One of the biggest challenges for first time entrepreneurs or want-to-be entrepreneurs who have never started a business is “How to start a business?” It is easy to get lost and not have a process when it comes to starting a business. In this article, we have outlined a step-by-step process to starting a business.
Step 1: Define your job as an entrepreneur
This might sound like something simple and straight-forward, but very few people understand what the job of an entrepreneur is. It’s very difficult to do your job well, if you don’t know what your job is. Harv Eker said “the job of an entrepreneur is to solve problems for a profit.” This is a fairly broad definition.
Depending on your business and your management style, your job will vary. It involve activities like identifying the business opportunity, vision, identifying the right people for the right job, etc. The most important job of an entrepreneur is vision. Vision is how you see your business several years down the line and how you see it today. It requires foresight and this is the most important task of an entrepreneur. Entrepreneurs are dreamers.
Step 2: Find a target market
In marketing, there is this common saying, “if your target market is everybody, then your target market is nobody.” So, it is important to identify a target market before go about developing a product or your service. You may want to read this article on “How to choose a target market?”
Step 3: Identify their problems
Once you have chosen a target market, the next step is to identify their problems. This is not always as straight-forward as it seems. It requires a deep understanding of your target market and it is usually instinctive and you may need to use a bit of your gut feel. Remember not to undermine the power of your instincts.
Step 4: Find a solution (product or service) to solve this problem
Once you have identified the problems of your target market, the next step is to find a solution to solve these problems. The solution to problems of your target market is in the form of your product or service. For example, if your target market is busy professionals, and their problem is “not having enough time to do their laundry” your service could be doing their laundry for them for a fee, thus solving their problem.
Step 5: Write a business plan
Once you have identified your product or service, the next step is to write a business plan. The business plan helps you evaluate every aspect of your business in an organized manner. Read this article, to understand how to write a business plan. The business plan does not need to be in a format prescribed by banks and investors (unless you are looking to raise capital), you may write the business plan in your own words for you own understanding initially. Make sure your business plan is simple, easy to understand, practical and implementable.
Step 6: Implement your business plan
Once you have written your business plan, the next step is to implement your business plan. Your business plan is of no use if you don’t implement it.
This article gives you a process on how to start a business. But remember, lot of entrepreneurs have said, “business is about having a gut feel for things.” So, it is important to get into the market and develop a gut feel for the business you want to do. End of the day, entrepreneurship is about taking action. Dream big, go for it and don’t be scared to fail. Make every failure a learning opportunity for bigger things in life.