Starting a business can be challenging but highly rewarding. Following a step-by-step process helps increase your success and minimizes the risk of overlooking a critical area in the development of your new business. With attention to detail and determination, you can make your new business a success.
Market Research
Conduct a comprehensive market research analysis that determines the market size for your new business, potential market share, competitors, challenges, product desires and potential price points for products. The more research you do before launching your business, the better your chances of delivering a business and products that will drive customer growth and loyalty.
Products
Based on your market research and business focus, decide what products your new business should offer. Determine product lines, types of products and the anticipated price ranges. Match the product offering to the target markets you identified in your market research for maximum benefit.
Business Plan
Draft a business plan that outlines your business structure, product offerings, marketing strategy and financial plan. Include a profit and loss statement and an anticipated cash flow statement. Make logical assumptions, but don’t overestimate sales or underestimate costs. A well-crafted business plan creates a strong foundation for new business success.
Finance
Use your business plan to obtain financing from banks and investors. Make sure you obtain sufficient funds to purchase needed equipment and products with enough working capital to last until your business can establish a profitable routine. Lack of working capital can hamper your ability to firmly establish and grow your new business.
Purchasing or Production
Buy or produce your products. If you buy products, conduct a search of product sources and choose a vendor based on reliability, price and financing terms. If you produce your product, establish strong quality control methods to ensure an excellent product. Offering high-quality products when you first launch your business can help propel your business success.
Distribute
Distribute your products to stores or Internet vendors or sell through your own physical location or online storefront. Arrange displays and create an aesthetically pleasing environment to showcase your goods or services for sale. Correlate your product distribution schedule based on the quality of your products and the demand for your product. If you need time to develop your market, consider focusing on a smaller demographic. If you need to beat competitors to the market, consider a wide demographic distribution of your products.
Marketing
Market your products and analyze your initial success. Make quick adjustments to products or marketing to correct any problems or to enhance your targeting efforts. Provide comprehensive support options to merchants and customers to establish loyalty to your company that will lead to long-term business success.