target market, and outline a business plan before going into details.
The executive summary may be the most important part of a business plan, because it may be the only part investors read, so you need to write it well. The executive summary should not exceed one page long, should speak briefly about the outline of the business plan, and cover in one or two paragraphs information about the company: including the name of the company, where and when it was incorporated, its location, legal form, its founders, and a description of products and services.
In addition to several sentences explaining the project’s goals, mission and vision, and other information of interest to the reader. A general description of your target market and competitive position, and what distinguishes you from your competitors. Also one or two paragraphs about financing needs, including your personal investment in the project, start-up financing, and working capital. And when do you expect the company to start making profits?
In addition to studying the market, here I will briefly explain the main findings that you have concluded after analyzing the market. And be aware that investors are busy, and they don’t have enough time to read your entire business plan, and may just read the executive summary, so you have to make it convincing, paint a good picture of your project, and arouse the reader’s curiosity and convince him to read the rest of the pages of the business plan.
- Action Plan Supplements
It is a good idea to end your business plan with an appendix. It’s generally optional, but it’s a good place to put your resume, the bios of your associates if you have partners, and any permits, contracts, or other legal information you want to include. Try not to make the business plan too long, not to exceed 40 pages, and write it in simple and understandable language, free from technical complications.
You may want to lengthen the research to make it comprehensive and comprehensive for all aspects of the plan, but remember that those who will read it may not have much time, so be content with the information necessary for the reader. Assign one to three pages to each aspect of the business plan, and remember that the business plan is not static, but you can – and should – update it constantly to reflect your experiences and market developments.
Sources of financing for commercial projects
82% of new projects fail due to financial problems. Therefore, finding sources of financing for the establishment of your project is the biggest challenge that you will face as an entrepreneur. Before you begin the journey of searching for sources of funding, you must first estimate the funds that you need to establish and develop your project. Then find funding sources that fit your small budget.
If you have some savings, or you have some salable assets, such as a plot of land, you can use them to start your own business. Self-financing is undoubtedly the best option, because you will maintain full ownership of the company, and you will not miss a share of the shares to the investors. A third of startups start with a capital of no more than $5,000, which is a reasonable amount, and you can probably manage it on your own.
Therefore, self-financing is the first option for entrepreneurs, as the graph shows, as it is one of the main options for financing new projects. The downside of it is that the liquidity will be little at first, and it may not be enough, and this may disrupt your project, or force you to sell it early.
On the other hand, you will own all the shares, you will not be forced to share profits with any other party, and you will have complete control over the project and decision-making, unlike other sources of financing, in which others will participate in you in making decisions, and financing often comes with conditions.
- Friends and family
If you are not able to finance your project on your own, another solution is to turn to your family, friends, and co-workers. He asked for support from them, whether through grants, loans, or making them partners. This solution is excellent because, unlike other investors, family members and friends are not necessarily their first concern with financial profit, but rather they are keen on your success, and they will support you if they can, and often they will not impose any conditions on you.
They will also be more patient with you if the project falters in the beginning, unlike foreign investors, who may abandon you at any moment if they see that the project is not going as planned. For this reason, many entrepreneurs prefer this type of financing, which is evident from the above graph, as family and friends financing ranked second among the sources of financing.
This type of financing is similar to self-financing because it is often limited and most likely they will not be able to secure you a large amount. In addition, some do not like to confuse personal relationships with work. The last thing you want is to take out a loan from a bona fide family member or friend and lose it. But on the other hand, this may have a positive effect on you, because you will make a double effort so as not to lose their trust and money.
- venture capital
Venture capital is the ideal solution for establishing a business in the field of technology and fast-growing projects. The financing that you get from the venture capital owners will be in exchange for a share of the company’s shares, which means that you will give up part of the ownership of the company to outside parties.
Financing with investment capital is the third option for entrepreneurs after self-financing and financing family and friends, and the reason that many prefer to avoid it is that they will have to give up part of the ownership of the company, and investors may impose conditions on how the company is run and may interfere in major decisions.
On the other hand, unlike the previous sources of financing, the owners of investment capital will not only provide you with financial liquidity, but will put their experience and public relations at the service of your project, and many of them will provide you with some other resources that can contribute to the success of your projects, such as training Consultation and guidance, and this is very important, especially if you do not have much experience in entrepreneurship.
