Anyone can start a business. It doesn't matter who you are, where you live, how old you are, or what you do.
You’re reading this post because you’ve been thinking about quitting your job and taking the leap into entrepreneurship.
You might wonder how large your business will be, what industry you’re going to get involved in, and what type of ownership structure you’ll choose.
In this article ,You will learn what to do and what not to do when running a business. the most basic component of operating a business is have a unique selling point, budgeting & finances, Marketing & promotion, hired people & technology for operations
Is entrepreneurship right for me?
If you don’t know what you want to do yet, you may want to first consult a coach or business advisor to get the right answers. You also need to decide what the best business model is for you.
There are many paths you can take, and the best choice depends on what type of business you’re going to start. If you’re a solopreneur, go for a flexible model.
That means creating a business model that fits your lifestyle and the product/service you’re willing to sell. As a solopreneur, you can be very profitable, but you also have a lot of responsibilities.
If you’re more traditional and choose to work for someone else, be prepared for a lot of juggling. You also need to account for the fact that your business will be a bit more risky. However, the rewards can be phenomenal.
The importance of a Unique Selling Point
The biggest mistake that most start-ups make is to copy or mimic successful competitors. That can quickly backfire and become very boring for customers to get used to.
Instead, when you first start your business, have a Unique Selling Point (USP). This is a way to stand out in your market and make your business unique from other brands.
It might be something related to your industry, your values or some element of your offering that sets your business apart.
It can be as simple as writing a blog or writing copy for your website, but it could be something more technical like a piece of software that will help you grow your business.
Budgeting & Finances
How do you know how much money you will need to make on a monthly basis to make it successful? Prioritize what needs to be done first.
What things will make the biggest impact on how much money you will make?
- Take inventory of the items you have. Will you need to replace them?
- Do you have the money to afford a new machine?
- How much will equipment/product/services cost?
- Where can you get a good deal?
- What’s the competition charging?
- How long does it take to make this product?
- Is it safe to make it?
- Is the money being made going to be used for employees’ salaries, advertising, capital expenses, etc.?
Marketing & Promotion
Marketing is how you sell your product or services to others. It is basically the main part of your business. Therefore, it needs to be handled well.
For example, if you have a physical store, you should definitely invest money in marketing to make your store visible.
On the other hand, if you are a business that is in cyberspace, you need to spend more time and money to make yourself visible.
This type of marketing is basically writing articles or making blog posts to attract people to your blog. This is also the type of marketing that will work well for businesses that have a wide range of products or services.
Before you spend any money on marketing, you have to identify the types of marketing that will help you reach your target audience.
- Web Page development
- Social media promotion
- Social networks promotion
Types of business ownership
The most important step of starting a business is creating a formal structure. A strong business structure will protect your assets, resources, and personal information.
Also, it will establish a clear legal framework that will help protect your business and give you access to laws that will help you operate legally.
Most importantly, a business structure will help you prepare for taxes and avoid numerous penalties.
There are many different business ownership models, from partnership to sole proprietor.
The most common models of business ownership are considered to be the following:
- Sole Proprietorship
- S Corporation
- Limited Liability Company (LLC)
As a small business owner, Sole Proprietorship is the perfect business model. If you’re a creative individual who loves to write, be a teacher, sell your crafts, or start a blog, you can get started in this business model.
You have full ownership over the business. You don’t need to pay anyone to help you with the daily tasks. There are no owners who share the risk of the business. You have full control over how your business operates.
The biggest downside of this business ownership model is that it does not give you access to the more advanced tax benefits of a partnership or corporation.
5 types of entrepreneurs
There are many different ways to become an entrepreneur, and some of them are unconventional and even more thrilling.
You should think about what will make the best use of your time, energy, and resources.
There are different kinds of business ownership models that fall under the broad umbrella of the following:
- Small business
- The copycat entrepreneur
- Scalable startup
- Internet based entrepreneur
Small businesses entrepreneurship
Small businesses are often owned and operated by individuals or small groups of people.
They hire local employees, and are usually recognizable by the names of their local communities.
Often started without any outside funding, small business entrepreneurship is a way to support a family and a modest lifestyle.
Local grocery stores, hairdressers, small boutiques, consultants and plumbers are the kind of small businesses that people with entrepreneurial spirit are most likely to start.
A solopreneur is a business run by the owner itself. the one individual enjoys the freedom to pick on a project or person as the source of income from their business.
In other words, a solopreneur is an entrepreneur who performs all duties related to their business alone.
Examples of Solopreneur job can be Freelance writer, Ecommerce Seller, Accountant/Tax preparer, Blogger, Youtuber
The copycat entrepreneur
This entrepreneur has seen the success of others and is trying to mimic their styles exactly. Their website, business cards and promotional materials are all the same.
This aspiring entrepreneur seems to be inspired by those who are already successful.
There is a fine line between copying and modeling. If you are trying to model success, it is smart to see what works and find out how to make it helpful for your business.
Scalable startup is a process where independent thinkers attempt to solve problems, be creative, and improve existing products and services.
They are often funded by venture capitalists and hire specialized employees.
These types of businesses tend to start in Silicon Valley and are usually technology-focused
They seek rapid expansion and large profit returns. Uber, Instagram and Facebook are just a few examples of scalable startups.
Internet based entrepreneur
Internet-based entrepreneurs run their business online and use virtual technologies to support business activities.
These companies typically sell a product or provide a service using the internet.
Some businesses can be home-based too.
Examples: Virtual assistants, marketplace sites such as eBay and Etsy.
The entrepreneurial path
I’m sure you have an idea of what you want to do, and hopefully it’s something you’re passionate about.
First off, you need to decide if you want to set up a company or build an innovative product. Regardless of which path you choose, there are essential steps to get you to your destination.
Deciding what kind of business you want to start is one of the first things that you should consider.
The big question on your mind right now is, “What is the best way to start a business?” I was working as a designer, making minimum wage, and had no idea what I wanted to do with my life.
In that case, the answer is, “Start a business!” The more passion you have for what you do, the faster you’ll be able to succeed in your business.