The idea…what it takes to start a business

So you have been pondering over the great business idea that is stuck in your mind. You just know that people need it, they just don’t know it yet. Or is it a passion of providing a product or service that already exists? You want to be one of the big fish in the sea? Well, let’s slow down for a second. Before you roll up your sleeves and dive in, there are a few things that you need to do beforehand. 

Now I don’t want to fully stop you in your tracks. That desire and passion you feel, will come in handy. Throughout the process of starting and growing a business you will want to hold on tight to it. It will be the deciding force on how far you will make it with your idea.

The number one reason businesses fail the first year of their existence is that people give up too easily. It is normal to make mistakes. You will make many, not just in the first year, but that is when you will learn what you are made of. 

A new business is not considered a full success until its 8th year of existence. Let that sink in. And after about 5 years only 45% of all businesses who started out, will still be around. If you want to be one of them you need to do your homework and have grit. 

Here are a few things that can help your startup become a long-standing company with room for expansion. 

1.Research

Before you start writing up a business plan, which will be the next step, you need to research the market. What are you looking for? Is there a true need for your product? Who is your target market? Most importantly, who is your competition and how are they holding up? Is this idea of yours going to be able to succeed? 

Research does not stop there. Whatever you can get your hands on, keep researching until you have found as much as you can. You need to know what you are getting into. Without proper research, you are setting yourself up for lots of unnecessary mistakes or even failure. 

There are different types of research which is a whole blog post of its own. If you don't know where to start, you can hire marketers who specialize in this field or offer it as one of their services. 

2. Have a business plan

Under some circumstances you might be able to start your business without one. But in most cases it is recommended to have one. A business plan will lay out who your company is, how you plan to market for yourself, and identify the target audience. What your financial plan is to start and where you are seeing yourself in the near future financially and as a company. A good business plan is very detailed. It will be your guiding piece during your journey. Furthermore, it will help you attract investors. Without a business plan you should not set foot into a bank and ask for a loan.

3. Secure your patent

If you have an idea that is unique and fills a need for consumers. You want to make sure that you get a patent for it first, before you tell the whole world about it. And even if it is not completely unique. Securing your business name and any parts of your startup legally is still a good idea. This part can be costly though. Most of the fees will go to the attorney who will handle the process. This investment is worth it down the road.

4. Funding

You did your homework. You researched and prepared your business plan. You know now that your idea is solid. It is time to think of how you will fund your venture. 

It is always a good idea to have cash on hand already. And as your company grows, so should your cash reserves. 

Not everyone has the luxury of cash savings to fall on during the beginning stages though. 

There are options to overcome this obstacle as well. During the process of writing up your business plan, you will need to address how you are going to fund the business idea, you will need to calculate and estimate how much you will need based on factual research, and where the money will come from. There are different options which I might address in the future. Again there are a lot of different options out there and you will have to decide which one is best for your business. 

5. Network

Networking is vital for any business. You will never be done with it. Find people in your field. Yes, connecting with your competition can be a good idea. Besides them, also network with people who have a vested interest in your market for other reasons. No one is good at everything. Having a team of experts in your corner can help you build your company. Others might turn out to be the mentors that will help you through the process and have valuable advice for the future. No matter the reason, network, network, network.

These are 5 key elements in starting a new business. Besides that, you will need to register your startup. This will look different depending on where you live and what the local laws are. There are different types of business licenses. Depending on what you are doing, you will have to choose one. This blog post is meant to give you an overview of things. Most of this will be part of your first step. Research!

Good luck with your idea. May it be a success!