The 5 Steps You Need to Take When Creating Your First Business

Do you know the survival rate of new businesses is just 2/3rd?  Most new businesses survive for the initial two years, and then gradually decay. But since everyone loves to be his own boss, 543,000 new companies commence operations every month.

Yes, a strong foundation is essential to get the fruits of your investment and time. You can set this strong base by using the five crucial steps. Let us see what these steps are:

Step 1 – Unique Business Idea

Business ideas can make or break your business. Some people do not have any skills, but their business ideas are worth 1 million dollars.

Do not be confused, getting an outstanding business idea is not that difficult. Here are some ways of extracting the best ideas:

• Check Your Expertise

Ask yourself a fundamental question, "What are your strengths?" In which area you have the most knowledge and skills. If you are fluent in some language, you can start language courses, If you are a fantastic chef, a restaurant is a right pick, or if you have done specialization in anything, you can create your own service, like accountancy services, homeopathic service, psychotherapy consulting, etc. 

• Ask Friends About Your Talents

It can give you some ideas you have never thought about. Ask your friends for suggestions; sometimes, we are blind to our own talents, but they are apparent to others. See which of your abilities are inspiring others. For some people, you are good as a workout coach, while for others, you have fashion designing skills.

• Notice Your Weekend Activities

What do you usually do on weekends? Noticing your weekend routine will highlight things you are passionate about. If you pick something you are passionate about, you will do it with utmost dedication. If you spend your weekends searching for the latest designer clothes, reading fashion blogs, and looking at new trends in fashion, then the clothing business is waiting for you.

Step 2 – Get Loyal Clients

It may look like a daunting task, but it's not impossible. You can use several freelancing websites to reach your targeted customers. You must have heard about Craiglist, but standing out from the mob might look impossible. Yes, hundreds of people are joining every day. However, most of them are just trying their luck to nail the gig.

Just make sure to highlight your skills and stay above average from other people. You can take help from the following sites:

• Programmers (Gun.jo, Toptal.com)
• Writers (Upwork, Freelancer, MediaBistro.com)
• Designers (Designs.net, 99designs.com)

 Step 3 – Advertising Your Business

Now, you want to showcase yourself in front of prospective clients. While this is surely not an easy task, it is not impossible. More often than not, pitching your business to attract clients is the most exciting part of any business.

You can develop your in-house marketing team, or you can hire a marketing agency to develop a winning promotional strategy for your business. The right marketing strategy can make or break your business. The spokesperson for Carpet Cleaning Epsom, a professional cleaning service in the UK, states that their business was not doing well, so they decided to hire a marketing agency.

He stated that since then, their business has seen a significant increase in sales and new business. Study up on traditional as well as digital marketing trends so you can get your money's worth from the marketing consultant you hire.

If you are developing a strategy yourself, the following sequence is a winning formula:

• Prelude (Tell who you are)
• Offer (Discuss what can you do for them)
• Benefit (Share the benefits they will get from you)
• CTA ( Ask them directly to proceed)

Step 4- Set an Appealing Price

There is no one correct method for pricing. Some businesses charge a low price to place themselves as cost leaders while others charge premium prices to position themselves as luxury brands. You need to decide your business strategy to determine your pricing strategy. You can take assistance from the following methods:

• Looking at others

What are your competitors charging? Even if you charge a low price, it must be on par with your competitors. Do some research, visit websites, and check out forums to see what others are charging.

• Dropping the last three zeros

This method tells you your hourly rate by simply deducting the last three zeros from your estimated salary per month. For instance, your estimated salary is $50,000. Just omit the last three zeros. So, your hourly rate is $50.

• Multiplying the resentment number

Resentment number is the lowest amount for which you can work. For instance, you can work for at least $10 per hour. Now, you will multiply 10 by 2, so you will get $20. So, you will set the rate at $20 per hour.

Step 5 - Change Yourself Today

Now, you have an amazing idea at hand, have some good clients, and all the knowledge to serve them in the best way. You are all set to start your business, but you may be hindered by personal doubts.

We all doubt our abilities now and then, it's essential to remember that you can do this. Keep the following things in mind to keep yourself motivated and bring a positive change in yourself:

• There is no tomorrow, so never delay things
• Mistakes are an opportunity to learn, so learn from them
• Set small goals, achieve them and then make bigger plans
• Always think for the best and put your best to achieve the dreams

Hard times are sure to come your way: but remember, they are not an excuse to give up. Challenges can always be managed. High risks lead to high rewards. You just need an appropriate mindset, hard work, dedication, and persistence to succeed.  

Have you started any business recently? Share your ideas in the comments section!