Thinking about running a small business of your own? It’s more doable than you might think. Read on for our beginner’s guide on how to run a small business. Do you believe you have what it takes to start a small business? You have a long road ahead of you.
According to reports, only 40% of small businesses are profitable. If you go into things blind, you have a good chance of running out of money and closing up shop. If you’re wondering how to run a small business, this post will help. Keep reading to learn how to run a successful small business that gets results for both you and your customers.
Do Your Research
You can’t just pick an industry and get started with a business. If you don’t have any experience in an industry, it’s hard to know what people in that industry need. You’ll end up creating products and services that nobody wants to buy.
Start by figuring out the industry that you want to do business in. If you have any specialized skills, start there. You’ll know what problems people in that industry have and what they’re willing to pay for.
The next thing you need to do is validate the problem you’re trying to solve. For business problems, make a list of potential customers and give them a call. Walk them through your solution and see if it’s something they’re willing to pay for.
If you’re launching a consumer product, you’ll need to get input from consumers. Put together a focus group to see if regular people are willing to buy your product.
Create Your Business Plan
The last thing you want is to start your business without a plan. It doesn’t matter if you have a great product if you don’t have a plan to get it into the hands of your customers. Your business plan will help you do that.
Use the data from your research phase to help create your plan. Figure out who your customers are, who your competitors are, and your place in the market.
Feel free to brainstorm as many ideas as you can during this process. Your goal is to figure out how to create the best product and the best way to get it to your customers. Once you have several ideas to work with, you can figure out which ones have the best chance of success.
Form Your Business
Once you have a plan in place, it’s time to set up the legal structure for your business. If you’re planning on doing service work yourself, you can get away with working as an individual contractor. Otherwise, it’s worth it to form a corporation.
Go to your state’s website to look for incorporation forms. Many small businesses start with an LLC or an S-Corp. Look at the pros and cons of each of those to figure out which one makes the most sense.
After you file your business documents, you need to set up a bank account for your company. Doing this will help you separate your business and personal finances. You won’t need to worry about separating your personal and business finances during tax time preparation when you do this.
Set Up Your Web Presence
You can’t expect to get noticed if you set up a store in an unknown area. People look for what they need online these days. Without a web presence, your company is going to miss out on a lot of potential customers.
Your website will serve as a 24/7 salesperson for your business. You can inform potential customers about your products without needing to talk in person.
Depending on your industry, you can also sell directly on your website. Doing this will let you take advantage of social media and search engine traffic. You can get visitors to your site to make sales without a huge marketing budget.
Purchase The Right Insurance
No business will ever come without risk. Unfortunately, some of that risk can cost you a lot of money.
Insurance will help when you face unexpected problems. At a bare minimum, liability insurance is a must when you work with customers. It will cover anything from accidents at your store to unforeseen damage to your property.
If you manufacture your own products, you have another set of worries. In this case, product liability insurance will serve you well. It will cover you in cases there are problems with the manufacturing process that causes harm to your customers.
Get The Right Tools
Sure, you can do everything the hard way in your business. However, why do that when there are plenty of tools available that will make your life easier.
The first thing to look for is small business tools to improve productivity. Look into project management systems that keep everything online. These tools will allow you to collaborate with your employees and work together anywhere in the world.
The next set of tools you need is finance applications. Start with online accounting software that will connect to your bank account to download your financial transactions. It will categorize your transactions automatically and generate reports that will help you manage your money.
If you have employees, you also need payroll tools. Look into payroll and pay stub maker services to automate the process of paying your team.
Find The Right Employees
You might be able to start a business solo. Unfortunately, it will be hard to stay that way once your business grows. You need to build the right team if you want to scale your company. The question is, what roles are worth hiring for in the beginning?
Determine what tasks in your company are a poor fit for your skillset. You likely spend too much time handling those roles in your business. Find an expert to do it for you so you can focus on the work you’re best at doing.
Now You Know How To Run A Small Business
There is a lot more to running a small business than creating a product and selling it. However, now that you know how to run a small business, you can better prepare for the work ahead. The more you learn about the little details, the faster you’ll become profitable.
Of course, there’s a lot more to running a business than above. Read more of our blog to learn the other tips you need to know.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.