Steps when starting a business

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Tags: Business, Wealth, Starting a new business, Entrepreneurship, Management

Difficulty: 5

Things you will need: A notebook, a pen

STEP 1: BE PREPARED Starting and running your business is a challenging task. In both cases, it is important to realize that you need to follow certain steps if you are to become successful in the business that you are running.

STEP 2: LET YOUR MOTIVE BE CLEAR As we have already talked above, it is important that the motive for starting a business be clear on your mind. This is because the reason as to why you went into business in the first place will play a great deal in determining your priorities in business and the decisions that you will take. If the reason why you started was to gain prestige as a business person, then you will have very different company values compared to someone who went into business so that he could create employment.

STEP 3: CHECK OUT WHAT THE MARKET NEEDS For you to do well in business, it is imperative that you first examine what the business needs are. Even though their might be a particular product that is lacking in the market that could satisfy the needs of the consumer, it is not always the case. When it comes to market needs it could simply be about the fact that the product needs to be packaged differently from the way it is being currently packaged.

STEP 4: CHECK OUT THE DISTRIBUTION It may also mean that the product may be okay, but it is not distributed in the proper way. What ends up happening is that the product is not available in the place where it can be found by the consumers.

STEP 5: EXAMINE YOUR NEEDS. What do you need for the business to pick up? There will be various thing that will be needed for the business to be up and running. These things need to be clear and simple.

STEP 6: WRITE A BUSINESS PLAN This requires that you write a business plan that will help create clarity in your ideas by separating myths from facts. Consult an expert if need be.

STEP 7: SEE HOW MUCH YOU ARE RISKING Entrepreneurship has always been known to be a high-risk activity. However, this does not mean that you should engage in an extremely risky business to the extent that you can easily encounter a devastating loss.

STEP 8: MAKE SURE YOU HAVE A PLAN B Ask yourself; supposing things do not go the way you planned, what will you do? Develop a way that you will cushion yourself or business against devastating loses whether foreseen or unforeseen.

TIP * Always remember to consult an expert in case you have never written a business plan before. Despite the fact the job may look simple especially when you see a template, an expert will help bring out the gritty items that you could have easily forgotten.

WARNING * Even though entrepreneurship is all about risk and reward, ensure that you do not take very high risks which may have an extremely devastating effect on your financial position. Just take those risks tat you are sure you are comfortable with.

RESOURCES: www.sba.com

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