How to open a project successfully in 10 steps
How do I open a small business? Before we answer this question, we need to tell you some facts about the world of small businesses. Did you know that small businesses make up more than 95 percent of all businesses in the world? When you think about some of the most popular reasons for opening a small business, including having your own business, the freedom, working toward financial independence, and investing in yourself — it’s no wonder small businesses are everywhere.
But do all small businesses succeed? In fact, nearly two-thirds of businesses survive for at least two years, and about half of them survive for five years. So, you can face a real challenge when you decide to open a business, and maybe quit your job, to become a business owner.
Now we come back to answer your question: How do I successfully open a small business? In fact, the beginning is the most important stage and is crucial to success, so make sure you follow all the following steps:
Step 1: Study the idea
You’ve probably already chosen your business idea, so it’s time to really consider it. Does the project have strong chances of success? You will need to evaluate your project first before proceeding with it.
For a project to succeed, it must solve a problem, meet a need, or offer something the market wants. There are many ways you can identify this need, including market research, field study, surveys.. While you are studying the market, here are some questions to consider:
- Is there a need for your expected products/services?
- Who needs it (age-category-gender…)?
- Are there other companies offering similar products/services now?
- How is the competition?
- How will your project fit into the market?
Don’t forget to ask yourself a few questions, too, that every startup should answer before jumping in with both feet.
Step 2: Create an action plan
You need a business plan to make your project a reality. Business plan is a blueprint that will guide your business starting from the inception stage. It is necessary for all projects and businesses, no matter how small.
You will have two options in order to prepare a business plan for a business:
If you intend to seek financial support from an investor or financial institution, a traditional business plan is a must. ,This type of business plan is very accurate and needs a relatively large number of pages, and it also contains specific parts and sections that investors and banks are looking for to study the investment feasibility of the idea.
If you do not intend to seek financial support, a one-page business plan can give you clarity about what you hope to achieve and how you plan to do so. In fact, you can easily create a simple business plan, and update it over time. A simple written plan is always better than nothing.
Step 3: Plan your finances
Opening a small business does not require a lot of money, but it will certainly need an initial investment as well as the ability to cover fixed and ongoing expenses before you turn a profit.
You are supposed to take an inventory of start-up costs and operating expenses when you start. You can create a spreadsheet that estimates the costs that you will need to open the project (licenses, permits, equipment, legal fees, trademark, market research, etc.), as well as a spreadsheet that estimates the fixed and variable expenses that you will need to operate your project for at least 12 months (rent, marketing and advertising, operating expenses Supplies, salaries…).
The sum of these expected costs is the initial investment that you will need in order to open your business and have a sound financial start.
Now that you have a clear idea of ​​the required capital, there are several ways you can fund your small business, including:
- Bank loan
- Small business loans
- Partner investor
You can also open your project from scratch, depending on your own money and without relying on any financing from another party, whether this party is the family and relatives, or individual investors or loans. Or you can secure the capital through more than one channel, for example, as if half of the capital is from your savings and the other half is secured through a loan.
Step 4: Choose an organizational structure
The organizational structure for your small business can be a sole proprietorship, partnership, or limited liability company. The organizational structure for your business that you choose will affect many factors from your business name, to your legal liability, to how you file your tax returns.
You can choose an initial organizational structure for your business, then reassess and change your structure as your business grows and your needs change.
If you hesitate about choosing a suitable business structure, it may be worth investing in consulting a lawyer or accountant to ensure that you make the right choice.
Step 5: Reserve a name for your activity
Your business name plays a role in almost every aspect of your venture. Make sure you consider all the pros and cons as you explore your options and choose your business name.
Once you’ve chosen a name for your business, you’ll need to check if the name is trademarked or currently in use. Then, you will need to register it. The registration mechanism is different if you are the sole owner of your project than if your business is going to be a company, for example.
Don’t forget to register a website name reservation once you’ve selected your business name. In fact, every business in this era needs a virtual presence.
Step 6: Licenses and Permits
The stage of obtaining papers and licenses is part of the process when you set out to implement your own project.
There is a different set of small business licenses and permits that your project may require, and of course this depends on the type of business you will be engaged in and the region in which you are located. Before actually starting your project, you will need to obtain the necessary licenses and permits.
Step 7: Choose an accounting system
One of your top priorities as a small business owner is managing the accounting system. Because doing the accounting work incorrectly can harm your project, whether in the short or long term.
If you are going to start your business on a tight budget, one aspect that you might consider doing yourself rather than hiring a professional is accounting. If you have an accounting background and a good understanding of small business finances, this could be a good place to cut costs.
But you have to realize that the most important thing you can do when it comes to the financial affairs of your business is to know when you need to seek the help of a professional, or to find an accountant who will help you in maintaining the financial health of your business.
Perhaps it would be better to take back with software that helps you with your day-to-day accounting tasks – recording payments, tracking expenses, invoicing clients, reconciling transactions – and gives you insight into the workflow and financial management of your business.
Step 8: Choose a location
The location of your project can be an important factor in its success. When choosing a location, carefully assess the environment suitable for your type of business. Every project has different requirements and it is important to consider your business needs and priorities when determining the type and location of your project headquarters.
This will help you decide whether it makes sense to buy or rent your commercial space.
For example, but not limited to, the site may be very suitable for your business if:
- Near suppliers or distributors.
- The place is known for the products or services that you will provide.
- The majority of people who work or live nearby are your target audience.
- Businesses in the area that complement your project (for example, a children’s clothing store could benefit from a child care center or a toy store nearby)
- Prices to buy or rent in the area are reasonable and meet your business needs.
- Business is growing in the area.
- A rapidly growing area that offers many opportunities.
Step 9: Assign the task force
If you are going to need labor or staff, now is the time to start the process. Make sure you take the time to identify the tasks and functions your project will need.
But if you decide, instead of hiring employees, to outsource or outsourcing, this means that you will use and hire competencies, people, means and services from third parties (often companies that provide relevant services).
You may not need staff and you may not need to outsource, but you will still need your own support team.
Step 10: Market your business
After you open your business and start working, you will need to promote your product to attract clients and customers. Smart promotion means attracting and retaining customers again.
You don’t need to be a rocket scientist to be a good marketer. On the other hand, there is no one-size-fits-all marketing method. Every business is different, and therefore the marketing plan and promotional techniques differ from one activity to another. You will need your own strategy and identify marketing methods that suit your product and activity.. Your strategy is the main marketing plan that directs all your marketing and promotional methods (advertisements – promotions – sales activation…)
We hope that we have answered your question: How do I open a successful business?
Once you have completed these steps all the essential aspects of opening a small business will be covered. Keep in mind that success does not happen overnight. But using the business plan that you have prepared will facilitate your business and there is no doubt that it will be a right start and will increase your chances of success.