Venture capitalists will not provide you with financing unless they are convinced that the project will be profitable in the short or medium term, they will not wait 30 years for profits, but rather want to get it as soon as possible. For this reason, venture capitalists tend to fund projects that are in the field of modern technology, because they are fast-growing, and have a large return. So if you want to set up a pizza parlor, you probably won’t get financing from them.
- Financing and borrowing
investors are usually wealthy people who invest directly in small startups. They are usually entrepreneurs themselves, or former entrepreneurs. Unlike venture capitalists who are motivated purely by financial means, they are usually personally interested in your project, or in the development of a particular sector, and will not finance your project unless they believe in what you are doing.
That’s why it’s important to know how to market your idea to them, as a short meeting with an angel investor may be enough to convince them to fund your project. Unlike venture capitalists, angel investors prefer to directly contribute to the management of the company. Therefore, they often claim a seat on the board of directors and also tend to get involved in early-stage projects.
They are also more willing to take risks than venture capitalists. On the other hand, the funding offered by angel investors is usually average, so it may not be suitable for you if your project requires large capital.
In contrast to angel investors, the option to borrow from banks appears at the end of the options available to entrepreneurs. In general, banks prefer to lend to companies that have a track record and assets. Startups without assets or collateral are less likely to lend, so banks are in the penultimate rank in the above graph.
Unlike other sources of funding that come from specific people or entities, crowdfunding is based on raising money from a large group of people. There have become platforms specialized in crowdfunding, where you can present your idea and business plan on it, and if people are convinced of your idea, they will provide you with financial support to implement the idea so that you can create the project.
It is true that this option is the last on the list of funding sources, but it is no less important than others, and it is likely that it will increase and develop in the coming years. So you should take it into account, register on these platforms and display your project there, as there are many such platforms that allow you to do so.
Crowdfunding is distinguished from other sources of funding, in that it creates a buzz around your project, and therefore you will kill two birds with one stone, on the one hand, you will provide funding, and on the other hand, you will get some free marketing. Also, crowdfunding is usually easier, as crowdfunding platforms make it a lot easier, plus you’ll maintain complete control of the company’s decisions.
On the other hand, due to the fact that crowdfunding platforms are open to everyone, you will find fierce competition for them, in addition to the fact that these platforms are strict in raising funds, some of them withhold the collected funds until the agreed goals are achieved. And if you don’t succeed, it will return the money to donors. And those platforms take a portion of the money raised.
- Additional Options
There are other options for financing your project, such as government grants. Most countries have programs to help citizens set up their own businesses. Whatever country you are in, your country is likely to offer such programs.
The advantage of these programs is that their goal is not to be profitable but rather seeks mainly to help young people to establish their own projects and stand on their own feet. But what is wrong with it is that its procedures are usually complicated and slow. You will also likely find stiff competition, and the donor institution may require that you provide, for example, 50% of the total project cost to approve the financing of your project.
There is also the option of business incubators/accelerators, which can be companies, universities, or institutions that provide you with the resources you need to set up your own business. These resources include office space, labs, marketing, consulting, money, or anything else you might need. This is usually in exchange for a share of stock in the company. There are several business incubators in the world,
Before you start the journey to find funding, it is important to learn how to spend that money, even if you succeed in finding funding sources, if you mismanage it, your project will inevitably fail. So you have to be as frugal as possible and spend the money wisely. For example, instead of hiring full-time employees initially, it may be better to hire online freelancers.
This option is ideal because it will significantly reduce costs, as you will not have to provide offices and a workplace and pay for health care, pension funds, and other expenses. You will also find the competencies you want across many platforms, no matter how rare. And whatever competencies you are looking for, you will find them there with reasonable wages.
Legal aspects of setting up a business
Turning your business into a business is probably the most annoying part of all the stages of starting a business. But it may be necessary if you plan to expand your business later or obtain financing from investors. But if all you want is to establish an online store or blog, or a small business to sell sports equipment, for example, you may not need to create a company, but if you want to create a business that you expect to grow over time, or you want to request financing from investors, The establishment of a start-up company will be necessary.
