Small businesses require planning before getting started-even micro-operations like writing that one person can easily perform. Getting an idea for starting a business is a small first step usually made with excitement. Laying out the key business steps provides a framework that can lead to a profitable operation.
Business ideas and personal values
If a business idea aligns closely with personal values and traits then it's a good idea to explore the business further. The more complex an operation, like operating a profitable hardware store, the more closely aligned the business should be with personal values.
Say your background is a homeowner and you have experience shopping for great deals on home improvement projects - and you believe strongly in helping others save money - then having a business built around that value could be a wise idea.
Now you need to make a choice if it will be a business related to hands-on construction, a brick-and-mortar store, or an Internet-based model.
This leads to developing a mission statement for a business. A well-written mission statement should be brief yet state the qualities that make the business important. "Finding homeowners in XYZ region the best quality fixtures at the best price possible with unbeatable delivery options" may serve as a mission statement for a regional home improvement company whether in retail or a service-oriented business.
Determining a competitive advantage
Ask the question: "why would any customer purchase the product or service I offer?" Be prepared to give a thorough answer. Offering both price and value is always a winning combination, but it's also a rare combination. Having a low price does not mean that will attract customers since a low price may mean exemplary service is not possible.
Then ask, "who is most likely to purchase what I offer?"
Know the age, buying habits, and the problem to solve or the dreams they might dream.
When the product or service closely matches the needs or wants of the target customer, then the chance for making sales rises dramatically.
Financing and cash flow
Carefully estimate all the equipment costs associated with starting the small business. A website and business cards to equipment costs are part of the expenses. Factor in office space, utilities, and travel costs.
Then estimate how long it will take for paying customers to start making purchases. Determine how much profit is in one purchase.
Business ideas and personal values
If a business idea aligns closely with personal values and traits then it's a good idea to explore the business further. The more complex an operation, like operating a profitable hardware store, the more closely aligned the business should be with personal values.
Say your background is a homeowner and you have experience shopping for great deals on home improvement projects - and you believe strongly in helping others save money - then having a business built around that value could be a wise idea.
Now you need to make a choice if it will be a business related to hands-on construction, a brick-and-mortar store, or an Internet-based model.
This leads to developing a mission statement for a business. A well-written mission statement should be brief yet state the qualities that make the business important. "Finding homeowners in XYZ region the best quality fixtures at the best price possible with unbeatable delivery options" may serve as a mission statement for a regional home improvement company whether in retail or a service-oriented business.
Determining a competitive advantage
Ask the question: "why would any customer purchase the product or service I offer?" Be prepared to give a thorough answer. Offering both price and value is always a winning combination, but it's also a rare combination. Having a low price does not mean that will attract customers since a low price may mean exemplary service is not possible.
Then ask, "who is most likely to purchase what I offer?"
Know the age, buying habits, and the problem to solve or the dreams they might dream.
When the product or service closely matches the needs or wants of the target customer, then the chance for making sales rises dramatically.
Financing and cash flow
Carefully estimate all the equipment costs associated with starting the small business. A website and business cards to equipment costs are part of the expenses. Factor in office space, utilities, and travel costs.
Then estimate how long it will take for paying customers to start making purchases. Determine how much profit is in one purchase.
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