Everyone can have a great business idea. Unfortunately, a great business idea on its own is not enough. According to numerous surveys, 9 out of 10 startups fail even though all of them had some great ideas. Well, what they lacked was knowledge on how to turn an idea into a successful business. With this in mind, here are five necessary steps that should help you get there.
1. Business plan
In order to make first few steps on this battlefield, you need to have a proper business plan. This includes things like business description, market strategies, design and development plan, and competitive analysis.Also, you’ll need to include financial factors into this equation. Keep in mind that your business plan needs to cover at least 3-5 years. Your investors will be expecting this since they will probably expect their first ROI in this time-frame.
2. Look for money
In the previous section, we’ve mentioned that fund gathering is going to be a huge issue. Luckily, there are more than a few options you can go for. Taking a loan from a bank, credit union or a quick loans company such as ALC Commercial will probably be your first choice. If not, you may want to sell some asset you own, like a vehicle or a property you don’t use. You see, investors will always expect you to enter the business with some of your personal money (at least 20 percent). Finally, in the 21st century you can also try your luck with a crowd funding platform such as Kickstarter.
3. Give your business an identity
After you cover the funds, you will have to give your business some identity. Start with the name. Here, you will have to find something short, memorable and niche-appropriate. It goes without saying that you should check whether or not it’s available before you make things final. After this is done, you should choose the logo and colors of your company. Keep in mind that both of these will appear on most of your products and all of your promotional materials, so choose wisely.
4. Get your licenses and permits
Once you have everything else covered, you need to get your licenses and permits. For obvious reasons, this is something you do after you have chosen the name. This will depend on the business structure you intend for your company, as well as any local regulations you might need to follow. This, however, is just the tip of the iceberg of all the paperwork you will have to deal with. Sales tax licenses and zoning permits are another thing that awaits you along this arduous bureaucratic journey.
5. Choose the right spot
In the end, it is up to you to pick a location for your business. First of all, while opening an office downtown may be great for your reputation and even give your employees a chance for a greener commute, it can also be extremely expensive. When choosing the right location, keep in mind that you need to find something that suits you both functionally and financially. Don’t let the oversimplification fool you, this is actually much harder than it may appear at first.
Once you take all of the above-mentioned into consideration, it becomes more than obvious why young businesses have such high failure rates. A great idea that comes to you in a moment of inspiration is completely useless if it is not followed by a lot of research, hard work and determination. Sure, there is nothing that can guarantee you success 100 percent even if you decide to do everything from the list above, but these five steps can seriously improve your chances in the business world. Sometimes, this is all it takes.