You do not need to be an expert in law to establish a company, but there are some legal aspects that you must address at the beginning of the establishment of your project, the first of which is choosing a name for your company, this is not always necessary, but if you plan to expand later, you will need a name and brand that distinguishes you from your competitors. The name you choose will be known by people, and it will be difficult for you to change it later, so you have to choose it well.
When you choose the name you want, check that it is not reserved in your country. And if it is not reserved, you must register it to protect your business name, brand, and logo, and this is important to distinguish the products and services you provide from those of competitors. Registration procedures differ from country to country, so you have to do research, or ask the competent authorities.
Before you can register your company, you will need to determine the legal structure of the company. Which will affect everything from your tax liability, to your personal liability if something goes wrong. There are 4 corporate legal structures, you have to choose one of them:
A Sole Proprietorship is a company owned and operated by one person, for example, a freelance logo designer, or a website developer. In this case, the government does not make any legal distinction between the person who owns the project and the project itself. It is the simplest way to manage your project. You don’t have to name your project, you can only work under your own name, but nothing prevents you from giving your project a unique name.
One of the advantages of this option is that it is easy and inexpensive, and is very suitable for small projects that rely on self-financing, or financing family and friends, because there is only one owner, and this owner has complete control over all decisions. Also, there are usually no legal complications regarding taxes, because this type of project is not usually imposed by the state on special taxes, because, as we said earlier, the state does not differentiate between the owner of the project and the project, so there are no separate taxes from the owner.
However, raising funds from investors or obtaining loans can be very difficult, because there is no legal structure for the company, and therefore it is difficult for investors to guarantee their rights. There is another problem, which is that if there are debts on the company, those debts will be borne by the owner of the company because the owner of the project and the project itself are legally identical.
The company includes a group of doctors working in the same clinic, or several people who own a website and other examples. Legally, a partnership is a single enterprise in which two or more persons are jointly owned, and each owner contributes to all aspects of the business, as well as sharing the profits and losses of the enterprise.
It is generally easy to form a partnership, and it is usually not expensive. The chances of success are greater, because there is more than one person working on the same project, and they share the financial and administrative burdens and put their experience and skills at the service of the project.
However, as with sole proprietorships, the partners will be responsible for any legal issues and will be directly responsible for the company’s debts. Also, disagreements may occur between partners regarding decision-making and profit distribution, so there must be an explicit agreement about all the details of the work in advance.
A limited liability company
LLCs are a type of enterprise structure, which is more complex than sole proprietorships and partnerships, but less complex than corporations. For example a small design company. Companies of this type are distinguished by having a legal personality independent of the owner, and there are usually no restrictions on the ownership of limited liability companies, and therefore a mixture of individuals and companies, and even other limited liability companies, can participate in their ownership. But it can also be owned by one person.
As the name suggests, owners of LLCs have only a limited amount of liability, meaning they are not personally liable for the financial or legal errors of the project. This is one of the reasons why it is attractive to many entrepreneurs, especially in the field of the digital economy, and you may have noticed for yourself that most of the projects on the Internet choose this legal structure.
However, LLCs are often more complex than sole proprietorships or partnerships, which means higher start-up costs, and venture capitalists may be reluctant to invest in LLCs due to tax considerations and complexity.
Here the company is a legal entity separate and distinct from its owners, and it has most of the rights and responsibilities that an ordinary individual has (contract contracts, borrowing, lending, litigation, litigation, employing employees, owning assets, paying taxes). Examples of such companies are; Microsoft, Coca-Cola, Toyota, and almost all well-known companies. This type is more complex than other structures and is suitable for large projects with many employees.
One of the advantages of this type of company is that it is easier to obtain financing. Also, founders, directors, and shareholders are not usually responsible for the company’s debts and obligations, except for the money and resources they have invested personally. However, since it is more complex than other structures, its administrative fees can be expensive, its set-up procedures can be complicated, and its tax requirements.
These are the four basic legal structures. As we said before, you do not have to turn your project into a company, but if you want to, you have to choose what suits you from it, if your project is small and you manage it alone, you do not need to legally separate you from the project, and you are not interested in obtaining financing from investors, Your best option would be the individual project.
