You have a great idea for a product or service that could benefit others and yourself. It’s something you have envisioned for quite some time and you have savings that could be used towards promoting this product. All you need to do next is start a business and sell your product. So, with all this in mind, you’re probably wondering, how to become a business owner?
What To Consider When Starting A Business
A business major or background does help with learning the ways of different industries. These programs are geared towards teaching you techniques and important factors to consider when introducing your product. However, there are no specific education requirements for starting a business. A useful product, good business plan, decent finances, and a resourceful team can help you achieve your goals. Let’s look at how to become a business owner and what steps you need to take.
Research Your Industry
Before beginning, look into the industry your product will be a part of. Are there other products like yours? What are the features? How does yours stack up against them? How is the industry doing? Would your product succeed better in a different country or state? And so on. Research to get an idea of the industry you are entering and what you need to do to get noticed.
Create a Business Plan
The first step any business advisor will tell you to begin is to develop a business plan. These plans are meant to guide you from the start-up phase to a full-blown and functional business. Prospective investors and financial institutions will highly appreciate your business plan as it shows initiative and seriousness. A traditional business plan format includes:
•Executive summary
•Company description
•Market analysis
•Organization and management
•Service or product line
•Marketing and sales
•Funding request
•Financial projections
•Appendix
These sections detail the current state of the industry and how your product will function within it.
Plan Finances and Expenses
Once you have a business plan ready, it is time to calculate finances. Create a spreadsheet with potential costs. For example: licenses and permits, production costs, inventory, market research, insurance, legal fees, employees, equipment, etc. With this, you can determine how much you need to spend and how you can budget. You can then consider funding options: small business loans, small business grants, crowdfunding, financing, and so on.
Decide What Kind of Business Structure Suits Best
Your company can be a sole proprietorship, partnership, limited liability company (LLC), or a corporation. A sole proprietorship gives you total control of your business and your business assets, and liabilities are not separate from your personal ones. This type of business structure may be a good choice for a low-risk business. However, it may also be difficult to find funding as financial institutions are hesitant to lend to sole proprietors.
Partnerships are two or more people co-owning a business. This structure has only one partner with unlimited liability and others with limited liability, who tend to have limited control. Companies with multiple owners or groups may find this structure more suitable.
LLC’s give you benefits from corporation and partnership business structures. It protects you from personal liability in case your LLC faces bankruptcy. Members of an LLC are considered self-employed and pay self-employment tax for Medicare and Social Security. Medium to higher risk businesses should opt for this business structure.
Finally, corporations are legal entities separate from their owners and offer the best protection from personal liability. The cost to form a corporation, however, is higher than the other business structures. This structure works best for medium- or higher-risk companies that need to raise money.
Register Your Business Name
This part is the best and most important one. Your business name is attached to your business and is the first interaction your customers have with it. Therefore, take your time to decide on a good and appropriate name. Next, check to see if it’s trademarked or in use. And then, register your business. To trademark your business or brand, register it with the United States Patent and Trademark office.
Get Licenses and Permit
Make sure that you are aware of what licenses and permits are required for your company or industry and apply for them.
Settle on a Business Location
Decide if you want a physical location or a remote office for your enterprise. It all depends on where your target customers are and what is the best way to reach them. Additionally, start building the office by getting any equipment or office materials necessary.
Get a Business Phone Number
Your business phone number makes it possible for customers to reach you without any obstacles. A phone number gives you multiple ways to open communication between you and your customers. Invest in a phone service provider that can set you up with a virtual number for business owners. Virtual phone numbers give you the opportunity to set up remote offices across the world, if it makes sense for your company. They provide you with a local phone number from the desired country that forwards calls to your own number. Customers are more comfortable answering local numbers than international numbers. You can also make use of additional features such as instant messaging, call recording, etc.
Now That You Are A Business Owner, It’s Time To Promote
Starting a business can be stressful and complicated. As long as you have the necessary documents and a passion for your product, the process becomes easier. Small and sole business owners can always consider having a remote office that is more cost-effective. Call forwarding services from companies like Global Call Forwarding can easily hook you up with a business phone number that forwards calls to your personal number, still separating your work and personal lives.
Consider various marketing strategies like email marketing, social media marketing, and search engine optimization to draw customers to your company. Now that you know how to become a business owner, the next steps are to build your team, start promoting, and making money.
Author Name: Meryl D’Sa
Custom Bio: Creative Writing graduate, Meryl D'Sa spends her time writing professionally and teaching undergrad-level academic writing.