How do I create my own business from scratch?
In this article, we explain the steps to starting your business from scratch.
Starting a business is not easy, so the first thing you should have is determination, desire and self-confidence, and most importantly, do not be afraid of failure, as Albert Einstein said:
"A person who never made a mistake, never tried something new."
The uncertainty of not knowing how to start a business from scratch may be what sometimes stops us from starting this journey, but as they say, information is power, and there is no better strategy than getting good information and studying the situation.
It is foolish to think that we know everything or that we do not need help to get on something new, and that is that nobody is born knowing all the keys.
For this same reason it is why blogs exist, and what is an article but a source of information for those who want to know more about the issue at hand?
In this article of our blog we want to leave some tips on entrepreneurship and business creation.
Do you want to know the 6 steps to starting your business from scratch?
1. Market Research
As we mentioned previously, it’s very important to be informed. If we want to start a business from scratch, we need to study our current market and who it is we want to focus on.
Not all markets are identical, so how we interact with them can’t be the same. Selling cars is not the same as selling eco-friendly products, the markets are different as are the target audiences.
Our advice? Carefully analyze the evolution of the market in which you’ve decided to start your business. By studying the market’s trends, you can estimate the success of your business.
2. Select your Target Audience
Once you have analyzed your market, it’s time to examine your target audience. This is very important, you can’t include everyone. Trying to include everyone would be a mistake and you would lose a lot of people and money on campaigns trying to reach out to the wrong audience.
It’s much better to address a specific niche of people who we're sure will buy our products or services.
Another important point is to create a connecting link with our customers to gain their loyalty, so that they can get a feel for the brand and the service and realize they need to have it in their lives.
3. Analyze your Competition
Now that you know how the market works and who your target audience is, the next step to starting your business from scratch is to study your main competitors.
Find out about what they do and how they do it, and more importantly, the opinion your target audience has about them.
Why is it important to know about our competitors? Because we have to position ourselves above them in the minds of consumers so that they will choose us first.
It’s not always a question of price battles, but of customer experience. Treat your customers well so that they come back regularly.
4. Financial Analysis
Now, we are going to deal with one of the points we worry about the most when starting a business from scratch. The financial aspect concerns the money we need to invest and in how much time we’ll be able to make it back.
This is a delicate matter because no two businesses are the same. Ideally, we should seek a business that fits our economic capacities so that we won’t be drowning in figures we can’t afford.
In the majority of cases, taking out a bank loan is necessary. Don’t worry about doing this, it’s normal. Not everybody has the capital needed to start a business from scratch without some kind of funding.
"Did you know that making cash flows is fundamental in every company? - It lets you know how much capital can be allocated to the project, and to income, expenses and additional investments."
Before taking out a loan, it’s important to examine the amount of funding needed and how much you can pay back while still being able to make a profit.
If you need funding but you don’t want to resort to a bank loan, there are other options such as:
Search for investors
Start a business with multiple partners to share investment expenses
Borrow from family or friends
5. A viability study of your Product/Service
Whatever the product or service is, you will need to know how viable it would be in your market.
It’s also important to choose a product/service that suits you and one you’re comfortable with.
You can estimate the viability of selling your product once you’ve researched the size of your target audience. From there, you can establish the volume of demand you’ll have.
You must remember that the first few months are for increasing the exposure of your business, so demand will be low. This will increase depending on how much you advertise your business.
We’re now at the final step of starting your business from scratch, and it’s no less important than the others. The success or failure of your business will depend on its visibility.
Getting to know your business is a very important factor when starting a business from scratch, and it must be a priority. The more you reach out to your audience, the more demand you will have and the more people you’ll be able to reach.
How do I make my business visible? It is very easy these days thanks to social media sites. You can opt for online advertising with paid Facebook and Instagram ads, or create a specialized blog.
Now you know the 6 steps for starting a business from scratch. Are you brave enough to start your own?