But if you have partners, it is natural to choose the partnership option, if you want your project to grow quickly, and you want to protect its name and brand, while separating yourself from the project and keeping yourself away from any responsibility in the event of errors or legal problems later (for example, if you have a site and you are afraid of the consequences of infringement of property rights), it is better to choose the structure of limited liability companies.
Finally, if your project grows, and many employees work on it, or you want to obtain financing from banks and investors, and give your project a full legal personality, the best option is to turn it into a company. I have tried to be as general as possible because every country has its own laws, so if you want to turn your business into a company, you should do research on the legal procedures in your country,
Build the team
If you need the help of other people to run your business, either at the beginning or after your business has started to grow and expand, you will need to hire a qualified and competent team that will move your company forward. You should include this in your business plan, to take it into account when estimating the budget required to set up your own business. The first question you might ask yourself is how many employees do I need?
The answer varies depending on what industry you are in, as most startups work in small teams. But this is for the technology sector. In other sectors, the matter may be different, for example, if you want to establish a restaurant, most likely the number of employees you need will be greater, as you will need workers in the kitchen, and you need several waiters, in addition to a person in charge of administration, accounting, and possibly security, and so on.
You will need to hire employees sooner or later unless your business is static and not growing. The employees are the driver of the project, as you will delegate some of your powers to them, so you have to choose them well. If your project is online, it may be better to adopt remote employment, because it is cheaper, and it also puts at your disposal the best existing competencies, for example, Fiverr helps you hire the best competencies and skills you need to work remotely without being restricted to a specific geographical area.
Find a location for the project
If your project is offline, you will need a headquarters, whether it is offices, a store for sale, or an industrial site. In this case, you will need to buy or rent a property to host your business in. But if your business is online, you do not necessarily have to have a geographical workplace, unless your project expands or you have employees.
Or your project needs a dedicated space, for example, if you have a project to sell hosting on your own servers, or you sell your own products from your site, in this case, you will need a special space for that. And be sure to include its costs in the business plan. Here are some key things to consider when looking for a place to work:
- Target customers: If you target a specific geographic area, make sure that your workplace is close to that area, for example, if you want to establish a business to sell study materials, it is normal for the project’s location to be close to the sites where students are located, such as universities and high schools.
- Accessibility and Parking: Is your building accessible? Can potential customers park their cars? These matters are important, and if you do not take them into account, you may lose a lot of car owners.
- Competition: Sometimes it may be good to open your business near the competition, but other times it may not be so. Rely on your market and competitor analysis when preparing your business plan to determine the best option for your project.
- Proximity to companies and other services: It is better to look in areas that host other projects and companies, because these areas are usually popular sites, and people come from everywhere. On the other hand, the problem with this is that the rent in such locations is very expensive. Also, pay attention to the security factor by avoiding unsafe websites.
- Infrastructure: Check that the building where you will host your business is adequately equipped, for example, if you need the Internet in the workplace, make sure that the building is in an area with a fast Internet connection.
Start developing products or services
After all the hard work you put into setting up your own business, it would be nice to see your idea become a reality. Keep in mind that turning an idea into a product or service is a difficult process. For example, if you want to build an app, and you’re not an app developer, you’ll need to hire a developer. If you need to mass produce an item, you will have to hire a manufacturing company.
When you are working on getting your idea to light, you should focus on simplicity and quality. For example, if you want to create a website to provide a service, you have to make sure that getting that service is simple and clear, and that the service is of high quality, and without errors. Here are some tips to keep in mind while working on product development:
- Learn as much as you can about the product you want: for example, if you want to create a blog, you need to educate yourself in this field, to know how to communicate with the developer, and how to make important decisions, such as choosing the hosting and the appropriate content management system.
- You should control the production stages: If you hand over the development of your online store to a freelancer or a company without follow-up, you may be surprised that the site design or performance is different from what you aspired to.
- Try to balance to reduce risks: If you want to establish an online store, and commission a developer to develop it, it may leave errors or loopholes that hackers exploit to penetrate your site, and this may have disastrous consequences, and you may lose a lot of money, so it may be wise to appoint another person after him, and it is preferable To be a cybersecurity specialist to review the site’s code and verify that it is free of vulnerabilities.
- Employing specialists: Look for specialists. If you want to hire someone to develop an application, choose someone who has previous work in this field. Application development is a stand-alone science, which is generally different from website development or add-on development.
