How To Build A Business From Scratch: Your Step By Step Guide
It is not an easy feat to build a business from zero to one, and anyone that tells you otherwise is either lying or is ignorant. If you have ever built anything from scratch, then you will know that the building process is not easy. As an entrepreneur or startup founder, it is very imperative that you understand the importance of a building process. If you get it wrong at the building stage, your business or company will definitely suffer in the long run. You are not the only one to have thought about starting his or her own business. Millions of people out there are drawing up a plan to start their own business.
Also related: How to avoid bankruptcy in your business
According to research, two-thirds of businesses survive at least the first two years while about 50% survive for 5years. This tells you that building a business system is not all about fat bank accounts and vacations. You need to put in the work and do the needful or you will be out of business before you even got started. The major reason for most of these business failures can be traced to the building process. How you build a business matter a lot. If you build your company carelessly, it will fall apart in the same manner.
The purpose of this article is to provide you with a step-by-step on the best way to build your business to stand the test of time. Oftentimes, you see great companies and businesses fall apart when people thought they had it all going for them. Let me make it clear that there is no complication when it comes to building a business from scratch. Let us consider the important tips on how to build a business.
Step-By-Step Guide On How To Build A Business
Critically evaluate yourself
Before you delve into starting your business, it is very vital that you do an honest evaluation of yourself. Identify the things that work for you and then structure your routine in line with those things. Do you perform better in a structured or unstructured environment? What are the things that you are good at? Do you have stage freight and so find it difficult to speak in public? Can you handle the rejections that will definitely come your way when you start your business?
All those questions and more are what you need to answer to enable you to identify your strengths and weakness before building your business or company. You cannot build a successful business when you don’t understand yourself. You may be very good at negotiating with people but bad at accounting. It means you would need to find someone that will complement that weakness in your team.
Evaluate your business idea
Whether your business idea is entirely new or an improvement on what is already in the market, it must be evaluated. In technical terms, this is called market research. You can contact firms that carry out market research for new products, but if you are on a tight budget, you can do that yourself. You should carry out your market research with different groups of people and be careful to identify patterns emerging about the things that these different groups like and don’t like. From the information gathered, you can slightly alter your product and services to suit their desires. You must understand that you can never create a universally accepted product, but you need to come with one that appeals to the greater percentage of your target market.
Create a well-detailed business plan
You cannot build a business without a plan. No matter how simple it might sound, your business plan is highly indispensable. Your business plan is the blueprint of how the business will grow from a simple idea to a physical entity. In your business plan, you must have such elements as an executive summary, market research, operational plan, exit strategy, etc. No matter what you do, don’t ever jump into starting a business without a well-detailed business plan.
Decide on your business structure
There are many options available for you but you will need the services of an accountant or financial adviser if you wish to know the right approach. There are different types of business entities such as sole proprietorship, partnership, limited liability company (LLC), and corporation. You must make a decision on the type of business structure that will suit your business goal and aim.
You can’t build a business without money and that is why you need to address your finances before starting a business. At this point, you must have estimated your startup funding. You need to know the amount of money that is enough to get you through the first full year. No matter the greatness of your business idea, without the needed capital. There are many ways you can source capital for your business. You can raise your capital by yourself. It is often the easiest but most times you might not have the needed amount to do that.
Friends and family members are other avenues from which you can raise money for your business. If the money doesn’t come from your friends and family members, then you would need to explore the banks as your last option. Always see the bank like your option unless the money you need can only be accessed from the banks.
Legally register your business
Once you have put in place the first five requirements, then it is time to go register your business. Different business structures have their peculiar registration requirements. Don’t make the mistake of running an unregistered business. At this point, you must seek the input of a legal practitioner to advise you on the best approach to take during the registration of your business.
Get your team together
You will need to select the members of your team to complement your weaknesses. Assemble people with a winning mentality and are goal getters. Surround yourself with people of like minds who understand the business and what it stands for. If you don’t like selling, get someone that loves everything about selling. Your entire team should be unbreakable as a team. Without a good team, your business might not reach its potentials. So, you need to careful when it comes to choosing who becomes part of your team.
Building a business from scratch can take your time, energy, and resources but it will be worth the sacrifice in the end. You need to do everything within your power to get it right at the building stage. The survival of your business depends greatly on how it was built.
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