Got a business idea? Want to transform it into action? You’re one of the brave ones; many individuals are intimidated by how difficult starting a business will be. Yes, building a business is difficult, but it is certainly possible. Break down the overwhelming job into smaller tasks and you can more easily visualize then tackle the actions necessary to start a small business. Here are 4 steps that help you get started on your own small business.
Write a simple business plan
Keep things simple, especially if you don’t have much experience with business plans. Start with projected financials, including costs and budget. List down how much money you need to get your business idea off the ground and how much money you actually have. Remember that time is also considered a cost. A simple business plan should consist of your vision (the end result of your business), your mission (the reason your company exists), your objectives (what you are going to do), your basic strategies (how to reach your goal), and a simple action plan (smaller task-oriented actions required to achieve your objectives).
Decide on a budget
Even if you keep costs as low as possible, you still need to determine a budget of how much you are allowed to spend to start your business. Be realistic about your anticipated budget. Calculate a rational coverage amount to help plan your burn rate. A burn rate refers to how much cash you will spend within a month. It also determines how long your business can last before you need to turn a profit to survive.
Take care of your working capital
Wherever your funding comes from, separate it from your personal accounts. This may be an obvious tip, but there are reasons for that. Mixing personal and business financial accounts together will potentially confuse taxation and business payments. Set a free business checking account with your local bank or any reputable financial institution. Just make sure you have a place to store your company money separate from your personal accounts.
Read more with “The 5 Best Funding Options for SMEs”
Also, P2P financing can be a great funding resource for more established small businesses and SMEs. Click here to learn more.
Creating your company website
Even a small business needs a website to adapt to the modern digital era. Buy a domain address and create a basic website that explains your product or services to an audience. Use social media to spread awareness of your business. Let people know who you are and why your product is beneficial.
To learn more about small business marketing, read “4 Ways to Market Your Small Business on a Tight Budget”
Are you ready to build your own small business? Stay determined, persevere, and good luck!