After you’ve finished the product or service, let people interact with it. This will help you spot any bugs or flaws that you didn’t notice. You can ask family members and friends for their opinions, or you can survey an expert. And don’t expect the product to be perfect the first time, or the feedback to be positive at first.
Even the largest companies may have faulty first versions of their products. For example, when the famous Disney company launched the Disney+ service for live broadcasting, its application crashed on the first day of its launch. And if the product was not initially at the desired level or did not appeal to people, do not despair, and continue to develop it as long as you believe in your idea.
How do you market your project?
Even if you offer the best product or service in the world, if no one knows anything about it, your business will not succeed. Therefore, marketing is the biggest concern for entrepreneurs, especially in light of the highly competitive environment. There is hardly a sector in which the competition is fierce. Everyone wants to take the largest possible share of the market, and everyone wants to acquire the largest number of customers.
The question is how do you deal with this competitive climate? How do you make people know about your project? How do you convince them to buy? Here comes the role of marketing your project, and it is the decisive factor that can make your project successful. Marketing is a wide field, and it has many specialties. At the beginning of the project, your budget may be small, and you may not be able to appoint a marketing team or finance large marketing campaigns, so you will have to market your project yourself at the beginning. You have to learn how to use different e-marketing techniques.
If you set up a small business in a local community, you can take advantage of some old and traditional marketing tactics such as print ads, radio ads, and billboards. You don’t have to use all marketing methods, but try to use the most effective ones, especially email marketing and social marketing. You can also hire a marketer to help you market your project, as marketing is a broad field, as we said, and it is better to hire an expert in marketing.
The future of your business depends on revenue and sales. So you have to prepare a selling strategy. But how do you sell your first products or services? Start by finding the first buyers, find the right sales channels and strategies to convert them into customers, and slowly expand your customer base.
You have to maintain all the information related to sales, if you own an online store, for example, you have to record every sale you made in a central database for later analysis, and use it for marketing, as well as to follow up and maintain customers.
The first step is to get customers to buy from you, then build a loyal customer base, i.e. a group of customers who come back to buy from you. In order to build a stable customer base, you need to provide them with customer service at the required level, listen to their reactions and feedback, especially negative ones, and build strong relationships with them. She answers their questions and provides them with support.
How do you make your business grow?
The first sale is the hardest, sometimes you may have to wait several months before you get your first customer, don’t despair, because once you make your first sale, things will get easier after that. Once you achieve the first sale and acquire the first customers, you must start working on developing your project and expanding your customer base, and sales volume in order to increase profits and continue to compete.
At this stage, you will have started making income, but remember that these incomes are not profits, as you will need some time before you compensate the money you invested, some estimates estimate that startups do not make profits in the first year, because most of the income is reinvested for development and expansion The project, whether through marketing or expansion in the market, or the appointment of more employees.
You should have a clear growth strategy. For example, if you set up an online auto parts store, there are several possible dimensions for expansion. For example, you might want to: increase the number of potential customers, expand your target group, or sell other products, such as sports equipment. Whatever your growth strategy, there is one fundamental thing that your business cannot grow without, and that is customer retention.
Be prepared for surprises
Creating a new business will not be easy, but it may be one of the biggest challenges you will face in your life, you will stumble and fall, you will face obstacles in the folds of the road, and there will be moments when you doubt yourself, your idea, and your ability to succeed.
Do not let these bumps prevent you from success, be stubborn, and stick to your idea as long as you believe in it, but this does not mean that you should be rigid in details and means. He said, “We are stubborn in our vision. But they are flexible in the details.”
Even after your project begins to experience success, things will not always be smooth, as your project will go through ups and downs, ups and downs along the way. Mistakes and setbacks will occur. Some of them are out of your control, such as a natural disaster or a crisis in the country’s economy. Some of it will be due to wrong decisions.
This is all normal, as an entrepreneur, you are free, and you are your own boss, so you will have to make all the important decisions, but if you want to live a professional life free of surprises, it may be better for you to look for a job, and sit behind a desk for the rest of your life. If you want the freedom, enthusiasm, and opportunities that entrepreneurship and starting your own business offer, be prepared for a career full of surprises.
Now, what about you? Do you have other ideas and experiences on how to start a business? Share it with us in the comments.