The trend of starting new businesses is growing rapidly. Especially, the new generation is too concerned about their careers and try to find out new opportunities that can help them to make more money. And they know, money is a tool that helps them to fulfill their dreams and achieve most of the things they want in their lives. This desire can only be fulfilled by starting their own businesses. Now the question is, how to start a business from scratch without having enough knowledge and investment. Or is it even possible for beginners?
Everything is possible and achievable if you’re passionate about it and ready to put your all efforts to achieve it. Similarly, starting a new business and make it successful is not a piece of cake. According to a recent study, 11 out of 12 businesses fail within the first year they start. If you want to be in the 20% who succeed and achieve their desired business goals, you’ve to have a learning mindset. If you don’t have a learning mindset, you won’t be able to understand the market trends, ups, and downs, loss management, and marketing strategies. As Warren Buffet says.
“THE MORE YOU LEARN, THE MORE YOU EARN”
Why You Should start your own Business
There are different types of people with different mentalities. Some want to live their life in comfort doing 8 to 4 job, living paycheck to paycheck. And some are made to face the challenges and do something new to get out of their comfort zone. If you are one of those people who are always ready to face challenges, taking risks, and a hunger to do something new and productive, then there will a lot of reasons for you to start your own business. Whether it’s not being ruled by someone or not being dependent on a boss for your living, starting a small business will always be the best choice for you.
Here are a few reasons why you should start your own business.
- 1- Improve economy creating new job opportunities
- 2- Help people with valuable products
- 3- Meet new like-minded people and successful entrepreneurs
- 4- Become an expert in a specific field
- 5- Make more money than a usual paycheck
- 6- Learn every day by facing new challenges
- 7- Earn passively by outsourcing your work
- 8- Get recognized and start earning the reputation
- 9- Find direction and resources to fulfill your dreams
- 10- Become confident and feel worthy
6 Things To Know Before You Start a Business from Scratch
Business Oriented Mindset
Thinking strategically is the sole of any business. Having a business mindset and implementing the right strategies at the right time is a sign of a successful businessman. Without having a solid plan and strategies, you won’t be able to sustain yourself in a competitive market. People with a business-oriented mindset are more likely to get success in their field. Here are a few examples of a business-oriented mindset.
- Knowing why you’re in business, which motivates you to do things and helps you keep growing without feeling tired.
- Making a perfect plan before implementing or taking any action.
- Always be in learning mode to learn new skills that help to improve performance.
- Having multiple businesses and earning sources, to not putting all eggs in one basket.
- Knowing the main purpose to start a business is money, in-depth study of the product cost, profit margin, and expenditure required. And you also need some planning and strategies that can help you to get the most out of it.
Basic Business Knowledge and Skills
Before you start a business from scratch, not having a business background, you must have to learn some basic skills. There are certain skills that every business needs to sustain and grow. It could be management, leadership, marketing, or communication skills. You must have to have a good grip on them.
Here are a few business skills that every entrepreneur should have.
Leadership skills will be required to recruit new skilled team members and to take them with you throughout the business project. Your relationship with your employees defines how successful you’ll be in your business. If you look at the big companies’ CEOs, they treat their staff as a family and handle all the things together.
Your business investment and planning is useless, and all of your products will be in the trash if you can’t be able to define your products properly. This can only be done with good communication skills. Your business will completely depend on how you convince people to believe your products are highly valuable.
Management and Planning:
You can’t start something without making a plan or strategy, and you shouldn’t. If you do so, you’ll be failed badly. It’s always recommended to build a solid plan about managing your resources, production, budget, and staff. It’ll help you to get your desired goals.
Marketing is considered the backbone of any business because the whole business structure depends on it. Before stepping into the business world, you must have knowledge about all the sources and channels of marketing.
Business Planning – How to write a Business plan
A business plan basically describes the services, objectives, and success path of a company. Successful entrepreneurs always write a perfect plan before starting a new business/company. It gives them the right direction towards their goals and objectives. And it’s not something optional, it’s mandatory for all businesses. Here are a few steps to writing a solid business plan for your firm.
It’s the first step of writing a business plan, in which you write an overview of your business, the products, and the services you are going to provide. Here you answer the questions: How will your products be valuable and problem-solving? What will be your sales and marketing strategies for a specific time? Milestones to achieve, staff management, and who you need to hire to improve performance.
Objectives of your Business:
In this section, you describe the goals and objectives of your business. What target revenue you want to generate in the next few months or years? In what other regions you want to expand your business? What more services you want to add to the previous ones?
Keys to Success:
Here you write the ways that help you to achieve your desired goals. To increase your monthly sales, production, and delivery, you develop a marketing strategy. And write a detailed business proposal to reduce your manufacturing cost, labor cost, and other expenses.
Small Business Ideas from home
Most of the big companies and businesses started at the smaller level. Have you ever heard about the Amazon? Jeff Bezos launched it in 1993 from his garage. Now it’s the leading eCommerce platform all over the world. You’ll find a lot of startup examples like this. The point is, it doesn’t matter if you don’t have millions of investment for your business. You can start with small and level it up slowly by investing the revenue you generate through it.
