HOW TO START A BUSINESS FROM SCRATCH
To successfully start and run a business you will have to follow the underlisted guidelines. This guidelines are not one of the several theories you have come across in many articles online. But it is a practical approach to starting a new business from scratch. I use it every time I start a new venture and it has not failed, with or without capital.
I may not be as old as you are in business, but my 9 years as the CEO of BIIS, income44, School ResultSet etc. has position me well to advise the younger business start-ups, based on my experience on the 5 practical steps to starting business from scratch .
5 PRACTICAL STEPS TO STARTING A BUSINESS FROM SCRATCH
- Choose a niche market (sectoral strategy)
- Find the needed product or service and research on it
- Product/Service development ( Personal, Synergy, Reseller, Partner, Merger)
- Start your business – Register, Capital funding, Staffing, Accounting & System and Processes
- Marketing & Promotion Strategy
I will be explaining each of this 5 practical steps to starting business from scratch below
CHOOSING A NICHE MARKET
So what is a niche market anyway? Well, a niche market is a specific subset of a larger market where a customer with a set problem or problems have been identified.
Entrepreneurs are professional problem solvers. We go about searching for human sectoral problems and challenges, find solution to them and make huge income in the gap. To make money in life you must be providing solution to some specific problems. This level is one sure level you must spend time on finding and analyzing the intensity and profitability of identified niche problems.
What Makes A Good Niche Market?
- What is the number of potential customers present in the market
- How much money is goes around in the niche, as not all niches are big money makers.
- What are the specific problems present with the audience in the niche.
- What are the products/service you can promote to this market
- What are the types and cost of traffic source.
- Is the niche an area of interest for you, Do you have at least some knowledge on it.
- How is the competition
Should I Follow Passion or Pick A Money Niche?
Find the needed product or service and research on it
- Make proper research as to what your customers really need
- Know in details what your competitors offer
- How can you make your products better than that of your competitors
- What are the overlooked details that customers really need that competitors are not providing
- How can you produce your product cheaper, to take advantage of economic of scale
- What are those hidden problem in the niche market that does not have a product or service yet.
- What product or service do you know that has less competition.
Product/Service development ( Personal, Synergy, Reseller, Partner, Merger)
If you can, you can produce your own product to handle the identified problem in the chosen niche market. But if you don’t have needed funds to start a manufacturing company, you can become a re-seller for an existing producer, you can think of buying in bulk and rebranding in smaller piece (if producer agrees to that).
You can also synergies with another firm with same vision to start production. etc. Your product or service at this stage must be made to solve the problem identified in the niche market or tackle specific areas of the product research.
- Ownership structure: Do you chose to go solo as in sole proprietorship, partnership or ltd. It all depends on the type and nature of the business you wish to start.
- Registering a business: In Nigeria you can register your business name for about 12000 Naira at the corporate affairs commission. This among other advantages of having a corporate identity will also help you get a company bank account to transact business professionally.
- Capital & funding: This is one serious area that has killed many entrepreneurial dreams. You will need money to start a business, but money is not the ultimate. You can get funds from angel investors, from plough-back method of capital generation
- Finding and employing the right Staff
- Account management, System and Processes
Except you put serious efforts to tell your target clients, nobody would learn about your presence besides your loved ones, associates and relations. Take applicable and efficient means to boost your enterprise. Varied types of promotion you can use consists of your local news-paper, radio channel, flyers, brochures, cable channel, billboards and so forth.
Asses each advertising and marketing channel to seek out out what might prove efficient promote your services and products to your target clients.