Several people think you need a bunch of money in the bank or even business experience to start and finance business ideas. But, that is usually not the case for several business ideas.
Actually, all you need to start a business idea is the will power and in this article, I will show you how to start a business and ways you can finance it.
You can become the next major successful business tycoon with little money in your bank account. But, you do need a strong plan for the business ideas you want to start and how to finance it in case you don’t have enough funds.
I decided to start a small scale business myself after I finished my university education because of the high rate of unemployment in the country.
It was really hard for me then because I had no funds on me and it really took me time to figure out how to start and finance the business ideas.
But you don’t have to go through the same stress as I did. So, I promise to show you in this article how to start and finance your business ideas.
How to start Business Idea
Table of Contents
Here are tips on how to start and finance business ideas:
Evaluating yourself
First of all, ask yourself “why do I want to start a business”?. This is very important and should be the first thing you do before starting anything. If you are interested in making extra cash you can do more side hustles. If you want more freedom maybe it’s time to leave your 7-to-5 job and start your own business.
Once you know why you want to start a business you can then begin to ask yourself further questions like this:
- What skills do you possess?
- What are your areas of expertise?
- Where does your passion lie?
- How much capital do you have?
- How much can you afford to spend to make sure the business doesn’t fail?
- Do you really want to be an entrepreneur?
Ensure you are honest with your answers as this will create a foundation for everything you do. It is better to know the truth now than later after investing a lot in the business.
Brainstorm For a business Idea
If you already have a business idea congratulation! you can scroll down. However, if you don’t have one you can check this article on Ways to come up with a business idea.
You can also research business ideas you can start online or use whatever method you are convenient with.
And, if you have exhausted all your options and you’re still stuck, you can check my article on Small scale business ideas
Meet Other Entrepreneur
Ensure you seek advice from other entrepreneurs that are in the same line of your business idea. They can offer you tips that will make your business successful. Meeting other entrepreneurs can also give you ideas on how to add that extra touch to the business idea.
Do Market Research
It is very important to start analyzing your potential rivals or partners in the business and this can be achieved by doing market research. You can learn how to do good market research here
Get feedback
Here you will need to make people interact with your product or service and give you feedback. Doing this can help you point out problems you might have missed when offering your product or service to your potential customers.
Write a Business plan
This section involves you writing a detailed description of how your business will evolve from when it starts to the finished product. Furthermore, you can convey everything you need to do on the business in a book and also create an appendix on the book that will monitor your business monthly projections, management resumes, and other details.
This is usually contained in a business plan:
- Title page. Start with the name of your business. Doing this can be trickish, but you can make the business name simple and unique.
- Executive summary. This is a comprehensive summary of your business plan, describing the company in detail, highlighting the problems the business intends to solve, and the possible solutions. Writing a good executive summary can make your business appealing to investors.
- Business description. You need to give a detail description of the business you intent you want to start and you by asking the following question. What kind of business do you want to start? What does the business look like? and What will it look like in the future?.
- Market strategies. Here you need to know what is your target market and how you can promote your business to your target customers.
- Competitive analysis. Your business like every other business has competitors. So, you need to know who are your competitors and how you can beat them.
- Design and development plan. You need to know what is your product or service and create a budget for that product or service you want to render to people.
- Operations and management plan. This involves putting plans together on how the business will run on a daily basis.
- Finance factors. If the business idea demands fund then, you need to know where the funds will come from.
Find a location
Location is very important for your business. So, you need an office or store for your business.
Although, priority differs according to the business needs. However, here are 10 basic things to consider before choosing a location
Finance your business
There are several ways you can finance the business idea you want to start and they are listed below:
- friends and family. Friend and family can be a good medium for loan or grant when you really want to start a business. Similarly, they can partner with your business idea if you think it is ok to do so.
- Request for small business grants from the government.
- Apply to local Investors groups.
- Seek a bank loan.
Develop your product or service
After all the effort you have put into the business idea up till this section, you need to make the idea come to life by developing your product or service.
Build your teams
To make your business more successful you need to build a team and this can include partners, employees or freelancers.
But you need to make sure your team understands your vision and the role they need to play for the success of the business.
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