Starting any company is a challenge. However, if you follow basic principles and practises then there is no reason why you cannot start a business in just seven days. This is a very brief overview about how that can be achieved.
Day 1 : Market Research
If you are going to succeed in business then people will need to have confidence in your product and your ideas. It is therefore important to find out if the people who will be buying your product are interested in your product or service.
Firstly, look at your potential market and examine what they are buying now – what are their requirements? Also, look at the competition. What are they doing? How do you ideas fit with what is already out there?
Then, identify your target market – decide what age group they are, what gender - are they mothers, fathers, business people, businesses, etc? Then put some information together and get out there and ask questions. You can ask local businesses or ask on the street. A great example of how this was achieved is by the Innocent Smoothie company who gave away free samples of their smoothie drinks at a local event and had one bin with a ‘yes’ and one marked ‘no’ with the question ‘would you buy this drink?’.
Remember to take any criticism constructively – all feedback is useful in your market research – and don’t be too precious about your idea. Just because you are passionate about it doesn’t mean it’s a sure fire winner.
Day 2 : Business Plan
If you are looking for external finance then this is a must as most banks will ask for one. Even if you don’t think you need a business plan then you should at least look at creating one as every business needs a solid and comprehensive plan for development.
A well drafted business plan will act as a guide throughout the first years of running your business. Of course, it won’t go exactly as planned out but you will have a good idea of where you are going with your business.
Your business plan will need to include a detailed description of your business idea, the business’s objectives, the target market, financial forecasts, cash flow forecasts, marketing and sales plans and overall strategy as a minimum.
Do not under estimate the business plan as it is your vision for the future.
Day 3 : Finance
When thinking about setting up your business you should have already had some idea about how you will fund it. A business will often fail not because it has a bad product or service but because cash flow becomes an issue. You will most probably have to deal with payment terms, bad debts and will really have to manage your cash slow to enable your business to continue trading. Cash flow is the life blood of your company.
Many entrepreneurs setting up a small business these days are deciding against applying for a bank loan, preferring instead to find the money themselves. This is partly because business loans from banks are very difficult to secure in the planning stages and partly due to the credit crunch which is seeing all financial institutions tighten their belts and their lending criteria.
Consider these options for start-up finance and get them moving today:
- Use your own personal savings
- Borrowing from friends or family
- Investment from third parties (where you can offer shares in return for investment)
- Grants and start-up funding
- Credit cards
- Apply for a business loan
- Apply for an overdraft on your business bank account
- Re-mortgaging or selling your property
- Selling other assets – e.g. your car, vintage guitar, old Monet
Once your business is up and running it is important to keep your cash flow stable as mentioned earlier and your funding options open. Investigate these finance sources:
- Investors / business angels
- Invoice finance (used widely by businesses that offer credit terms to clients)
- Asset finance
- Bank overdraft
- Grants and government funding
Day 4 : Product Development
After you have performed your market research your business objectives may have changed, therefore, it is not important to re-evaluate your strategy.
Day 4 is the day to develop and really evaluate your product or service. If it is a product you are planning to sell, think about how you will get it manufactured and/or packaged, any improvements or modifications that could be made, any safety regulations that product must adhere to.
If your business is offering a service, think about the method of providing the service to customers, how to demonstrate the service to prospective customers, what exactly will be offered, who will provide it, how could it be improved and how could it evolve in the future.
Day 5 : Sales and Marketing
Marketing is the practise of getting people or your industry aware of your product. Sales is the practise of persuading people to buy your product. They are both essential skills for a small business owner to perfect.
In your business plan you looked at on Day 2 you should have investigated and created a sales strategy. Sales is vitally important in ensuring any business succeeds but it must go hand in hand with the marketing activities. Marketing will get you the leads and sales will bring in the revenue.
How this works depends on the type of business you are starting. There are cheaper methods of marketing that you could work on first, such as listing your company with the various online directories. However, a website is of major importance in the current climate. You should look for a professional web designer as in order to be successful you must look successful. It is very important to determine your target user and let the web designer know who your market is and what they will be looking for from your website.
For a simple web site you only really need the most important, succinct information. Therefore, stick to a simple design to begin with and two or three key pages (home page, contact us & product/service page) then you can get up and running very quickly.
One of the quickest ways to start driving targeted traffic to your website will be via Pay Per Click advertising. For example, you should look at Google Analytics which is fairly easy to set up and you can budget your adverts easily.
Day 6 : Premises, Equipment and Assets
You will need business premises. This is where most of your capital will be spent on initially. Unless you’re launching a shop, restaurant, bar or hotel you can probably start out from home. However, this is not always ideal as a separation from home and work is required. That is an important point to consider. Working from home can also affect your home insurance and rates.
Most businesses no will require a computer as it will be required for marketing if you are marketing on the web, answering emails, accounting or book keeping as well as many other tasks. You may also require a printer, fax machine, telephone and internet connection. Remember to take into consideration that whenever you purchase anything for your business it will cost mush more than your home equivalent.
Day 7 – Use Online Resources
Use the resources out there. There are many business resources out there as well as Government bodies that can give information and help. Remember to consider looking at real life examples of business theory in practise. A great resource for real life examples is the business studies resource The Times 100.
Finally, good luck!
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