One of the most important things to give to someone is not money or gifts but to show that person ways or means of earning that same money to buy those gifts. It’s more like saying instead of giving someone fish, teach them how to fish so they won’t come back demanding more fish. A lot of people are eager to start a business for diverse reasons. It could be a primary or secondary source of income or just as a hobby. Like any other venture, starting a business is something you extensively plan for before execution. There are many reasons businesses fail, which may range from lack of proper guidance to lack of a business plan. It could also be the lack of the requisite manpower for businesses that require the same or the inability to manage the business properly.
This is not exhaustive as there could be many reasons why people’s businesses fail, but we’re here to give you the key to starting and running successful businesses. The following are the dos and don’ts of starting a business.
DO’S
Registrations
When starting a business, endeavor to comply with all the requirements regarding registration in your desired location. This is one of the most crucial steps to starting a business and must be adhered to. Registration of businesses could get you tax discounts and give you a sense of authenticity in your customers’ eyes or intending customers. There are benefits attached to registering your business. They may range from making sure your desired business name isn’t already taken by someone else to give you the needed cover for your business. Registrations should include logos and symbols, if any, so that you can get them trademarked.
Market Surveys
This should probably come before registration. However, you should be sure your product or service is marketable and relatable for people in your target area. You should also be sure that it appeals to your target audience to not start a business in futility. If you are starting a baking business and have many people already in your sphere and location, the chances are that people will be more comfortable with a name they know and maybe skeptical about trying out someone new. You should anticipate and prepare for something, so you know how to tackle this when it arises. Another aspect to look into would be to improve on already existing businesses rather than starting something similar. So, if you have many bakers in your sphere, you could start selling baking materials or ingredients rather than starting a baking business. This is all to say that market research and survey is pertinent when looking to start a business.
Uniqueness
There are currently many businesses in the world, and the chances are that you are not the first person to have a particular business idea. This entails that you would need to employ your creativity to make your business stand out from the rest. Let your business be an improved version of what is obtainable by people. If your competitors are running food businesses, you should step it up by having a delivery service in addition to the walk-ins. Customers would choose a relatively new brand in the business over one that does not have a delivery service. Whatever makes you stand out should also be your selling point. So, focus on your strong points and project that to customers, and do not fail to deliver on whatever promise you make to your customers. People are particular about the first time they patronize a business as whatever reaction they will set the pace for the future, and you should make good on your promise every time.
Online Presence
The world is a digital place, and you can say that a greater part of the population is online, and so are your consumers. There is every need for every business to be situated online to improve your customer base and establish your presence. A lot of people are likely to place orders online, and reviews and grievances will be made online. Therefore, your business needs to be present to take in the positive reviews and make amends your customers’ grievances might have. A business should not be hidden under a rock as it is meant to blossom.
Reflections
Every business needs a point or moment of reflection. Reflection here means auditing accounts. As much as possible, your business should have periods where you can weigh the profits and losses you have made to improve on your strengths and minimize your weaknesses. There are such periods for every organization, which helps you be more accountable and helps your business be more profitable.
DON’TS
Costs and Expenses
This is one of the mistakes that startups make. Unless you’re running a Ponzi scheme or some get-rich-quick business, you should understand that the cost of starting a business is expensive, and you may not recover these expenses in the first week or first month of running your business. Knowing this will help you understand the need for patience and endurance in business. This is why banks or other financial outfits would give you some time after the business’s commencement before they make demands of you where you took a business loan. Everything pans out in the end as long as you can stay afloat.
Marketing
Do not for any reason underestimate the power of aggressive marketing. Many people have the habit of not thoroughly considering the competition they may have in a line of business before setting sail, which might be disastrous. As much as possible, you should be in people’s faces, in their social media pages, and on their minds. Whenever people think of getting a vendor in your field, make them think of you. You would never understand the need for so much marketing until you begin to get referrals from people who aren’t customers. When you are continually in their space (in a good way), they will have no other choice but to try you out.
Sell-outs
Do not be in a hurry to sign contracts and agreements with other companies or outlets without thoroughly working on your business’ finances. Guaranteed that you will spend a lot to get the business up and working, you should not, however, run into the arms of any company that decides to offer you money for whatever service. Take some time out to stabilize your business and profits before you start making deals and agreements. Endorsements and contracts are good, but you should take time out to understand the business terrain before plunging in so you can avoid joining a sinking ship.
Hastiness
Do not be in a rush to start the business. It could be that your business idea popped up like a light bulb during dinner with your family and everyone seems to endorse it, but there is no reason to be hasty. Most of the time, the family’s opinions, as thoughtful as they might be, may not be brutally honest, and this is why you need to vet and go over such business ideas thoroughly. Ensure you have a business plan and that everything is in place before you venture out for marketing. If construction is needed for your business space or some special kind of equipment to be ordered, your business will take a lot longer to kickstart, and this is something you should not be anxious about. This would also mean that funds input into an upcoming business should not be underestimated.
Pricing
Try as much as possible not to run an extremely high-risk business. There are always risks associated with businesses, but when the risks are extremely high, there is cause for concern. The percentage of expected loss should not substantially weigh that of your profits. When it comes to putting price tags on your products or services, try not to sell yourself short. This means you should not choose a business that you would need to sell at really low prices before attracting customers. You may not be able to fully recover the losses you might incur. As much as you can, take time out to choose a business type and put your uniqueness to it before advertising to the public. Selling at really low prices may be a market strategy but may be disastrous in the long run.
Starting a business may be exciting but can also be very demanding and tasking. The decision to start one should not come at the expense of your job where you do not have any other income source. You should also take care to explore business ideas, weigh the pros and cons before settling on one. Whether it is borne out of need or hobby, the choice to start something is fulfilling when it sets sail. So, take all the tips shared here into consideration and take each day as it comes. We are certain your new business will thrive.
