Starting a micro-business means; identifying a problem in your area and finding a good solution for it. Successful businesses start out as ideas and followed up with actions.
There has never been a better time to start a micro-business. The small business space has many advantages:
• It’s easy and affordable to start a small business.
• It’s easy to stay in control with a small business and enables you to work out a
perfect work-life balance.
• It does not require a lot of personnel and you can do it alone. In fact, most
small businesses consist of just one person.
There has never been a better time to start a micro-business. But the truth is that most start-ups fail in their first year of operation. Here are 5 crucial points to consider when starting a small business to avoid falling through:
1) Keep it simple and focus on the market.
Do not over complicate your idea; come up with a simple solution to an everyday problem. Make certain that your idea is not too complicated. Complicated solutions are both expensive and difficult to implement. Find a simple way to produce products or services that are of high quality. Most small businesses fail because of trying to come up with big and robust business plans.
Keeps things simple and cost low by first testing your ideas before investing your time and money. Don’t rely on your product to drive sales, instead consider the market you are getting into. Focus on making products that people are willing to pay.
2) Decide on a legal entity.
Filling paperwork can be expensive. You need to budget for licenses, incorporation and business entity fees. Consult your local attorney or legal professional on the best choices for your company’s goals. Establish your business as an entity to enjoy tax and other benefits. A disregarded entity could be the best option for you.
3) Come up with a budget and overestimate your cost.
Come up with a budget of the amount you need in order to get started. You should know all the capital that is going to be needed and where it will come from. Be realistic with the numbers and anticipate hidden cost. Calculate your burn rate to determine how long you can stay in business before making any profit.
Also, prepare for the worst by overestimating your business cost. This will cushion you from unforeseen expenses. High chances are that you are going to spend more than you initially budget for. Be prepared for emergencies and give yourself room to work.
4) Evaluate your idea, understand the commitment and establish a support team.
Doing market research to assess the viability of your business idea should never be neglected. Enlighten yourself on how the industry you are getting into works. Do research on your competition. Check for opportunities that are waiting to be discovered in your vocation.
Establishing an enterprise requires a lot of commitment. Prepare yourself for a shift in your day-to-day life. You are not only going to invest financially but also emotionally into your business. You are going to lose sleep and experience a lot of stress. Building a business is not a walk in the park and may take months, sometimes years to perfect your operation.
Build a team to assist you. You cannot do everything on your own. They can be friends or family and not necessarily partners. You need somebody to help you in times of hardship.
5) Get a website and start making money.
No matter what the nature of your business is, you need a website for it. This means securing a business URL.
Your small enterprise should be able to generate income as soon as possible. Revenue is the lifeblood of any business even the newly-established businesses. Raise funds through orders and deposits; make sure that you start making money as soon as possible.
It’s my sincere hope that these tips and practical insights will help you in your journey as a small business owner. Starting a business is now easier than ever but hard work and dedication is required to make it successful.