A business start up refers to a company or brand that is in its early stage of operations.
Investopedia defines it as ‘companies or ventures that are primarily focused around a single product or service that the founders want to bring to the market’.
This blog post answers the questions any young aspiring entrepreneur might have including: the list of things required to start a business, how to start a business at home, steps to start a small business.
If you have no clue as regards starting a business, then this blog post was specially written for you.
Grab a note, and a pen, let’s dive in.
What does business start up mean?
When the word start up pops up, what comes to mind?
Oh well, before we go into proper definition; let’s look at some really important details of a start up:
• Often funded by founders, sometimes families, and friends or by using venture capitalists.
• It is always the initial stages of building a company
• The first few years of are very important for start ups, this is the time where these entrepreneurs concentrate on raising capital and developing a business model.
• Many start ups fail within the first year. Oh yeah, they do. That’s why you need to get started on the right foot, and this blog post has got you covered, so keep reading.
What are the right definitions of a start up?
A start up is a very amateur, or young company founded by one, two or more entrepreneurs to develop and bring a unique product or service to the market.
Wikipedia defines it as a ‘company or project begun by an entrepreneur to seek, develop, and validate a scalable economic model’
Now that we’ve laid the foundations of start ups and starting a business, it’s time to look into the list of things required to start any business.
See also: 5 Things You Must Do Before Starting a Business.
List of things to start a business
The good news is that all of the things that need to get done in order to develop an idea to a business have been done a million times before.
A lot of other businesses have crossed that path, so even if you want to get started from scratch you don’t need to reinvent the process, or waste brainpower on figuring out what to do.
The only thing you need is the right information.
I assume that you already have a business idea in your head you’re wishing to turn into a business.
You don’t expect to build something out of space, right?
Without further ado, let’s look at some of those things required to start a business:
1. Refine your idea
Refining your idea has to do with doing a quick research into the market you’re going into.
You’ll have to learn everything successful brand leaders have done, figure out if the market is too saturated, figure out what you can do differently, figure our your target market, and most important, know the ‘why’ of this business.
To get started right, you have to bring something different to the table, which is why you’ll need to get a solid business idea and a business plan.
2. Write a business plan
You’ll need to answer questions as regards the business you’re going into.
You need to ask yourself few important questions like:
Why am I starting this business? Who are my target audience? How much will it cost to get started?
These questions need to be answered in a well written business plan.
It’s always wise to pay the professionals to get this done for you.
Other elements a solid business plan should have include:
• Executive summary
• Market evaluation
• Market strategies
• Operational plan
Our business idea generator gives you access to instant business plans, business model canvas and up to 3 years financial analyses to help you get started for any business.
Click here to get started with our business idea generator
See also: Download 500+ business plans for any business.
3. Consider your risk appetite
Many businesses come with risks.
That is why it’s always a good idea to consider an exit strategy as you compile your business plan.
It helps you figure out how it will overcome any potential difficulties and what you need to sustain it.
4. Consider the costs
Starting any business requires capital, so you need to determine how you’re going to cover the costs.
Are you going to be working with a team? You’ll have to consider the cost of paying these people.
Many start ups fail because they run out of money before turning a profit.
Also, learn to watch your expenses so you don’t overspend when starting a business.
Other important list of things include:
5. Determine your legal business structure
You’ll need to get your business registered and recognized with a legal structure e.g Corporate Commission Affairs (CAC)
6. Build a team
Proceed to building a team and invest time and resources in training the people you intend to work for you.
7. Brand yourself and advertise
Good branding is always important for any business to thrive.
If possible, hire a brand strategist.
8. Grow your business.
Review the strategies intially put in place, continually see to the growth of your business.
Due to the pandemic, a lot of entrepreneurs have moved to working from home.
Starting a home based business can create flexibility in how your money is spent and how your time is spent.
To create a home based business that will yield profit, you’ll need to invest time and resources into finding out the right business for you and creating a plan.
Let’s take a look at some of the important steps:
How to start a business from scratch at home
1. Evaluate your skills and talents
A great way to start a home based business is to brainstorm your existing skills and how you can leverage on them.
You might also need to acquire other skills that will aid the work you choose to do from home like gaining tech skills.
2. Come up with a business idea
You’ll need an idea to start a business.
If you don’t have an idea yet; our Business Idea Generator is the best tool to use to develop an idea that suits your personality.
These ideas will come from the skills and talents you already possess. You’ll need to focus on evaluating your previous experiences.
3. Identify your target market and audience
Your target market is a particular group or segment of the population that are most likely to buy from use or use your services.
A good way to identify these people is to develop and create customer personas.
A customer persona is a fictional representation of your ideal customer based on psychographics or demographics research.
Other important steps include:
4. Research your competitors
5. Define your unique value proposition
6. Build a budget
7. Build your office
8. Get registered with a legal structure
9. Advertise your business
Market your home business leveraging on tools like social media, creating a Google my business listing, creating a website, and creating a word of mouth program.
Steps to start a small business
Starting a small business is not always as easy as it looks.
We have listed eleven important steps you can take to start your business – covering everything you need to know to run a successful business start up from scratch.
1. Conduct a market research
2. Get the necessary skills required to run your business start up from scratch
3. Write your business plan
4. Fund your business
5. Choose a business name
6. Register with a legal structure
7. Open a business bank account
8. Set up your business
9. Set up your space
10. Get a mentor
11. Spread the word about your business
Which business is the simplest to start from scratch?
- Software instruction.
- Homemade soap making.
- Delivery service.
- Social media management.
- Independent services.
- Selling on eBay.
- Pet sitting.
What business can a newbie start?
- Launch a dropshipping enterprise.
- Design and sell T-shirts printed on demand.
- Release your own book.
- Develop digital goods and online courses.
- Sell posters, greeting cards, and prints printed on demand.
- Start a nonprofit organization.
- Sell a service.
- Create a clothes boutique online.
What are the four fundamentals of a new business?
- Prerequisites for Beginning a Business
- A company or ownership structure.
- A certificate of registration for a business.
- A legal license or seller’s permit (as well as other legal documents)
- Source of financing
What type of business can I begin with $5,000?
- Individualized Instruction or Online Courses.
- Create an item and sell it online.
- Establish a consulting firm.
- Create an application or game.
- Become a real estate mogul.
- Virtual Assistant.
What are the top five most lucrative businesses?
- Business Consulting Services. If you have years of experience in your field and are an industry expert, you should explore consulting.
- IT Support, Consulting, and Repair Services.
- Providers of Cleaning Services
- Bookkeeping and Tax Preparation
- Auto Repair.
- Real Estate.
Now that you know the foundations of starting a business start up from scratch and a list of things you’ll need to get business started, go into the world and prosper.