If you’re searching for small business ideas from home, here I’ve listed a few of them.
- 1- Online store/website
- 2- Blogging
- 3- Fiverr services
- 4- Youtube content creation
- 5- Freelance writing
- 6- Sell flower creatives
- 7- Deliver homemade food in offices
- 8- Hand made bags
- 9- Graphic designing
- 10 – Video editing
- 11- Children training & emotional development
- 12- Sell dry fruits
- 13- Photography
- 14- Fitness training
- 15- Web design & development
- 16- Sell phone cases
- 17- Dating & Relationship consultant
- 18- Tech Gadgets Rental
- 19- Develop Mobile App
- 20- T-Shirts Printing
How to start a Business from Scratch (15 Steps)
We’ve talked about the basic business skills, a Success-oriented mindset, and a few small business ideas. Now let’s dive into some practical kinds of things. how to start a business from scratch and what steps you should take to make it successful.
1- Product and Market Research
Doing research on the market and product selection is first the step to start a business from scratch. In market research, you collect information about your target audience. It helps you to know your customer’s thinking, location, and buying patterns. Get all the information related to your product, market demand, competitors using surveys and tests.
2- Refine your Business Idea
An imaginary idea is useless until you turn it into a finished concept, service, or product. Take time to think and evaluate your idea, and turn it from a simple concept to execution. Find the basic service or product that you think might be valuable for customers and build a user experience around it. If it doesn’t give a good user experience, you need to pass it through a modification process.
3- Planning & Strategies
Now you have to do the planning and build strategies to make your idea a solution for your customer’s problems. It includes writing down all the points needed for managing your staff, manufacturing or sourcing, and marketing strategies to deliver values to your target audience.
4- Funding or Investment
Whether you’re starting a business online or doing it physically in your local market, you need a specific amount of investment to start it. Do some maths, and calculate the total cost and expenses for your business. Invest yourself if you have money or get venture capital from investors. I won’t recommend loans if you’re a beginner and have no past experience in the field.
5- Choose your Business name
Choosing a perfect business name has always been a headache for new entrepreneurs. Because it can have a great impact on your success. Don’t choose a name that could limit your business to a specific product or city. Just imagine if Jeff Bezos had chosen the name “BookStore” for his company instead of “Amazon”. Your business name shouldn’t be hard to spell and pronounce. Make it as easy and effective as possible.
6- Register your Business
Registering your business according to state laws is important because it gives you protection against third parties and secures your rights. It’s also very necessary for hiring new employees because it gives them a sense of trust. And in order to obtain a brand name, you must have to register your business first.
7- Apply for permits and licenses
If you do not have a license or permit for your business, then you may have to face some serious consequences. In case your business activities are regulated by a federal or state agency, you’ll need to get a legal permit or license for it. To apply for the license you need to follow the guidelines by Professional Industry or Board of Equalization.
8- Business Location
It mainly depends on the type of business. To choose a perfect location for your business, you just need to think and reflect on your product and services, their demands, and the market. Opening a shoe shop in food street won’t ever be a good idea.
9- Structure and Design
After you’ve selected a perfect location for your business, the second step is to choose an attractive and attention-grabbing design. To look different and unique in the market, choose eye-catchy signs and logos that will attract new customers.
10- Prepare your Team
Big things happen when people of different mindsets think collaboratively. And Collaborative thinking is always better than individual thinking. So choosing productive members for your squad is also very important for your business.
11- Develop Products and Services
Now the time has come to convert your idea into a valuable product or service. acquire all the equipment and tools you need to build a product. Divide the work in your team effectively. Assign only one task to a member so that he becomes proficient in it and devotes his time more productively.
12- Marketing and Promotions
Making a lot of products and storing them in the warehouse only is not everything. You have to do marketing and promotions to get real benefits out of them. Use different advertising methods offline and online as well. Get some flyers and posters, and distribute them in nearby houses. And also do social media marketing to reach target customers.
13- Open a Business Bank Account
To report your taxes correctly and get business loans, you need to set up a business account. Always choose a bank account that fits your business perfectly. A business bank account also allows you to accept credit and debit card payments.
14- Manage salaries and other expenses
Define your monthly budget and divide it properly in your monthly expenses and employees’ salaries. Always pay according to the task they are performing and make them clear about it.
15- Pay yourself and Reinvest
Always pay yourself based on your profit and save at least 50% to reinvest. Be realistic about your expenses and pay yourself what you need to sustain your lifestyle. And in order to run your business in the long term and to grow it, you need to invest a specific amount of your profit to get the J-curve in your business.
Conclusion: How to start a business from scratch
To start a business from scratch as a beginner requires basic knowledge and business skills, a solid plan, some legal consideration, management, and marketing strategies. If you’re just starting, I won’t recommend you to invest all of your money into a business. Just run a small agency with low investment and get some experience through the journey. And later, once you knew all the tactics, you can invest more to expand your business.