The key is to start with an idea. Most people already have one in mind. Unfortunately, not all dare to take the risk of putting up a business and dreaming of expanding their idea in the future. Though it seems impossible, the best solution for grand ideas is to start small. How about a home business? It can be small (asset size (x): 3 million > x <15 million) or medium-sized (15 million > x < 100 million).
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No matter, here’s how you can start putting up a business in the comfort of your home.
1. Find your footing.
Since you plan to start a business, you are likely to have an idea brewing in mind. You must bring the idea to fruition by balancing it with reality. It’s time to test out your concept. Ask yourself, can it grow even when you are in Avida Towers Centera? Does your idea solve a problem, cater to a need or offer variety to the market?
Extensive research and joining focus groups are some ways to explore the market. Trial and error also lead you to a set of questions such as:
– Is there a need for your product or service?
– Who will be the target market?
– Are there companies or small business offering a similar product or service?
– Is the business environment competitive?
– How will the business flourish in the market?
It’s vital to ask yourself question too especially if you are second-guessing your decisions.
2. Start planning.
Anything that needs execution requires a plan. If you accomplished the initial stage, it’s time to progress to the next step – planning. At this point, you have to do your homework. You must list everything on paper and describe everything in detail. It’s essential to treat each section of your business blueprint with a hint of seriousness. The business plan serves as your guide from start-up phase to growth.
A typical business outline has seven parts. It starts with the outline of the document and followed by the tidbits of information on the industry. The remaining sections are the market strategies, competitive analysis, design and development, operations and management, and financial data. When all of this information is present in the document, it falls under traditional business plans. It’s useful when seeking backup from investors or other financial institutions. The details in each section validate your idea.
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Consequently, a one-page business plan is enough for clarity. The page helps you stay on track to achieve your goals.
3. Outsource financing.
The capital for the business depends on the size and the necessary tools to conduct the business operation. Though a home business won’t require a lot of money, it involves initial investment for ongoing expenses and daily activities. You can’t conjure the numbers out of thin air. It helps to put a spreadsheet for estimating the start-up costs for your enterprise. Business registration requirements such as licenses, permits, legal fees, insurance, trademarking, are some of the initial items on the sheet. As the set-up progresses, more items go on the sheet. Some of them may be:
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– market research
– grand opening events
At twelve months of operation, you need to list utilities, marketing and advertising, production, supplies, employees’ salaries, travel fees and others. Once you have the estimate, you have the amount of the initial investment you need. A home business may have fewer costs than establishments on rent or leased properties. Still, you need other sources of financing besides taking from your pocket. You can secure a loan, get a small business grant, or enter into crowdfunding. Knocking on the hearts of angel investors or bootstrapping are other ways to get the money flowing.
4. Legalize the operations.
Whether a solopreneur or working with a partner, get over the paperwork as soon as possible. Clear out your business structure and draft a full, well-detailed agreement. Hire a credible lawyer to make one. At the same time, identify which licenses and permits you will to register and start operations. Fulfill the requirements and submit them to the corresponding offices and government agencies.
5. Keep the money flowing.
Choose an accounting system that’s easy to track and understand. An accounting system is essential for money management. It keeps tabs on your budget and helps you set rates and prices. Most of all, it won’t make your life difficult come tax filing.
You can set your system through software, or you can hire an accountant. When setting a system, choose the one that’s most suitable for you and the enterprise.
6. Get the energy pumping.
In the case you need to hire employees, outline the positions you need to fill. Include the job responsibilities of each post. Be specific with qualification is you must. Consequently, outsourcing work to independent contractors requires an independent contractor agreement.
If you’re a true blue solopreneur, you need a support system – a mentor, a small business coach, as well as your family. They are your go-to for advice, motivation, and reassurance when the road gets bumpy.
Whether you want your business in the backyard, your basement or parking, you must polish your set up. A home start-up is acceptable, but you will need permanent location over time. You can do this once you are past the break-even point.
Your research, business plan, financing and the start of operations becomes successful with the help of your support system and proper record of expenses and income. Don’t forget to promote your business. Craft a marketing plan to have a unique selling position. That way, your business idea thrives even on a bumpy road.